Choosing a Checking Account That Is Right For You

Choosing the right checking account for yourself can be difficult, but keeping in mind the pros, cons, and benefits that certain banks offer can help slim down the choices. When choosing a checking account, a few key items to keep in mind is if there are any monthly fees involved, if Annual Percentage Yield is offered, and the ease of access to your money from the bank. With these points kept in mind choosing a checking account should be easier than before.

If banks require you to pay a monthly fee from your checking account, then do these banks require a prerequisite to eliminate the monthly fee, such as maintaining a certain balance in the account. The pros of having a monthly fee is that these types of accounts generally offer more benefits to the customer, and that it holds the customer more accountable to maintain a certain balance if the fee is waived for holding a specific amount of money in the account. The cons of having a monthly fee is that the customer is paying to having the account with the bank, and sometimes the fees can add up from month to month and cost the customer hundreds of dollars.

Another item to keep in mind is Annual Percentage Yield or APY. This is a rate that banks give money back to you, the customer, just for having a checking account with them, and keeping your money safe with them. There are also certain prerequisites that may need to be attained before receiving this rate, and such as holding a certain balance in your account. The pros having receiving APY is that you are essentially getting free money from the bank. A con is that although it is free money taxes still need to be paid on the money received.

With recent times choosing a checking account can be more difficult with the internet involved. Not only are there physical banks, but there are online banks offering online checking accounts. A benefit of having an online checking account is the ease of access to the customers money. The customer does not have to wait in lines, or for the bank to be open in order to access their money. In the most recent years having an online checking account has not just included using a computer, but extended to smart phones as well. It gives the power of making a visit to the bank accessible in the palm of the customers hand.

Being a customer to a very large and wide variety of services can be difficult to choose the right service. With so many different pros, cons, and benefits to choose from it makes it very difficult not to become overwhelmed. But, keeping in mind the few key points made, choosing a bank, and more specifically checking accounts, can be fairly easy. So, keep in mind do you pay monthly fees, do you receive a yearly return rate, and how easy is it to access your money.