Are Free Checking Accounts Worth It?

Many banks offer free checking accounts. Saving money on monthly maintenance fees is a good thing, but signing up for these accounts usually comes with some conditions. Among the requirements you may come across when shopping for free checking are:

• Minimum balance requirements must be met to avoid monthly charges
• Making too many withdrawals and transfers during a statement cycle could result in fees or maintenance charges
• You may be required to set up regular direct deposits for fees to be waived
• Some free checking accounts do not earn interest
• Interest rates may drop if you don’t meet the requirements for free checking
• Some banks may require you to link a free checking account to one of their savings accounts

Shop around to compare free checking accounts from several banks. In addition to low or no minimum deposit requirements, you may be offered a cash bonus for opening a free checking account. Some banks also offer merchandise such as cameras or gift cards for opening an account. Other incentives to open a free checking account include free checks and debit cards.

Take time to read through all the terms for opening a new checking account to understand all the fees and rules. Most banks have information on their websites about the types of accounts they offer.

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