Conditions That Might Apply For Your Checking Account To Be Free
If you have a checking account right now that charges many fees, you might be tired of paying these extra charges. If you feel this way, have you considered looking for a free checking account? Many banks offer free accounts, and you can search for the right one. When you begin searching for a free checking account, you might want to know that some banks have conditions that apply. For a bank to offer a free checking account, you might have to follow these rules and conditions. While every bank has different rules, you might find some common conditions with free checking accounts.
Minimum Balance Requirements
The first condition you might find for a free account is a minimum balance requirement. When a bank has this rule, you must keep a specific amount of cash in the account to avoid paying fees. Some banks might have a minimum balance requirement of $100, while others might set the amount at $1,000. You can ask a bank about this requirement, and they will tell you if they have this condition and the amount it is. If you choose a free account with a minimum balance requirement, you must keep the amount they require in the account all the time.
Paperless Statements
Some banks also offer free accounts when account holders opt for paperless statements. Sending statements takes work and costs money. To avoid the costs and work, banks offer paperless statements. If you agree to receive paperless statements, the bank might provide you with a free checking account. If this is a condition, you cannot get a free account unless you agree to paperless statements.
No Overdrafts
The next condition to understand involves overdrafts. An overdraft occurs when your bank account balance drops below zero. When a balance drops below zero, it means that you have a negative balance, and banks charge overdraft fees when this occurs. When you get a free account, you might have to avoid overdrafts to avoid charges. If you inadvertently overdraft your account, you will likely see a fee from this event.
Transaction Number Limits
Some banks also set conditions related to the number of transactions you can have with your account. If you choose a bank that has a transaction limit, you must avoid using your account more times than the limit. For example, a bank might allow you to have up to 10 transactions per month for free. Every deposit, check, and debit card purchase counts as a transaction. If you perform more than 10 transactions in one month, the bank might charge a fee for each additional transaction.
Getting Direct Deposits
While it is rare for a bank to require direct deposits in exchange for free accounts, this is a condition in some cases. If you choose a free account that requires direct deposits, you must sign up for them with your employer. If your employer does not offer them, you should look for a different checking account.
Use of Specific ATMs
The last condition to understand is the ATMs you can use for free with your checking account. Your bank might provide specific ATMs for you to use for free. If you use other machines to withdraw money, you will likely have to pay fees for these transactions.
If you find a bank that offers free checking accounts, make sure you read the conditions. Most free accounts have some conditions, and you can avoid paying fees for your account by following these rules. If you have questions, talk to a bank that offers free checking accounts to learn more about their options and fees.
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