Checking Accounts

Opening Your Account

The purpose of a checking account is to provide you with easy access to your money – especially for making payments. When you open a checking account, most financial institutions will give you a Debit Card and your first box of checks for free.

Most financial institutions will offer you a basic, or "free" checking option and some will also offer interest-bearing accounts. The basic features are outlined below.

Basic ("Free") Checking Accounts

Basic or Free Checking implies...

• no minimum balance requirement
• no monthly service charge
• no interest earned

These accounts provide all of the features you need from your checking account and are usually your best option. Just remember that with this type of checking account, you want to put money that you're not using into a savings account so that it can earn interest.

Interest-Bearing Checking Accounts

Interest-Bearing Checking Accounts...

• earn interest
• have higher minimum balances
• are sometimes charged a monthly fee

Typically, the higher the dividend rate is, the higher the required minimum balance will be.

Tips for Opening a Checking Account

• When opening a checking account be sure to read all of the fine print and disclosures very closely.
• Find a financial institution that doesn't require a minimum balance and won’t charge you a monthly service fee for your checking account.
• Find a financial institution that provides overdraft protection solutions as well as low fees for overdraft transfers and non-sufficient funds.