A checking account allows you to conveniently manage your funds, but with so many financial institutions and account options to choose from, it can be hard to find an account that best fits your needs.

We’ve put together some key features to look for when deciding what checking account is right for you.

Insurance

It’s important to verify that the credit union or bank where you plan on opening your account is federally insured. A credit union should be insured by the National Credit Union Administration (NCUA) and banks should be insured by the Federal Deposit Insurance Corporation (FDIC).

The NCUA and FDIC are independent government agencies that insure deposit accounts at eligible financial institutions. Both agencies provide a standard insurance amount of $250,000 per depositor, per credit union, or bank that would be reimbursed to you if that financial institution fails.

It’s rare to find a credit union or bank that is not federally insured, but it’s still good to check instead of risking your money. Financial institutions will clearly state that they’re insured on their websites, promotional and account materials, and at their physical locations.

Account Requirements

Institutions may have a minimum balance and or deposit requirements for their checking accounts. These requirements are in place to help members maintain a specific amount in their checking account to avoid overdrafting and the fees that are associated with overspending. Setting up direct deposit to your checking account will keep your checking account active and avoid the hassle of transferring money into the account or depositing checks.

Each bank and credit union sets its minimum balance and deposit requirement amounts, so it’s important to understand the requirements of the financial institution you’re considering. Your research may even help find ways to have these requirements waived or find other checking accounts that don’t have as many account requirements.

Fees

Like most financial products, credit unions and banks will charge fees to account holders. Some common fees include monthly service/maintenance, overdraft fees, ATM fees, statement fees or other miscellaneous fees. Many of these fees can be avoided by managing your account responsibly to avoid overdrafting or by opting to receive your statements digitally.

We also suggest searching for a checking account with minimal or no fees. You can also check to see if there are ways to avoid paying the fees by opting into estatements or maintaining a sufficient balance.

Interest

An average checking account isn’t the best financial product to hold large amounts of money for long-term financial goals. A checking account balance will typically fluctuate since the funds in the account aren’t being stored for a long time, most financial institutions will offer lower interest rates on their checking accounts.

However, some credit unions and banks may still offer above-average interest rates with high-yield checking accounts. Oftentimes, high-yield checking accounts have minimum balance requirements that may not fit everyone’s financial needs, but this type of checking account is a great opportunity to earn more for those who can maintain the required balance.

Digital Services

We live in a digital age and it’s important to be able to manage your finances online. Prior to deciding on a credit union or bank for your new checking account, you should also read the reviews on the financial institution’s mobile app and online banking. This way you’ll be able to see how current members feel about the service.

You’ll also want to verify if the credit union or bank you’re researching offers helpful services like digital payment services, mobile deposits, and peer-to-peer payments.

Rewards

Since all banks offer checking accounts, they will also offer other perks to entice potential account holders. Earning cash back or reward points for purchases made using your debit card, or earning interest on the funds in your account are some of the benefits that may interest you.

Protection

You never expect to have your account compromised, but it is something that happens more often than not. Review the financial institution’s security features it offers to help protect against fraud, such as contactless payments or EMV chip technology and virtual card controls to safeguard your debit card.

ATM Access

Being able to access your checking account for some quick cash is a big requirement for many people. Look into the ATM network offered by the bank or credit union to see if they offer a large range of ATMs location options to avoid paying out fees for your money. Some financial institutions may even provide ATM fee reimbursement.

No matter which accounts you choose, be sure to make a decision that best fits your overall financial needs.

At AFFCU, our checking accounts feature Early Direct Deposit, Free eStatements, Online Bill Pay Access, 24/7 access to Digital Banking, plus additional benefits like Cashback Rewards with our Rewards Checking account.

We encourage you to take a look at the checking accounts we offer.