How to choose a checking account

Key takeaways:

• Consider how you currently manage your finances in order to decide if you have the right checking account for your personal financial management.
• Determine what benefits you want your checking account to offer and what your end-goal is.  
• Work with your banker to help find the checking account that best fits your needs.

As you start your family and begin being responsible for others, it’s likely time to figure out if you have the checking account that meets your life’s changing needs.

With a variety of options, choosing which checking account is right for you doesn’t have to be stressful. Read on for a few tips on how to find the account that empowers you to run your finances efficiently.

• Consider your personal situation: As nearly every banker at MidWestOne would tell you, figuring out the account that’s right for you depends on your personal financial situation. Do you have a budget? Are you buying your first home? There are many factors that bankers consider when recommending the best account. The number of deposits you make each month, how often you use your debit card, and how you manage your finances are some factors to consider so you ensure your needs are aligned with the features of your checking account.
• Compare online: Comparing account features is instrumental in determining what account is best for you. Thankfully, there are online tools, such as this one, that make this very simple. For example, if you use your debit card at least 15 times each month, receive electronic statements, and make at least one direct deposit per month, you should consider Power Checking. If you meet the requirements, domestic ATM fees will be refunded up to $15, including fees for not using MidWestOne machines. Plus, you can earn interest; see the rates here.
• Understand the fees: Each checking account has a different variety of benefits and requirements. It’s important you educate yourself about these fees so you fully understand when you will be charged. In many cases, if you don’t meet an account’s requirements, you’ll be charged a fee. For example, if you’re not interested in using a debit card and you just want cash, then Free Checking may be the best option for you. This is also a great account to use if it’s important to you to avoid fees because the only fee is $1.00 per withdrawal at ATMs not owned by MidWestOne.
• Think about your usage: How do you currently like to manage your finances? If you already have your mortgage with MidWestOne and you have other accounts there, you may want to consider Relationship Checking. It all comes down to how you manage your finances including your other accounts.
• Save now: As you start to think through which checking account is best for your current situation, you should also think about how you’re saving as the two can often work together. For example, the Power Savings account works hand-in-hand with the Power Checking account. You could also consider utilizing Bank Your Change, which rounds purchases you make on your debit card up to the nearest dollar and deposits the remainder in your savings account. For example, if you purchase lunch for $9.22, that purchase will be rounded up to $10.00, and the remaining 78 cents will be deposited in your savings account. You can also teach your kids the value of saving with a ClubOne account.  

By considering how you operate your finances most efficiently and what your ideal account would entail, you can select the checking account that fits your needs. If you have questions about opening a checking account, visit your local MidWestOne branch.

MidWestOne Bank does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.