Afrikan Goddess (AG) Online

By: Christen DeMedeiros

Do you know the difference between a non-interest checking account and an interest bearing checking account? I guarantee that by the end of this article, you will.

There are three main types of checking accounts. First, let’s explore the type of checking account that is most common to every financially savvy, working woman: a basic checking account. This type of account is a valuable asset to those of us who use our checking account to pay bills and other expenses. Depending on your financial institution, you may be charged a monthly maintenance fee.  Keep in mind however, that if you have your paycheck directly deposited, the monthly fee may be waived. If this is an option, take it. That way, you get the perks that a monthly surcharge fee should offer you for free. The cost to open a basic account is $25-$100, but this money goes toward funding your account, not paying for it. As with most accounts, bouncing a check will cost you $22-$35 per occurrence, depending on your bank, and you will pay an average fee of $2 if you use another bank’s ATM.  In this financialista’s opinion, paying any sorts of bank fees are not good use of hard earned money. If possible, seek out banks that allow you to open an account with no monthly surcharge fees, which brings us to the next type of account.

 A free, or no minimum checking account is extremely beneficial to most consumers. It is an account that does not require a direct deposit, does not assess a monthly maintenance fee, and does not have a minimum balance requirement.  This account does not have any check-writing restrictions, so you can use as many as you like, as long as you have the money to cover it, of course. As with all banking accounts, you will incur a fee if you write a bad check, or try to use your check card for an amount greater than what you have in your account, and try to go inside of the bank for withdrawals or use your own bank’s ATM, those surcharge fees can really add up after a while.

An interest bearing checking account is one that typically requires a minimum balance to open, and requires that you maintain a certain amount of money in your account each month in order to avoid paying fees. This type of account rewards customers by paying them interest, hence the name. But don’t be fooled. The interest paid is not that much; and therefore, you should not use this account as a substitute for a savings account.

Now that you are familiar with the three types of checking accounts, let’s resolve to maintain ours as well as we maintain our cars, homes, and relationships. Paying an overdraft fee (or any sort of fee), is like flushing money down the toilet, so be diligent about keeping your balances safe, and not over spending.

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