Low Fees

By: Source: AARP.org Date Posted: 2006-04-13 15:32:16.996813-04:00

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.