1. Minimum Balance Requirements. If you never had a checking account before, determining what minimum balance you will be able to maintain can be difficult. Most banks will use average balances when calculating minimum balances. This is determined by taking the sum of the account balance each day divided by the number of days in the month. If you have an existing checking account finding your average balance is as simple as looking at past bank statements which will include your average balance for the month. If you never had a checking account before, I recommend you find a bank that offers a free checking account.
2. Free Checking Account. Yes, you can still find free checking accounts out there, although most will have requirements such as direct deposit for your payroll, limits on conducting banking with a teller or minimum age requirements. Make sure you can meet the requirements before opting for the free checking account.
3. Don’t Chase the Rates. Interest rates are currently abysmal and interest bearing checking accounts often have high fees when you fail to meet minimum requirements. Unless you know for certain you will maintain the minimum balance required to avoid fees, I would steer away from an interest bearing checking account.
4. Consider Changing Banks. If you are getting hit with fees each month at your existing bank, consider changing banks. There should be no reason for you to pay any fees for your checking account.
There are also add on services to consider when choosing the right checking account based on your needs. These should be the essentials:
1. Debit Card. A debit card is used like a credit card except it is tied to your checking account. Whenever you make a purchase, the amount is deducted from your account balance. Think of it as an electronic check. It eliminates the need for you to carry around a lot of cash and is more convenient than trying to write a check. In addition, the debit card can be used to withdraw money at ATMs. Never accept your bank charging you a fee for the privilege of a debit card. It should be free.
2. ATM Network. Check where ATMs are located that you can use for free. This is especially important if you travel outside the Bank’s primary area of operation or if you decide to open an online account. If you use an ATM outside of the Bank’s network, you will be charged fees that can quickly add up.
3. Online Banking. Online (internet) banking is great way to keep an eye on your account balances. Although certain add on features such as bill pay may cost you, the basic service should be free.
4. Mobile Banking. Allows you to access your account from a smartphone and may require a secured app you can download. It is a great way to bank online and the apps can also direct you to the nearest branch or ATM.
5. Telephone Banking. Telephone banking allows you to use a phone to do a variety of bank functions such as checking your account balance, making transfers etc. The service should also be free and is a good backup to have in case the internet is down.
These add on services are nice but often cost money. Make sure you weigh the advantages:
1. Debit Cards with Rewards. Seems like a great idea. Every time you use your debit card, reward points are given that can be redeemed for various items. But these cards often come with hefty fees. Make sure they are worth it to you. In many cases they are not.
2. Bill Pay. Once offered as a free service, many banks are now charging a monthly fee for allowing you to pay bills online through your online banking account. If this is important, look for banks that still offer this as a free service.?
That depends on the bank. Some require $100. Credit unions require less. Around here, just 5 to 25. And credit unions are owned by the members, so it's a better thing. YOu get a voice in what they do.
Each bank is different, and each type of account is different, go to a banks website and look.
It varies with each bank, and account type.
