What is Common fee for checking account?It is the kind of bank account that permits you to deposit or withdraw money on daily basis. You can also deposit a check that you receive or you can withdraw your money anytime using a debit card. It also allows you to pay directly for your online shopping.
Similar to other financial products checking accounts also charge some fees. Here are two common fees that are charged to you:
Monthly service fee:
Major bank mostly charged a fee for your checking accounts on monthly basis to maintain your account. Fees can range from 10 dollars to 15 dollars. You don’t have to pay a monthly fee if you meet the bank requirements such as to maintain some amount in your account or you set the direct deposits for your account. Banks also offer no monthly fee checking accounts and you don’t have to maintain any minimum amount.
Overdraft fee:
This fee is charged when you spend more amount than the amount in your account. You have to pay at least 30 dollars for that extra money you consume. If you want to avoid that fee you should enrol your account in the protection of overdraft. This protection will not allow you to transact money that exceeds your account limit.
How to choose a checking account? (1)
You should consider all these factors before selecting a checking account such as:
- Insurance
- Minimum requirements for deposit
- Fees
- ATM network
- Interest and rewards
- Features for mobile app
- Insurance:
Always make sure that the bank where you are deciding to open your account gives insurance FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) or NATIONAL CREDIT UNION ADMINISTRATION (NCUA).
Both insurance companies provide 250,000 dollars for insurance for every depositor in all banks. This company provides protect your amount and all legal limit in case if your bank or union fails to pay.
- Minimum deposit requirements
Mostly checking accounts bound you to maintain a minimum amount in your account to prevent monthly fees. If you fail to maintain you have to pay 15 dollars per month for maintenance. CHASE TOTAL CHECKING charges twelve dollars to their account holders who fail to maintain the requirement of:
- Direct deposit of five hundred dollars or more every month
- Balance of fifteen hundred dollars at the start of each day
- Average of five thousand dollars with the linked account such as saving account at the start of every day.
If you choose an account that charges you a monthly fee, you should maintain a minimum amount set by the bank to avoid this fee. To waive this fee you should opt for another checking account that doesn’t bound you to pay for the monthly fee such as:
- Capital One 360 checking account
- Fees
Similar to other financial products, a checking account charges you for accessing your money. Common fees are for:
- Monthly service or maintenance fee
- Overdraft fee
- None sufficient fee
- ATM Fee
The fee for all these services can vary from few dollars to 35 dollars. You don’t need to worry about the fee as you can avoid this fee by maintaining the required positive balance in your account. You should consider checking accounts that offer no or minimal fee for account maintenance. Choose NO FEE CHECKING ACCOUNTS that will not charge any monthly fee for ATMs and others.
- ATM Networks
If you wish to pay through cash, you need an ATM or visit the nearest branch to withdraw money. Luckily checking accounts provide you access to all the nearest ATMs for free. If you use the ATM of your bank it will not charge you any fee for withdrawing but other banks might charge you for using their ATM services.
- Interest and rewards:
Checking accounts don’t allow you to retain a large amount of money for a longer period. You can search for accounts that provide a high-interest rate on your money. The average APY that is provided by most of the banks is 0.04 percent but other banks may offer more. ALLY INTEREST CHECKING ACCOUNT offers 0.10 percent to 0.50 percent APY depending on how much balance you have in your account. DISCOVER CASH-BACK DEBIT ACCOUNT provides one percent cash back if you spend three thousand dollars using your debit card.
- Mobile app features
When you choose checking accounts you should consider other options as well other than financial terms such as mobile features they provide. Look for all the features provided in the mobile app including integration and peer-to-peer payments. You should also look for options like locking or freezing the card so no one else can use it if you lost the card. To check for mobile app features you should look for online reviews on the app store. If the app is reliable it will be rated as 5:5 stars with good customers comments about the app
Checking account Interest rates (2)
Here are the best accounts with their interest rates for 2021
Axos Banking Evolved:
APY for this bank is 1.25%
The minimum balance required to open an account is 50 dollars
Quontic Adaptive digital bank
APY for this bank is 1.01%
The minimum balance required to open the account is 100 dollars
PNC bank
It is a member of FDIC
APY for this bank is 0.40%
No fee is required to open the account
CIT bank
Member of FDIC
APY for this bank is set as 0.25%
100 dollars are required to open the account
LendingClub
Member of FDIC
0.15% APY is set by this bank
A minimum balance of 100 dollars is required to open the account
Capital One
It is also a member of FDIC
APY set as 0.15%
100 dollars are required minimum to open the account
Malaga Bank F.S.D
Member of FDIC
0.05% APY set by the bank
1.500 dollars are required to open the account
First Foundation Bank
Member of FDIC
0.05% APY is set by the bank
2500 dollars are required to open the account
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