Advertiser Disclosure » Banking » Checking Accounts » What Are The Types Of Checking Accounts That Are Right For You?

What Are The Types Of Checking Accounts That Are Right For You?

Written by Banks Editorial Team

Updated October 2, 2023​

2 min. read​

There are many different types of checking accounts out there, each with their own benefits and drawbacks. If you’re looking to open a new checking account, you might be unsure of which kind of account to open. If you’re shopping around for a new checking account, consider what you want out of it. Do you want to save money safely? Do you want to earn a little interest? Do you want to avoid the stress of entering a brick-and-mortar bank? Your intentions determine which account would benefit you the most.

Loading... Loading...

Types of Checking Accounts

Here are some of the advantages and disadvantages of the main types of checking accounts, and which one you should choose depending on your own personal banking needs and goals.

1. To Save, Open a Credit Union Checking Account

If you begrudging pay your monthly bank fees, a checking account from a credit union could be the answer. The majority of credit unions out there offer different types of checking accounts without maintenance fees. You might have to pay for out-of-network transactions and overdraft fees, but generally, it’s a little cheaper. Many credit unions are members of national ATM networks. This makes it possible to avoid surcharge fees. You can also avoid other costs by doing certain things, like opening another account or keeping a certain balance.

Disadvantages: You need to find and join a suitable credit union. Customer service may be too informal, depending on your preferences. Their mobile apps may be less sophisticated than that of banks.

2. To Earn Interest, Open an Interest Checking Account.

These accounts are hybrids between savings and checking accounts. The key advantage is big: your funds are easy to access and you earn a bit of interest.

To qualify to earn interest you need to make between 10 – 15 debit card transactions per month. You’ll also need a bank balance below a set cap to qualify for the advertised APY. All America Bank offers a 1.50% APY on their Mega Money Market checking account. Other banks offer anything between 0.2% to a staggering 5% APY.

Disadvantages: Only a hand-full of interest checking accounts are available nationwide. If you use a credit card often, you may find it difficult to meet the debit transaction requirements. Also, depending on your income you may find it easy to hit the cap.

3. To Avoid Queues, Switch to an Online Checking Account

If you tend to bank online and haven’t set foot in an actual bank for months, an online account is perfect for you. Online banks offer greater interest rates and lower fees than traditional banks. By saving on typical overheads, online banks can offer consumers these great benefits.

Reputable online banks have near perfect online security and are also federally insured. And their mobile apps and websites are some of the best out there.

Disadvantages: Traditionally easy-to- solve concerns can take longer to resolve online. Some banks may need you to post documents to them when opening an account which may prolong the process. Similarly, you may have to wait to receive money that is deposited via mailed checks. Additionally, there is no bank to visit if the website experiences problems.

How To Choose Among the Types of Checking Accounts

The right account for you is one that best suits your needs. Understanding the benefits and drawbacks of the types of accounts offered will help you effectively weigh up your options. By doing a little bit of homework, you can find yourself a checking account that makes managing your finances just a bit easier.

Advertisement Disclosure

Product name, logo, brands, and other trademarks featured or referred to within are the property of their respective trademark holders. This site may be compensated through third party advertisers. The offers that may appear on’s website are from companies from which may receive compensation. This compensation may influence the selection, appearance, and order of appearance of the offers listed on the website. However, this compensation also facilitates the provision by of certain services to you at no charge. The website does not include all financial services companies or all of their available product and service offerings.