What are 4 ways to access your checking account?

Write checks to pay others. Use a debit card, which allows you to make electronic and online transactions. Withdraw or deposit funds at an ATM. Access your account online or via a mobile app 1 , where you can check your current balance, transfer money, review recent transactions and otherwise manage your account.

What factors do you think are most important in selecting an account?

Security is crucial, so ensure the bank is insured by the FDIC or NCUA. Bank fees can eat into your savings, so be aware of ATM charges, maintenance fees, and overdraft protection fees. Interest rates vary, so compare rates and consider online banks that offer higher rates on savings and checking accounts.

What is the 5 bank account method?

Each account has a specific purpose to help you budget and hold yourself accountable. The method is composed of five bank accounts: two checking accounts (one for your bills and the other for your lifestyle expenses) and three savings accounts (for your emergency fund, long-term goals, and short-term goals) .

What do consumers want in a checking account?

Here are the factors that Americans value most when choosing where to bank: Security and fraud protection features, customer service, and mobile and online access are the most important features for Americans when it comes to picking a bank. Low fees on checking accounts and other deposit accounts are also important.

What are the basics of a bank account?

The most basic form of a bank account is a checking account . Checking accounts come with a debit card, checks, and are a good choice for day-to-day expenses. Savings accounts earn interest on your deposited money.

What does a good bank statement look like?

Your bank statements should reflect a healthy balance between income and expenses . Avoid excessive spending or reliance on credit to cover your monthly expenses. Debt Repayment History: If you have existing loans or credit card debt, your bank statements should demonstrate a consistent and timely repayment history.

What do banks look for in bank statements?

How Far Back Do Mortgage Lenders Look at Bank Statements? Lenders typically look for 2 months of bank statements from potential borrowers, which provides enough data to assess your income consistency, spending habits, account balances and other crucial financial information .

Can my bank see all my transactions?

Do banks look at your transactions? Bank tellers look at your transactions but cannot see what you purchased . Looking at the money coming in and out allows tellers to assist with your account.

What's the most you should keep in a checking account?

The general rule of thumb is to try to have one or two months' of living expenses in it at all times. Some experts recommend adding 30 percent to this number as an extra cushion.

What is the most common type of checking account?

Traditional Checking Account A traditional checking account is the most common bank account you'll encounter. It provides basic functionality for everyday banking needs. With a traditional checking account, you typically have access to services including check writing, a debit card and online banking.

What kind of bank account should I open?

Key takeaways. Checking accounts are best for access to your money at any time, albeit while earning minimal to no interest . Savings accounts are best when you don't need access to your money often and would like to leave it in a secure account that earns interest.

6 tips for choosing the best checking account (2024)

Checking accounts offer a safe place to conveniently deposit and withdraw money, but it can be hard to choose from the overwhelming number of options.

Online banks, brick-and-mortar banks and credit unions all offer checking accounts that come with a variety of different features. Checking accounts might provide above average interest rates, no monthly maintenance fees, ATM fee reimbursem*nts and/or other benefits.

All of these perks can help you do the most with your money, but it takes a little research to decide on the right account for you. You should compare different accounts and narrow down your top options. If you want to choose the best checking account, follow the guidelines listed below.

How to choose a checking account

Before you open a checking account, consider these factors:

Insurance
Minimum deposit requirements
Fees
ATM network
Interest and rewards
Mobile app features

1. Insurance

You should verify that the bank or credit union where you open an account provides insurance from either the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA).

Both the FDIC and NCUA provide a standard insurance amount of $250,000 per depositor, per bank or credit union. This insurance protects and reimburses you up to your balance and the legal limit in the event your bank or credit union fails.

2. Minimum balance requirements

Many checking accounts require you to maintain a certain balance in order to avoid fees. If you don't meet the balance requirements, you'll incur a monthly maintenance fee up to $15.

The Chase Total Checking® account charges a $12 monthly service fee to account holders who don't meet one of these three requirements:

Direct deposits totaling $500 or moreeach month
A minimum $1,500 balance at the beginning of each day
An average $5,000 or greater balance in a combination of this account and linked qualifying Chase checking and savings accounts at the beginning of each day

If you open an account that charges monthly service fees, make sure you meet any minimum balance requirements to waive the fee. Otherwise, opt for a checking account that doesn't require you to maintain a certain balance to benefit from $0 monthly service fees, such as Capital One 360 Checking®.Check out our review of the Capital One 360 Checking Account.

3. Fees

Like most financial products, checking accounts charge various fees to access your money. Some common fees include: monthly service/maintenance fee, overdraft fee, non-sufficient (NSF) fee and ATM fee. These fees can range from a couple dollars to $35 per occurrence, making repeat fees costly.

Thankfully, many of the common checking account fees can be avoided if you responsibly manage your account and always maintain a positive balance.However, you should also consider accounts that have minimal fees so you don't need to keep track oftoo many requirements. Considerno-fee checking accounts that never charge monthly service fees and may provide ATM fee reimbursem*nts, which we discuss next.

4. ATM network

If you often pay with cash, you'll need to use an ATM and/or visit a branch location to withdraw money. Thankfully, checking accounts provide access to thousands of free ATMs.

If you stick to your bank or credit union's ATM network, you won't incur any ATM fees. Using an ATM from an out-of-network provider may come at a fee from both your bank/credit union and the ATM operator. However, some of the best checking accounts provide reimbursem*nts. The Alliant Credit Union High-Rate Checkingaccount offers up to $20 per month.

5. Interest and rewards

While checking accounts aren't built to hold large amounts of money for long-term goals, you can find accounts that provide above average interest rates. The average APY is 0.04%, but there are banks and credit unions that offer more.

The Ally Bank Spending Account (Ally's checking product) provides a 0.10% to 0.25% APY (depending on your account balance), whereas the Discover® Cashback Debit Checking offers 1% cash back on up to $3,000 in debit card purchases each month.

6. Mobile app features

Choosing the right checking account is about more than just the financial terms. You should also consider what mobile features are offered. Look for mobile check deposit and integration with peer-to-peer payment apps, such as Zelle®. You may also want to consider if there's the option to "lock" or "freeze" your card to prevent anyone else from using it.

Another way to tell if the app is user-friendly is to check out reviews on the app store. Top-rated apps rank close to 5/5 stars and have good consumer comments.

Don't miss:

Best checking account bonuses
7 common fees of checking accounts and how to avoid them
These are the 5 best credit unions for all your banking needs in 2020

Information about the Capital One 360 Checking® Account, Alliant Credit Union High-Rate Checking, Ally Bank Spending Account and Discover ® Cashback Debit Checking has been collected independently by Select and has not been reviewed or provided by the banks prior to publication. Chase, Capital One, Ally and Discover are a Member FDIC. Alliant Credit Union is a Member NCUA.

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.