Choosing the right kind of checking account for your needs can be daunting because there are so many options. To make the process easier, here is a breakdown of some of the different types of checking accounts available today.
Free checking accounts
Free checking accounts are popular with all types of people. On the upside, they're free. On the downside, they don't have many perks.
Interest-bearing checking accounts
Interest-bearing checking accounts are a good choice for people who maintain higher balances, because with this type of account, the higher your balance, the higher the interest rate the bank pays you. However, if you don't maintain that balance, you may be charged a monthly fee.
Student checking accounts
These accounts cater specifically to the needs of students, usually through lower balance requirements and fewer fees. They also offer options for debit cards and online banking, which are necessary features for most students.
Joint checking accounts
Married couples usually have a joint checking account, but you don't need to be married or even a couple to get one. Both people simply have to open the account together agreeing to be mutually responsible for the account.
Online checking accounts
Online checking accounts come from banks that forego having a traditional branch structure. These accounts frequently include or even require enrollment for electronic services. Look for a quick demo of a bank's website before committing. Some are easier to use than others. Likewise, ask questions about the bank's online security systems and customer service.
Second chance checking accounts
Second chance checking accounts are for those who have had banking issues in the past and are unable to get an account today. While second chance banking customers may pay higher fees, it’s for a good cause in that they’re rebuilding their credit and opportunity to move back into a regular account over time.
Money market accounts
Money market checking accounts boast higher interest than most checking accounts, but may require a minimum balance and allow only a limited number of checking-account transactions per month.
Business checking accounts
Business checking accounts are designed specifically for business owners. They typically have built-in features or available services geared towards businesses. Having a separate account also makes it easier to deduct business expenses for taxes. Plus, it allows you to separate your business finances from your personal finances.