Bank of America touts its My Access account as free, as long as you have direct deposit. That's fine with a lot of people, especially since the bank offers free online bill payment. But if you get laid off and no longer have a paycheck direct-deposited, you'll be charged a monthly service fee for checking privileges.
Free, but with strings attached
Many banks waive fees if you maintain a certain minimum balance. If maintaining that balance is OK with you, then you have essentially created a free account for yourself."The consumer has to examine what their needs are relative to the checking account," says Driskill of Synergistics Research. "'Will I be an ATM user? How many checks do I write each month? Do I want online bill payment?' There are a lot of aspects now. It's not like before, when all you had was a checkbook." Check special promotions
Bank of New York, the oldest bank in the country, is for a limited time offering "Free Checking for Life." In the first six weeks of the promotion, the 220-year-old bank saw a 50-percent to 75-percent hike in customers coming into the branches to take advantage of the offer, according to Gregory Fusilli, a senior vice president at the institution.
"It's my general feeling that in the last couple of years, minimally, the customer is looking for some type of free checking offer (up to) a commitment like the one we're making of free for life. "I sense confusion in the marketplace with big bank names changing every year, new pricing schedules. Customers wonder if they're paying for online banking, are they paying for checks? We want to eliminate some of those mysteries." Florida's BankAtlantic is growing rapidly, touting itself as Florida's most convenient bank. Branches are open seven days a week and customers are signing up in droves for its "Totally Free Checking." While there's little doubt that free checking is a cornerstone of the bank's success, CEO Alan Levan says it's just part of a comprehensive strategy to get customers in the door. "Free checking isn't the primary reason people bank at BankAtlantic; it's convenience. I don't think we'd be successful with just the free-checking product. We have dozens of products and services that turn heads. It's an expensive program, costing us in excess of $10 million a year. Free checking isn't included in the $10 million. It's hard to calculate how much we're giving up in free checking." When applying for free checking, be sure to ask for a printed copy of the bank's fee schedule, and read everything else the bank gives or sends you. "Free is not the 'free' in Webster's dictionary," Moebs says. "Ask, 'What do you mean by free? Are there any fees?' Look for conditions such as direct deposit. Can I get what I want without these conditions? Then shop, shop, shop. Find the names of the banks where you think you'd like to go and go to their Web sites to find out more. Web sites have gotten much better in the past couple of years explaining what's going on." Bankrate.com continually updates fees, balance requirements and other data on hundreds of checking accounts across the nation. Visit Bankrate's "
Check the rates in your state" page when shopping for a checking account.
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