5 Signs of a Good Checking Account

Previously I shared with you 5 Signs of a Good Credit Card. Today I want to share some factors to consider when you are shopping around for a checking account.

Whether you go with a local bank, credit union, or nationwide bank, here are 5 signs of a checking account worth having:

1. Free—I am not about paying for the privilege of storing my money in the bank. Therefore it is essential for me to have a free checking account, which means no fees to open or maintain your account. That means no monthly service charge, no monthly debit card fee, and no teller transaction fees. I have never paid to have a checking account, so there are still free options out there.
2. Low or No Minimum Balance—I like bank accounts that allow you to keep very little or nothing in the bank account if you should choose to. Although there are bank accounts made for higher balances that require sizable amounts to be in the account at all times, I like a very low or no minimum balance for a standard checking account since you are dealing with liquid assets (versus savings).
3. Interest-Bearing—If you do not have much money in the bank, this can be tougher to find, but I have a checking account that does pay interest as long as you meet a certain amount of factors on a monthly basis. Albeit it is not much given the recent interest rates, but something is better than nothing, right? I like getting paid for keeping my money in a bank account.
4. No or Minimal Non-Sufficient Funds Fees—Banks are so notorious for charging numerous non-sufficient funds fees that the government had to get involved. I have been banking with ING DIRECT (now CapitalOne360) for years, and I love their feature that provides overdraft protection without any fees. The only thing that they charge is a small percentage of interest on the “borrowed” amount—for example, $100 overdraft for 10 days would only be $0.31! Although overdrafts should be avoided, it just makes financial sense to pay cents instead of dollars if you should go over your account balance.
5. Debit Card Rewards Program—I use my debit card as the primary means of paying for purchases, so it is a major perk to get rewarded for doing so. My credit union has used ScoreCard Rewards for their debit and credit cards for years, allowing me to get free merchandise and gift cards. Every time that I use my debit card, I get points for doing so.

These are a few of the things that I consider when looking at checking accounts. Others could include online banking, the ability to make deposits after hours, and drive-through service.

What do you look for in a good checking account? Are any of them on this list? Comment below to share your thoughts on checking accounts.