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How to Choose the Best Checking Account

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Managing your finances in a better way starts with choosing the right checking. It’s not just about where you’ll keep your money—it’s about how easily you can access your funds, manage your finances, and avoid unnecessary fees. Are you looking to open your first checking account or considering switching from your current provider? This guide will explore everything you need to know. Ultimately, you’ll learn to choose the best checking accounts that meet your financial needs.

Adult man typing on his laptop Article Image
Yellow notepad with pen svg icon Lesson Notes:
  • Choose accounts with low fees and high accessibility options.
  • Look for overdraft protection to avoid extra charges.
  • Prioritize accounts offering security features like fraud alerts.
  • Consider checking accounts with rewards or interest options.

What Makes a Checking Account the Best?

There isn’t a one-size-fits-all solution when it comes to checking accounts. What makes a checking account the "best" for one person may not necessarily make it the best for another. Your spending habits, financial goals, and preferences will largely determine the type of account that works best for you. However, certain qualities make some checking accounts rise above the rest, such as:

Low or No Fees

One of the primary factors to consider when choosing a checking account is its fee structure. Since hidden fees erode your savings over time, finding an account with minimal or no fees is crucial. Fees to watch out for include:

• Monthly maintenance fees: Many financial institutions charge a fee just for having an account. However, some waive this fee if you meet specific terms (such as maintaining a minimum balance or setting up a direct deposit).

• Overdraft fees: According to Bankrate’s 2024 checking account and ATM fee study, the average overdraft fee in the U.S. has risen to $27.08 this year (Bennett & Goldberg, 2024). Overdraft fees can quickly accumulate if you’re not careful, so selecting an account with low overdraft fees or overdraft protection is essential.

• ATM fees: Accessing cash from out-of-network ATMs can cost anywhere from $2.50 to $5.00 per transaction. So, look for banks or credit unions with large ATM networks or those that offer ATM fee reimbursements.

• Foreign transaction fees: If you often travel internationally or purchase in foreign currencies, be mindful of these fees. Some banks charge as much as 3% per transaction, which can add up quickly.

To save money, focus on the best checking accounts with no monthly fees and low charges on other services. For instance, Ent Credit Union provides personal checking accounts with no monthly maintenance fees, which is ideal for individuals looking to cut unnecessary costs.

Accessibility and Convenience

Another key consideration when choosing a checking account is accessibility. The best personal checking accounts provide convenient access to your money whenever and wherever you need it. Whether it’s through a large network of ATMs, mobile banking, or 24/7 customer support, accessibility can make or break your banking experience.

Here’s what you need to look for:

• ATM network: Consider whether the bank has a robust ATM network, especially if you frequently withdraw cash. Credit unions like Ent often belong to the CO-OP ATM network, offering access to thousands of fee-free ATMs across the U.S.

• Online and mobile banking: With the rise of digital banking, you expect to manage your money online on a computer or through a mobile app. Look for a checking account that allows you to easily transfer funds, pay bills, deposit checks, and track your spending from the comfort of your phone or computer.

• Customer service: While you can handle most transactions online, there will be times when you need to speak with a representative. Check whether your bank offers phone, chat, or in-person support when you need it most.

Overdraft Protection Options

Overdraft fees can be an onerous financial burden, so it’s important to find a bank or credit union that offers overdraft protection options. According to the Consumer Financial Protection Bureau (CFPB), overdraft and non-sufficient funds (NSF) fees can go as high as $37 per day (CFPB, 2024). However, many of the best checking accounts offer low-fee or free overdraft protection by linking your checking to a savings account or a line of credit.

Some institutions also allow customers to opt out of overdraft protection altogether. Under such terms, transactions will be declined if you don’t have enough funds, saving you from paying an overdraft fee. Ent Credit Union, for example, offers overdraft protection options that help members avoid high fees and protect their accounts from going into negative balances.

Interest and Rewards

Traditionally, checking accounts don’t offer significant interest rates, but some high-interest or rewards checking accounts can help you earn money on your balance. While savings accounts are better known for providing interest, some checking accounts offer a small annual percentage yield (APY) on balances that meet certain requirements.

