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Five Things To Consider When
Choosing A
Checking Account
Not all checking accounts are created equal. If they were, banks wouldn't compete so hard for your business. How do you choose a checking account? If you are still unsure, here are five things that will help you to make that final decision.
1. What are your needs? The biggest question is the one that only you can answer. Customers look for different things in their checking accounts. Maybe you want overdraft protection in case you need extra money one month. Is it hard to keep money in the account? A checking account that penalizes customers for not maintaining a certain balance would not suit someone who barely keeps funds in their account.
2. How many checks can you write? Yes, there are people that still use checks out there. For them, the amount of check writing they can do each month is crucial. Some banking institutions or credit unions are liberal and offer customers the privilege of writing up to fifty checks without a fee being charged. Some banks only allow ten checks a month on any one checking account.
3. Are there perks to keeping a high checking account balance? Checking accounts can be used as a vehicle to make some money. Those that can maintain a higher balance have the option of opening an interest bearing checking account. Don't overlook this fact. If you open such an account and don't maintain the balance, there will be penalties charged. Some minimum balances required can run around $250 dollars or more.
4. What are the fees? This is the question that we can forget to ask, and then it comes back to bite us later on. It seems that there are fees for everything these days. The last place you want to get taken advantage of is at your bank. Banks that use an overdraft account instead of a savings account charge fees if the account has to be used. Writing too many checks incurs a fee. Some checking accounts charge maintenance fees for the privilege of having an account at their bank. These fees add up quickly if you are not careful.
5. Can I view my statement online? Not all banks offer online banking for their customers. Online banking allows customers to view their accounts as often as they like. They can view details of transactions and move money from one account to another. Online services also include viewing and managing investments and applying for loans. Every customer has to apply for permission to access their account online. This keeps their account secure.
Checking accounts have many options these days. For the customer looking for an investment vehicle, an interest checking account is a good choice. For the customer who needs every cent of their money, free checking accounts are a better option.
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