Checking Accounts: Keeping the Costs Down

With new laws and limited banks revenue, institutions sometimes raise fees and reassess features on services, including checking accounts. That's why it's especially important to think about how you expect to use a checking account and then comparison shop for the right combination of convenience, costs and services.

Some banks, for example, are doing away with "free" checking accounts and now charge monthly maintenance fees. However, they may waive fees if you meet specific requirements, such as keeping a minimum balance in the account at all times, using direct deposit, or doing all of your banking online. Be sure you know all of the rules and requirements of your account. You can also check with several banks to compare fees and requirements. Some banks also are increasing ATM fees. Try to minimize or avoid fees by looking for a bank that offers ATMs that are conveniently located — close to your work, home or school or find banks that allow you to use other banks' ATMs for free or a low fee.

When choosing a checking account that offers a debit card rewards program be sure the benefits of these programs are worth it if you're paying maintenance fees or other costs. The bank can decide to end the program at any time. Also carefully consider the costs for overdraft programs and your options for avoiding high fees.

Source: FDIC