One of the most crucial things to think about when opening a new checking account is the variety of banking features offered by the account. Research demonstrates that banking and financial management in general are being replaced by technology. A Federal Reserve survey found that nearly half of mobile phone owners with bank accounts in 2017 said they had used mobile banking services in the year before the survey.
Bank features that are a must.
In order to have easy access to your money, be able to pay your bills, send money quickly, and keep track of your balances, certain bank account features are essential. When opening a new bank account, you should watch out for a few key things.
1. Debit card.
You can make purchases without carrying cash when you use a debit card. You have two options if you do need a few dollars: go to the ATM or get cash back at the counter. In a Federal Reserve survey, 30% of consumers indicated that debit was their preferred method of payment.
Make sure a debit card is offered when opening a new bank account and find out if there is a fee associated with having one.
2. Internet and mobile banking.
If you enjoy keeping a close eye on your financial situation, having the ability to check your balance from your smartphone or laptop is extremely useful. That is especially crucial if you want to prevent paying high overdraft fees. Overdraft and non-sufficient funds (NSF) fees were collected by banks with assets of $1 billion or more in 2017, according to the Federal Deposit Insurance Corporation (FDIC). You can avoid losing money to fees by being aware of your inventory and spending.
3. Check Deposit on the Go.
You can avoid the inconvenience of making a trip to the bank by using mobile check deposit. Without ever having to approach the teller window or even an ATM, you simply take a picture of your check with your smartphone and, with a few taps of a button, the check is deposited. Just be aware that some banks require a longer check hold period for deposits made using a mobile device.
4. Online bill payment.
If you're tired of writing checks, another feature you should search for in a primary bank is online bill payment. According to data from the Federal Reserve, eighty percent of consumers who carried paper checks did not use them even once in 2017. In contrast, online banking was used by seventy-five percent of consumers.
The hassle of writing checks and mailing them is avoided when paying bills online. Better yet, you can automate your monthly payments to eliminate the possibility of paying after the due date.
5. Email and text message alerts.
Setting up text and email alerts for your accounts should be done at the same time as scheduling your automatic bill payments. For instance, you could set up an alert to notify you each time a new transaction posts to your account or when your balance falls below a specific level. If you're worried that a hacker will steal the details of your account and use them to make unauthorized purchases, that could be very helpful.
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6. Fantastic security.
Identity theft is a serious issue. Ask about the security measures that a specific bank has in place when comparing bank accounts. To keep your debit and credit card transactions secure, find out, for instance, whether fraud monitoring and an on/off switch are available.
Who Needs a Second Chance Checking Account?
If your bank closed your prior account due to overdraft fees that were not paid, you might need a second chance checking account. You might also require one if you've bounced a few checks, owe fees, or have negative balances on your current or previous bank accounts. ChexSystems, which is used to decide whether or not you can open a new bank account, is where most negative banking history can be found.
What Fees Are Associated with Second Chance Checking Accounts?
Regular checking accounts typically have lower fees than second chance checking accounts. The risk of having someone with a dubious banking history hold an account is frequently thought to be reduced by these fees. Monthly maintenance fees, account setup fees, overdraft fees, foreign transaction fees, and charges if a minimum balance is not maintained are examples of common fees. Each bank has a different set of these charges.
Are Second Chance Checking Accounts Cost-Effective?
In today's society, having a checking account is actually required. The costs are typically justified by the numerous applications and increased convenience compared to not having one. You might be able to avoid some of the fees and open a regular checking account once you rebuild a solid banking history and/or pay off any previous debts connected to banks.
If you need a new checking account because you've made a few banking errors in the past, don't worry. Numerous national and local banks offer products that disregard your prior errors. Maybe you'll pay a monthly fee. The pain, however, will only last a year because many companies will allow you to upgrade. Many second chance checking accounts were the subject of our investigation. We chose the best ones after examining them. We selected these leading candidates based on the types of accounts they provide, whether they overlook prior financial transgressions, account fees, features, and more.
Second Chance Checking: What Is It?
For those with a troubled financial history, second chance checking accounts are available. It presents an opportunity for them to start an account and resume their lives. The basic features of a checking account are typically included in this basic account, but not all of them. It might, for instance, not provide overdraft protection and demand a minimal down payment in addition to monthly maintenance fees. These accounts either don't require ChexSystems reports or disregard them if the results are unfavorable.
The Verdict.
The account's insurance status is one last consideration when looking for a primary bank or credit union account. Up to $250,000 per deposit account is offered by the Federal Deposit Insurance Corporation and the National Credit Union Administration, respectively, at banks and credit unions.
However, they are not required to have this coverage. Make sure your hard-earned money is protected when comparing banks and credit unions by looking at their insurance status.
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