Sound money management is an important part of a sound financial strategy. They want some of your money for it Retire in a traditional or Roth IRA. Still, other money can be saved for your children's college, a down payment on a home, or other longer term goals. And then you could have one Emergency fund as well as a checking account that you use to pay your monthly bills and expenses. Each of these buckets of money can be in a different account. This article introduces some of the best checking accounts.
What makes a good checking account?
Before we look at some the best checking accountsIt's a good idea to talk about what makes a good checking account. A checking account is an account that you normally use to pay for your ongoing monthly expenses. It is increasingly rare for checks to be made out in paper form. Instead, you typically use a debit card or a cashless payment account linked to your checking account.
With a checking account, some features to look for are no monthly or maintenance fees, a low minimum amount to open an account, the rate at which they pay interest, and all Account opening bonus they might be offering. The interest rate paid by checking accounts and savings accounts is bound by the federal rate and usually varies over time. As of 2020, interest rates are quite low and many checking and savings accounts pay no interest at all. Also, remember that even if your account pays you 1% interest, you will still earn interest Lose money to inflation. So you don't want to keep long-term investment money in a current or savings account.
After all of that, let's take a look at some of the best checking accounts available.
Discover Cashback Debit
Discover checking account offers 1% cashback on debit card purchases up to $ 3,000 per month. This is one of the few debit cards that offers a reward for ongoing purchases. The Discover Cashback Debit Account also has no monthly maintenance or other fees, no fees for withdrawals at over 60,000 ATMs worldwide, and no fees for insufficient funds.
CapitalOne 360 exam
There are no minimums or fees for the CapitalOne 360 checking account. An APY of 0.10% is currently offered on balances. However, you can also open a free CapitalOne 360 account for performance savings, which at the time of this writing offers an APY of 0.65%. CapitalOne also has thousands of offices across the country so you can do your banking online or in person. The CapitalOne 360 checking account has three different options when you overdraw your account: Auto-Decline, Next Day Grace, and Free Savings Transfer.
Fidelity Cash Management account
Fidelity's Cash Management account also does not offer any account fees or minimum balance. It also refunds ATM fees across the country but only offers 0.01% APY on account balances. With Fidelity, you can easily transfer money between your checking account, savings accounts, and any retirement accounts at Fidelity. In addition, the Fidelity Rewards Visa offers 2% cashback on all purchases that you can redeem on your Fidelity Cash Management account or any other Fidelity account.
Wealthfront Cash Account
Wealthfront's Cash Account offers a high yield checking account (0.35% APY at the time of this writing) with no fees. With Wealthfront's practical account dashboard, you can easily move money between your checking account and any investment or retirement accounts you have. They also offer a service that allows you to access your paycheck up to two days earlier if you deposit directly into your Wealthfront Cash Account
HSBC Premier Checking
HSBC's Premier Checking account also has no fees for ATMs across the country or for everyday banking. However, a monthly maintenance fee will be charged if you don't have a combined account of $ 75,000 or more or direct deposits of $ 5,000 or more per month. Currently they are offering a promotion where you can earn 3% as a welcome bonus of up to $ 600. Receive 3% on Qualifying Direct Deposits for the first six months of your account, up to $ 100 per month.
Chase total checking
Chase Total Checking currently offers a $ 200 welcome bonus when you open a new account and make a direct deposit into your account within the first 90 days. Chase Total Checking currently pays an interest rate of just 0.01% APY. There's also a $ 12 monthly maintenance fee that can be avoided if you either:
Have direct deposits of $ 500 or more
Have $ 1,500 or more in credit at the start of each day
Have an average starting day balance of $ 5,000 or more in any combination of all of your Chase accounts
Chime is a purely online bank account with no minimum, monthly, or overdraft fees. Chime has over 38,000 toll-free ATMs and 30,000 locations where you can get cash back. And when you set up a direct deposit with your paycheck, you can access your funds up to two days earlier.
Dan Miller (31 posts)
Dan Miller is a freelance writer and founder of PointsWithACrew.com, a website that helps families travel for free / cheap. His home base is in Cincinnati, but he tries to travel the world as much as possible with his wife and 6 children.