Getting free checking accounts is now easier than ever. Most banks offer these to students or for those who are new to opening an account. Each bank also has their own rules and regulations as to fees and penalties. Getting a free checking account is mostly desired because the owner of the account does not have to keep a certain amount of funds in their account and/or they are not charged monthly fees. Some other fees that are attached to other type of banking accounts include maintenance fees where you also have to hold a minimum balance.
College students can benefit from free banking accounts because they may not have the money to maintain an account. Also, they will not have to pay special rates. With free accounts, most banks will not charge a fee, however, they will require a certain amount to open the account (for first time clients). The fee is usually small and never cost more than $40. It is advised to go to an actual bank and speak to a representative because they have the power to waive the fee.
Along with these free checking accounts, the account owner will also get a check card, which is linked to the checking account. It acts just like a debit card and can be used anywhere. Other bonuses include a free check book. The first check book is free and the bank will also give out a couple of temporary blank checks. (Some banks do not offer free temporary checks anymore).
Some people may not qualify for a free account because they were put in the ChexSystems for owing another bank money. If the account closes from that bank because of overdraft fees not being paid, then it can be almost impossible to open another account with a different bank. However, there are options; some banks are insured by the FDIC and don’t require a ChexSystems scan. These account for the other 20% of banks who do not require a background check using the (ChexSystems). One of the easiest options is to look at getting a Second Chance Account.
Besides finding a non chexsystems bank, you can look at using a prepaid visa credit card. This is actually a special credit card. You basically put deposit money onto the card (much like you would a normal credit card) and use it like a bank account — the prepaid visa account functioning like a bank account. What’s really good about this option is that there are no checking fees at all — something that most internet bank accounts will smack you with. The credit card itself can be used like a regular credit card/ATM bank card. This is a good option for people who simply can’t open a bank account because of ChexSystems. The other option is to open an internet bank account like a second chance account that’s made for people who are in ChexSystems. I personally went the way of the prepaid visa card because it was cheaper.
People with bad credit can also apply for free accounts. If the bank doesn’t look at the ChexSystems, they will often look at other financial information. There are a couple of tricks that consumers need to watch out for with some banks; sometimes, representatives will say they are offering free accounts, when in fact it is for a limited time. In other words, after about 6 months to a year, the bank will start to charge maintenance fees. These are sneaky tactics that are used by some banks just to open a new account. Many of the bank representatives get a sale incentive and/or commission each time a new account is opened from a customer.
Having a free account is a good idea, especially with the current economic crisis. It’s up to you to decide what sort of option you want to go for if you a Chexsystem problem, either a prepaid visa card option, an online internet bank account, or simply finding a bank that does not use chexsystems. Many people don’t have the money to keep up with bank accounts and overdraft fees at the same time. The point of the matter is, more and more banks are becoming less strict about giving out free accounts.
