Why is it Important to Have a Free Checking Account?
Explore the importance of free checking accounts in personal finance, particularly for young adults. This guide breaks down the real meaning of "free" in banking, highlighting key benefits like cost savings and reduced financial stress. Learn what features to prioritize when choosing an account, from online banking capabilities to branch accessibility.
This blog is for informational purposes only and not an offer of any specific account or service. For current details on our checking accounts, including terms and fees, please visit midflorida.com or speak with a representative. Account features and conditions may change. Membership eligibility required.
If there’s an unsung hero of personal finance, it has to be the checking account.
These accounts do more than just hold your money until you need it. They keep a record of your transactions, and thanks to the NCUA (for credit unions) your money is securely protected.
However, not all checking accounts are created equal. Some have better benefits than others.
One type of checking account that might have the best benefits is a free checking account, such as MIDFLORIDA Credit Union’s Free Checking account.
A free checking account is important, especially if you’re a teenager or college student.
Below, we’ll explain why a free checking account is one of the most essential tools in your personal finance arsenal.
Start your application with MIDFLORIDA Credit Union.
What exactly is a free checking account?
Before we can discuss the benefits of a free checking account, we have to define it.
Most of the time, when a credit union or bank calls its checking account “free,” they mean it doesn’t come with a monthly fee or maintenance fee.
However, all checking accounts have fees, even free checking accounts. Those fees depend on the credit union.
Common checking account fees
Outside of a maintenance or monthly fee, here are some costs you may still have to pay:
- Overdraft fee: If you try to make a payment and don’t have the money to cover it, you’ll have to pay a fee, usually about $30.
- Statements: MIDFLORIDA Credit Union does not routinely provide paper statements for its Free Checking accounts.
- ATM fee: Most banking institutions will charge you a fee to use their ATMs. If you use an ATM the banking institution doesn’t own, you may have to pay an additional out-of-network fee. It’s worth noting many credit unions have low ATM fees, and some credit unions have eliminated them.
- Transfer fee: Your banking institution may charge you a fee if you transfer money to your checking account from another financial institution.
- Inactivity fee: Some credit unions and banking institutions might charge you a fee if you don’t perform transactions for a period of time.
What are the benefits of a free checking account?
Even though you might have to pay fees for non-routine services, a free checking account offers enormous benefits.
Saving money
The obvious benefit is that you’ll save money with a free checking account.
Monthly fees for regular checking accounts can be between $5 and $15. That comes out to $60 and $180 a year. That’s money you can use for your own goals.
This is especially valuable for teenagers and college students. An extra $60 can significantly impact your personal finances, especially during a time when careful budgeting is crucial.
More peace of mind
Maintaining a regular checking account can take time and effort.
If your account has maintenance or monthly fees, you might worry constantly about whether you have the minimum required amount.
When you open a free checking account, you no longer need to worry. This reduces stress and frees your mind to think about other areas of your finances.
Building a healthy money-saving habit when you’re younger will set you up for financial success as you move on into the professional workforce and begin to make more money.
What to look for in a free checking account
If you’d like to open a free checking account, you’ll have a lot of choices. Here’s what to look for to ensure you get the best account.
Account insurance
Before you open an account, make sure your credit union is a member of the NCUA.
The NCUA protects the money in credit unions up to $250,000 per account type per financial institution.
No unnecessary fees
Some financial institutions' free checking accounts have higher fees than regular checking accounts that include maintenance or monthly fees.
Before you open the account, look at the fees the credit union charges. Try to avoid any free checking accounts with fees you can’t avoid, like:
- ATM fees
- Online bill pay fees
- Balance inquiry fees
A nearby physical branch
Having access to physical branches can be invaluable when you need face-to-face assistance or specific services.
When choosing a financial institution, consider the accessibility of their branch network. MIDFLORIDA, for instance, has over 60 locations throughout Florida, providing extensive coverage for our members.
Remember, convenience isn't just about proximity to your home. Consider branches near your workplace or other frequently visited locations. The goal is to have a branch that's easily accessible when you need it, fitting seamlessly into your daily routine.
Robust online banking platform and mobile app
Currently, over 75% of Americans do their banking online. This means any account you choose must have an online banking platform with features you can use.
Your online bank account should include the following features:
Electronic bill pay service
Instant transfers between internal and external accounts
- Mobile check deposit
- Loan payments
- View statements and tax forms
Perks
Finally, see what perks the free checking account offers.
Just as importantly, make sure you can actually use those perks.
For instance, the MIDFLORIDA Free Checking account has perks like:
- Free early paychecks
- Free account alerts
- Free Pay-a-Person
- Mobile wallet with Google Pay, Apple Pay, and Samsung Pay
- Link your MIDFLORIDA account to external accounts
Open a MIDFLORIDA Free Checking account today
When you open a free checking account, you get the benefits of a regular checking account, but you also keep more money in your pocket.
You’ll have even more peace of mind by not stressing about having enough money in your account to pay your fees.
If you want to experience the benefits of a free checking account, open a MIDFLORIDA Free Checking account today.
If you’re a new member, you can even get a $200 bonus with your new Free Checking account if you meet the terms and conditions.1
Let MIDFLORIDA help you with your financial goals today.
Further Reading Recommendations
- Offer valid as of September 1, 2024, and may be canceled at any time. MIDFLORIDA Credit Union membership and eligibility requirements apply. Paper statements are not routinely provided for Free Checking accounts. See associate for details regarding fees and terms. To qualify for the $200 incentive, you must open a new Free Checking account with direct deposit ($500 cumulative which must post within 60 days of account opening; cash transfer app deposits do not qualify); accept and open online banking, eStatement, and a debit card; and complete 5 debit card purchase transactions which must post in one calendar month (to be completed within the first 60 days of account opening). No dividends are paid on Free Checking. Annual Percentage Yield is 0.00%. Limit one incentive per Social Security number. Past checking account holders and previous recipients of checking account incentives are ineligible. The incentive will be deposited to new Free Checking account after the qualifications have been met, and will be reported to the IRS. Minimum to open Free Checking is $50.