How to Choose a Checking Account

Believe it or not, your relationship with your bank is one of the most important facets of your life. All your economic activities related to income or expense is directly dependent on the kind of service your bank offers. A slightest delay or problem in your banking could easily ruin your financial wellbeing.

Did you know that you have a lot more choice in selecting a checking account? You don’t have to go to just any bank around the corner. You can actually start comparing all your available options actively and even shift to an account that offers better services.

Check the banking cost

The first thing you must do is the cost of maintain a bank account. Don’t you think it is shady of the banks to take your money and charge a fee for it? Sometimes, the checking account maintenance charges are notoriously high which makes you indebted to the bank for maintain your own money. Now that sounds disturbing.

However, you will be glad to know that there are many banks that offer you a free checking account. Yes, these bank accounts do not charge any amount for account maintenance. Generally, you spend $144 per year on checking account maintenance charges. However, by choosing a free checking account, you get to save $144 and earn some extra interest too.

Beware of the fees

Have you ever wondered how much money you pay to your bank for using its services? Apart from the account maintenance service charges, the bank debits your account for ATM fees, issuing of check books, cards etc. Such unnecessary expenses can be avoided by choosing a bank that charges lower fees or scraps off at least some of the fees. Overdraft is often the costliest service to avail. So be careful about handling your finances and make sure that your bank doesn’t charge you unnecessarily.

FDIC Insurance

Few people know that banks are often FDIC insured. This helps in protecting your funds from damage up to $250,000 in case of a mishap. Before choosing a bank, ensure that it carries FDIC insurance. After the 2008 economic meltdown, it has become important for consumers to ensure that they get protection of their funds. If the bank is FDIC insured, the government becomes liable to pay your money back if the bank ever faces a problem, shuts down etc.

Easy deposit and withdrawals

A checking account is not a place where you hoard money to earn interest. Therefore, you need to find a checking account where you can make easy cash deposits and withdrawals. If you must pay extra money for deposit and withdrawals on a regular basis, you have your money deposited in the wrong bank.

Most people are either indifferent to their banks or feel troubled with lags, delays, and bad customer service. Banks often lure you into opening an account with different offers but eventually start charging you excess fees. Has your old banking account stopped working for you? Shift to a better checking account right now!