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  • Jan 27, 2023

Understanding Different Types of Checking Accounts

Checking accounts are essential to managing money more effectively. You must understand the different types of checking accounts before opening one!

A checking account is the first step in the right direction of financial freedom and responsibility. Every individual has their own financial needs. The checking account you choose should reflect your demands. Read on to gain a better understanding of the different types of checking accounts you can choose from.

Standard Checking Account

The most fundamental account you can open is a standard checking account. With this account, you can link it to a debit card, write checks, and withdraw cash from ATMs.

Some banks may charge a monthly maintenance fee, while other banks and credit unions will waive the fee if you meet certain requirements. Opening a standard checking account will require a minimum deposit. All banks and credit unions offer different perks for opening these accounts, but the standard checking account is a baseline resource that’s ideal for people just starting.

Student Checking Account

People of all ages open checking accounts at different times in their lives. A student checking account is a convenient option if you’re between the ages of 16 to 23. Many student checking accounts provide zero maintenance fees, ATM fee reimbursements, overdraft forgiveness, and sign-up bonuses.

This type of account is a great way to start managing your money the right way. It allows you to become more financially responsible as you navigate the adult world.

Interest-Bearing Checking Account

Savings accounts develop interest and reward you for keeping a certain amount of money in your account. Interest-bearing checking accounts act in a similar way!

Every month, you’ll receive an interest payment based on your account’s balance. Every bank functions differently and offers various interest rates, whether it’s a fixed rate or one based on the balance. It’s an ideal account for those who maintain a large checking account balance throughout the year.

At GFA Federal Credit Union, you can earn interest through our Preferred Choice Checking Account. You’ll earn monthly interest without needing a minimum monthly balance alongside several other features. Over time, you will gain rewards for spending money responsibly.

Second-Chance Checking Account

Bad things happen in life. Sometimes, all you need is a second chance to do things right the second time around. A second-chance checking account is designed to help individuals who have had checking overdrafts or account closures open a new checking account.

You must apply for a second-chance checking account. When people have endured challenging financial situations, many banks won’t approve them for another checking account. That’s where second-chance checking accounts come in handy.

It’s a great resource when you’re getting back on your feet. After a year or so of good banking, you may become eligible for a standard checking account!

GFA has a variety of credit union checking accounts that will support your needs. After learning about the different types of checking accounts, you can make the best decision for your financial obligations.

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