How to Find a Good Bank for Your Checking Account
Whether you are moving or just want to switch to a new bank, it's important to shop around so you find the best deal. Many banks advertise free checking accounts, yet charge ridiculous ATM fees, overdraft fees, limit number of checks you can write per month, require you to maintain a minimum balance, etc. Some banks even charge a fee for using a bank teller! Don't let them fleece you, read on to learn how you can find a good bank for your checking account.
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Instructions
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Consider your needs. Get a piece of paper and write down the following:
- how much money are you planning on keeping in your checking account?
- how many checks per month do you plan on writing?
- how frequently do you use an ATM machine to withdraw cash?
- how often do you bounce checks?
- is it important that you get interest on your balance?
- are you planning on setting up a direct deposit for your paychecks?
- do you prefer using a bank teller to an ATM machine? -
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Consider how important it is to you that your bank is close to where you live or work. If you frequently use ATM machines, then it should be very important - ATM fees do add up fast. Walk or drive in the area and see which bank branches would be convenient to you. Bring the sheet of paper you prepared in the previous step, and talk to an account representative. Tell them that you want a free checking account, which must meet your needs you have written down. Make sure to ask about teller fees, overdraft protection availability, minimum balance requirements, etc. Don't open an account unless you get a checking account that will not cost you anything.
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Compare checking account rates at bankrate.com - you can type in your zip code and see what offers are available from the banks that have branches in your area. Bankrate shows only one rate for each bank, however, and banks often have different types of checking accounts available. Thus, chances are, you can get what you need if you talk to the account representative directly.
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Make sure that the bank you select is covered by FDIC. Keep in mind that in 2009 FDIC limit is $250,000, but in 2010 it's set to go back to $100,000. Before you open an account, it might be a good idea to check out how good of a shape the bank is in. Now bankrate offers bank ratings too - check for a link below.
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Tips & Warnings
On bankrate you may see internet based banks listed. Those are only a good idea if they let you use ATMs at other banks for free.
Interest checking account is a good idea if you can maintain the minimum balance requirements.
If you bounce checks often, ask for overdraft protection - it's a credit line that you can open if qualified.
Resources
- Photo Credit (Dennis Brown) Wikimedia Commons
