Types of Checking Accounts:
Basic checking: Usually limited to a certain number of checks per month; go over that number and you'll pay a "per item" fee for each additional check you write. A good choice for those who don't write many checks or have enough in savings in other accounts to qualify for better checking accounts.
Express Checking: Lower fees and/or less restrictions if you use an ATM, telephone or personal computer. The catch is you pay a fee for using a teller. These are great for students and those who don't live near a branch or if you want lower fees than a basic checking account.
Free checking: This is usually the best checking account for most people. Free checking means "no monthly service charges or per-item fees regardless of balance or activity." This means you can, write all the checks you like and keep your balance as low as you like without worrying about paying a fee. You will still pay fees if you bounce a check or fail other criteria. .
Interest-bearing: Usually requires a minimum balance to open, and you may need to maintain an even higher balance to avoid fees. The minimums balances can often be in other accounts where you pool balances.
Joint checking: An account owned by two or more people. Each co-owner has equal access to the account. Most types of accounts, whether it's basic checking, savings or money market, allow for joint use.
Lifeline: A "basic" account meant for people who have a low income. These accounts usually have monthly fees ranging from zero to $6; require a low, if any, minimum deposit and balance; and allow the user to write a certain number of checks per month. According to Bankrate.com, banks are required by state law to offer Lifeline checking accounts in Illinois, Massachusetts, Minnesota, New Jersey, New York, Rhode Island and Vermont. In those states, minimum terms, fees and conditions are set by law, not by individual banks.
Money market checking: Often found at brokerages like Fidelity, Schwab and Vanguard. These combine checking with a money market fund to get higher interest. It requires a high minimum deposit to open, higher balances to avoid fees and imposes tighter limits on checking transactions than other accounts. Some have a minimum check size of $250 so these are not meant for paying bills.
Senior/student checking are any of the above with special provisions attractive for seniors and students.
DISCLAIMER: Answers & my words are general in nature, are not meant as specific investment advice, and do not necessarily represent the opinion of anyone but Kirk. Individuals should consult with their own advisors for specific investment advice.