Additionally, rewards checking accounts offer perks like cashback for debit card purchases or discounts on certain products or services. If you regularly keep a larger balance in your checking account or frequently use your debit card for purchases, these features could significantly improve your overall banking experience.

Security and Fraud Protection

As online and mobile banking grows, fraud and identity theft have become a menace. With 283,657 identity theft reports in Q2 2024 (FTC, 2024), protection has never been more crucial. The best checking accounts offer robust security features to protect your money. Look for accounts that provide:

• Two-factor authentication: This extra layer of security requires you to verify your identity through two methods, such as a password, a text message code, or biometrics.

• Fraud alerts: The best banks and credit unions offer real-time fraud alerts to notify you immediately of any suspicious activity on your account.

• Zero liability: In case of unauthorized transactions, zero-liability policies ensure you won’t be held responsible for fraudulent charges.

When you select a checking account that prioritizes security, you safeguard your finances and rest easy knowing that your money is protected.

Comparing Checking Account Features

Now that we’ve covered the core features of the best checking accounts, let’s dive deeper into how to compare different accounts. Conducting a checking account comparison involves evaluating the following criteria:

Fees and Costs

As we’ve already discussed, fees can vary significantly between checking accounts. Make sure to understand the fee structure before opening an account, and be on the lookout for:

• Monthly maintenance fees: Some banks will waive these if you meet specific conditions, such as setting up direct deposit or maintaining a set minimum balance.

• ATM fees: Check the bank’s ATM network or whether they offer reimbursement for out-of-network ATM fees.

• Overdraft fees: Find out if the bank offers overdraft protection or if they charge a flat fee for overdrafts.

Minimum Balance Requirements

Certain banks or credit unions mandate that you maintain a specified minimum balance to avoid fees or earn interest. If you tend to keep smaller balances in your checking account, opt for an account with a low or no minimum balance requirements.

Interest Rates and Rewards

If you’re interested in earning interest or rewards, be sure to compare the APYs and cashback offers between different accounts. Some checking accounts, particularly those from online banks or credit unions, offer competitive interest rates, while others provide rewards for using your debit card.

Accessibility

Compare the availability of ATMs, branch locations, and mobile banking features. If you travel frequently, make sure the bank has a wide ATM network or offers fee-free ATMs through partnerships with other institutions. Additionally, if you prefer digital banking, choose an account with a user-friendly mobile app and comprehensive online services.

Additional Perks

Some checking accounts come with extra perks, such as identity theft protection, travel insurance, or access to financial planning tools. While these benefits aren’t necessary for everyone, they can add value if you plan to take advantage of them.

A checking account comparison based on the above criteria will help you determine the best option that aligns with your financial preferences.

Personal Checking Accounts: What to Look For

Choosing between the personal checking account options available can be overwhelming. Here are a few things to consider when screening for the best personal checking account for you:

Your Financial Habits

Your financial habits play a big role in determining the right checking account for you. Ask yourself:

Do I need access to cash frequently, or do I mainly make electronic payments?

Do I keep a large balance in my checking account, or do I transfer money in and out frequently?

How often do I use my debit card?

If you utilize debit cards for everyday purchases, a checking account with rewards or cashback offers may be the best option. Meanwhile, if you’re looking for a straightforward account with no fees, a basic checking account from a credit union like Ent may be the right fit.

Transaction Volume

Some banks limit the number of transactions you can make each month before they start charging fees. Thus, if you make frequent withdrawals or transfers, pick an account that offers unlimited transactions without additional charges.

Linking to Other Financial Products

If you already have other financial products, such as a savings account, investment account, or loan, consider whether you can link your checking account for easy transfers. This feature can make managing your finances more seamless.

Sign-Up Bonuses

Many credit unions and banks offer checking account bonuses when signing up for a new account. For example, you might receive a bonus if you open an account and set up direct deposit within the first 90 days. While these bonuses are a nice incentive, they shouldn’t be the only factor you consider when choosing an account. Make sure other account features align with your long-term financial goals.

Benefits of Choosing the Right Checking Account

Selecting the right checking account will elevate your overall financial well-being. While the benefits might take time, expect significant gains over the long run. Here are just a few of the key benefits:

Save on Fees

One of the most immediate benefits of choosing the right checking account is saving on fees. You can keep more of your money by selecting a checking option with no or low fees. Many credit unions, including Ent Credit Union, offer personal checking accounts with no monthly maintenance fees or minimum balance requirements, allowing you to avoid unnecessary costs.

