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CheckingAccount.com – 2012 Guide To Getting A Free Checking Account

Free Checking Accounts – What You Need To Know

We know, the banking industry has been making a lot of changes. Ones that could cost you a lot of money over time as well. Recently many large national banking institutions decided to begin charging for a basic consumer checking account. Many launched new fee schedules and began charging monthly fees for account holders regardless if they were long time customers or not. However once faced with a huge amount of negative press and outcry from account holders, many of whom jumped ship to a credit union or online banking company many of the banks did a quick 180 and discontinued those ill advised practices.

One of our current recommended free checking account offers can be found below. To find out more regarding that particular offer simply click on the start saving link or the company logo inside the rate box.

The difficult task that remains now for you dear reader is to know which banks are offering what and how to decipher through the fine print.

With banks today, it’s difficult to find many good offers that don’t have at least a few strings attached. Good deals on CDs require high minimum deposits or have long terms and those attractive low introductory rates on credit cards disappear into high APRs. Consumers can go pretty much anywhere, from an online bank to a local credit union to some of the largest nationwide banks, and sign up for a no-cost checking account if you know where to look and what to ask for.

Just a few decades ago, consumers’ options were limited when it came to choosing a checking account. They could go to one of the local banks or join on of the large national banks, and, well, that was pretty much it. Today, the internet and the rise of credit unions and other regional banks that accept customers from across the country means there are more choices for those seeking a free checking account. The large banks are still a safe bet, though most have some basic requirements like direct deposit. With these banks, convenience is the advantage, as they tend to offer large networks of ATMs and branches.

There are also the smaller credit unions and local banks, which also offer free checking but can tend to have a limited number of branches or ATMs to pick from. Reward checking accounts are another good option and come with higher interest rates and other perks, but also have higher requirements like minimum monthly transactions or account balances.

In the past decade or so, the rise of commerce on the internet has also led to the emergence of banks based entirely online, and with these banks come great offers for free checking accounts. As with many online services, there is a trade-off to consider before choosing an online bank. The perks and terms at these banks are generally superior to brick-and-mortar banks, but there are no branches so depositing money means using either an ATM, mailing the check in or scanning it into a computer. This isn’t often as troublesome as it might sound.

So If you have the stomach for this new media style of checking deposits, online banks have some of the best options for free checking accounts.

ING Direct Electric Orange

A few years ago, the Dutch-owned ING Direct made waves in the online banking world when it introduced its Orange Savings Account, which blew away its competitors with a 2.6 percent APY—and this was at a time when most banks had rates below 1 percent. This helped ING Direct become one of the first major players in the online banking world, one that still carries a strong reputation today. It has now branched out in the services it offers, with the ING Direct Electric Orange checking account drawing positive reviews from customers.

The account itself has some favorable interest rates and perks. For account balances up to $50,000 there is a 0.20 percent APY, but for those with more than $50,000 it is 0.90 percent APY and for more than $100,000 it is 0.95 percent. ING Direct Electric Orange offers what it calls Person2Person payment, allowing account holders to easily transfer money to any other bank account, even if it is not with ING direct. The checking account comes with a free MasterCard debit card and free bill pay online. ING Direct also has a network of more than 35,000 ATMs nationwide, spread evenly across the country, so convenience is not a concern. The bank offers free online checks, but customers can order actual checkbooks if they wish. ING Direct is known as a tech savvy bank, with expanding options for digital deposits and what is considered one of the best banking apps in the industry.

FNBO Direct Online BillPay Account

While most other online banks have popped up sometime within the last decade or so, FNBO Direct has a history that actually stretches back more than a century. The FNBO in the name stands for First National Bank of Omaha, which was established more than 150 years ago and has 6.6 million customers spread across 35 states. One of the earliest entrants into the online banking arena, FNBO Direct offers some of the best rates on both its checking and savings accounts, and has consistently earned some of the highest customer ratings among online banks.

