You are probably familiar with various bank account types, including checking accounts. You can use a checking account to receive your paychecks from work through direct deposit and to pay your monthly bills. This account type is also the only type that lets you write checks from the balance. When you compare the options available for checking accounts, you might notice that some banks offer free ones. If you get a free checking account, will it ever have fees? Here is the information you need to answer this question.
The Account Will Not Require Monthly Maintenance Fees
Free checking accounts are free because they do not have a monthly service charge. If you choose a bank account that is not free, you will pay a small monthly service fee. The bank will automatically charge your account for this fee every month, and they will instantly deduct it from your balance. If you prefer not paying a monthly fee, you must find a bank that offers free accounts. With a free account, you will not see this monthly service fee on your statements because your bank will not charge you this fee.
You Might Have to Adhere to Rules
The next thing to know is that a free account usually has rules you must adhere to when you open the account. For example, the bank might not charge monthly fees if you keep a balance of $100 in the account. Some banks have higher limits, though. The bank might also give you an account for free if you keep your transactions under a specific limit that they set.
The Bank Will Charge a Fee for Overdrafts
The third thing to know is that banks almost always charge fees for overdrafts. An overdraft occurs when your bank account balance drops below zero. When this occurs, it means you spent money that is not yours. As a result, the bank will charge a fee for the overdraft. The amount varies, but you can expect the fee to be about $35. The bank will let you know the fee structure when you set up your new free account.
Are you ready to learn more about checking account options? If so, do you want a free one? If you want to have a free checking account, look for banks that offer these, such as FCCU - First Community Credit Union. You can choose a local bank or one online.