There are all kinds of checking accounts out there. Banks offer all kinds of options and perks on these checking services, too. What options and perks are you looking for? Are you aware that some of those perks come with fees and restrictions or requirements? Depending on what draws you in, you should be looking at the fine print. Here are some examples of different perks and options on accounts offered by many banks, and what you have to do to get them.
FREE Checking Account
Like a good starter home, this is the checking account most people get right when they enter the adult world. It is easy to do direct deposit of paychecks, government benefits, and tax refunds, plus you get a debit/check card you can use anywhere. Some banks will still charge you a fee to print a box of checks, while others will not charge you to print your first box. Depending on the bank or credit union, you only need between five and fifty dollars to open this type of account. Bounced check fees, however, can cost up to fifty dollars, and there are overdraft fees charged to this type of account as well. It helps to learn how to manage your money very well.
Interest-Bearing Checking Account
This is the next level up from most free accounts. You have to make a higher opening deposit, and keep a balance of "x" number of dollars in the account daily/monthly. However, in exchange for following these rules/requirements, you get free checks, interest on your deposits and balance, reduced NSF and overdraft fees, and you can apply for overdraft protection, which acts as a short-term loan to protect your account from excess fees as a result of minor checkbook balancing errors. If you dip below the required balance/deposit amount, you may be fined until you bring the amount up.
Interest-Bearing and Investment Checking
This is for people who want their checking to go to a whole new level. You decide what, how much, and when to invest, and the bank pulls it on a regularly scheduled date from your checking and places it into investments for you. You also earn interest on your balance. As your investments begin paying dividends, you can choose to put the dividends back into your checking, or reinvest them in more investments. Most of the basics of checking are free, but the opening balances are often steep; five to twenty thousand dollars depending on the bank.
Share17 July 2019
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