As the name would imply, the FNBO Direct Online BillPay Account allows customers to pay bills directly from their account. There are some other good features as well, like one of the highest interest rates for the average, low balance customer. In December the rate was 0.70 percent, with a minimum deposit of only $1. Customers also get a Visa check card that serves as an ATM card for both this account and the FNBO Direct Online Savings Account. Because of its affiliation with First National Bank of Omaha, customers with this online savings account can connect with a massive network of participating ATMs—840,000 in all. Plus qualifying balances can avoid charges on four foreign ATM fees every statement period. Transferring money is easy as well with FNBO Direct Online’s Popmoney, which allows account holders to send and receive funds. For added convenience, customers can send money into their accounts through mobile or e-mail payments.

Ally Interest Checking

This is one of the newer checking accounts offered by online banks, and comes with some attractive features. The biggest is probably the ATM fees, which are nonexistent. Ally refunds all bank fees for ATM withdrawals, so the bank’s network is essentially everywhere at all times. Checks to go with the accounts are free as well, as its Ally’s bill pay feature and ATM card. While other online banks are still developing digital deposit programs, Ally has its eCheck Deposit, which allows for greater simplicity in making deposits. The account has no monthly fees and no minimum balances, either.

Since opening in 2001, Ally Financial has become one of the better known names in online banking, though until 2009 it was known as GMAC. Ally has invested some serious money in its marketing, so many customers know the Utah-based bank from television or internet advertisements. Like other online banks, Ally is known for good rates on its savings accounts, but that it not all Ally does. It also has high yield IRA CDs, traditional CDs with no early withdrawal penalties and even auto financing. Ally has earned high ratings for its customer service, with a website that allows customers to speak live with an agent, any day at any time. Ally also has a reputation for being straightforward. In a time when checking account disclosures read like an accounting textbook and fees are purposely hidden, banking with Ally is simple—no hidden fees, no surprise terms.

PerkStreet Financial

Normally good cash-back reward programs are reserved for credit cards with high interest rates, but PerkStreet Financial is the exception. This online bank offers a free checking account that pays cash back—5 percent for spending in certain categories and 2 percent on all other spending, as long as a minimum balance is maintained. For people who like the idea of getting something back for their purchases but don’t want to rack up credit card debt in order to do it, this is a great account, and PerkStreet Financial has gained attention for pioneering the concept of connecting a free checking account with a generous reward program. The Boston Globe and New York Times both praised this account as an alternative for debt-conscious consumers.

A cash back reward program is not the only feature of PerkStreet Financial. It also connects to large network with more than 40,000 ATMs and offers free bill pay, free checks and a free debit card. PerkStreet Financial earns good marks for its customer service and its website, which is easy to navigate and its bill pay section easy to set up. Perkstreet is new to this industry, but they’re getting a lot of good press and seem to becoming quite popular.

Everbank Yield Pledge Checking

While this isn’t a bank for everyone, if you plan on putting a large amount of money into your checking account, Everbank Yield Pledge Checking is hard to beat. The interest rate does change, but the bank has pledged to keep this rate among the top 5 percent of all banks, so you know you’ll have a high rate. The catch is that the account requires at least $5,000, and it allows only a limited number of customers. Everbank Yield Pledge Checking has some other great benefits, like unlimited check writing, reimbursement on all ATM fees and an online banking hub and customer service center consistently rated among the top of all banks. This bank also allows customers to scan their deposits, saving the trouble of finding an ATM or sending a check by mail.

Everbank is a name that might be familiar to those outside the banking world, as the Jacksonville-based bank bought the naming rights for the stadium where the Jacksonville Jaguars play. This financial services company also offers standard banking, mortgage and investment services, and has total assets of $11.5 billion. The bank has won a slew of awards, like “Best of the Web” from Forbes and Online Banking Report and “Best Checking Account” from Kiplinger’s Personal Finance. It also has a four-star rating from BauerFinancial, making it a safe bet for any customer.

Brick-and-Mortar Banks

Online banks might have the best perks, but that’s not to say there aren’t good offerings for free checking accounts at major banks as well. For customers who don’t want to deal with the inconvenience of mailing in deposits or searching for an ATM in the network, these brick-and-mortar banks actually have some great alternatives. The only catch with these accounts is, with few exceptions, they are not entirely free. The either come with some type of monthly fees or require direct deposits.

