How Can I Get a Checking Account Without Paying Anything?
- Age does have some benefits. Many commercial banks offer free checking to older people, particularly to those who are 65 and older. You may need to keep a minimum balance of $100 to avoid fees, but often this requirement is waived. Some banks extend this offer to seniors who have their social security or other check directly deposited to their account. Other banks require depositors to open up a savings account as well in order to qualify for free checking. Compare offers from various financial institutions; insist on an account charging no fees and requiring no minimum balances, and that includes an ATM/debit card and free online access.
- One way to ensure that you never have to pay a fee for your checking account is to keep a minimum balance while earning interest on your balance. These kinds of interest-bearing checking accounts go under a variety of names, but they essentially have one thing in common: No monthly maintenance fees are charged. Minimum balance amounts vary, ranging from $500 to $5,000 at various commercial banks. Bankrate.com noted that "...balance requirements for interest checking accounts all hit highs in 2008." Shop around for the best offers, but be warned: Minimum balance requirements are subject to change.
- Some banks offer checking for free, but with strings attached: You must have other accounts with the bank, such as mortgage, insurance or a savings account. The bank can afford to absorb the costs of managing your direct-deposit checking account, and often will not pay you interest on your balance. Free checking, by the way, doesn't mean you won't pay a hefty fee if you overdraw your account; bounced check charges still apply. Ask your bank how you can get free checking.
- If you are a college student, ask your bank about free checking. While opening up a savings account at some banks may entitle you to a free checking account, consider the low interest rate paid by the bank for that "privilege." You may be better off looking elsewhere. Also, consider an online bank such as ING Direct for free checking and savings accounts.