What to Look for in the Best Free Checking Accounts

Opening a checking account can be overwhelming. Even if you have a home credit union already, you need to get the best bang for your buck or, in this case, the best free checking account. That’s right, free. There are checking accounts that don’t charge a monthly maintenance fee, or if specific qualifications are met—and some are very minimal—the cost will be waived. When looking for a free account, there are a few things to look at to ensure you’re getting the best free checking account, even if that means switching to a different financial institution.

A checking account is a banking account that allows for easy deposit and withdrawal. With a checking account, you can get a debit card to make purchases at stores and online and get checks connected to your account. Even if you opt not to get reviews, your checking account has a routing number, which will allow you to use that account for automatic payments for bills and allow for direct deposit for your paycheck.

Many banks charge fees for checking accounts, and they can quickly add up to $40 a month, if not more. It could be a minimum balance fee, paper statement fee, out-of-network ATM fee, excessive activity fee, online bill pay fee, and so on. The list goes on for potential fees, racking up your monthly costs for having a checking account. So how do you find the best free checking account? Here are a few ways to make sure you’re getting a free checking account without any hidden fees.

No Monthly Maintenance Fees

Many credit unions will waive the monthly fee for having a checking account if you meet specific qualifications. It might be maintaining a certain balance, setting up direct deposit, or depositing a certain amount each month for several months. But some institutions don’t charge a monthly maintenance fee without asking you to meet any standards; they are free.

Minimum Balance Requirement

A minimum balance requirement is the amount of money you must keep in your account at all times. For example, if your credit union enforces a $100 minimum balance requirement, you won’t be able to let your balance drop to $99.99 or less. There are a few different types of minimum balances a credit union may require.

For example, it could be a daily balance, which would mean you’re charged a fee every day your account is below the minimum required amount.

A monthly average minimum balance is another possibility. In this situation, the financial institution calculates the average balance of your account over the entire month. If you drop below that balance for a short period, you won’t necessarily be penalized, but if your monthly average does fall below the requirement, a fee for that month will be charged to your checking account.

Another type of minimum balance requirement is a combined balance from every account you have at that financial institution (i.e., savings, checking, money market, etc.). These combined balances can either be an average minimum balance or a daily balance. But fees can be avoided entirely if you choose a checking account without any minimum balance requirements.

Initial Opening Deposit

Checking accounts require an initial deposit, and that amount will vary between financial institutions. The amount can be small, such as $5, while other financial institutions need a much larger sum. One is not inherently better than the other, but be aware of the opening deposit amount as some credit unions and banks will offer a bonus with a larger opening deposit.

Account Opening Bonus

Checking accounts often come with a sign-up bonus to bring in new customers and new deposits. Financial institutions will use an account opening bonus to set them apart from other banking establishments, and many will offer as much as a few hundred dollars or more.

Branch Locations and ATMs

Nowadays, it’s less critical to have access to physical branches, but it makes it more convenient when you need to speak to a teller or get help with a transaction.

Since using ATMs from your institution will allow free withdrawals, it’s essential to find a bank or credit union with multiple ATM locations, making access to your money readily available. Fees can occur using an out-of-network ATM, but many financial institutions, such as Rivermark Community Credit Union, will reimburse expenses incurred when specific qualifications are met.

Yield

Most savings accounts have an APY (annual percentage yield), but fewer checking accounts have them. The higher the APY, the more interest you earn. The best free checking accounts come with an APY, some even reaching as high as 1.50%.

Online Accessibility

The best free checking accounts also come with free online and mobile banking access. Online and mobile banking allow the account owner to sign into their account from anywhere, helping you stay in control of your money conveniently and securely, no matter where you are.

Overdraft Protection

Many financial institutions will take advantage of an overdraft. They can occur for many different reasons, and finding a free checking account with overdraft protection is a must. When looking at what a credit union has to offer, look for clearly disclosed fees and explained policies. The best checking accounts will have a program where money will be transferred from a savings account into the checking account without any cost.

FDIC or NCUA Insured

The FDIC insures money at a bank, and the NCUA insures cash at a credit union. Whether choosing a checking account at a bank or credit union, your money must be insured. You should also be aware of what amount the NCUA or FDIC will be insuring.

There are many aspects to consider while searching for the best free checking account. Opening an account is common practice, but finding an institution you trust from the get-go is significant.

We offer a better than free checking account here at Rivermark, as well as many other services, such as youth accounts, savings accounts, advanced mobile banking, and progressive online banking. The NCUA insures us for up to $250,000, and we provide extended branch hours for our members who are busy or have odd hours. If you have any questions about our best free checking account or any other services we provide, we would love to hear from you.