Checking Accounts

Checking AccountsA checking account is also known as a demand account because money is available on demand. Checking accounts are a basic necessity for millions of Americans. Getting a checking account will allow you to access your money in a variety of ways such as (ATM withdrawals, debits cards, cash from the teller, checks, money orders, EFTs, ACH transactions, wire transfers and more)

However, when you are looking to open a checking account, you might as well get one that offers you something of value in return. This is usually a pretty easy task, as most banks offer checking account promotions just to get you in the door. These high interest NOW accounts are very prevalent in the banking world and simply act as a loss leader for the banks other promotions and products.

Finding the Best Checking Account Offers

3 Important Things When Choosing a Checking Account.

1. Analyze your needs
2. Shop around
3. Go for the best long term deal

What Do You Need from Your Checking Account?

If this is not your first account, then the easiest way to determine what you need from your new account is to look at your past history. Figure out how you interact with your money on a daily and monthly basis and that will guide you. Do you need online bill bay? Do you write loads of checks? What kind of balance do you keep? Have you incurred any overdraft fees or bounced checks? Do you use the ATM a lot?

After you determine how you interact, then you can decide which perks are best for you.

Shop Around for the Best Checking Account Promotions

Shopping isn’t as simple as take the best deal you see at first glance. You need to do your homework at this stage and make sure you read the fine print. Be on the lookout for things like introductory offers, monthly fees, minimum balances and other things may trigger checking account fees.

Go For The Best Long Term Deals

Ideally, this checking account will last you a long time, so don’t be tricked into taking a promotion that is good only in the short term. Make it a business decision as mush as a personal one. There is nothing wrong with taking a new promotion, but make sure that the other offerings that come next such as savings accounts or money market accounts offer value too.

Go For The Best Long Term DealsOne final factor to look at is risk. While most banks are FDIC insured up to $250,000, you don’t want your money in a bank that has a risk of going under. Sure, the government may pay you back, but when exactly will that be? It could be tomorrow, next week or in a year. Ask yourself this; what are you going to do for the next year while you are waiting on our government to send you a check?

Getting the best checking account is an easy task if you prioritize your needs and understand your risk.