For most people, the centerpiece of their relationship
with their bank is a checking account. Studies have shown that consumers
overwhelmingly define "their" bank as the institution where their
checking accounts are held, not the bank where they may have a mortgage
or certificate of deposit. It's no wonder that banks throw a sizeable
amount of money toward attracting and retaining consumer checking
accounts.
In this chapter, we'll go over the various types of
checking accounts and the importance of selecting the account that's
right for you. You'll also learn the ins and outs of protecting
your account and your money if you bounce an occasional check. We'll
show you how a new law has made it all too easy for checking account
users to bounce checks, and why it's critical to keep your account
in good standing.
Beyond the gifts
Banks know one way to get you in the door to open
a checking account is to lure you in with gifts.
In the old days they used toasters; today's gifts
are less domesticated -- coolers, camping gear
and beach gear are popular. The freebies get better
as the stakes get higher. One bank dished out
pricey Apple iPod Minis for new customers who
deposited $2,500 and promised to pay a couple
of bills online every month for a year.
Don't let the freebies cloud your judgment. What really
matters is that you get a checking account that meets your needs
as cheaply as possible -- preferably for free.
Selecting the right account isn't as simple as it
may seem. Most banks carry approximately a half-dozen types of checking
accounts. You can find an account that fits your needs, but if you
aren't careful you could end up with one that doesn't match your
banking habits and may cost you a bundle in fees.
Here's a rundown of some of the more popular checking accounts available at many financial institutions:
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| Popular checking accounts |
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