Tips for finding the best checking account
Owning a checking account may be especially convenient today, because actual cash is virtually disappearing in most commercial transactions. Apart from a credit card, many people have begun carrying checkbooks instead of coins and paper money. Everyday transactions such as purchasing groceries or paying for utilities can be completed through writing checks. This would also be possible for more formal business needs. Essentially, anyone can open a checking account.
Most banks can offer a variety of account types. Each is equipped with services to suit a specific set of needs. As the client, it is your job to figure out what those needs are. What do you want out of your checking account? First, try to assess how many checks you write every month. Certain types of accounts offer a limit to the number of checks you can write out. For instance, a basic account can allow up to about eight to ten checks for a period of thirty days. On the other hand, a free account does not impose restrictions on the total of checks you sign for a given period.
It is also helpful to decide if earning interest is important to you. Some checking accounts do pay interest, but require a higher minimum. This means that you will have to maintain a large balance in order to qualify for the interest reward. Checking accounts are most effective when used as storage for money you intend to spend soon. A higher minimum would imply taking away from the money you need for immediate transactions. If you are thinking of putting money aside for the future, it may be wise to open a savings account. These accounts, in particular, have better services for long-term saving.
Banks offer a variety of services with checking accounts. However, many of the more specialized services may require an additional fee. These small charges may eventually grow to a substantial amount in the future. The truth is you can do without these extra fees. If you merely need a checking account to take care of spending and expenses, you may opt for a free account. These are rarely charged monthly fees and sometimes provide free checking. Be wary of banks that assess monthly fees regardless of the amount you keep in your account.
Another factor you might want to consider is the bank itself. Ultimately, it is best to find a bank that you are comfortable with. There are a number of factors that can help you decide if a bank will work for you. For instance, you can look into the type of services they offer. Do they have ATM machines in strategic locations in your town? How many branches do they have in your area? What are their banking hours? It may also be a good idea to check out online banking since many business transactions are performed electronically anyway. Also, online banks offer free accounts that have no monthly fees and do not limit the number of checks per month.
When choosing a checking account, it may be helpful to review your history with bounced checks. If you are thorough with your financial records, particularly your checkbook, you have little to worry about. However, if you have failed to make payments on even one or two checks, you may want to think about purchasing overdraft protection. This allows the bank to assist you if you happen to write an overdrawn check. This happens when you write an amount that is well beyond your remaining balance. A bounced check can mean larger fees from the back and a potential lawsuit from the establishment you owe. Some banks can provide excellent safety nets for such an instance. They assist by covering the excess with money from another one of your existing accounts.
