Free Online Checking Account
Banking fees certainly have been climbing over the years. Today it is common to hear about banks charging $35 for one returned check, $20 for a money transfer, $125 for a consumer loan application, and $12 per month for checking. Fortunately, some financial institutions are wising and realizing that customers do not want to over run with fees. While many of the charges I mentioned won’t go away, checking account fees can if you follow a few simple rules.
Minimum Balances – Most banks that charge for checking accounts do allow you to avoid fees if balances stay above a certain amount such as $1000. While you essentially forfeit $50 per year by not investing the thousand dollars in a CD, you could save yourself $100 or more in banking fees by maintaining the required minimum amount in your account.
Plus Accounts – Offered under a variety of names, plus or “package” accounts allow you to avoid checking account fees if you bundle several accounts together. This means in addition to a checking account, a line of credit, a credit card, or some other consumer account would cancel out the fee. Typically this type of account involves your opening up a credit card with a credit line of $1000 or more.
Free Online Checking Account, No Strings Attached – Yes, some banks still offer these types of accounts and they are not temporary bargains either. Open an account with $100 in it and maintain a balance of at least $1 and your account is free. Credit unions and some internet banks are offering free checking and certain larger banks are now doing the same in hopes that they will attract your business. Look for the bank that will give to you your first checks for free and offers free online banking with their plan.
Free Online Checking Account, With Strings – Some financial institutions will give to you free checking as long as you have some other account with them. This works somewhat like the bank’s plus account, but without account minimum balances, however.
No, free online checking account hasn’t disappeared completely and some financial institutions are now joining in to combat the strength and competition of internet banks, powerful credit unions, and other progressive consumer friendly financial institutions who are trying to win over your business. Truly, free checking accounts are the right way for you to bank. Have you opened your account yet?
Free Online Checking Account
Friday, September 11, 2009
Free Online Checking Account - The Pros and Cons
Free Online Checking Account
A typical banking or even online banking service is to offer free online checking account to clients. This is an important part of a decision to sign on with a bank, as a checking account that eliminates or reduces fees can help save you a significant amount of money each month. A high interest savings account is quite hard to find nowadays, and so any money that accumulates over the month is going to be small. This means that if you have a high number of transactions that come with fees, you could actually be losing money each month.
Why do banks offer free, no-charge checking? It's part of their top banking sales pitch. You are more likely to be interested in signing up with a bank that offers you something free, especially if it will reduce the service charges that most of us want to avoid. Once the bank has a client, then they can make recommendations and promote different services and money management programs that they have to offer, which is largely where the bulk of a financial institution's money is made.
But what does free online checking account actually mean? Usually, it involves maintaining a certain amount of money in a checking account. As long as the amount never dips below the assigned level, then you receive a variety of benefits. These benefits usually involve free checks, hence the name, as well as exemption from service fees from a variety of other transactions, including PC banking. Free use of an ATM debit card, free checks, unlimited transactions and other reductions in costs are typical terms that go with a free, no-charge checking account.
So what is the downside, you may ask? As mentioned, you usually need to maintain a certain amount of money in the account in order to continue to receive free, no-charge checking. If you need to dip into that account, then service charges will start popping up. Also, a checking account usually does not earn any interest, which is the tradeoff for the absence of service fees. Since a high interest savings account is a rarity these days, this may not be an issue.
If you are good at managing your money, and can afford to have a portion of your money set aside for the long term, then a free online checking account may be the best solution. This is especially true if you tend to accumulate a lot of transactions in the month. If not, then you may be better off paying as you go, but it's best to check with a bank employee about your options before making any decisions.
Free Online Checking Account
A typical banking or even online banking service is to offer free online checking account to clients. This is an important part of a decision to sign on with a bank, as a checking account that eliminates or reduces fees can help save you a significant amount of money each month. A high interest savings account is quite hard to find nowadays, and so any money that accumulates over the month is going to be small. This means that if you have a high number of transactions that come with fees, you could actually be losing money each month.
