Banking & FinanceFinance

What Should I Look for in A Checking Account?

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Having a reliable place to deposit funds for everyday needs is necessary. Among the diverse options available, a checking account is a perfect choice for day-to-day banking needs. With checking accounts, accessing, and transferring your funds are much more comfortable than never. Not all the checking accounts have the same features. Some current accounts offer basic features, while others provide more facilities. As most of the banks have shifted their operations online, opening a current account online has become effortless. Hence, it is crucial to choose the right type of current account that you are satisfied with and which perfectly fits your needs. 

Read on to understand some aspects to look for in a checking account to avail all its benefits. 

The interest you will earn  

Generally, checking accounts or current accounts are not interest-bearing accounts. This is because they are mainly used for daily financial needs, and most of the people spend that cash quickly. Still, some banks and financial institutions offer interest on their current accounts. The interest earnings on account balance make such checking accounts more alluring to its users. This feature may considerably vary between the lenders. The interest rates can also differ dramatically from lender to lender. 

Fees applied on checking account 

While opening a checking account, try to be aware of the charges on the account. Most of the banks are allowed to charge an ATM fee for all the extra transactions exceeding the prescribed monthly limit. The costs can vary between the institutions. However, the lenders are not allowed to charge the customers for failed transactions. Furthermore, the banks may charge maintenance fees and account closure charges on your current account. Most of the banks require you to maintain a minimum balance in your current account. Keeping a minimum balance can waive off the maintenance charges in most cases. 

Digital Banking options 

With the changing scenarios, most of the banks extend their services to digital platforms. Digital banking is the most feasible option when you are busy and find no time to go to a branch and perform transactions. Having a current account makes you eligible for using the value-added services it offers like online banking, mobile banking etc. Connect with your lender to check these features available on your online current account and enable it to enjoy the perks of contactless, digital banking. You will also get access to mobile banking if the current account you own offers that service. Hence, check with the lender to know various digital banking options you can enable on your current account. Digital banking options can provide you with the advantage of online transactions and spending alerts.

SMEStreet Edit Desk

SMEStreet Edit Desk is a small group of excited and motivated journalists and editors who are committed to building MSME ecosystem through valuable information and knowledge spread.

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