Many of these fees can be traced back to post-recession legislation meant to create greater oversight on the financial sector. An amendment to this bill passed in 2010 put a cap on the fees banks can charge merchants who accept debit cards, so as a result the banks introduced a slew of new fees and pulled back on free perks to help make up the difference. This legislation has only been in effect a little more than two months, so the full results may not have been felt and the bank terms listed below are subject to change any time.

PNC Bank Free Checking

PNC is the one bank that, so far, has bucked the trend of new fees. While most other checking accounts form the major banks have some kind of fees involved, this offering from PNC is entirely free. As in no monthly fees, no debit card fees, no minimum balance and no direct deposits required. The bank actually made headlines in early 2011 when it announced it would keep its checking account free, though in doing so it did eliminate some of the other benefits, like a debit card reward program and reimbursement for out-of-network ATMs. It will now cost customers $2.50 to use an ATM out of the network.

PNC is noted for its online bill pay system, which allows customers to view and pay bills online. It gives these customers the option to either pay the bills manually each month or set up an auto-pay system, and it all takes place on PNC’s easy-to-use banking portal, so there’s no need to switch between the bank’s site and other sites when paying the bills.

Another good aspect of PNC is the different types of free checking accounts it offers. There is an account tailored for non-profit organizations that includes online bill pay, a free Visa debit card and free checks. The bank had previously offered a free checking account geared toward students, but has since discontinued it.

Chase Total Checking

This account is a mixed bag of sorts. Chase decided to go against the trend and not institute monthly debit card fees, but there are other fees that kick in if the customer can’t meet the bank’s requirements. The account requires direct deposit, and this must be set up within 60 days of the opening of the account. If the account doesn’t have a direct deposit of more than $500—or if the customer has less than $1,500 in Total Checking or a total of $5,000 between all Chase accounts—there is a $12 monthly fee. There is also a $25 fee if the account is closed within 90 days and a $2 fee for out-of-network ATMs.

The bank is trying to entice new members to open accounts there, and for much of 2011 it offered $125 for those who opened new accounts with a $100 minimum deposit and who started a direct deposit within 60 days. This offer has since closed, but it demonstrates a willingness on Chase’s part to offer some kind of perks to make up for those that were stripped away. The bank does also offer a large network of ATMs and has 5,300 branches nationwide, so convenience is not an issue.

Bank of America eBanking

This is another account with some good benefits, but strings attached if minimum requirements are not met. To open an eBanking account with Bank of America, the customer must make a $25 minimum deposit and will be charged $2 for using ATMs not in the bank’s network. The account combines aspects of online banks with the convenience of one of the nation’s largest brick-and-mortar banks. Customers can do their banking through Bank of America’s online portal and make deposits through the more than 18,000 ATMs in the network. The account does have an $8.95 monthly fee, but this can be avoided if all deposits and withdrawals are made at an ATM and if the customer chooses to receive online paperless statements.

Bank of America customers came close to having a monthly fee for using debit cards, but the bank dropped this proposal after it was met with widespread criticism. Bank of America is one of the banks hit hardest by the cap on fees for merchants, and it has instituted other new fees to make up for its loss, including $5 for ordering a replacement debit card.

Citibank Basic Banking Package

Formerly know as Basic Checking, this account once had no minimum deposit, but that changed with the new banking regulations. Now Citi requires a balance of $1,500 or the customer is charged a $10 monthly fee. This fee can be waived, however, if the customer has one direct deposit and at least one online bill payment each month. The changes weren’t all bad for Citi customers, as the bank joined Bank of America in holding back on the debit card fee.

One great perk of this account is that the account can be enrolled in the Citi ThankYou rewards program. This is a fairly generous program, allowing customers to earn points for having bill pay and direct deposits, and it even lets them combine points earned from the checking account with points from credit card purchases.

