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If you’re used to banking with regular banks, the concept of a “free” checking account might sound pretty outlandish. However, these are common in the world of credit unions. And, as a matter of fact, most people should be using free checking accounts, to begin with. Why? Let’s go over some of the reasons you shouldn’t be paying a dime to a bank for your checking account.
Some people might question the premise. Why would you even want a checking account? While big banks aren’t the best for the average person, you still want somewhere to store your money. After all, just stashing it under your mattress isn’t exactly secure. When you put your money in a checking account, it’s FDIC insured, meaning that if something like a hacking attack or a robbery makes your money vanish, you can get it back.
However, most banks will charge you some fees for a checking account. If a bank wants you to pay for the privilege of having your money in an account, tell them to take a hike. You can find plenty of credit unions that offer accounts completely free of charge. That way, you get the best of both worlds: your money is safe, and you’re not having to pay any kind of upkeep on it.
Most banks have a minimum balance requirement for your checking account. That’s money that just vanishes, essentially, until you cancel the account. In some cases, you don’t get this money back. Instead, it simply acts as a down-payment so you can have the privilege of banking your money with a specific company. In what way does this make sense?
Free checking accounts through credit unions have no minimum balances. Why would you sign up for an account that requires you to tie up a sum of money before you can even use it?
Another common tactic employed by big banks is the use of monthly fees for checking accounts. Again, this begs the question, why? Plenty of credit unions have checking accounts that don’t cost you anything, let alone charge you multiple times every year.
Often these banks will include some “benefits” for the account, giving you cashback if you use a specific credit card or offering you certain interest rates if you get a loan through the bank. However, these same services can be gained through other companies without paying a monthly fee.
