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Free checking account is a very useful and convenient thing for them, who know how it works. This article will help you to understand how free checking works and why banks offer it.

Offer Free Checking Account

Free checking account is the way to save your money that banks usually offer. Banks usually propose you to make a small deposit and your account will be opened. Free checking means that there is no annual fee or low balance fee. Besides you will have opportunity to have free checks for life with free checking.To make the right decision you should know what free checking offers:

No Low Balance Fees Free ATM and/or Debit Card

No charge for ACH and Direct Deposit transactions

Free online access to your account

Unlimited monthly checkwriting

No minimum checkwriting amount

And besides here are some bonus free checking features:

At least one free book of checks (or free checks for life)

Free online bill pay

Overdraft protection plans (watch out for the costs!)

No charge to use ATMs outside the banking family

Reimbursement of ATM fees charged to you by another ATM

Free Checking Disadvantages

You should know that free checking have some drawbacks as well. For example most checking accounts don’t pay interest on your money. In any case you can earn interest by linking your account to a higher yielding vehicle (for example internet bank account).

One more disadvantage is that you can’t view your checks after you have paid them. But you should also know that some free checking accounts put images online. By the way if you really need to see a copy of the actual check and the payee’s signature you can always order a copy from a free checking account.

Such perks like free Stop Payments and Cancelled Check Return are not offered by free checking accounts. But as many specialists say, it’s not very popular service, which people use very rarely.

The free checking accounts will cost less if you keep a small balance. Even if you need those services you can pay a fee in the checking account.

Why Banks Offer Free Checking

Banks offer free checking to invite new business. They will always glad open a free checking account, and they will try to capture your other assets and business.