Why do banks offer free, no-charge checking? It's part of their top banking sales pitch. You are more likely to be interested in signing up with a bank that offers you something free, especially if it will reduce the service charges that most of us want to avoid. Once the bank has a client, then they can make recommendations and promote different services and money management programs that they have to offer, which is largely where the bulk of a financial institution's money is made.
But what does free online checking account actually mean? Usually, it involves maintaining a certain amount of money in a checking account. As long as the amount never dips below the assigned level, then you receive a variety of benefits. These benefits usually involve free checks, hence the name, as well as exemption from service fees from a variety of other transactions, including PC banking. Free use of an ATM debit card, free checks, unlimited transactions and other reductions in costs are typical terms that go with a free, no-charge checking account.
So what is the downside, you may ask? As mentioned, you usually need to maintain a certain amount of money in the account in order to continue to receive free, no-charge checking. If you need to dip into that account, then service charges will start popping up. Also, a checking account usually does not earn any interest, which is the tradeoff for the absence of service fees. Since a high interest savings account is a rarity these days, this may not be an issue.
If you are good at managing your money, and can afford to have a portion of your money set aside for the long term, then a free online checking account may be the best solution. This is especially true if you tend to accumulate a lot of transactions in the month. If not, then you may be better off paying as you go, but it's best to check with a bank employee about your options before making any decisions.
Free Online Checking Account
Opening a free online checking account? Read before you apply online for a free online checking account
Free online checking account
If your considering opening a free online checking account, there are a couple of key points you should consider when you you apply online for a free checking account.
'True' Online Checking?
Make certain your online checking truly is 'online.' Many brick & mortar banks offer it but they aren't actually online accounts. They may give you the ability to check your balance and pay bills. A true 'free online checking account' is basically a checking account, without the 'paper' checks. Routing and account numbers, direct deposits, debit cards, everything a traditional checking account has to offer. When you apply for a be sure it fits all of your online banking needs.
Credit Checks:
Most free online checking accounts are very lenient on a negative or bad credit history. In fact, you will find that when you apply online for an account, many online banks offer "100% approval", or no credit check at all. This can also be a great advantage for those with less than great credit history, allowing one to rebuild credit with a Visa prepaid debit card, for example.
Free Direct Deposit?
It's also important to make sure that when you apply online for an account that offers 'free' direct deposit. Many prepaid debit card accounts offer the convenience of direct deposit.
Debit Cards: Visa or MasterCard logo.
Personally, I prefer Visa it really makes no difference if you have a Visa prepaid debit card, or MasterCard. They are both very well known brands, though I find my Visa debit is accepted at more vendors, online and off. It's a personal preference, just make certain you have a major brand name associated with you prepaid debit card and online checking account.
Free online checking account
If your considering opening a free online checking account, there are a couple of key points you should consider when you you apply online for a free checking account.
'True' Online Checking?
Make certain your online checking truly is 'online.' Many brick & mortar banks offer it but they aren't actually online accounts. They may give you the ability to check your balance and pay bills. A true 'free online checking account' is basically a checking account, without the 'paper' checks. Routing and account numbers, direct deposits, debit cards, everything a traditional checking account has to offer. When you apply for a be sure it fits all of your online banking needs.
Credit Checks:
Most free online checking accounts are very lenient on a negative or bad credit history. In fact, you will find that when you apply online for an account, many online banks offer "100% approval", or no credit check at all. This can also be a great advantage for those with less than great credit history, allowing one to rebuild credit with a Visa prepaid debit card, for example.
Free Direct Deposit?
It's also important to make sure that when you apply online for an account that offers 'free' direct deposit. Many prepaid debit card accounts offer the convenience of direct deposit.
Debit Cards: Visa or MasterCard logo.
Personally, I prefer Visa it really makes no difference if you have a Visa prepaid debit card, or MasterCard. They are both very well known brands, though I find my Visa debit is accepted at more vendors, online and off. It's a personal preference, just make certain you have a major brand name associated with you prepaid debit card and online checking account.
Free online checking account
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