Most banks checking account are used as a means of paying bills and holding money until it is needed. The cash deposited into a checking account is usually there temporarily unlike money deposited into a savings account. Therefore, when choosing the right bank to open your checking account you want to look for a bank that is flexible enough that your money can flow freely in and out without hassles. Whether your money moves through in-person deposits and withdrawals, through writing checks, or the use of a credit or debit cards, you want to look for the least amount of restrictions you can find.
Types Of Checking Accounts:
There are several different types of checking accounts to choose from. A basic banks checking account is the simplest to set up. You are usually given a checkbook that allows you to write checks and a debit card for withdrawing cash without going into a physical bank. These accounts don't pay interest on the money that you don't spend but they offer very few restrictions on your spending habits. As long as you maintain a minimum monthly balance you can expect to pay very low monthly service fees.
Premier Checking Accounts:
A step up from the basic account is the premier checking account, which comes with a few more perks. Usually with this second-tier type of account you get free checks, perhaps a safety deposit box, or you can have your fees waived if you use an ATM machine that is out of the bank's immediate network. They often pay interest on the savings portion of your account but in exchange for these new perks, you'll likely have to maintain a higher minimum balance.
Another type of banks checking account is the interest bearing checking or a brokerage account. These are usually offered by brokerage firms connected to your bank and pay even higher interest rates but they come with more restrictions than the traditional banking account and the monthly minimum balance can be considerably higher.
When deciding on which type of checking account you need, there are several things to keep in mind. First you want to consider your unique needs. Think about how much money you are planning to keep in your account. If this amount does not meet the banks minimum monthly balance, expect to pay fees to keep the account open. Compare those fees with your ready cash flow to determine which one will be more affordable.
You also want to consider your checking account lifestyle. If you plan on making frequent withdrawals make sure that the bank doesn't have limits you won't be able to meet. If you plan on traveling a lot make sure the bank has ATMs in the location you're going and find out what the charges are if you use out of the network ATMs.
Don't forget to compare online banks with traditional banks. They both offer similar features but you'll find a vast difference between the two. It takes time to find a good bank for a checking account that meets your needs but if you carefully compare them, you'll definitely find one that you'll be able to live with.