4 Things You Need to Know About Checking Accounts

Finance & Money Blog

Few financial tools are as important in modern life as checking accounts. They make it possible to put money to use quickly while also keeping it secure until needed. Finding the right checking account financial solution for you, though, can be a little challenging. Take a look at what you should know about checking accounts before selecting one.

1. Fees

Although free checking accounts are fairly common, that's not quite the same as an account being fee-free. There's a good chance an account will include an overdraft fee, a charge for any payment made that isn't covered by cash already in the account. Likewise, there is usually a fee for printed checks. You might also have to pay a fee for the replacement of your card.

2. Balances

Some accounts require minimum balances. This is especially the case when an account includes interest. Most accounts that are interest-free don't have minimums, but some banks will close those accounts if they're drawn down to zero.

3. Online and Mobile Banking Systems

Although it's still wise to maintain a handwritten ledger of what you're putting into or taking out of your account, you're probably going to want to have digital access to your balance. It's a good idea to ask around about the online and mobile banking options that each institution uses. While few people will adore their online banking setup, it's still a good idea to listen to folks who've had major problems with their banks' systems. If you plan to have additional accounts, especially savings accounts, ask about how they can be connected to your checking.

Notably, many banks now have automated payment systems tied to their checking accounts. These can be very handy for people who need to keep bill payments simple. Ask about the service your bank uses for bill payment, and make sure whoever you'll be paying is able to use it, too.

4. Cards

The typical checking account now includes a debit card. This is a zero-fee credit card that's backed by the balance in your account. Most debit cards used in the U.S. are issued by either Visa or Mastercard. Both are highly dependable, and they're accepted at most businesses across the world.

It is still possible to get an ATM-only card for your account. However, if you want this option, you'll probably have to directly ask for it. You'll have to do the same if you don't want a card at all and wish to either use electronic transfers or written checks.

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10 July 2020