A checking account, also known as a demand deposit account, transaction account, or current account, is a type of deposit account that you open at a credit union, online bank, or brick-and-mortar bank to deposit and withdraw money. Below, we compare the different checking accounts you can open, helping you decide which one is right for you.
Types of Checking Accounts
There are different types of checking accounts you can open, including:
- Regular Checking Accounts
A regular checking account has incredible features, including bill pay, debit cards, paper checks, direct deposit, and ATM access.
Regular checking accounts usually have their own fees (such as maintenance, overdraft, and ATM fees), which you can avoid by maintaining a certain balance. Additionally, many regular checking accounts offer unlimited check writing; however, they do not pay interest.
2. Free Checking Accounts
Typically, free checking accounts do not charge fees for depositing, withdrawing, or transferring money, fees per number of transactions, or monthly maintenance fees. However, some may have their fees, including overdraft, foreign transaction, or ATM fees.
Many free checking accounts offer limited services and do not pay interest since you are not required to pay a monthly fee.
3. Premium Checking Accounts
Generally, premium checking accounts require you to keep a large balance or meet certain criteria to avoid monthly fees.
However, they have attractive benefits, including free check printing, a free safe deposit box, higher interest rates, and waived ATM fees.
4. Second-Chance Checking Accounts
Second-chance checking accounts help individuals with negative account balances or a history of excessive overdrafts. Second-chance checking accounts usually carry higher fees.
They also have more restrictions than other checking accounts, including lower maximum withdrawals and the inability to overdraft the account.
5. Student Checking Accounts
Student checking accounts are usually for students aged between eighteen to twenty-three years. They come with a suite of benefits, including free checks, overdraft forgiveness, no maintenance fees, and ATM fee reimbursement.
6. Senior Checking Accounts
Senior checking accounts are usually for individuals aged between fifty-five and sixty years. You should open checking account near me if you are within this age bracket and enjoy its many perks, including waived monthly maintenance fees and free checks.
7. Business Checking Accounts
Business checking accounts help businesses run. For example, a business can have one checking account for operating expenses, another for payroll, and another for expenses associated with the day-to-day running of the business.
Business checking accounts usually charge extra for transactions that surpass a certain amount.
8. Rewards Checking Accounts
Rewards checking accounts offer perks when you meet certain monthly requirements. These perks may include cash back, ATM refunds, airline miles, shopping discounts, cell phone insurance, and high annual percentage rates.
Opening a Checking Account Near Me
Whatever your situation, there is a checking account for you. When shopping for a checking account, have the factors that are important to you in mind. For some, avoiding fees is a top priority. You should also consider the availability of ATMs and the minimum balance requirements.
