If you are going to open a checking account, then there are several different factors that you will wish to keep in mind. Different checking accounts have various features, and some might be more vital to you than others. Here are some features that checking accounts have that might be more or less important to you depending on your financial priorities.
Minimum Balance Requirements
Some banks or credit unions want you to have a minimum balance in your personal checking account, or else you will be penalized. That penalty will usually come in the form of a service charge that will be deducted from your account until you rectify the situation. The amount that needs to be in your account depends on the financial institution. It could be as little as $100, or as much as $1,000. You should certainly ask about that if you’re opening an account, but it is generally understood that better checking accounts are the ones that have no minimum balance requirements.
Other Fees
When opening a checking account, you should ask about any additional or hidden fees, and check the fine print carefully. A minimum balance fee is one of the more common ones, but there are all kinds of other more exotic charges that might apply to some accounts. You want the banker with whom you associate to speak to you in plain English and explain what fees are involved with the account. If there is any attempt at obfuscation or if the banker seems to be trying to talk over your head, you’re probably better off going to a different bank.
Free Bill Pay and Online Banking
Almost all checking accounts these days let you pay bills online and do your business through the bank’s website. You should be able to check your balance, transfer money, or any similar transaction without having to go into a bank branch physically.
A Phone App
You should also make sure that the bank has a phone app. It’s bound to make your life easier if you need to deposit a check or do some other piece of business on the go. It would be rare in the modern era to find a bank that doesn’t have an app for mobile devices, but you should still ask when you’re setting up the account.
Free Use of ATMs
Ideally, the bank or credit union with which you open a checking account should have plentiful ATMs, any of which you can use for free. You should get a free debit card along with your checking account, and you’ll be able to use it at any ATM to access your cash. While it’s true in most cases that you won’t be able to use the card and withdraw money for free from ATMs that are not in your network, at a minimum you shouldn’t be charged any fee for the network ones.
In addition to these different features, there are often incentives these days to open checking accounts with different financial institutions. You should carefully compare what is being offered by each of them before you make a decision. There might be one that emerges as a clear winner based on some offer that appeals to you.
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