The average person doesn’t think much about their checking account unless they are paying for unwanted fees or getting bad service. As interest rates start to slowly increase again it may be time to re-evaluate your checking options.
There are three categories when it comes to checking account providers.
There are an increasing number of checking accounts offered by online banks like Chime, Simple, and BankMobile. The major benefit to opening an account with one of these providers is lowest cost of fees. They also provide their customers with very user friendly online and mobile banking technology.
With that being said you have to commit to the fact that physical human interaction is not an option, and your local branch is in your pocket.
If you enjoy the feeling of being a valued customer and not just a number Community Banks and Credit Unions may be a good option. Community based financial institutions come with their own perks. By nature their operating costs are lower than big banks because of a smaller number of branches.
This means they provide lower fees and are more likely to offer a checking account with no monthly service fee.
Credit Unions operate as not for profit institutions which means they are more focused on your needs, and less focused on the price of their stock on Wall Street.
Let’s face it big bank checking can be costly and here’s why. They have the largest number of branches and employees. They also offer the latest in technology, which can be nice but comes with high costs.
To offset their costs the large banks have higher service fees and are less likely to offer free checking.
According to a recent Bank Fee Finder Report big bank customers spent an average of $329 on checking fees in 2017.
The company gathered information from 5,000 personal accounts, most of which (83%) were held at the largest national banks: Bank of America, Citibank, Chase, Wells Fargo and U.S. Bank.