U.S. Bank Easy Checking

This account has a $50 minimum initial deposit, but comes with a range of features like mobile banking that can be used to transfer funds, pay bills or locate nearby branches or ATMs. The account also offers e-mail or text messages with reminders about account activity. U.S. Bank has a network of 3,000 branch offices and 5,300 ATMs, which are designed to take deposits or make balance transfers.

There are some drawbacks to this account. There is a $8.95 monthly fee, though this can be reduced to $6.95 by using online statements instead of paper statements. The fee can be waived entirely with an account balance $1,500 or greater or with direct deposits totaling $500 each month. Also, while most banks give penalties to customers who close their accounts within 60 or 90 days, U.S. Bank Easy Checking account has a $25 penalty if the account is closed anytime within the first 180 days.

Wells Fargo Value Checking

To open a Value Checking account with Wells Fargo, you need to be ready to plunk down $100, one of the largest initial deposit requirements in the banking industry. The bank makes up for it a bit by having no early closure penalties, and the $5 monthly fee can be waived with any direct deposit or with a $1,500 balance in the account. There is a $2.50 fee for withdrawals form out-of-network ATMs, and balance inquiries at these ATMs will cost $2. Online bill pay is free for the first two months with this account, but after that there is a $6.95 monthly fee.

Wells Fargo has responded to new financial regulations by instituting debit card fees, but these have yet to take effect nationwide. If you’re unlucky enough to live in Nevada, New Mexico, Oregon, Georgia or Washington and have this account, you’ll that you’re already paying a $3 monthly fee for your debit card. Wells Fargo is still in the process of trying out the fee, and has selected these states as the testing ground.

Capital One Rewards Checking

This account comes with the bank’s flexible reward program, making it one of the few institutions to offer rewards on a free checking account. But the card does have one of the higher monthly fees among free accounts, with an $8.95 fee that can be waived with certain requirements. There is $50 minimum deposit and a $2 fee for using an ATM out of Capital One’s network. The Capital One Rewards Checking does have some cool features not offered at many other banks, like the ability to connect accounts to Quicken or Microsoft Money for free. Online bill pay is also free with this account, and Capital One’s mobile banking allows customers to do banking anytime from their phone or mobile device.

Though there are 1,000 branches and more than 2,000 ATMs in Capital One’s network, the bank is somewhat limited geographically. It has branches in eight states, mostly along the Atlantic seaboard, along with Washington, D.C.

BBVA Compass Build-to-Order Free Checking

With free online bill pay, free entry into the CompassPoints Reward program, and $2,500 in protection against identity theft, the BBVA Compass Build-to-Order Free Checking is great—if you can get it. Compass BBVA is available in only seven states stretched across the Southwest and Southeast. For those who do live in these regions, BBVA offers a nice alternative to other large banks that skimp on the benefits. With BBVA, customers can pay an extra $2 each month to get the premium features, like interest on the account balance and fee-free ATM use.

The BBVA Compass Build-to-Order Free Checking does have a larger monthly fee than most other banks at $10.95, but it also makes it easier for customers to escape the fee. Customers can make a $300 direct deposit, keep their balance at or about $1,500 or just be a student under age 25. The bank also waives the fee if the account holder is part of its preferred client program, which means carrying a balance of $100,000 or more—though these customers can probably spare the $10.95 per month.

You Still Have More Options

If you’ve gone through all the online options and all the major banks but still can’t find the right account, there are always small local banks and credit unions to check out. These have become increasingly popular in recent months, in part because the fees and obscure account disclosures at major banks spurred a national backlash against them. In just the past few months more than 650,000 customers have joined credit unions, more than joined in all of 2010. There are a number of sites that help connect customers with their local credit unions, and the National Credit Union Administration maintains a searchable database of all credit unions.

Remember to always read the fine print and ask the bank representative to explain things fully.

Disclaimer: CheckingAccount.com makes great effort to make sure all information is 100% accurate when the article was actually first published. Should any of the information be found to be inaccurate please contact us immediately with a request for an update.

It is imperative that you research any lending institution thoroughly on your own and not allow this document be your sole method of determining what bank is right for you