Personal Finance Ology

Checking accounts are usually the primary reason many people start a relationship with their banks. Usually you will find parents opening an account for their children or grandparents opening one for their grandchildren. Either way checking accounts are a popular service within the Banking Facility.

Types of Checking Accounts

Alongside the common checking account, there are many other options, services and features you can add on to your account to personalize it to suit your needs. The basic function of the checking account stays the same it’s just the way it performs that changes with the different type you choose.

Basic Checking

This account is normally for people who write very few checks monthly and would like an ATM or debit card. At some Banks there may be some fees associated with this account such as a maintenance fee, which is a monthly fee charged to your account if your balance falls below the required amount or you may be charged a fee if you write more checks than what is allowed monthly. A lot of times you can avoid fees being charged to your account if you use direct deposit for your paychecks. Before opening any account be sure to ask about any and all fees that are associated with it.

Student Checking Accounts and Senior Citizen Checking Accounts

Many banks offer accounts geared towards the particular needs of students or senior citizens. They are similar to the Basic Checking Accounts, however they may offer discounts on certain things. For instance, a Student Checking Account may offer free ATM usage or discounts to venues that students may find interesting while Senior Citizen Checking Accounts may offer discounts on prescriptions or discounted travelers checks.

Interest Bearing Checking Account

An Interest Bearing Checking Account is designed to pay you a small percentage of interest on your account monthly if you meet the certain qualifications. One of the most common qualifications is maintaining a certain balance. It is important to know how your bank calculates the minimum balance. Some banks require you to have the minimum balance in your account every day of the month while others require the average of your monthly balance to be higher than the minimum balance. This is information you should know so that you know when, where and how you would be charged a fee.

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Related posts:

1. Savings Accounts
2. Asset Management
3. Maintaining Your Accounts
4. The Safety of Your Accounts
5. Online Banks