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A checking account is useful for anyone who wants regular access to their bank account to make withdrawals or conduct transactions. Typically, opening a checking account is a relatively straightforward process.
Editor's Choice
CHASE
Features that matter to you
- $200 Bonus for opening a new account
- Get access to the Chase Mobile® app
- FDIC Member
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Pros
- 16K No-fee ATMs.
- Wide range of account options.
- Option to waive m. fees.
- Uncompetitive APY rates.
- High balance needed to get perks.
Axos
Save Smarter, Compound Faster
- Earn up to 0.61% APY
- Up to $200 Bonus for High-Yield Savings
- FDIC Insured Financial Institution
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Pros
- Earn up to 1.25% APY
- No monthly fees or overdraft on most accounts
- Variety of accounts with unique perks
- Low CD (certificate of deposit) rates
TD Bank
America's Most Convenient Bank
- Low minimum required opening deposits
- Wide range of different account options
- FDIC Member
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Pros
- Wide variety of account options
- Low minimum opening deposits
- Options for in-person banking
- $3 Fee for transactions at non-TD bank ATMs
- Savings account rates lower than average
- Overdraft fee chargeable 5x times per-day
CIT Banking
Confident Banking At Your Fingertips
- No monthly maintenance fees
- Low min opening deposit
- Get reimbursement on ATM fees
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Pros
- No monthly fees
- Excellent APYs
- Low money-market account min deposit
- Offers less ATMs than competitors
- CD APYs are fairly low
Chime
No Monthly Fees or Minimum
- Offers automatic savings account
- No m. fees, no foreign transaction fees
- FDIC Insured Financial Institution
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Pros
- Offers competitive APY savings rate
- Provides direct deposits almost instantly
- Free services and min balance limits
- Daily and weekly maximum limits
Aspiration
Save the Planet & Earn High APY
- Up to 83X national interest rate1
- $200 Welcome bonus. Terms apply
- Carbon offsets for gas purchases
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Pros
- Cashback at socially conscious businesses
- Large fee-free ATM network
- Fossil fuel-free deposits
- No CD rates
Types of Checking Accounts
The following are a few of the common checking account types that can be opened at any local bank:
- Traditional: Includes checks, a debit card, and internet transactions. Be cautious, however, because some may charge more than others (some do not charge any fees).
- Premium: Offers more benefits than traditional checking accounts (safe deposit boxes, fee waivers, etc.). Usually, these accounts involve higher fees or higher minimum balances.
- Reward: Allows you to earn points or cashback. These accounts are usually subject to strict conditions in order to receive benefits.
Student: Very low or no fees and generally has many advantages. However, it is reserved for students generally aged 25 years or less.
Opening a Checking Account: Why Should You Do It?
There are a variety of positive outcomes that might result from opening a checking account. It enables you to get to your money more quickly, to easily execute financial transactions using your smartphone or tablet, to have peace of mind that your money is secure, and to conveniently monitor your spending so that you can make smarter decisions with your money.
Checking vs. Savings Account
| Checking account | Savings account | |
| Purpose | Accessing your money for daily use | Putting money aside for future use or projects |
| Accessibility | Easy accessibility through cards, checks, and other online payment options available on all devices | Little or no access options beyond simple withdrawals, which are usually subject to a monthly limit |
| Interest | Low interest among account types | Better APYs than other account types |
The primary distinction between checking and savings accounts is that checking accounts are used mostly for daily access to funds, whilst savings accounts are used primarily for saving. Because checking accounts are considered transactional, you have access to your funds whenever and wherever you need them.
If your goal is to set aside money for the future, opening a savings account will certainly be the best fit. Savings accounts are designed to keep funds for an extended length of time, allowing you to save for long-term goals as opposed to daily expenses. With savings accounts, you earn interest at more advantageous rates than checking accounts.
Typically, you should create both a checking account and a savings account so that you may get the benefits of each. Most banks provide a variety of checking and savings accounts, allowing you to pick the accounts that best suit your needs.
Conclusion
In summary, you must assess what you require from your bank account. Checking and savings accounts each have advantages and disadvantages and should be used for different purposes. As previously noted, it is often advised to create both account types in order to meet all of your potential demands. You are also suggested to conduct thorough research to evaluate the better terms offered by various suppliers.
