Low Fees
Course Section
- Overview
- Online Banking
- Check 21
- Low Fees
Keep it simple.
There are many different types of checking accounts. If you're looking for
a checking account, think about the features and services that you need.
Don't get fooled into getting an account with a fancy name if it
doesn't provide the features you want. The best way to keep fees down is to
have only the features and services that you really need.
Checking accounts tend to fall into one of two main categories: 1) Accounts that don't pay interest and 2) accounts that pay interest (and typically have higher or more fees).
Here are some types of accounts to consider:
Free Checking
A few banks and credit unions offer free checking to people of any age. Some
have totally free checking. Others provide free checking when you use direct
deposit of a payroll or Social Security check. Still, there can be fees with a
free checking account. For example, there may be fees for bounced checks,
inquiring about your balance, stop payments, check printing, and lack of use.
There may also be a fee for doing your banking online or for using a debit card
for store purchases.
Basic/No Frills Checking
A basic or no frills account lets you write a limited number of checks per
month with a low or no fee. This type of account is designed for people who
don't write many checks or use the ATM often.
Senior Discount Accounts
Some banks offer free or low-cost checking accounts for older people. Not all
banks advertise their senior accounts, so you need to ask. They are required by
law in Illinois, Iowa, Massachusetts, Minnesota, New Jersey, New York and Rhode
Island.
Take Action
- Use this tool at bankrate.com to research the safety of your money at a particular banking institution
- Learn if your bank is FDIC insured
- Look for credit unions that are insured
- Sign up for direct deposit of your Social Security check
- To see a fee and service comparison of checking accounts
- What benefits come with a debit card? Take a short debit card quiz at www.practicalmoneyskills.com
AARP Resources
Download a checklist of questions to ask regarding fees (PDF)
See a chart of fees and ways to avoid them (PDF)
AARP's Money Management Program helps members and their families who find it difficult to handle bill-paying or recordkeeping on their own.
