Types of checking account and the best banks to open one

Types of checking account and the best banks to open one

Checking accounts are vital to the banking system, allowing users to conduct regular transactions. There are different types of checking accounts that you can choose from as per your requirement. Banks offer a gamut of checking account options replete with several lucrative features. So, you can choose a checking account for all your expenses. Read on to know the different checking accounts and the banks you can open a checking account with.

Traditional checking accounts
With this account, you can write checks to cover payments. You would also get a debit card that you can use to withdraw money or to make a purchase.

Premium checking accounts
This type of checking account has many features and offers rewards and bonuses. It also has a higher monthly fee.

Interest-bearing checking accounts
This account will be perfect if you want to earn interest on your money. It is similar to a savings account, but only a few banks offer them.

Rewards checking accounts
Similar to the rewards earned on credit cards, these types of checking accounts give you cashback, points, or discounts on daily spending.

Student checking accounts
These accounts are designed to meet the needs and requirements of students, especially those in college. Some of their features include no ATM and monthly fees and a bonus on signing up for a new account.

Second chance checking account
Due to poor banking histories such as misuse of an account or excessive overdrafts, some people have their accounts closed. Second chance checking accounts are for those that are looking to re-join the banking system.

Consider monthly amounts, fees, interest, convenience, and customer and digital experience before opening a checking account. Your everyday financial habits and demands also play an important role while looking for the most acceptable checking accounts. Here are a few of the top banks that offer checking accounts.

Heritage Bank eCentive checking account

APY 1.02% (on permissible balances of $0.01-$25,000)

Best checking account for an overall rate

Opening Balance: $100
A minimum of $500 in monthly debit card purchases (excluding ATM transactions) is required to get the APY. No monthly fees and no minimum balance restrictions. Customers can use the bank’s app, browser, or SMS messages to get information. Online banking consumers can use Popmoney to pay friends and family. The bank reimburses up to $25 in ATM fees every month. Also, the bank’s “hybrid” ATMs have live video bankers during certain hours. It costs $30 to terminate an account within six months after opening it.

Navy Federal Credit Union Flagship Checking

APY 0.35% to 0.45% and Free Active Duty Checking, APY 0.05%

Best checking accounts for veterans and military personnel

Opening Balance: $0 (for both checking accounts)

The minimum balance required to earn interest is $1,500 per year. For balances under $1,500, a $10 monthly service fee applies. This account offers 0.05% APY and free conventional checks. This account also allows you to receive your direct deposit one business day early. With this account, you may have up to $20 in out-of-network ATM costs repaid every month.

Ally Interest Checking Account

APY 0.10% to 0.25%

Best checking account as it is mobile-friendly

Opening Balance: $0

The Interest Checking Account has no monthly fees. Interest accrues daily. Their mobile app and Zelle app enable customers to check balances, find ATMs, pay bills, and carry out other banking tasks. Ally offers extensive ATM access. Its cooperation with the Allpoint ATM network allows free usage of over 43,000 ATMs countrywide. Ally also reimburses out-of-network ATM expenses up to $10 every statement cycle. It requires a $15,000 balance and, if not financed within 30 days, will be closed. $25 per hour is charged for domestic wires.

NBKC Bank Everything Account

APY 0.15%

Best checking account for no/low fees

Opening Balance: $0

The Everything Account combines checking and savings features. Customers receive a debit card with unlimited use of MoneyPass ATMs and may create and track savings goals using NBKC’s tools. The Everything Account has no overdraft, minimum balance, monthly maintenance, or returned item costs, and you will receive a box of checks. Almost all services are free. Although an initial deposit is not required, you must deposit at least $5 during the first 60 days to keep the account active. Sending or receiving international wires costs $45.