Top 5 Questions to Ask Before Opening a New Checking Account

Whether it’s your first time opening an account or you’re looking for something new, finding a checking account that suits your financial needs is important. Different banks have various benefits, fees, and requirements, so doing some research can help you find the best fit for you. “Here are some things to keep in mind when looking for a new checking account,” says Wendy Kernan, Director of Branch Services at Town and Country Bank. “How do you pay people? Is it the traditional way with checks or is it person-to-person (like Venmo)? How do you deposit? Do you prefer the bank, ATM, or mobile deposit? Not only ask banks what they have to offer but ask about the cost and fees associated with their services and ask for a demo so you can see what the service actually looks like.”

Below are a few questions to use as guidance before opening a new checking account:

1. Are there monthly fees?

Many banks charge monthly fees depending on the type of account, so it’s important to do your research before you open a new one. These fees can include maintenance, ATM, automatic bill pay, and more. Depending on the bank, these fees can sometimes be avoided by meeting the bank’s requirements, such as maintaining a minimum balance in your account or signing up for direct deposit.

2. Is mobile banking available?

Accessibility is an important factor when considering opening an account. The ability to make bank-to-bank transfers and deposit checks remotely makes life significantly easier. Before opening a new account, research the bank’s mobile banking benefits and learn about any potential fees associated.

3. What about online banking?

Just like mobile banking, the ability to pay bills online and receive e-statements from home is convenient, safe, and easy. Pro tip: while some banks do not charge fees for online banking, that can change if you’re attempting to expedite the process. Allowing enough time between payday and due dates will help you avoid extra costs.

4. How do I avoid overdraft fees?

Taking out more money than your account holds is called an overdraft and may lead to some inconvenient fees. To avoid letting your account drop below $0, check to see if overdraft protection is available at your bank. Overdraft protection allows you to cover an overdraft with money from another account, such as your savings account, ensuring you stay in the positive.

5. Is there any interest on the account?

Interest rates are usually higher with savings accounts, but some banks do offer competitive interest rate with certain checking accounts. For example, Town and Country Bank offers a Clear Interest Checking account that offers tiered interest rates with no minimum balance requirement. Depending on the bank, these checking accounts can require a minimum balance to maintain the interest rate or to avoid any maintenance fees. According to the FDIC, the national average interest rate for checking accounts is .04%, while the national average for savings accounts is .06%, as of July 20, 2020.

We are here for your banking needs!

Take control and manage your finances by opening a personal checking account today! From free checking to an interest-bearing account, you can choose the best checking account that suits your financial needs. To learn more about each of our personal checking accounts, please visit our Personal Checking Accounts webpage, stop by one of our conveniently located branches, or open an account online today! Customers may also direct questions about checking accounts to our Customer Service Solution Center at (866) 770-3100.