A checkless checking account, while this may sound strange, is actually a growing trend among banks and credit unions. This shift is due to the desire to become more digital as more and more consumers rely on online banking!
However there are some things you need to look out for so be sure to keep reading below!
How Checkless Checking Works
While the details vary from bank to bank, the general principles behind checkless checking are the same. You do your banking online or via a mobile app, and when you need to access cash or make a purchase, you use your debit card.
These e-checking accounts have low or no monthly service fees and you can’t spend more than what’s in your account, so you won’t face overdraft fees. In terms of how you can use it, a checkless checking account works the same way as any other checking accounts with one exception, you can’t write checks.
It’s impossible to overdraft with a checkless checking account since transactions that would put your balance in the negative are automatically declined. The only time you’d have to worry about going over would be if a transaction was authorized for one amount but the actual charge was more.
Other Fees?
Even though you won’t have to worry about overdraft fees with a checkless checking account, there might be monthly maintenance fees associated with these kinds of accounts.
Like any banking product, you need to read all the fine print that comes with these checking accounts because each financial institution has its own spin on checkless checking and the fees that come with it.
Should You Open a Checking Account
This is a straightforward, simple way to manage your money, a checkless checking account can allow you to do that with minimal fees. While minimal fees and a simple account this does not mean, however, that it’s the right option for everyone.
If you occasionally need to write a personal check or make a bill payment using a money order, your bank might not allow you to order one through the checkless account or you might have to pay a separate fee for these services.
Customers who’d like to have access to checks without having to pay extra may be better off going with a traditional checking account instead and choosing not to have overdraft protection altogether. That way, you still have the convenience of writing checks when you need to and you can simply monitor your account on your own to avoid ending up in the red.
Conclusion
When comparing checking accounts, it’s important to factor in all of the costs, like the possibility that a checkless checking account could be cheaper than a regular one. Once you’ve thought about everything, decide which option makes the most sense for your banking needs.
Hopefully after reading this you understand how to open an account! Be sure to do proper research and start saving today!
Additionally, If you are interested be sure to check out our list of bank bonuses and CD rates!