Different Types of Checking Accounts

 When it comes to managing your finances, having a checking account is an essential step in monitoring your money. If you’re on the hunt for a checking account, you may be overwhelmed by the wide variety of options. It’s helpful to know the different types of checking accounts available so you can narrow down your options.

Woman doing online banking on laptop and mobile device after learning the different types of checking accounts

1. Regular checking account

A regular checking account allows account holders to easily manage their day-to-day finances. You can deposit and withdraw money, pay bills, and make purchases with a debit card, person-to-person payment app, or checks. Some financial institutions offer overdraft protection, which can help to avoid expensive fees if you accidentally spend more than what you have in your account.

2. Premium checking account

This type of checking account tends to come with more features and perks. These benefits may include a higher interest rate on deposits, credit or ID monitoring, free checks, and access to exclusive perks like shopping rewards or discounts on other financial services. In addition to a monthly fee, you may need to maintain a minimum balance or have a monthly direct deposit to qualify for a premium checking account. It is important to compare the benefits of the account to make sure they outweigh the costs.

3. Second chance checking account

If you previously have negative records on your credit or have overdrawn your account, financial institutions offer a second chance checking account.

This type of checking account generally has higher fees and fewer features than regular checking accounts, but this is an opportunity to fix your credit and financial standing so you can apply for a different checking account in the future.

4. Business checking account

A business checking account helps business owners pay their bills, receive payments from customers, and manage their business cash flow. This type of checking account typically has higher monthly fees and has its own perks that cater to the needs of a business versus an individual.

Bottom line

A checking account is one of the most essential and used banking products. If you decide to open a checking account, it’s important to compare their interest rate and features to ensure you’re getting the most out of your checking account. At CCCU, we offer checking accounts that fit your lifestyle. Visit www.CCCULV.org to learn more about our checking accounts or call us at 702-228-2228.