Most of the banks offer free checking accounts, whereby the clients have to deposit a minimum sum of money to open it and maintain a certain balance. There are other checking accounts that do not require a “minimum” deposit; however, the bank deducts a certain amount on withdrawal. The financial crisis has made them rather scarce, but small banks and credit unions still offer free checking accounts. Banks offer such services to increase customers, with the promise of saving them money.
Although it may sound like a good idea, you should know about the drawbacks of a free checking account. If you have such an account, you’ll most likely not get any interest.
Services Not Offered
With a free checking account, you might not be able to see your checks once they’ve been paid. Only some banks put up the check images online. This isn’t a major drawback, though. You rarely need to view your check for personal accounts, and there are always other ways to track payments. You can still request a copy of a particular check from a free checking account.
Though it saves you money, choosing a free checking account deprives you of the advantages of Stop Payments and Cancelled Check Return. If you aren’t fond of shopping then you aren’t missing on a lot, but if you like to shop around, you should consider an account that offers these services.
Hence, these accounts are a good idea if you don’t need the extra services and your balance is relatively low. If you do require the services while keeping this account, you’ll have to pay a fee for each service.