Banks,Your,Checking,Really,Fre business, insurance Banks: Is Your Checking Really Free?


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There are no shortage of banks that advertise free checking accounts. You may even have one right now. The trend of providing free checking is one that swells and wanes, depending on the economy. Lately, they have been popular incentives to get customers in the door. As with anything, however, it's important to look beyond the ad-speak and find out what the institution is actually offering. As seen in several surveys, "free" doesn't always mean what the customer may think. Here's what you should look at when your financial institution offers you a free checking account.Cross SalesIf banks are offering free checking, what do they get out of the deal? Well, it's the same principle as a convenience store selling state lottery tickets. These stores don't make a dime on these sales, but they offer them as a way to get customers in the door. The hope is that these customers won't stop at buying lottery tickets. They'll pick up a drink or two, a pack of cigarettes, or a snack while they're there. Your financial institution is hoping for the same thing. If you are already banking with them, you may be susceptible to taking out a loan, opening a credit card account, or invest through their services. This is where they make their money. Nothing wrong with sales, but it's something you should be aware of.FeesThe Truth in Savings Act demands that banks who advertise free checking can have no minimum balance requirements on their accounts, something that can lead to a great many fees for the unsuspecting customer. However, that doesn't mean that your free account doesn't have some fees attached. In fact, experts advise that very few customers are lucky enough to have a free checking account without some kind of restriction. Fees for balance inquiries, stopping payment on a check, using the debit card, and more often accompany these accounts. This is why you're advised to check your statement carefully to see what you're being charged for.RestrictionsMany customers are taken aback when they realize that the free checking advertised isn't without some restrictions. Many banks offer free checking only to those who opt for direct deposit, something that may not be made clear in the advertising. Others demand that you maintain a minimum balance unless you want to be hit with monthly fees. There isn't anything necessarily wrong with these kinds of restrictions, but you should know what you're signing up for before you get hit with a fee. Article Tags: Free Checking

Banks,Your,Checking,Really,Fre

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