How to Choose a Checking Account That Works for You

Many people have questions about how to choose a checking account—from what types of perks and benefits they should expect for signing up to the various fees they should look out for.

With seemingly countless different options–all offering different benefits and promotions–it can be hard to even know where to start.

Because there are so many options available, it’s wise to shop for a checking account that works for your individual financial situation.

Below, we’ve outlined several factors for you to consider when you’re comparing different checking accounts. However, remember that the most important part of choosing a new checking account is finding one that works for you.

Often, this means partnering with a local bank with online options, roots in your community and a reputation for exceptional customer service.

Compare the different checking account options at your favorite bank

Most banks provide a variety of checking account options for you to choose from. Like with many other products and services, the trick for choosing the right checking account for you is finding the one with all the features you’ll use on a regular basis.

When choosing between checking accounts, look for perks that make it as easy as possible for you to use the money in your checking account. Look for a checking account that includes at least the following benefits:

Direct Deposit — Save time by having your paychecks automatically deposited into your checking account. Direct deposit is also safer than carrying around a physical check since it eliminates the chance that your paycheck will be lost, stolen, delayed or damaged.

ATM Access — If you use cash on a semi-regular basis you should choose a checking account that you can access through a network of ATMs. Importantly, withdrawing money at out-of-network ATMs will sometimes result in a fee, so you should choose a checking account that either waives the fee for you or has a network of ATMs that spans the geography you need.

Overdraft Protections — Many checking accounts charge an overdraft fee when you try to spend or withdraw more money than you have in your checking account. For this reason, it’s smart to choose a checking account that offers both an overdraft grace zone and the option to automatically transfer money into the account in the event of an overdraft. These benefits can help you avoid costly overdraft fees should your balance ever go into the negative.

The best place to start is often simply asking your favorite local bank what checking account options they have available. If you aren’t currently partnered with a bank, consider finding a bank rooted in your community and asking your friends and family about their experiences with their own banks to find some options that might work for you.

Remember, a checking account is something you’ll use on a regular basis, so it’s important to partner with a bank that feels right to you. Focus on ones with roots in your local area and an excellent reputation for customer service as a way of improving your banking experience.

While all the factors we’re outlining are important, the biggest deciding factors in choosing the best checking account are often the convenience gained, benefits provided and trust earned by the bank through everyday interactions.

Choose an account based on your spending habits

Two important factors to consider when choosing between checking accounts are how often you’ll use the checking account and how much money you plan to keep in the checking account.

If, for example, you plan to maintain a high balance (usually of more than $10,000) it’s generally worthwhile to choose a checking account that earns interest over time.

On the other hand, if you plan to primarily use your debit card for everyday purchases, you may want to prioritize an account with no limit on transactions and more forgiving overdraft protections.

Put simply, you should take a moment to consider how you plan to use the checking account. Then, if you notice that one particular action or factor stands out, you can look for accounts that match your spending and saving habits.

Look for ways to avoid monthly maintenance fees

Most checking accounts will charge a monthly maintenance fee that can be waived by meeting certain requirements.

Often, this means maintaining a minimum daily balance, depositing a certain amount of money into the account monthly or holding a certain amount of money in other accounts at the same bank.

When you’re reviewing your checking account options, you should first look to see if the account charges a monthly maintenance fee. Then, if it does, you should figure out how difficult it will be to meet the requirements for avoiding this fee.

These fees and requirements may seem daunting at first, but in practice they’re generally very easy to meet with a few small changes to your saving habits. For this reason, make sure to look out for ways to avoid monthly maintenance fees and plan for how you’ll meet these requirements.

Prioritize an account with both branch banking and online options

In our increasingly digital world, it’s important to partner with a bank that offers both in-person and online options for managing your checking account and finances.

Mobile apps and online banking portals make it easy to perform regular banking tasks such as paying bills, depositing checks and checking your account statements.

However, sometimes you just need to sit down with someone in-person to help you work through more difficult or personalized tasks such as applying for a mortgage or opening a new account.

For this reason, it’s best to partner with a bank that can provide you with the best of both worlds by offering both branch banking options and a robust and secure online banking system.

Read up on the different incentives and perks available for each checking account

Many checking accounts will offer a variety of incentives and perks both when you sign up and as you continue to use the account.

For example, some accounts will waive ATM fees when using out-of-network ATMs. Others will provide you with free cashier’s checks and money orders whenever you need them. Still others might offer more specific perks like identity theft protection, cell phone protection plans and other sign-up bonuses as an incentive for choosing a particular account type.

Some banks even offer personalized or customized checking options such as customized checks and fan accounts for your favorite sports teams to help give the account a more personal touch.

When choosing a new checking account, try to look for any valuable additions that the bank may offer as incentives for signing up for the account. This is a quick and easy way to get some immediate value out of opening a new account. You may be surprised at the number of perks banks make available to their clients!

Partner with a bank that puts you first

In practice, the differences between checking accounts are often minimal and will depend on differences between the banks themselves. For this reason, the most important factor you should consider when searching for a new checking account is whether the bank itself is right for you.

Once you’ve chosen a bank, you can begin reviewing their different checking options to find the specific account that best matches how you manage your finances.

For example, a checking account with a lower account minimum may not generate interest. On the other hand, a checking account with a higher account minimum may come with several perks such as personalized checks, waived ATM fees and access to exclusive benefits like identity theft protection.

No matter which account you decide to go with, the important thing is to find an account designed with you in mind and backed by superior customer service.

If you’re comparing different checking accounts and are unsure about what type to open, please take a moment to evaluate the different checking accounts available at your local Associated Bank. Or, schedule an appointment at your local Associated Bank branch to talk with a banker who can help you find the checking account option that works best for you.