Simplified Money Management

A good checking account makes it easy to manage your money. With capabilities like online bill pay, mobile check deposit, and real-time spending alerts, you’ll have more control over your finances. Moreover, the best checking accounts come with budgeting tools and spending insights, which help you stay on top of your financial goals.

Security and Peace of Mind

With the surging prevalence of identity theft and fraud, choosing a checking account with robust security measures is essential. The right checking accounts offer features like two-factor authentication, fraud monitoring, and zero-liability protection for unauthorized transactions. This gives you peace of mind, knowing that your money is safe.

Earning Potential

While most checking accounts don’t offer high interest rates, certain types of accounts, such as rewards checking, can help you earn extra on your balance. If you tend to keep a higher balance in your checking account, choosing an account with rewards or other financial benefits can be a smart financial move.

Open Your Checking Account with Ent Credit Union

If you’re looking for the best checking accounts, Ent Credit Union offers a range of options designed to meet your financial needs. Here’s why opening a checking account with Ent is a great choice:

No Monthly Fees

An Ent Credit Union checking account has zero monthly maintenance fees and no minimum balance requirements, making it a cost-effective option for everyday banking.

Surcharge-Free ATMs

Ent members have access to over 30,000 surcharge-free ATMs through the CO-OP Network. This ATM network provides convenient, fee-free access to cash, whether you’re at home or traveling.

Mobile and Online Banking

Ent’s robust mobile and online banking services allow you to easily manage your account around the clock from anywhere. Whether mobile check deposits, fund transfers, eStatements, paying bills, or tracking your spending, Ent’s digital tools make banking simple and convenient.

Overdraft Protection

Ent offers several overdraft protection options, such as linking your checking account to a savings account or a line of credit. This helps you avoid exorbitant overdraft fees and ensures you always have access to your funds when you need them.

Exceptional Security

With Ent Protect, you enjoy advanced fraud monitoring that includes credit and dark web monitoring. Additionally, you can access a dedicated fraud specialist for identity theft recovery and receive up to $25,000 to cover costs if your identity is compromised. At Ent, you bank with confidence, knowing that your money is protected against fraud and unauthorized transactions.

FAQs

What should I consider when choosing a checking account?

When selecting a checking account, consider factors like fees, minimum balance requirements, ATM fees and network, mobile banking features, and customer service. Additionally, think about your spending habits and whether the account offers rewards or interest that could benefit you.

How do I compare different checking accounts?

Conduct a checking account comparison by looking at fees, minimum balance requirements, interest rates, ATM access, and online banking features. Also, ensure the account you choose aligns has security features to prevent and recover from fraud.

What are the benefits of having a personal checking account?

It allows you to manage your daily finances, including receiving your paychecks, paying bills, purchasing, and accessing cash. It also provides a safe place to store your money. Many checking accounts offer additional perks like rewards, interest, and access to budgeting tools and transaction alerts.

What features do the best checking accounts offer?

The best checking accounts offer low fees, convenient access to ATMs, comprehensive mobile and online banking tools, overdraft protections, and robust security features. Additionally, they should link with savings and investment accounts to enable seamless money management. They also offer rewards or interest on balances, maximizing your money.

How can I open a checking account at Ent Credit Union?

You can do it online or by visiting a branch. You’ll need to provide identification (ID and social security number), contact information, and address, and you may need to make a small initial deposit. Ent’s checking accounts come with no required opening deposit, monthly fees, or minimum balance requirements.

Citations

• Consumer Financial Protection Bureau (2024, April 11). Overdraft/NSF metrics for Top 20 banks based on overdraft/NSF revenue reported during 2021.

• Karen Bennett & Matthew Goldberg (2024, August 21). Survey: ATM fees reach 26-year high while overdraft fees inch back up. Bankrate.

• The Federal Trade Commission (2024). FTC Consumer Sentinel Network - Fraud and ID Theft Maps.

*PLEASE NOTE: This article is intended to be used for informational purposes and should not be considered financial advice. Consult a financial advisor, accountant or other financial professional to learn more about what strategies are appropriate for your situation.

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