How to save on checking accounts

You can`t expect something for nothing, but often you can pay less in bank fees. A checking account is the primary reason why many people use a bank and banks offer, on average, 4 different kinds of personal checking accounts. Making sure you have the right checking account to serve your needs without costing a lot of money in fees is as simple as these tips from Busey Bank`s Susan Abbott: Q1: What are some things to think about when doing a checking account check-up? · Determine your checking needs, and know your checking habits. Take time to review your statements. Look at how many checks you write per month and your ending balance. How many times each month do you use an ATM for cash? Do you use a debit/check card, or write checks for purchases? · Five important criteria to consider include minimum deposit to open the account, monthly service fees, minimum balance requirements, ATM fees and minimum balances required for interest bearing accounts. · Is earning interest important to you? Interest checking accounts require higher minimum balances to earn interest. Determine whether the going interest rate warrants keeping the higher balance in the account. You may be better off parking those funds in a savings vehicle. Q2: Is it possible to be fee-free? · The average person who didn`t maintain a minimum account balance paid $217 annually for a checking account, according to a recent U.S. Public Interest Research Group survey. · Free checking accounts, by definition, have no monthly service charges or per-item fees regardless of balance or activity. Other ways to have a free account can be a simple as having your paycheck directly deposited or electing not to have your checks returned. · Some banks might offer a free checking account if you have a mortgage, auto loan, or certain balances in savings accounts. · Keep track of your balance and use your own bank`s ATMs. If your bank doesn`t have a lot of ATMs, find out what fees are charged if you use another institution`s ATM. If you do pay a fee, consider withdrawing larger sums each time so you`ll cut down on the number of transactions. · Ask for cash back when making a purchase with your ATM or debit card. Q3: Are there other fee-saving services to take advantage of? · Try banking by phone. Many banks allow you to use a touch-tone phone to manage your accounts any time, anywhere, for free. You can check account balances, verify transactions, transfer money between accounts and receive information. · Automate recurring bills. Automatic withdrawals from your checking account for recurring expenses like your mortgage, utility bills, and insurance payments can streamline your bill paying processes and help you avoid late charges or service interruptions.