The Pros and Cons of Free Checking Accounts

Free checking can stand out as a huge benefit formoney out of the ATM or at a store utilizing
those looking for a place to store their money, butpenalty-free cash back withdrawals.
there are also some aspects of these accounts thatThe Cons
can be a little less appealing. The trick to deciding- Monthly automatic activity often required. One way
whether one is right for you is holding up your goalsthat financial institutions make sure that they benefit
against its pros and cons. This way, you'll have afrom offering you free checking is by becoming
better shot of making the best decision for youractively involved with your money. So some require
money.that you either have money directly deposited or
The Proswithdrawn every month. If you don't participate, either
- Checks are free. Probably one of the most obviousyou can't open the account, or fees will magically
perks of free checking is the fact that you don't haveappear.
to pay a dime to write checks once you open an- High overdraft charges may take your money. When
account. For those looking to get started in banking, thisyou open an account like this, it is likely that you will
is a great way to do it, especially for those looking topay royally for falling below the generous minimum $0
build up a good rapport in the credit world.balance. Some fees can be as high as $25 per
- Low minimum amount to start. Typically, with freeoverdraft with an additional $5 charge each day that
checking, you can open an account with as little asyour balance in the negative. This can add up quickly if
$50. Again, this is great for the young person whoyou went on a debit card shopping spree not knowing
wants to build up credit but doesn't have much up-frontthat your paycheck didn't clear.
money to do so.Free checking can definitely benefit those who read all
- Free debit card. Debit cards are all the rage in theof the fine print when they open an account. So if you
banking world because they offer the benefits of cashthink this is the road you would like to take, make sure
with some of the added perks of a credit card. Whenyou do the same to avoid spending more money with
you open an account with most financial institutions,the bank than with a retailer.
they will give you a free debit card to easily pull your