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Free Checking Account

A Free checking account sounds great, but it is also something that is becoming increasingly rare. With that said, they do still exist. So how do the banks make money if they are offering free services like a checking account? The answer is in the fees and services you end up having to pay for that you may not realize. Free checking is, of course, still a worthwhile endeavor, but you should know what to look for to make sure you avoid unwanted fees. Additionally, there are times when you may want the extra services, so it is good to at least have an idea of what you are getting into when you use them. Consider some of these common fees and cost incurring services that many free checking accounts offer.

ATM and Debit Cards

One place a free checking account may get money out of you is when you use your card. Today, most cards act as both ATM cards for making withdraws and as debit cards that you can use to make a purchase. They are also a way for the bank to make some money instead of through monthly fees on your account. They might do this a couple of different ways.

For one, your bank may charge you for each transaction from your online checking account with your debit card. While this is becoming less common than it once was, it is still something to pay attention to. If you get a free checking account, but use your debit card with any sort of regularity, you could end up actually paying more than you would for a traditional checking account from a traditional bank.

Another way you may end up paying on your free account is through ATM fees. Many banks charge you each time you withdraw money that is not from one of their machines. The problem is that their machines may not always be convenient for you. One exception to this that you may want to watch for is online banking. Many of the internet banks may offer a checking account that does not charge for any ATM fees. That can be something that would yield big savings for you or your business.

Additional Services

There are a number of services you may be charged for when you get a free checking account. It is important to know what they are so that you can decide which, if any, of them it is worth your while to pay for. Consider a few of the most common so that you can keep your eyes out when you look for a new checking service for free.

Many banks today may offer free accounts, but they also charge for things like stopping payment on a check or receiving copies of your canceled checks. For many people, such things are not a big deal because they rarely if ever use those services. However, businesses or organizations may have an interest in avoiding fees like that. At minimum it may just be cheaper to get a traditional account that includes those services rather than a free checking account that does not.

Another service you should ask about is having checks printed. If you get a free checking account, you will likely have to pay for new checks to be printed. Additionally, those charges will likely be higher from the bank than other printing services. So if you are in such a situation, just simply have your checks printed somewhere else so you can take full advantage of your free checking account.

Your Dormant Money

A lesser known but still a fee that you can run into with a free checking account is the dormancy fee. At some banks, if you do not have any transactions on for a specified period of time, you will be charged a maintenance fee. For many people that is not a problem, but it is worth paying attention to just in case the situation will come up.

Looking for a free checking account is definitely worth while. Who wants to be paying a monthly fee to have access to your own money? However, before you jump into a commitment simply because you do not have to pay for it, make sure you educate yourself on possible fees that may end up costing you more than a traditional bank with monthly fees. Read up on and ask questions about how ATM and debit card transactions are handled to make sure you do not get stuck with a bill you didn't see coming. Additionally, watch those premium services like canceled checks and stopped payments to make sure you are only paying for what you need. Once you know what the agreement entails, you will be better equipped to make a decision about whether or not no cost is actually worth your time.