Types of checking accounts: How to choose the best for you

By Carina Boucher

To keep your money safe, under the mattress isn't going to cut it these days. A checking account gives you easy access to your cash through either a digital wallet, a debit card or paper checks.

Whether you're opening your first account ever or looking to switch, understanding the types of checking accounts can help you find the best one for you. This comparison of checking accounts walks you through your options.

What are the different types of checking accounts?

A checking account is a staple for managing money. It simplifies and organizes your regular transactions — bills, groceries, paychecks and more. You can use a debit card or digital wallet to access the account for your everyday needs. It's also the perfect place to get your paycheck direct deposited.

But not all checking accounts are the same. Consider these types of checking accounts before you decide where to put your money.

Standard checking

• What is it? A standard or traditional checking account lets you write checks, use an ATM for cash withdrawals, pay bills and make purchases with a debit card. You can also make deposits into the account. Standard checking accounts typically don't earn interest and may have a monthly service fee.
• Who should consider it? People who want a secure but accessible place to put their money.

Premium checking

• What is it? Premium checking accounts typically have higher minimum balance requirements, often at least $10,000. In some cases, the balance minimum can be from a combination of multiple accounts at the same bank. In exchange for the high balance, the bank may waive a maintenance fee, pay interest or offer discounts on other bank services.
• Who should consider it? People who have a lot of cash reserves and want to avoid paying monthly fees.

Teen checking

• What is it? Teen checking accounts are made for younger people who are learning how to manage money. They may have fewer fees than standard checking accounts. Some have age requirements.
• Who should consider it? Young people opening their first bank account or parents who are hoping to start teaching their teens about money management.

Interest-bearing checking

• What is it? Most checking accounts don't earn interest, but there are some exceptions, usually for higher balances. An interest-bearing checking account pays interest, often based on how much money is in the account. Typically, the higher the balance, the higher the interest rate.
• Who should consider it? People who keep a decent amount of money in their checking account and want to see some return.

Opportunity checking

• What is it? In the U.S., 6% of households are unbanked, which means they don't have a bank account. Opportunity checking accounts or "second chance" accounts give people who currently don't have a bank account a fresh start. They typically charge a monthly fee and often have more limitations than a standard checking account.
• Who should consider it? People who have either never had a bank account or who previously have had trouble with their personal finances or bank accounts.

Other types of checking accounts

• Business checking: Made for small business owners and major corporations alike, a business checking account allows companies to buy products and pay employees.
• Joint checking: A joint checking account is shared by two people. Each person has equal access to the money in the account.
• Multicurrency checking: A multicurrency checking account lets you hold funds in several currencies, such as U.S. dollars or euros. It's ideal if you travel a lot.
• Online-only checking: Online-only checking accounts often have fewer fees and higher interest rates than standard checking accounts since the bank doesn't have to pay for brick-and-mortar locations.
• Group-specific checking: Like teen checking, some checking accounts are designed for people in specific groups, such as older adults or veterans.

You've opened your checking account, now what? Learn how to make the most of your checking account, including how to avoid overdraft fees and protect yourself from fraud.

Questions to help you choose a checking account

Your checking account should make your life easier and help you feel ready for whatever comes your way. When picking a checking account, ask yourself a few questions.

What do you get with the checking account?

Does the checking account come with a debit card and give you the option of connecting to your preferred digital wallet? Can you direct deposit your paycheck into the checking account?

How do you access the checking account?

Can you access your checking account information with online banking or do you have to visit the bank in person?

Where are there ATMs or branches?

Is there a branch close to your home? Does the bank have a lot of ATMs?

Can you access your money when away from home?

If you travel, either out of state or out of the country, will you pay a fee to use an out-of-network ATM? Does the bank allow you to withdraw money at foreign ATMs?

How much do you have to keep in the checking account?

Look at the minimum balance requirements. Is that an amount you're comfortable leaving in the checking account as a cushion?

How much does the checking account cost?

What fees are connected to the checking account? Review regular maintenance fees and fees for special situations, such as overdraft fees or ATM fees.

What kind of fees do checking accounts have?

Checking accounts may have fees. Pay attention to the requirements to waive or reverse fees because you could already meet those. For example, maybe you could avoid monthly maintenance fees by maintaining a certain balance, or you could waive certain fees by setting up direct deposit.

Make sure you understand the fee structure because it could mean the difference between saving a lot of money and spending unnecessary dollars.

Bonus: Consider opening a savings account too

Personal savings accounts are designed to hold funds for a longer period of time. They often earn interest and may have some transaction restrictions. When you're saving for short-term financial goals, a savings account may be a good choice since the funds are easily accessible.

Plus, when you open a savings account at the same time as a checking account, you may be eligible for sign-on savings account bonuses or offers. What a way to kick-start your savings goals!

Be ready for your goals

When you're ready to open a checking account, we're ready to help you. Whether it's an interest-bearing checking account that helps you earn money on your balance or a Citizens EverValue Checking™ account with no overdraft fee, no minimum balance and no runaround, we've got you covered. Learn about all of our checking account options and how we're ready to help you reach your money goals.

Discover a better banking experience — open a Citizens checking account today.