In this write up, you will know the 6 steps to choosing the best checking account in the America, Europe and Australia. You are always free to open a checking account anytime. But we will show you what to look for when opening a bank account with free checking and no minimum balance. You can still choose the bank that requires minimum deposit depending on your choice.
But first, what is a Checking Account?
In banking system, a checking account is a tool for storing money you prefer spending from time to time. This type of account is different from a regular savings account, which you use to save money for future use.
Now, making the right choice for a checking account isn’t as simple as ABC. Meaning that it not as easy as opening an account at a bank near you. Therefore, you really want to discover the particular one that will help you to meet your goals. It has to be affordable as well as easy to access and use. Below are 6 steps on how to choose the best checking account for use:
1. Decide what kind of checking account you need
Specifically, there are different types of checking accounts. However, the best choice depends on what you want your checking account to do for you as an individual. There are 4 types of checking accounts to choose from:
- Standard checking account: This type of account doesn’t many bells, whistles or alarms. All you might want is a place to keep your spending money. Also, for anything fancier, its sure that you’re more interested in a savings account or CD.
- High-interest checking: If you are looking to gain interest in your account, this is the one to choose. This type of account will help you earn money (interest) on top of your money. Its not like most checking accounts which you won’t get interest payment. Check well, and you can find interest checking accounts at many types of institutions. However, note that they’re most commonly at credit unions. Records show that credit unions often to pay the highest rates on checking accounts.
- Cash-back checking: These accounts also help your money work for you. Take an example; the Discover Cashback Debit Account pays 1% cash back on up to $3,000 purchases each month. That means you can get up to $30 per month, or $360 annually.
- Other types: This type of account is for underage people. You can use it if you want to open a checking account for your children or college student. Lastly, there are other banks which has checking accounts that waive fees for senior citizens/retiree.
With all these in mind, you should now know the type of checking account you want to solve your requirements. It will finally help you to narrow down your search.
2. Choose Online or in Physical Account Tyoe
The question to as yourself is; do you want to open a checking account at a brick-and-mortar bank or at an online institution?
Personally, I know there’re some people who do not really like online business. Therefore, if you can choose Brick-and-mortar banks are good if you want the option to walk into a branch and speak with a professional. However, it is worthy to note that online banks usually charge lower fees.
Going forward, if you want a high-interest or cash-back checking account, you’ll have better options with online banks and credit unions.
3. Make sure the Bank is Accessible with Branches
Nobody likes stress. So, you probably want your transaction to be as easy as possible to access your money. Therefore, if you’re going with a brick-and-mortar bank, just ensure there are close branches. Also be sure there’s are ATMs near your home or office. Also, if you’re the type that travel domestically for either business or personal trips, you may want a company with a large branch/ATM network. All this is to help you access your money when you’re away and speedily.
On the other side, some online banks have ATM networks, too for transaction. So make sure there are nearby machines you can use free of charge.
4. Look at Monthly Service Fees
You can review the service fees of a bank. The monthly service fee is the amount of money a bank charges you for working with the company. The fee is usually automatically withdrawn from your account each month. It ranges from withdrawal charge, transfer fee, SMS charges, stamp duties etc.
Most of the online banks rarely charge monthly service fees. Brick-and-mortar banks on the other side, usually impose fees on users. But you can usually waive them by maintaining a minimum checking balance or setting up direct deposits.
On the whole, monthly maintenance fees can really add up with time. In that case, you probably want to either choose a checking account with no fees. Additionally, you can choose the one that makes it easy to waive fees.
5. Think about other fees when open Open Checking Account
Normally, people usually face several types of fees with your checking account. So, you can consider the following fees when choosing an account:
Commercial Banks typically charge $30 or more each time you overdraw money. So, if you’re not comfortable about this fee, you can as well choose an online company that doesn’t charge overdraft fees.
Varo or Chime are examples of online banking system. Note that if you want to make a purchase that may overdraw your account, the banking platform simply denies your transaction.
Alternatively, you can locate a bank that offers free overdraft protection. An example, is by linking your checking account to a savings account. Then, the bank would transfer money out of savings to cover any overdrafts. Do not forget, some banks still charge for overdraft protection, so find one that does it free of charge.
Out-of-network ATM fees.
In the US, there are banks and credit unions that mostly have free ATM networks. But some will still charge you for using a machine outside of that network. Secondly, the ATM provider charges an additional fee.
If you think you’ll use out-of-network ATMs frequently, open a checking account with no ATM fees. You may even choose the one that refunds fees charged by ATM providers, like Ally Interest Checking or Axos Bank Rewards Checking Accounts.
Foreign transaction fees.
In a case of foreign trips, do not expect to use your debit card abroad? Invariably, you may want a checking account that doesn’t charge foreign transaction fees, such as Schwab Bank High Yield Investor Checking or Capital One 360 Checking.
6. Consider the Bank Mobile App before you Open Checking Account
Here, if you enjoy banking from your mobile app, this is for you. Ensure the bank you’re considering has a mobile app. After that, look at reviews in the Apple store or Google Play store. You will decide from complaints or success stories.
Well, that not all, you still have to think about what you’ll need out of the app, too. For example, will you deposit paper checks into your checking account? Find an app with a mobile check deposit tool.
In a nutshell, there are numerous wonderful checking accounts out there in the open. The magic there is discovering the one that best suits you. How can you achieve this? Its simply by thinking about what you want out of your account and banking experience, you’ll choose one that’s the right fit.
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Take Away for Opening Checking Account:
- Make a decision whether you want a standard, high-interest, cash-back, or other type of checking account.
- Pick between opening an account at a brick-and-mortar or online bank.
- Locate a checking account that charges low fees and has a strong mobile app.
We hope that this article will guide you on How to Choose the Best Bank to Open a New Checking Account without minimum balance deposit.
Please note: While the offers mentioned above are accurate at the time of publication, they’re subject to change at any time and may have changed, or may no longer be available.