How much do you have to pay each month for your checking account? There have never been more banks that offer free checking than there are now. A free checking account is one that doesn't charge a monthly service fee or a fee for each item, like a check. For example, some banks let people with checking accounts write up to ten checks per month. After that, they start charging a small fee for each check written after that.
If you have a checking account that doesn't charge you anything, you can write as many checks as you want each month without being charged. It also lets your balance go to $0 without any fees or other penalties.
Many people may be surprised to learn that it's usually easier to find a free checking account at a small or local bank. Smaller banks are always looking for ways to get more customers, and offering free checking is one way to do that. This doesn't mean that no big banks offer free checking, but on average, smaller banks are more likely than big banks to do so.
Make sure to ask about ATM fees when you are looking for free checking accounts. Some banks that offer free checking accounts will also let customers use ATMs on the premises for free. Some banks might charge a small fee for this service.
Even though it is getting easier to find free checking accounts for simple accounts, it is not the same if you want a free checking account that pays you interest. Most checking accounts that pay interest also charge fees to help cover the extra costs of running these types of accounts. But there are a few banks that offer free checking accounts with interest, and most of these are online banks. One study found that 28% of online banks offer these types of accounts, while only 1.6% of interest-bearing accounts at traditional banks could be called free.
People should be careful when it comes to checking accounts that are free. What one bank calls a free checking account, another bank might not. In fact, some banks are happy to say that their checking accounts are free, but then they charge a fee for something every month. Because of this, people should read the bank's rules and ask questions before signing up.
Some banks will give you free checking if you meet certain requirements. In some cases, this means using direct deposit or having your own home. It could mean always having a certain amount of money in the account. It could mean almost anything that the bank wants it to mean.
Some banks offer free checking accounts as part of a package deal. For example, they might give you a free checking account as long as you buy a CD or do something else to invest your money. People should be careful before signing up for these deals. The option to check your account for free might sound like a great deal, but the other choice might cost you. The best thing to do is always to find a free checking account with no strings attached.
