The Ultimate Guide to Choosing the Right Checking Account for Your Needs

Sitthiphong / Getty Images/iStockphoto
Sitthiphong / Getty Images/iStockphoto

Having convenience and ease with your daily personal finances is nothing to take for granted.

Read Next: I’m a Bank Teller: 4 Reasons You Should Withdraw Your Savings Right Now

Find Out: 7 Reasons You Must Speak To a Financial Advisor To Boost Your Savings in 2024

Whether it’s setting up direct deposit for your paychecks or making a debit card purchase at the grocery store, you hardly go a few hours without using your checking account for your day-to-day spending. From checkbooks to ATMs, or online banking to stopping into your local branch, banks offer a variety of options when it comes to the products and services provided by checking accounts.

In order to choose the right checking account for your needs, make sure you factor in everything from the bank’s customer service to whether or not they charge a fee to use the checking account products. Having an FDIC-insured account is great, but you also want assurance that you have one that fits your unique banking and financial needs.

Here is a step-by-step guide to help you find the right checking account for you.

Protect Your Wealth: The shrewdest ways to safeguard your money.

Step 1: Compare Checking Accounts

Looking at different types of checking bank accounts can help you decide what matters to you. Modern variations give CDs and credit cards a run for their money with the number of incentives and rewards just for transacting funds. At the end of the business day, a lot of that has to do with the financial institution you’re dealing with and what is a priority for you.

When debating between traditional and online banking, keep in mind that every bank, credit union or other financial institution has a variety of checking options. All of which come with their own set of potential benefits and drawbacks.

  • No-fee checking accounts: Fees are almost unavoidable in today’s banking age, like $35 overdraft charges and $25 monthly administrative fees. The good news is that you can bypass them depending on how often you use your checking account, and how much money you keep in it. Fees are often tied to minimum balances if you have direct deposit hooked up to your checking, and you’ll be keeping at least a few thousand dollars in your account at all times then fees shouldn’t be a problem, but still good to keep in mind.

  • Interest-bearing or premier checking accounts: Many banks carry new checking account promotions with rewards similar to platinum credit cards. Chase Bank’s Premier Platinum Checking, for example, earns interest. Accounts like this often can get linked to an additional, higher-interest savings package and come with a number of other options, like points with retailers, airlines and other services.

  • Credit or debit card: Remember that while checking can be your go-to account for daily transactions, it won’t build credit. Using your checking account exclusively means you’ll have no revolving credit, and that can be bad for your credit score. When opening a checking account, it’s nice to have one with lots of features, but don’t rely on them — make sure you’re putting some expenses on credit, or even paying off your credit balance through your checking account can be a great money move.

Learn More: How Can You Withdraw Money From a Bank Account? 3 Ways To Know

Step 2: Diversify Your Banking Products

It’s important to keep in mind what various financial providers can do for you. The Wall Street Journal wisely points out that the days of opening a savings, checking, mortgage and credit card at one local brick-and-mortar bank branch are gone. Today, you can seek out banking products from a variety of sources, and it’s advantageous to do so.

Big names like Chase, Wells Fargo and Bank of America have walk-in locations nationwide. Banks with a wide-reaching network make in-person banking more convenient, and they often have good online access too.

However, many APYs and interest rates offered by online banks are often more favorable as they don’t have to deal with the overhead of brick-and-mortar locations, thus being able to give you more money.

  • Online banks: Some financial institutions are online-only, which is very convenient for people who prefer to handle their finances over the web. Virtual banking entities have no rent and lower overhead costs and therefore can funnel more money into the services they provide. Several online checking accounts will come with higher interest rates as a result and other incentives if you don’t miss physical, walk-in bank branches.

  • Credit unions: Checking accounts or not, opting to bank with a credit union comes with many advantages over a conventional bank. Credit unions are nonprofit and rely on their membership base for financial support. A credit union checking account means a direct, positive operational impact on the community-driven institution you choose.

Step 3: Make Sure You’re Checking and Balancing

A simple checking account comparison indicates that no two checking accounts are the same from bank to bank. It’s up to you to decide which one suits you best.

In GOBankingRates’ round up of the Best Checking Accounts for 2024 here are some top considerations:

  • Axos Bank Essential Checking Account

  • BMO Smart Advantage Checking Account

  • Capital One 360 Checking Account

  • Charles Schwab Bank Investor Checking Account

  • Citi® Access Checking Account

These returns on your investment are as much about balancing your expenses as establishing what your financial needs are. There are a lot of banking options out there, but with some examination, you’ll know when you’ve found the right checking account.

Quick Take: What To Look for in a Checking Account

It’s not such a simple choice when choosing the best checking account as what you need from this account may change over time, as do banks’ offerings. Gone are the days when accounts were limited to basic deposits and withdrawals, with any remaining cash balance destined to sit there, lonely, gaining zero interest.

Here are some key features to keep in mind:

  • Monthly maintenance fees: Some accounts come with monthly service or maintenance fees which can eat away at your account. If you want to avoid this there may be a fee-free checking option your bank offers or you can waive the monthly fee by maintaining the minimum balance requirement.

  • Overdraft fees: These are fees you incur if you attempt to withdraw more money from your account than you have in your balance. If this is a concern, many banks offer overdraft protection.

  • ATM withdrawals: Most checking accounts should come with unlimited transactions and ATM withdrawals, but if it is, out-of-network fees may apply. See if your bank offers ATM fee reimbursement.

  • Debit card transactions: You should have unlimited transactions available with your account but keep in mind that it is directly linked to your checking, so always make sure you have enough in your balance for the purchase or withdrawal.

  • Direct deposit: Being able to directly deposit your paycheck into your checking account can grant you fast and easy access to your funds. Some banks offer faster processing than others, so if you are living paycheck to paycheck, waiting an additional business day may be non-negotiable.

Final Take To GO

The bottom line is that today’s checking accounts are abundant with options — high-yield rates and rewards, as well as their notoriously rising fees — making it hard to find the one that’s best for a discerning consumer. It seems that every statement cycle comes with a new set of financial landscapes to navigate.

Finding the right checking account, though, is as easy as identifying your banking and lifestyle needs, and then comparing different checking accounts for the features you want in a financial product.

More From GOBankingRates

This article originally appeared on GOBankingRates.com: The Ultimate Guide to Choosing the Right Checking Account for Your Needs