Have you ever wondered whether free checking accounts are actually free? And if they are, how do banks make money? Of course, they have to charge some type of fee to survive – right? The answer is, free checking accounts are truly free; however, your free checking account only remains free if you’re responsible with your finances.
Here is how you can keep your free checking accounts free from unwanted charges:
- Obey the rules that are in place to avoid all the additional fees a bank may assess on your account
- You need to be aware of what your minimum checking account balance is
- Keep a record of the amount of checks you plan on writing monthly.
- Know if you have overdraft protection included in your account.
- Know if direct deposit is required to maintain your free checking account.
- Know if there is a service charge for online banking.
If you are able to keep all these tips in mind, you should not have to worry about charges on your account.
Checking accounts are very useful for making financial transactions and one over the age of 18 should have one. All banks encourage consumers to have checking accounts. The big reason for banks offering consumers free checking accounts is because it allows consumers to be exposed to other types of products that banks offer, such as CD accounts, IRA accounts, money market accounts, savings accounts, auto loans, mortgage, etc. So by allowing consumers to have free checking accounts, banks are literally investing in themselves by offering free checking account perks to consumers in hopes that their loyal customers will continue to do business with them as their customers wealth grows. It’s a win, win situation on both sides – the banks gain a customer and you get a free checking account.