ATM access: If you want to use ATMs, find a bank that has its own ATM network, gives fee-free access to a larger partner network, or offers monthly refunds for out-of-network ATM use. Many offer one of these features.
Good customer service: Choose a checking account with good customer service. You can look up reviews on Trustpilot. If you prefer in-person service, consider opening a checking account with a brick-and-mortar bank. Online banks typically let you connect over phone, text, email, chat, or direct messages. Find an account that communicates your style.
Overdraft protection: If you tend to overextend your finances, it could be beneficial to find a checking account that offers overdraft protection. This might be in the form of linking another bank account, a credit card, or opening a new line of credit. Be aware that banks often charge for overdraft protection services. Another option is to bank with checking accounts that automatically reject attempts to overdraw, sparing you any fees.
Incentives: Some banks offer interest-bearing checking accounts. The interest earned is usually lower than you would find with high-yield savings accounts. Rewards checking accounts offer cash back or other rewards to account holders.
FDIC insurance: When you open a new bank account, you want to know that your money is safe. Look to see if a bank is FDIC insured, which means your money is protected up to $250,000 per depositor. Most bank accounts are FDIC insured.
What fees are associated with checking?
Depending on the account, your bank may charge you various checking account fees. You'll find some can be waived if you meet certain criteria -- like maintaining a minimum balance.
Common fees:
- Monthly maintenance fees
- ATM fees
- Overdraft fees
- Non-sufficient funds (NSF) fee
ATM fees might be charged by your bank or by other banks if you use an out-of-network ATM. These fees used to be a big source of income for banks, but now you can find plenty of good banks that have fee-free ATM networks.
Banks sometimes charge fees for additional services, like check orders, money orders, wire transfers, paper statements, and more. Take a few minutes to read through the fee schedule of your favorite account to avoid hidden fees.