The ins and outs of free checking
Most people have at least one checking account and, if you're paying for it, even a small monthly fee can really add up. Fortunately, banks are offering customers checking accounts free of a monthly maintenance fee when they have direct deposit or maintain a minimum monthly balance. But before you sign up for your free checking account, there are a few things you should know.
Why banks offer free checking
Banking is a business—and one of the ways banks stay in business is by gaining new customers. By offering free checking, banks can help build their customer base and provide their clients with a valuable service.
Once you become a customer, banks have the opportunity to build on your relationship by offering other programs to help meet your financial needs, such as savings accounts, credit cards, mortgages and student loans. By providing these services in a secure and trusted manner, the banks grow in value to their customers—and grow their businesses.
Free checking accounts: The common features
Free checking accounts certainly vary by bank, but some common features most of them share include:
- Unlimited check writing (although the checks themselves aren't necessarily free)
- Online banking
- A free ATM, debit or check card
- Free direct deposit transactions
- Low or no minimum daily balances (often with some stipulations such as monthly directly deposit)
Several banks also offer free checking accounts that come with bonus features—and MyAccess Checking® from Bank of America (our most popular free checking account) also comes with added benefits, including:
- Free unlimited teller service
- Deposits and cash withdrawals from a Bank of America ATM with no ATM fee
- Free use of the Keep the Change™ program
- Online trades with Banc of America Investment Services, Inc. for as little as $0 per trade
- An optional Business Economy Checking account with no monthly maintenance fee for two years
Free checking: What you should know
With all the incentives to open a free checking account, you might be wondering whether there are any drawbacks. There are, but they are few and far between. Some common drawbacks across the industry include:
- Interest is not usually paid on the funds in your account
- Stopping payment on a check generally requires a fee
- Overdraft protection from a credit card or savings account can help prevent returned checks and overdrafts on your checking account
- Cleared checks may not come to you in the mail—unless you pay for it (although if you're an Online Banking customer at Bank of America, you can see them online for up to three months on screen and 18 months in Online Statements when you select Online Statements with check images)
If those limitations will have a significant impact on your banking experience, a free checking account may not be your best option. However, think about your particular needs—you might decide a free checking account is the right choice for you.
Have an account,
but not using Online Banking?
Take advantage of the all free services that already come with your checking account. Try our demo to see how all the Online Banking Service tools work or sign in and get started.
Don't have an account?
Not only does Online Banking Service provide you with free helpful tools, it also comes with the largest network of bank-owned ATMs and banking centers in the country, checking with free MyAccess Checking with monthly direct deposit and exclusive features like Keep the Change.™ Discover all the benefits you get with Bank of America.
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