Why You Should Look For Checking With No Monthly Fee

Checking accounts are essential to pay your expenses, make purchases, and transfer money to friends and family. However, if you look around at your local brick-and-mortar banks, most charge fees for a checking account.

Who wants to pay fees to store their money? That’s why it’s essential to look for checking with no monthly fee.

What Are No Fee Checking Accounts?

No-fee checking accounts are bank accounts with check-writing privileges that don’t charge monthly maintenance fees. Many banks charge a fee just to have a bank account!

Some banks offer ways to waive the fees, like carrying a minimum balance or making a certain number of debit card transactions, but why deal with the hassle?

What Are the Most Common Checking Account Fees?

The number one most common checking account fee is a monthly maintenance fee. Again, a fee just to have the bank account. They range from a few dollars to $10+ per month.

Other typical checking account fees include:

-Minimum balance fees
-Overdraft fees
-Non-network ATM fees
-Teller fees
-Wire transfers
-Stop payment fees

Checking with no monthly fee means no maintenance fee; you may incur some or all of the additional fees above, so always read the fine print or ask before applying.

Why is Checking With No Monthly Fee Important?

So why should you consider checking with no monthly fee?

Consider these reasons:

-Save money – Let’s say your bank charges $7 monthly for a checking account. This means you’ll pay $84 a year to have an account. If the account pays no interest, you lose $84 a year just to bank your funds. Even if they pay interest, the earnings will be minimal. For example, a 0.10% interest rate compounded monthly on $500 is $0.50 annually. That’s not worth paying a monthly fee to obtain.

-Less stress – Most banks that charge monthly fees require a minimum balance or other factors, causing stress to account holders. If you don’t meet the requirements, you pay a fee, which decreases your bank balance and messes with your budget.

-Convenience – Most banks with no monthly fee exist online, providing 24/7 access to your bank account and funds and simple ways to track your money.

Factors to Consider With a Checking Account With No Monthly Fee

When choosing checking with no monthly fee, consider these factors:

-What other fees do they charge?
Many banks with no monthly fee sneak fees in other ways, such as ATM, teller, or minimum balance fees. Ensure the ‘other fees’ won’t be something you must work around or look elsewhere.

-What are the requirements?
Ensure you can meet the requirements of the checking with no monthly fee account. Besides a minimum balance, they can require a certain amount of direct deposit funds, a minimum DAILY balance, or that you fit within a specific age range. Read the fine print.

-When is customer service available?
Banks that don’t charge a monthly fee may have limited access to customer service. Find out how and when you can contact customer service to ensure it fits your needs.

-Does the account pay interest?
Many checking accounts do not pay interest, but some do. Always look for a checking account that doesn’t charge monthly fees AND pays interest. Even if the interest is minimal, it’s better than nothing. Every penny counts.

Final Thoughts

Checking with no monthly fee is the best way to go. You can deposit your funds and not worry that they’ll disappear from paying bank fees.

It’s essential to look at every bank requirement to ensure you’re getting a truly ‘free checking account.’ Many banks advertise ‘free checking’ but then get you with other fees for services most people use.

Knowing what to look for in a checking account will help you make the best choices and help you grow and keep your money where it belongs, in your bank account.