There are many banking options available to U.S. customers. Picking the proper checking account product for you can be difficult with so many options.

Here are the top five things you should consider when selecting a bank account in the United States.

1. Fees and Minimum Balance Requirements

One of the most critical factors is the fee structure associated with the checking account. Many banks charge monthly maintenance fees, overdraft fees, and ATM fees.

Some accounts may also require a minimum balance to avoid these fees. Here’s what to look for:

Monthly Maintenance Fees: Some banks charge a monthly fee for simply opening an account with the bank. For example, a bank may charge a $10 monthly fee, automatically deducted from your balance, regardless of how much activity occurs within the account. Some banks waive these fees if you meet specific criteria, such as using direct deposit for your paychecks or maintaining a minimum account balance.

Overdraft Fees: An overdraft fee occurs when you spend more money than is currently in your bank account. For example, assume your credit card bill this month is $750. You arrange a direct debit of $750 to pay the monthly credit card bill. When the credit card company withdraws the funds from your account, there is only $600 in the checking account. The bank allows the transaction to clear by giving you a loan of $150. Because you had an overdraft, the bank charged an overdraft fee of $30. You must now pay the bank $180 ($150 plus $30 overdraft) to return the account to zero. These overdraft fees can add up quickly, so look for accounts that offer overdraft protection or have lower fees.

ATM Fees: If you frequently use ATMs, consider using a bank that offers an extensive network of their own ATMs, which won’t charge a fee for making a withdrawal. Many banks will charge an ATM fee if you use an ATM outside their network. These fees can often range from $2 to $5 per transaction. In addition, the ATM itself will usually charge a fee. For example, suppose you have a checking account with Bank One and want to withdraw $100. If you go to an ATM that is not affiliated with Bank One, you can withdraw your $100 of cash; however, Bank One will charge an ATM fee of $2, and the ATM charges an additional $2. You spent $4 in fees to withdraw $100 of cash.

    2. Accessibility and Convenience

    Consider how easily you can access your money and manage your checking account. The top three things to consider include:

    Branch Locations: If you prefer in-person banking, look for a bank with branches conveniently located near your home and place of work. Many customers rely solely on online banking; however, if you want more in-person contact with bank tellers and representatives, find a location close to you.

    ATM Network: As discussed above, if you want to save a lot of money on ATM fees each year, use an ATM within your bank’s network. Some banks operate nationwide and have numerous locations throughout each state. So, you’ll be better covered if you open an account with a nationwide bank with many ATM locations.

    Online and Mobile Banking: Ensure the bank offers a user-friendly online platform and mobile app that allows you to manage your account, deposit checks, pay bills, and transfer funds with ease. Mobile banking allows you to access your bank accounts 24/7 to monitor your account balance and transactions, and it helps set up automated services such as bill payments, transfers, and alerts for low balances.

      3. Interest Rates

      Most banks will offer a checking account that does not pay interest income on the balance. If you are looking for an interest-bearing account, you generally need to open a savings account, money market fund, or invest in certificates of deposit. If a bank does offer an interest-bearing checking account, the interest rate will generally be lower than those of a savings account.

      4. Account Features and Benefits

      Banks often offer additional features and benefits that can add value to your checking account. These extra benefits may include:

      Overdraft Protection: Find checking accounts that offer overdraft protection for lower fees than the competition. This will provide you the overdraft protection you need to make sure your bill payments are paid on time and reduce the amount of fees in the event an overdraft occurs.

      Bill Pay Services: Many banks offer online bill pay, which can simplify your monthly bill payments by setting up automatic payments. For example, if your monthly internet and cable bill is $150 and is due on the 10th of every month, you can set a recurring bill payment to the internet provider to have the check arrive on or before the 10th of each month.

      Rewards Programs: Some checking accounts offer initial rewards for opening an account and making an initial deposit or setting up direct deposit for your paychecks. For example, some banks run promotional programs where you can receive an extra $100 for depositing a certain amount of money into a newly opened account. Other banks may offer rewards for debit card purchases, which you can redeem for travel or merchandise.

      Customer Service: Consider the quality of customer service, including the availability of 24/7 support and the bank’s reputation for resolving issues quickly. Check the ratings on Google Reviews, TrustPilot, and the Better Business Bureau to review the good and bad feedback provided by existing customers.

        5. Insurance, Security, and Fraud Protection

        Protecting your money and personal information is paramount. When selecting a checking account, consider the bank’s security and insurance measures:

        FDIC Insurance: Ensure the bank is insured by the Federal Deposit Insurance Corporation (FDIC), which protects your deposits up to $250,000 per depositor. Most banks operating in the U.S. are insured by the FDIC, which protects you if the bank defaults. The FDIC website maintains a list of all FDIC-insured financial institutions. If you have doubts about whether your bank is FDIC-insured, you can search for the bank on the FDIC website.

        Fraud Alerts and Monitoring: Look for accounts that offer real-time fraud alerts and monitoring services. If your account is compromised or someone steals your debit card, you want assurance that your bank will detect any unusual activity and protect your money. The fraud alerts will notify you of suspicious activity and often trigger a freeze on your account to prevent hackers and scammers from taking your money.

        Two-Factor Authentication (2FA): The two-factor authentication measure is a common feature used by banks, social media apps, email accounts, and other accounts with online access. This extra layer of security helps protect your account from hackers and other unauthorized users. For example, if you use your username and password to log in to your account through a web browser, the bank may send a verification email to your email address on file. To complete the sign-in process, you need to enter the code sent to your email.

        Zero Liability Protection Policy: This feature ensures the bank will not hold you responsible for unauthorized transactions on your account. This policy generally applies to purchases made in a physical store, over the internet or mobile device, or at an ATM. In general, you won’t be liable for unauthorized transactions if you use reasonable care to protect your account from loss or theft and promptly report any loss or theft to the bank.

          Summary

          Selecting a checking account involves more than just choosing a bank at random. It requires a careful evaluation of your financial needs and priorities. It would help if you took sufficient time to compare all of the different options.