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Opening a checking account is one of the first experiences people have with a bank. People realize early on that they need a safe place to keep their money, and a secure way to spend it. The alternative is collecting piles of cash, which cannot be traced if you are robbed, cannot be used for online transactions, and should not be put in the mail. Bank accounts have come a long way from the basic account your parents had, which might have included a checkbook and bank access during business hours. Now, even as some banks are offering less for more, others are working hard to offer services matching the habits of their customers. A few years ago, major American banks faced customer backlash when they announced that they would begin charging a monthly fee for debit card use. The plans were withdrawn after an intense reaction from customers, who grew tired of being nickel and dimed by their banks. In some ways, a new type of checking account offered by banks meets halfway with customers who want most of their services online with minimal costs. The checkless checking account is the latest trend in the banking industry. Some banks have found that as many as 40% of their customers do not use paper checks, ever, and the majority of check-users write as few as one or two checks per month. Checkless accounts are the response to customers who want free or low-cost checking, online access, and do not want to handle paper or overdraft fees. Typically, customers get a pre-paid debit card, and their account is FDIC-insured. They can use their checking account to pay bills. Some banks even offer mobile check deposits to checkless account customers, usually for free or a small fee per deposit. The checkless account is a good option for people who would not otherwise qualify for a checking account due to bad credit, or cannot afford high monthly fees or meet minimum balance requirements. Because customers receive a pre-paid debit card, they cannot overdraw on the account. Banks even have something to offer to customers bewildered by technology. Free accounts with no monthly fees and no minimum balance requirement are now the norm for a bank to compete for customers, as is free access to online account information and free account transfers. Many banks also offer accounts that pay quarterly interest. Another attractive feature of the new basic account is a type of overdraft protection called bounce protection, which is a service that gives the bank the option to pay the overdraft. Finally, rewards accounts are another simple incentive available to low-tech customers. Points are earned when a purchase is made, and can be redeemed for travel, products, or cash. Some banks have adopted rewards programs as fundraisers for charities for schools. As customers continue to demand banking services that match their habits at a reasonable price, banks will be forced to modify their services to remain relevant. Look for even more options as the security tied to mobile banking options improves. When in need of a checking account, Saginaw residents rely on Wildfire Credit Union. Learn more at https://www.wildfirecu.org/.
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