Did you know that 1.7 billion people globally do not have checking accounts? Some people do not have one because they do not have jobs, while others choose not to have one because they prefer using cash instead of cards. If you currently do not have a checking account but are considering getting one, you should start looking for the right bank. Here are some of the primary factors to look for when choosing a checking account.
1. The Fees
One of the essential factors to consider when choosing a checking account is the fees the bank charges. If you want an account with the lowest fees, you might want to stick with looking for a free checking account. A free checking account does not require a monthly fee. In fact, these accounts have no fees, except for those charged for insufficient funds. Every bank charges fees if you overdraw your account, so you should not factor this into your decision.
The second factor to consider is the location of a bank. You can bank with any institution you choose. Some banks are local, which means you can visit a branch in your area. Other banks offer online services only. Online banks might not offer as much convenience to you, but they can still provide many advantages. You should not limit your search to your town, as online banks and other institutions might offer excellent free checking accounts.
When you get a free checking account, you might earn interest on your money. Some banks pay interest on checking account balances, while others do not. If this is essential for you, look for a bank that pays interest.
4. Rules and Limitations
Another vital factor to evaluate is the account's rules and limitations. Evaluating this aspect of free accounts is essential as you will find many differences. The first place to start is by checking the minimum balance requirements. A minimum balance requirement is common with many banks, but it is not a standard rule. If a bank has this rule, you must keep a specific amount of money in your account. If your balance falls below this amount, the bank charges a fee. Some banks might have a minimum balance requirement of $500, while others might set the amount at $5,000.
One other aspect of this factor to evaluate is the limitations banks set on the number of transactions you can have each month. Many banks have limitations on the number of transactions, but some banks do not have these rules. If you find a bank with this rule, find out the number of transactions they allow. It might be five per month or ten, but it could be higher than this, too.
5. Free ATMs
It is essential to find a free checking account that offers ATM services in your town. If you choose an online bank, they might not have an ATM machine in your area. However, they might allow you to use specific ATMs for free. You should find this out when opening a new account if using your ATM card is important to you.
6. Online Banking Services
Finally, it might help to compare the online banking services that several banks offer. Online banking allows you to handle your banking needs through a computer, laptop, or cellphone. Online banking aims to provide convenience to customers regardless of their location, so using online services can be extremely helpful and useful.
Choosing a bank that offers free checking accounts is a wise decision. If you have questions about free accounts, contact a bank of your choice today.Share