Depending on the banking institution you choose, there are several checking account types available. Before making a selection, it’s important that you do the research necessary to find the account type that suits your needs and your financial situation. Below, you will learn more about the different kinds of checking accounts.
Student accounts: Some banks give special checking account deals to students. The accounts vary from one bank to another, but some of the most common benefits include free checks and debit cards, greater availability of ATMs, no balance requirement, and increased transfer capability for parents. Some banks put age limits on these accounts; check into it to see if you qualify.
Basic checking accounts: These accounts are well-suited to those who use their account to pay their Home Equity loans, monthly bills and not much else. To avoid monthly maintenance fees, some banks require the use of direct deposit, or set a minimum balance requirement. There may be monthly limits on check writing, and if that limit is exceeded, you will pay a fee per additional item.
Free accounts:
Free Checking in Melbourne attracts many customers, and it’s easy to see why. In the majority of cases, a ‘free’ account means no item fees, no monthly fees and the lack of a balance requirement. Other add-ons may include free bill pay, online banking and debit cards. Rules vary from one bank to the next, and you should ask each bank what they really mean by “free” before signing up.
Interest bearing accounts: With this checking account type, you earn interest on your balance. Most banks have a minimum deposit requirement, and most also require that you maintain a balance equal to or greater than that amount to avoid service fees. For instance, a bank may have a deposit requirement of $150 to open an account, and they may charge a $10 fee per month if you don’t keep a balance of $2000.
Most interest bearing accounts pay out on a monthly basis, and the more money that’s in the account, the more interest it earns. Remember, however, that if your balance dips below the minimum threshold, your fees will likely exceed the interest you earn.
