Checking What Type of Checking Account is Right for Me?
Madison Homan
woman sitting at her desk working on her tablet and trying to decide what checking account is the best option for her
Summary

Explore the diverse world of checking accounts to find the perfect match for your financial needs. From traditional to interest-bearing, student to senior accounts, each type offers unique features tailored to specific lifestyles. Whether you prioritize avoiding fees, earning interest, or accessing exclusive rewards, there's a checking account suited for you.

Not all checking accounts are the same. A checking account lets you deposit and withdraw money using a debit card or check. It holds your money safely and can be accessed fast. You can set up direct deposit, use online checking account tools, manage your money, and many other benefits. There are different checking accounts, and picking one is crucial based on your financial situation and needs.

However, not all checking accounts are the same. Some checking accounts offer high interest or rewards, while others provide features specific to the needs of a particular group of people.

If you’re looking to start a new financial relationship, locate a credit union near you. They can match you with the best account for your needs. Perhaps you only want to move into a different account at your current financial institution. We’ll show you the most popular accounts to consider.


Types of checking accounts

Choosing which checking account to open with many options can take time and effort. Determine which factors are the most important. Avoiding fees might be more critical than a high-interest account. Every financial institution will vary in features and benefits. Talk with a financial representative for specific details.

Traditional checking accounts

Also known as a regular checking account or a share draft account at credit unions, this account pays no interest on the balance but has other valuable features. These might include: 

  • Free mobile banking

  • Free online banking and bill pay

  • Direct deposit

  • Mobile check deposit

  • Overdraft protection

  • No monthly service charges if a certain balance is maintained

  • Unlimited checking writing

  • Free checks and debit card

Free checking accounts

A free checking account can mean different things to different financial institutions. It’s important to know what is free and for how long. A free checking account can mean no minimum balance and free checks but a monthly service fee. Here are a few of the most popular options for a free checking account. 

  • Free online banking with bill pay

  • Free mobile banking

  • Free debit card

  • No monthly service charges

  • Unlimited check writing

  • Free monthly e-statements

  • Free ATM transactions within a financial institution’s network

Banks and credit unions offer a version of free checking or premium checking if a member meets requirements, such as having a certain number of products or services.

Student checking accounts

Student checking accounts are designed for students between 18 and 24 years old. If a parent or guardian opens a minor or teen checking account, it can easily be converted to a student account once they come of age. Student accounts generally have one or more of these features:

  • No monthly service charges

  • Free checks

  • ATM reimbursement

  • Fewer to zero fees

  • Sign up bonus

  • No overdraft fees

  • Cashback on debit card purchases

  • Minimum deposit

Senior checking accounts

Senior checking is similar to a traditional checking account but has features that people over 55 might find beneficial. These include: 

  • No monthly service charges

  • No minimum balances

  • Free debit card

  • Peer-to-peer (P2P) payments

  • No overdraft fees

  • Free checks

  • Free mobile checking

  • Higher interest earning

  • No ATM fees

  • Discounts on safety deposit boxes

  • No monthly service charges if a certain balance is maintained

Senior checking can offer excellent benefits for those over 55. Be sure to check age requirements and other considerations. 

Interest-bearing accounts

Opening a high-interest checking account is a good idea if earning interest is essential. These accounts earn interest based on the average monthly balance. Since they earn interest, these accounts usually have larger minimum balance requirements. Important considerations include:

  • Interest is subject to taxation.

  • Some high-interest accounts are available only online.

  • Potential fees include overdraft fees, monthly maintenance fees, and foreign-ATM fees.

Checkless checking

Checkless checking is an alternative checking account with no checks; all transactions are through a debit card. The National Credit Union Administration (NCUA) and Federal Deposit Insurance Corporation (FDIC) insure these accounts. Additionally, these accounts may include: 

  • No overdraft fees or protection

  • No credit check

  • Free mobile banking

  • Free online banking with bill pay 

  • Mobile check deposit

A checkless checking account can be a good option for members who have been denied a traditional checking account due to poor credit.

Low-balance checking accounts

Many financial institutions offer low-balance checking accounts. This type of account allows members to maintain a charge even with a balance as low as five dollars. Accounts may require limited monthly check writing, no paper statements, or overdraft protection.

Premium checking accounts 

Premium checking accounts provide all the perks and rewards a checking account can offer. Every financial institution will have a unique premium checking account package. Here is a sampling of offerings banks and credit unions can offer with a premium checking account. 

  • Interest-earning account

  • Free checks, money orders, cashier checks

  • Free stop payments

  • Free online banking

  • ATM fees waived

  • Higher limits on withdrawals and ATM transactions

  • Discounted loan rates

  • Free financial advice


Did you know?

A checking account can be a fundamental financial tool for any personal financial goals. It serves as a safe home base for your money. Even if you no longer carry a checkbook or write paper checks, a checking account can offer countless benefits. Find a credit union today to open a checking account.