The free checking account began to disappear as a result of the latest changes in federal banking regulations, but a free account still exists if you see and can be a lot. The trick is to make sure you understand all account rules so you are not caught with hidden costs or misunderstood.
Although it used to be that only about every type of banking agency offered a free checking account option, a truly free account is increasingly less common. Federal legislation has recently changed the way banks are permitted to charge cost keys, which are the main sources of income for the bank. As a result, the bank sees a way to restore lost overdraft income, and a free account becomes a victim.
The good news is that the same law clarifies what can and cannot legally be called a “free” account. The bank cannot advertise accounts as free if the account has a minimum balance requirement, the maximum number of transactions that can be made without charge, or regular service fees or transaction costs attached to it. However, there are still other fees that can be billed by the Bank on a free checking account, and some of these costs may increase when the bank sees how to create a more profitable account.
Some fees can be subject to a bank fee, even on free checking accounts including costs for:
Kerokan – New regulations require customers to “choose” if they want their bank, at a cost, to include an ATM card or discharge instead of rejecting transactions. Banks can still cover automatic payments or overdraft payments and charge fees without customers who choose, and they can still charge customers for having insufficient funds to check.
The use of ATMs – most banks do not charge their own customers to use their ATMs, but check your bank policy. Also, know your bank fees may charge fees if you use another bank ATM.
Debit card transactions – Some banks charge every time you use your debit card for transactions. Check whether there are fees associated with the debit transaction before you make it.
Check printing – most banks charge fees to print checks for their customers, and usually higher levels than the price charged by the printing company.
Premium services – services such as payment termination on checks or receipt of canceled checks will likely come at a cost. Strangely, some banks even burden customers to call customer service and talk to representatives, rather than going to branches to resolve problems or rely on email communication.
Dormancy – If you don’t have an activity on the account for a certain period of time, some banks will charge you to keep the account open.
A free checking account can be an economical way to manage your money, but before you open one, read your bank fee schedule and make it a habit to all the account provisions. The best way to ensure freedom actually remains free must be told.
