Where to Find The Best Checking Accounts

When searching for the best checking accounts available in the banking market there are a few do’s and don’ts that may assist you in selecting the right banking institution for your needs. Typically a checking account is the least yield producing product banks offer to its customers, so the first rule of thumb would be to keep a minimum balance in your account, unless it is a maximum balance high yield account. Checking accounts should be utilized to pay for your monthly bills and expenses you don’t want to have to carry cash to pay for, any surplus cash should be invested in higher yield products such as CD’s, money market accounts or other higher yielding safe investments.

In the past people would do all their banking in one place, having their checking, savings, home, car and student loans all with the same bank, that is a thing of the past now. Different types of banks offer varying rates and incentives for the various products they offer and online banking has made a major difference in the return rates being offered. So, doing a little comparative shopping is a good practice before deciding which bank to choose.

Furthermore, depending on the bank product, you may even choose to have accounts with more than one banking institution in order to get the best checking accounts, lower interest credit cards, CD rates, and other products.

For example, with the major banks now instituting minimum balances and fees for checking and debit cards, consumers may find they want to switch to their local community bank or credit union for the best checking accounts, but still hold their mortgage for their home with a larger institution that offers a wider variety of loan products than their local bank does. Shop around are the new buzz words in banking today.

In the wake of the new banking regulations (went into effect Oct. 1, 2011) that the Dodd-Frank Act and Durbin Amendment have imposed on large banks, which are estimated to incur $7 to $19 billion dollar revenue losses that major banks had previously collected in fees from retailers whose customers use their debit cards to pay for their transactions, banks are struggling to make up those losses. With the “too big to fail” banks having repaid their bailout TARP loans with interest, but who are still struggling with the gluttony of bad loans on their balance sheets and the real estate crisis still in full swing, these billion dollar losses are more than even mega banks can absorb.

Therefore, it is more than likely that higher minimum balance checking and fee based accounts are here to stay with the major banking institutions, despite public outcry. These new regulations, imposed on the very banks taxpayers bailed out, who are still struggling with the massive amount of current (many more are expected) foreclosures on their books leaves one scratching their head as to just what the government was thinking when they were debating the value of these new bank regulations on Capitol Hill. The banking industry made it abundantly clear and was openly discussed with lawmakers in Washington that these billions of dollars in losses would have to be made up for and would only result in fees being imposed on banking consumers.

Which brings us forward to today’s best checking accounts banking dilemmas? Short of repeal of the new bank regulations one can assume that the fees will remain, even if the major banks modify (at a later date) them somewhat to appease and maintain the majority of its client base.

Therefore, consumer advocates are strongly advising that bank consumers closely look into their returning to the small community banks (assets under $50 billion) and local credit unions in their areas when looking for the best checking accounts. Where the new bank regulations were not imposed on and where non fee based checking and savings accounts will remain available to its customers. One benefit to consumers those new banking regulations brought about … is that the community banks and some credit unions are now beginning to offer to reimburse any outside ATM fees you may incur both in and out of town which previously had been a stumbling block for consumers.