10 Tips to Choose the Best Checking Account

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Choosing a new checking account can be confusing and overwhelming with all the options available. Here are 10 tips to help you choose a checking account.

Woman choosing the best checking account

Choosing a checking account is an important decision that can impact your financial well-being. With so many options available, though, it can take time to decide how to pick a checking account. Here are 10 ways to decide which checking account is right for you.

1. Choose Online or In-Person Banking

The first step in selecting a checking account is to decide whether you prefer online or in-person banking. Online banks offer the convenience of managing your finances from anywhere, while traditional brick-and-mortar banks provide face-to-face interactions.

Consider your lifestyle, ability to get to physical branches and comfort level with technology to decide which option suits you best.

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2. Check Minimum Deposit Requirements

When choosing a checking account, it's essential to remember that some options may have a minimum deposit requirement. This refers to the least amount of money you need to deposit when you open a checking account.

Your initial deposit gets your account up and running. This requirement aims to ensure you have enough funds to cover any initial fees or charges associated with the account, as well as protecting you in case you make payments that could overdraw your account.

Minimum deposits vary from bank to bank and can range from $25 to $100, but it could be more depending on the account type. Visit bank or credit union websites or reach out to their customer service departments to learn more.

3. Compare Monthly Fees

Checking accounts may come with monthly fees, so it's important to have a clear understanding of the fee structure before making a decision.

For example, some types of accounts require you to maintain a certain amount of money in your account each month to avoid a fee. Take the time to compare the monthly fees charged by different banks and carefully evaluate whether they offer any fee waivers or conditions that can help you avoid these charges. This information is typically available on a bank or credit union's website or in their account disclosures.

4. Analyze ATM Access and Fees

Consider your ATM usage habits and check whether the checking account you're considering provides convenient access to ATMs. If you tend to get cash often from ATMs, look for banks or credit unions with a wide network or those that reimburse out-of-network ATM fees.

5. Assess Account Benefits

Many checking accounts come with additional perks and benefits. These can include cash back rewards, discounts on shopping or travel, extended warranties or identity theft protection.

Evaluate the benefits different banks offer and consider whether they align with your lifestyle and preferences.

6. Evaluate Overdraft Protection Options

Overdrawing your account—making a payment from your account when you don't have the money to cover the transaction—can lead to costly fees, so it's crucial to understand the overdraft protection options available.

Some checking accounts offer overdraft protection through linked savings accounts or lines of credit, while others may charge high overdraft fees. Review the overdraft policies of different banks to find an account that aligns with your needs.

7. Consider Mobile Banking Features

In today's digital age, mobile banking is a common feature. Look for checking accounts that offer user-friendly mobile apps, allowing you to conveniently manage your finances on the go. Check for features like mobile check deposit, bill pay, account notifications and other functionalities that enhance your banking experience.

8. Evaluate Interest Rates

Although checking accounts traditionally don't offer interest, some banks provide interest-bearing checking accounts. If earning interest on your checking balance is important to you, compare the interest rates offered by different banks. Also, know that sometimes accounts like this require higher minimum balances.

Look for accounts with competitive rates, but keep in mind that they may come with additional requirements or restrictions.

9. Review Account Security Measures

Keeping your finances secure is important. When choosing a checking account, review the security measures the bank implements. Look for features such as multifactor authentication, encryption, fraud monitoring and zero-liability policies.

10. Don't Forget About Customer Service and Support

Having reliable customer service and support can make a significant difference in your banking experience. Research the reputation of different banks and credit unions for their customer service, availability of support channels and responsiveness to customer inquiries or issues. Online reviews, customer testimonials and personal recommendations can provide valuable insights.

The Bottom Line

Choosing the right checking account requires careful consideration. You can choose the checking account that works best with your lifestyle, preferences and needs by evaluating online or in-person banking options, fees, account benefits and more. Remember to research different banks and credit unions, and review their websites and account disclosures and seek advice from financial professionals if needed.

If you're thinking about opening a new checking account, the Experian Smart Money™ Digital Checking Account & Debit Card can help you build credit without debt by automatically linking to Experian Boost®ø, which gives you credit for eligible bill payments. You will also pay no monthly fees¶ for Experian Smart Money, have access to more than 55,000 fee-free ATMs worldwide** and could receive your paychecks up to two days early when you enroll in direct deposit†. You can get an Experian Smart Money Account through a free or paid Experian membership, which also gives you access to your FICO® Score , Experian credit report and more. See terms at experian.com/legal.

By selecting a checking account that aligns with your needs, you can effectively manage your finances and achieve your financial goals with ease.