It’s hard to find anything free these days, especially if you want quality. When you need a free checking account, however, there are many places where you can get great service at no charge. Consider opening a free checking account at a local credit union or community bank and enjoy even more customer-friendly perks.
How Can Credit Unions and Community Banks Offer Free Checking?
- Credit unions are non-profits, where every depositor is considered a member and part owner. Since the CU is not looking to profit, it offers perks like lower checking fees and loan rates, along with higher interest payments (dividends) on deposits. Credit union members also have voting rights on operational issues, such as board of director selection and more. This credit union member ownership mindset makes customer friendly products (like free checking) more likely to be available. Free checking makes sense, for the credit union and for you.
- Community banks often offer free checking, just for slightly different reasons. These smaller banks focus on community building in the local area, and free checking accounts can be part of that philosophy. Like credit unions, community banks offer additional customer-friendly services like lower fees for services, and typically better rates for savings, credit cards and loans. In short, offering free credit union checking, or free community bank checking, is perfectly in line with each institution’s business model and mission. Free checking accounts also help banks and credit unions bring in customers, helping them compete with big, household-name banks.
Compare Offers: Understand the Rules for Your Free Checking Account
Keep in mind that you'll find free checking in most, but not every, community bank or credit union. Also, remember that there will be conditions or rules for your chosen free checking account. For instance, you may be asked to maintain a minimum balance or agree to use the ATM for most banking services. Be sure to compare your local financial institutions’ offers. This way, you’re sure to find the right free checking account for your needs. Let Bundlefi help you locate community banks and credit unions.