How free is your free checking account?

**Frugal Doug** · 01-21-2008, 01:00 PM

You may think your checking account is free, but is it really? For example, if you keep a healthy balance in your account but if pays no interest, it is actually costing you money.

On the other hand, if you keep lower balances, you should definitely have a checking account that does not charge maintenance or per-item fees, no matter how low your balance falls or how many checks you write.

Bank don't always tell the whole truth

However, before you sign up for a free checking account, be aware that banks can legally advertise checking accounts as free or no-cost and still charge for specific services such as ATM use or overdrafts. These charges can add up considerably if you're not careful. For example, we accidentally had an overdraft on one of our free accounts last week, and it cost us $36.

How much are your paying for checks?

Also, make sure you understand what the bank will charge to print your checks. The normal thing is for the bank to give you some checks free but then charge when you need to reorder. One of our banks charges $35 for two boxes of checks. If you have to pay this kind of a fee, then your free checking account isn't really free at all.

Beat the cost of bank checks

You can buy personalized checks for much less then what banks charge. One of the largest of these is Designer Checks (designerchecks.com. Other check printing companies you might want to check out are Super Valuechecks (Supervaluechecks.com) and c
Check Works (checkworks.com).

Frugal Doug

**Squirt** · 01-21-2008, 03:10 PM

I would expect any bank to charge for an overdraft. Otherwise, they are free money accounts, not just free checking.

**McD** · 01-21-2008, 03:33 PM

Actually, banks do tell the truth. In all of the legal disclosures that banks are required to give the consumer at account opening, it states up front that overdrafts will be charged.

**Marie78** · 01-21-2008, 03:49 PM

I have never heard of a bank not charging for checks. I worked at a credit union and we even charged for checks. I agree in most cases it's cheaper to buy your checks online and not through the bank.

However, I do have a free checking account. I don't pay to have the account, I don't get charged for dropping too low or for writing checks. I do have to purchase checks if I run out of them (maybe once every few years) and you don't have to buy them through the bank.

As for overdrafts...I have overdraft protection and I pay nothing to have it unless I have an overdraft. I have never overdrafted, but it's $35 without protection and there's a minimal fee with the protection (like interest only) since the bank is basically loaning you money you don't have to cover your bills for you! If you don't have overdraft protection the bank will charge you the fee of $35 and then if you bounced a check you will be hit by those fees too!

**dcompton** · 01-21-2008, 08:30 PM

I do get free checks, but it's a senior account -- another perk to being old. I use so few though I only have them print me more when I move and need an address change. It's free checking and online bill pay, and I don't have to keep any particular amount in it. I leave around a $100 over what I need for the projected cash flow. I guess I have a pretty good deal.

**YankeeMom** · 01-21-2008, 08:40 PM

Originally Posted by Marie78

I have never heard of a bank not charging for checks. I worked at a credit union and we even charged for checks. I agree in most cases it's cheaper to buy your checks online and not through the bank.

However, I do have a free checking account. I don't pay to have the account, I don't get charged for dropping too low or for writing checks. I do have to purchase checks if I run out of them (maybe once every few years) and you don't have to buy them through the bank.

As for overdrafts...I have overdraft protection and I pay nothing to have it unless I have an overdraft. I have never overdrafted, but it's $35 without protection and there's a minimal fee with the protection (like interest only) since the bank is basically loaning you money you don't have to cover your bills for you! If you don't have overdraft protection the bank will charge you the fee of $35 and then if you bounced a check you will be hit by those fees too!

Same here. I heart my credit union. Free checking, overdraft protection, great rates on loans.

**nodmicks** · 01-21-2008, 08:55 PM

We used to get free checks if you had direct deposit but no more. Our checking is free unless you have a debit card. Then it is $1 a month. I would fully expect to pay an overdraft if I ever bounced a check. It's only fair.

**northernmom2boys** · 01-21-2008, 09:44 PM

I am in Canada and we are with Presidents Choice Banking(CIBC)and we get free cheques,no fee banking

**monkeywrangler71** · 01-21-2008, 09:57 PM

We have a staff account, everything is free including cheques and overdraft protection - although we pay interest of course if we use it.

**bamber** · 01-21-2008, 10:39 PM

The only fees on my checking account are for overdrafts, and of course buying checks. But it's the account that is free, not the supplies to use it. I don't write checks, I use my debit card. My original $16 box of checks will last me for years. The checking account is not actually free, but I got it free for the first five years (because it is a student account, and my parents have one) and free after that, because one of my parents works at the bank, and free also because I use direct deposit, which I plan to always use. By the time I work at a job where I don't use direct deposit, I will have enough money to open an interest drawing account with no fees. hopefully.

**Neeley** · 01-21-2008, 10:51 PM

Our checking account is free. We get free ATM/debit/visa cards and unlimited usage on them.

We order checks through the credit union because they are so cheap. A box is only $11.74 and that one box will last us over a year because we primarily use the debit card.

I am sure there is an overdraft fee, but I am not sure what it is. I think if you overdraft your account you should be charged for it.

**acidcookie** · 01-21-2008, 11:02 PM

My checking account is not only free, but PAYS ME. It's an online bank, so they pay interest on my balance (yes, for checking, not just savings). Also, it has a line of credit attached to it that it will take money from if you overdraft so you don't get an outrageous fee.

I have also never heard of a bank giving free checks. I write so few checks (online pay!) that one box lasts me years.

**nancycg56** · 01-22-2008, 09:30 AM

My checking account is free, refunds ATM fees, pays interest (very little). I have never had an overdraft so I don't know what the policy is but I would expect to pay for one. I do buy my checks but I rarely use them as I pay all my bills online through my bank for free and use my debit card when shopping IRL.

**PB&J** · 01-22-2008, 10:24 AM

We have a free interest checking account. We have to meet certain stipulations for it to be free, but it isn't difficult. One rule is that we have 3 accounts with them, we have our checking, savings, mortgage and a line of credit so that isn't a problem. We also have to have direct deposit, got that. And the last rule is that we have to have automatic withdrawl at least once per month into our savings, we do that, too.

We would do all those things anyway, so it isn't any extra work. Plus I get free checks and earn interest on my savings AND checking.

**Libby** · 01-23-2008, 06:21 PM

Originally Posted by northernmom2boys

I am in Canada and we are with Presidents Choice Banking(CIBC)and we get free cheques,no fee banking

Im with her, Im a PC Financial Member. NO FEE's. No ATM fees, no debit fees, free cheques. The only time I had to pay is when I use my overdraft and then thats only $4.95/month. The only catch is that we cant use this card in the US. And each time we use our card, we get points which turn into free merchandise/groceries from the stores that sell PC products.