What Features Should You Prioritize When Choosing a Checking Account?

Monday, 8 April 2024, 17:00

Interest-bearing checking accounts may not be the best way to grow your wealth. Find out why focusing on accessibility and other key features is more important when selecting a checking account. Learn about the drawbacks of interest-bearing accounts and what to look for instead to make the most of your cash holdings.
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What Features Should You Prioritize When Choosing a Checking Account?

What's wrong with interest-bearing checking accounts?

There's nothing wrong with earning a little interest on your checking account funds, but checking account interest rates are usually significantly lower than savings account rates. Most interest-bearing checking accounts have rates of less than 0.50%. You earn interest only on funds in the account, which may not stay there long due to everyday spending, further reducing your earnings.

Checking accounts are intended for daily spending, so accessibility is more important than interest rates. Look for features like ATM networks, mobile deposit options, and no monthly maintenance fees to manage your cash efficiently.

What does matter in a checking account?

  • Accessibility is crucial - prioritize quick and easy access to your funds.
  • Consider brick-and-mortar vs. online banks based on your cash usage habits.
  • Look for features like mobile deposit and nationwide ATM networks for convenience.
  • Check for account maintenance fees and customer service quality before opening an account.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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