How To Avoid Fees With A Checking Account
If you need a checking account, you can choose from hundreds of available options. You can learn about which options are available to you by asking a local bank or searching online.
As you look for a checking account, you'll probably want to find one that will not charge fees. If you want to avoid fees with a checking account, you might want to follow some of these tips:
Find a Free Account
The first way to avoid fees is to find a checking account that is free. Many banks offer free accounts, and you can look for one. When an account is free, it means that the bank will not charge a monthly fee for you to have the account. If an account is not free, in most cases you will be billed a monthly service fee on your statements.
Maintain the Correct Minimum Balance
Many banks offer free accounts with stipulations. One of the common stipulations that banks have is a minimum balance requirement. In other words, you must keep a certain amount of money in the account all the time to avoid service fees. If your balance drops below this amount, the bank will charge you a fee for that month. The minimum balance might be $30, $100, or $5,000. Banks can set the amount they require.
Avoid Overdrafts
Next, even free accounts can result in overdraft fees, but you can avoid these. An overdraft fee occurs when your checking account balance drops below $0. If you have negative money in the account, the bank will charge you an overdraft fee. If you want to avoid paying overdraft fees, you must avoid letting your balance drop into the negative.
Follow Any Other Account Rules
The other thing to know is that the bank might have other rules, which will be included in the account agreement. For example, some banks offer free accounts to borrowers that sign up for electronic bank statements. If you do not sign up for these, you might incur a monthly fee. You can avoid these types of fees by following all the rules the bank requires.
So, if you want to avoid fees with your checking account, start by finding a free one. After that, make sure you keep track of your account balance, learn the account rules and requirements, and follow them. If you have any additional questions about free checking accounts, contact a bank today.
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