Must-have features for checking accounts

A checking account enables you to pay bills, transfer money to savings, receive cash from ATMs and make purchases with your debit card. Your checking account is a key part of your personal money management. That’s why it’s important to find a checking account with useful features and without fees that eat into your balance.

Which features are most important?

When it comes to finding a checking account that’s best for you, you’ll need to choose based on how you use your account. Six of these features are what the experts at Bankrate consider necessary. Based on your needs, you may find some are more important than others.

One need everyone should prioritize is security and fraud protection. This is partially regulated, but there are additional features that certain banks may offer to make control over your account’s safety that much easier.

1. Security and fraud prevention

There are a number of protections that are standard across banks due to federal regulations. These, like the deposit insurance provided by the Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA), will be applied across the board as long as the bank is insured.

Additional features can give you more control, like the ability to lock and unlock your card, account alerts and spending limits. This can help you stop potential fraud before it stops by putting a temporary hold on your card, and monitor your account for suspicious activity.

2. No (or low) fees

No one likes paying fees, especially when it comes to simply keeping money in a bank account. That’s why finding a free checking account that doesn’t charge monthly maintenance fees is a must.

Plenty of traditional and online banks don’t charge monthly checking account fees. Examples include Ally Bank, Capital One and Quontic Bank. Other banks allow you to waive monthly fees by meeting criteria, like directly depositing your paycheck into the account each month or making a minimum number of debit card transactions.

Monthly maintenance fees are just the start, though. Look beyond monthly fees to determine what other common fees a bank may charge, which can include:

• Overdraft fees
• Nonsufficient funds fees
• Paper statement fees
• Account closure fees
• Card replacement fees

Many of these fees are avoidable. For example, many banks let you opt for free e-statements instead of charging you for paper statements.

3. Large ATM network

Whether you bank locally or online, having access to cash when you need it is important. Some banks charge fees if you use ATMs that aren’t affiliated with the bank, and if you end up with one that is, you can expect to pay two fees if you use an out-of-network ATM — a fee from your bank and a surcharge from the ATM owner.

Out-of-network ATM fees can add up quickly if your bank doesn’t provide ATMs near your home or workplace. With total fees averaging around $5 per transaction, you may end up paying a lot if you’re withdrawing cash regularly.

Finding a checking account with access to a large, no-fee ATM network and ATM fee refunds can save you a bundle if you use ATMs often. Though online banks don’t have bank branches, many partner with large ATM networks, such Allpoint or MoneyPass, to provide fee-free ATM access nationwide.

4. Mobile banking apps

A local bank with in-person customer service can be comforting, but digital banking offers unmatched convenience when done well. Logging onto your bank’s website or mobile app allows you to view your account balance or perform transactions at any time, from anywhere.

One of the key features that banking apps commonly offer is mobile check deposits. Mobile deposits allow you to take a photo of a check using your phone’s camera and deposit it directly into your checking account.

Mobile check deposit isn’t the only feature that makes mobile banking attractive. Many mobile banking apps allow customers to:

• Manage checking and other bank accounts
• View transaction history
• Transfer money electronically
• Set up automated savings rules
• Set travel alerts
• Pay bills
• Pay your friends back with Zelle

Some banks even offer mobile virtual assistants to help monitor account activity and perform banking functions. Examples include Capital One 360’s Eno and Ally Bank’s Ally Assist. Virtual assistants let you text or use your voice to perform transactions or answer banking questions.

5. Direct deposit

Direct deposit is an important feature in a checking account for anyone who wants to have their paycheck deposited by their employer directly into their bank account. It’s quicker and more convenient than depositing a paper check in the bank — and saves you a fee if you have to cash a paper check somewhere other than the bank you have an account with.

Some employers also offer split direct deposit, which can help boost your savings. With split direct deposit, portions of each paycheck can be deposited into your checking and savings accounts. It can be a good way to automate some of your savings and build a good financial habit without adding another task to an already full schedule.

6. Online bill pay and transfers

Checking accounts often allow for online bill pay and electronic transfers, which you can use to send money to friends and family.

Online bill pay lets you pay your bills directly from your checking account. You can skip visiting separate websites to pay your mortgage, utilities, credit cards and other bills. This feature also saves you from writing checks and paying postage.

If you end up using your bank’s autopay feature, just be sure to check your bank account regularly and ensure you have sufficient funds to cover your bills.

Bonus features to consider

Must-have features are just that — ones you should consider critical to getting an account. The following features aren’t completely necessary but are nice to have, especially when you’re using your checking account regularly.

• High-yield. It may be difficult to find a high-yield checking account with no fees, but it’s not impossible. And keeping your money in an account with even a modest yield could earn you a few dollars extra each month.
• Rewards. While uncommon, there are checking accounts that come with rewards, in the same way that a credit card would. You can earn points or cash back, depending on the bank.
• Debit card extras. Being able to add your card to a digital wallet, purchase protection and extended warranties are all potential features to keep an eye out for.

Bottom line

If you’re in the market for a new checking account, do your homework on what features each includes. The best checking accounts typically offer no fees (or easily avoidable ones), a robust mobile banking app and access to plenty of fee-free ATMs.

Also, consider whether the account pays interest, offers a bank account bonus or provides relationship benefits for those with multiple accounts at the same bank.