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No Fee Checking Accounts - Are They Still Available?

In the past years, no fee checking accounts have become quite a hit with everyone. Because these checking accounts provide lots of features and benefits for everyone without any maintenance charges, a lot of people have come to expect it. The recent trend by banks has been to either up the minimum deposits and requirements for no fee accounts or else phase out free checking all together.

Why No Fee Checking Accounts are Popular

By offering a checking account with no monthly fees, financial institutions have been able to attract people into opening up accounts for them. No fee checking accounts had the same power as regular checking accounts eg. for making all types of purchases including online purchases, access to an ATM network, for payments and even post-dating payments to a particular date in which the account holder will have appropriate funds in their accounts. This makes it attractive for users. However, at present times, these free checking accounts are slowly being phased away by most banks.

 

 

The Decline of No Fee Checking Accounts

Because of the economic instability that has been cycling for the past few years, banks have accumulated great losses within their ranks. There has been a lot of acquisition of smaller, failing banks by the bigger ones, which had led them to be more cautious with the offers that they provide for their clientele. With such losses, they have come to cut back on some of the advantageous services that they have for their customers, which include no fee checking accounts.

With a great deal of people often falling delinquent on their basic spending like with the use of credit cards, no fee checking accounts became a popular choice because it can allow for the same manner of spending, which can offer delayed payments and such. But because most people are also experiencing financial instability, there have been a lot of cases where payments for no fee checking accounts have actually not been seen to. The profits that these financial institutions were looking forward to in their venture of providing free checking accounts have gone to rear its ugly head, which accounted for most of them to proceed with caution, if not eliminate the service at all.

While such a manner of dealing with the problem proved to be sufficient at first, the new laws that have been imposed have actually gone to work up the disadvantages that banks will get when it comes to the revenue that they can earn from checking accounts. The imposed decrease in things such as interest rates and overdraft fees have prompted banks to come up with ways on how they can still earn from checking accounts, which then accounts for why no fee checking accounts have actually gone to practically disappear from what most banks have to offer.

How To Look For No Fee Checking Accounts

There are still some banks that will provide no fee checking accounts, you just have to look into what they offer. Some may have minimal monthly fees that are still acceptable, or else provide a free account via internet banking specials. Check out internet focused banks, as finding a free checking account online may be easier than calling on various local banks as there is often a lot of competition online. To do business on the internet, banks need best terms to attract new customers. Some banks will provide no fee checking accounts even in the case of someone having a bad credit history (eg. no fee second chance checking account).

Some banks require a certain minimal deposit before they will waive monthly account fees. With interest rates so low these days, you may even consider forgoing the interest that you may earn through a fixed term deposit, and keep that money in a checking account to save on monthly fees.

There are also possibilities to maintain a free checking account if you were to set-up direct deposits, or bill payments online, so be sure to look into the details.

With looking into no fee checking accounts, consider your needs and how easily you will meet the requirements to qualify for an account free of maintenance fees. One should try not be distracted with rewards programs - consider these benefits only after you've ascertained that any fee requirements are fair for your needs. Check that the bank is FDIC insured as well. This is to ensure that you are dealing with a legitimate financial organization, and that your deposit is covered by federal insurance.

As an alternative to a conventional checking account, consider a prepaid Visa card account with no ChexSystems requirements. It works just like a checking account, allowing for direct deposit of paychecks and online billpay (one-time or recurring payments). You can deposit cash into the account from 135,000 retail locations nationwide. In addition, the card can be used anywhere Visa is accepted. Click to learn more: The Perfect Alternative to a Checking Account!

 

The perfect alternative to a checking account