Banking Your Money

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Choosing the best checking account

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The best checking account for you will depend on your needs and your priorities. A few options:

• Basic checking: This account works best if you can keep only a small amount of money in your account on a regular basis. Some banks charge a small monthly fee for a basic checking account; others don't. To have a free account, you may need to have a paycheck directly deposited into your account or keep a certain minimum balance of, say, $500. If you go below the set amount, even for one day, you'll be charged a fee.
• Interest bearing: This type of account pays you interest on the money you keep in the account. Usually you'll need a higher minimum balance in such an account-typically around $1,000.
• Express: This account is best if you want to do your banking via ATM, telephone, or online. The fees are usually very low-perhaps $5 or $10 per month-and you can keep a low minimum balance. Just be sure that the ATMs are convenient for you because you will likely have to pay a fee if the ATM is not operated by your bank.
• No frills: Just like the name implies, this account allows a very low minimum balance and charges no fees or low monthly fees. The drawback is that you may be able to write only a limited number of checks per month.
• Student account: Some banks offer special checking deals to students. The perks might be low monthly fees, free checks, no minimum balance, and so on. The benefits vary from bank to bank.