4 Best Checking Accounts for Retirees
Written by
Martin Dasko
Edited by
Amber Barkley
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As a retiree, your banking needs will likely change, since you’re no longer working full time and are likely transitioning towards trying to live off your investments. The good news is that numerous banks out there offer checking accounts for retirees.
Here’s a look at the best checking accounts for retirees to help you determine what to look for when choosing a place to do your daily banking.
What To Consider
As a retiree, your banking preferences will likely differ from when you were younger. You may not be as focused on certain perks as you seek convenience and security. Here are a few points to consider while searching for a checking account.
No Monthly Fees
“Many retirees are on a fixed income, so it’s crucial to find accounts that don’t eat into their savings with high monthly fees,” said Taylor Kovar, CFP, CEO and founder of Kovar Wealth Management. “Some banks offer accounts with no monthly fees or easy ways to waive them, such as maintaining a minimum balance or direct deposit of Social Security or pension checks.”
The goal is to find a checking account that doesn’t eat into your savings so that you can keep more of your funds. You don’t want to worry about getting charged for every minor transaction.
Interest Rates for Checking Accounts
“While checking accounts are not known for high interest rates, some do offer interest on balances, which can be a small but beneficial feature for retirees looking to maximize their income,” said Kovar.
You’ll want to find a checking account with unique perks like interest rates so your money always works for you.
“A high interest rate and low fees on a checking account can help seniors save more on their cash,” said Ken Tumin, a banking expert from DepositAccounts. “Most online banks don’t offer high interest rates on their checking accounts, but it’s easy to keep most of your cash in their high-yield savings accounts by using their free overdraft transfer services.”
Accessibility
“Accessibility is key, so look for accounts with a broad ATM network, online banking and mobile banking features,” Kovar said. “This ensures that retirees can easily manage their money and access cash without incurring additional fees.”
You’ll want to find a checking account with ATMs near you to access your funds when you need them.
No Overdraft Fees
“Retirees should consider accounts that offer free overdraft protection or low-cost options to cover accidental overdrafts,” said Kovar.
Since you may be on a fixed income, you don’t want to stress about overdraft fees if any of your bills are higher than expected.
Look for Senior-Specific Perks
“Some banks offer checking accounts tailored to seniors, with perks such as free checks, discounted safe deposit boxes and dedicated customer service lines,” Kovar said.
If you’re still using checking checks or want access to a safety deposit box, this is something to watch out for.
Kovar added, “For retirees with a high-deductible health plan, an HSA-compatible checking account can be beneficial for managing healthcare expenses with pre-tax dollars.”
Best Checking Accounts for Retirees
These are the best checking accounts for retirees based on the criteria above.
TD 60 Plus Checking
“The monthly maintenance fee is waived with a minimum balance of only $250,” Tumin said. “It also offers free standard checks and free paper statements.”
TD Bank offers one of the few checking accounts primarily catered to seniors. With the ability to earn interest on the funds in your checking account and 24/7 fraud alerts, this is the ideal bank account for a retiree.
US Bank Smartly Checking
“U.S. Bank’s Smartly Checking account has no monthly maintenance fees for those 65 and over,” Tumin said. “In addition, seniors are offered free paper statements and a 50% discount on personal paper checks and annual safe deposit rental fees.”
These senior-specific perks make this an enticing account. You also get access to one of the largest ATM networks in the country and fraud protection.
Chase Total Checking
With over 15,000 ATMS and 4,700 branches, Chase is one of the bigger banks worth looking into as a senior.
You can have the $12 monthly fee waived a few different ways. The Chase Overdraft Assist feature will help you out if your account ever goes into overdraft.
Ally Bank Interest Checking
For seniors comfortable with digital banking, this online-only bank could be a good choice — the Ally Bank Interest Checking account comes with no fees and free cashier’s checks, and you can earn money on your funds.
You can also stay on top of your money with spending buckets that show you where your funds are going. This feature breaks down your spending into different categories so that you can see how you’re allocating your money. This will help you better manage your money, especially if you’re on a limited income as a retiree.
Local Banks and Credit Unions
Kovar stated that his firm often recommends local institutions to clients for a personal touch, since they may want to work with someone in person. It’s impossible to list every local option here, but you could consult with a trusted financial advisor.
Closing Thoughts
As your banking needs change, it’s essential that you leave your money with a bank that makes sense for your situation. The good news is that there are many options for checking accounts for seniors who want to store their funds with a bank that won’t charge them fees for accessing their money.
Tulim added, “If the convenience of a brick-and-mortar bank is preferred, a couple of large regional banks offer senior checking accounts, which can be free of monthly maintenance fees. Interest rates will be zero or near zero, but they have features like paper checks and monthly statements.”
As always, it’s a good idea to consult a financial advisor to make the best decision for your unique situation.
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