Whether you’re just starting out in life or getting ready to retire, there’s a checking account out there designed specifically to help you save money. Banks and credit unions have figured out a long time ago that in order to attract customers to invest their money there, they have to offer more than just “free checking.”
With just a little research, Financial Lessons has put together a list of different types of checking accounts, along with their pros and cons, to help you save money the easiest way possible.
“Free checking” is, or should be, just that- no limit fees at all. You can write as many checks as you want without spending money on these fees. The account also doesn’t have a monthly maintenance fee so you save money that way too.
Save money with a basic checking accounts which usually comes with a monthly maintenance fee and a limit to the number of checks you can write before you have to start spending money on those features. Sometimes it’s a fixed amount, sometimes you’re spending money by being charged by the check.
Second Chance Checking
If you have bad credit history, this is the type of account you need to use to save money. Institutions that offer this type of account usually hold a tight reign on their customer with monthly maintenance fees and check limits, with which you will be spending money on moderate to severe penalties for going over the limit. But if you can play by their rules, this type of account offers a fast road to credit redemption and can help you save money quickly.
Designed for college students to help them save money, the range of incentives institutions offer for sign up is almost limitless. However, the most common ones are high interest rates and free checking.
55 and older
At the other end of spectrum are checking accounts for seniors to save money on. These accounts often offer free unlimited checking, as well as no maintenance fees as a standard. Plus some “adult” perks including free cashier and travelers’ checks, and lower rates on loans and credit cards. They may also offer other frills to help the elderly save money like including discounts on prescription medication, travel, and groceries.
Designed for those who want to save money on the go, this type of checking account offers all sorts of options to bank by computer. They feature low or no-fee checking as well as low balance minimums. However, if you want to actually talk to a person, it could cost you anywhere from $3 to $8 a visit.