If you’re reading this, there’s a high chance that you are in the midst of deciding what bank for financial institution you should utilize when it comes to opening a checking account.
Before you get lured in with the promise of being able to receive funds for establishing direct deposit or any other promotional offer that a particular institution may be offering such as a “free” account, it is important that you become aware of a few common terminologies before you open a checking account with any financial institution.
1) The Fine Print
One of the things you should do before you open an account with any financial institution is to read the fine print of any conditions or terms that go with their offered accounts. Many accounts, limit the amount of debit card transactions you can make in a month. In addition to this, some banks may even charge for services that would be free at another institution such as online banking and bill pay.
2) Overdraft Policy
Debit cards are typically linked to a savings and/or checking account and allow you to withdraw funds. Whenever you use this card the money is deducted from your checking account. However, if you make a transaction that goes over the amount that you have available, you can receive what’s known as an overdraft charge. Each bank has their own sets of terms and policy regarding overdraft fees.
While some may charge a one-time fee of $20 – $40, certain institutions charge significantly more. For example, while Bank of America charges a flat one-time fee of $35, Webster charges $37 “per transaction” and an additional $5 for each business day the account is in the negative after a period of 5 consecutive calendar days.
3) ATM Access
In general, the institution that you utilize should not charge you for withdrawing money from their ATMs. Therefore, before you open an account with any institution, ensure that you check to see if they have a large network of ATMs or if they reimburse fees that are imposed by other banks at their ATMs.
4) “Free” Checking Accounts
Besides the fact that you need to evaluate their terms and conditions so that you can become aware of the penalties you may face for certain infractions such as an overdraft. Be wary of any bank that proclaims that they are offering a “free” checking account. Many banks may offer free checking accounts that come with an abundance of stipulations such as to maintain a minimum balance or a monthly average balance, in order for their clients to avoid a monthly charge.
5) Mobile & Online Access![online checking account]()
With today’s technology, there’s no reason why they shouldn’t provide mobile and an online access to your account free of charge. Therefore, ensure that you acquire a checking account from a company that gives you the opportunity to view your account activity online, regardless if it’s from a PC or mobile device. This feature can help to provide a greater level of convenience when it comes to checking your account, paying your bills or to make deposits electronically regardless of where you may be.
