The competitive market of today extends well past the typical merchant’s need to vie for business, clients and loyalty. Banks are not exempt from this climate, which is good for the customer. It means that you’ve got more options than ever to choose from and that more banks are seeking ways to get and retain your business.
The types of bank accounts being offered is one prime example of the fact that banks are becoming more competitive. For example, many banks offer free checking accounts, online banking and overdraft protection. Whether you’re an individual with only minimum monthly transactions or a business with extensive need for banking services, you’ll find that there are banks ready to meet those needs.
Free checking accounts are among the most-touted benefits offered by banks in general. There are some things to look for to determine whether an account is truly “free.” For example, some of these accounts that are touted as free checking accounts require that a minimum monthly balance be met. If your account balance falls below that minimum, you’re charged a fee for the month. That fee is usually fairly small, but could make your expected balance differ from the actual balance showed by the bank.
Online banking is another service that is extremely important to some people. For example, those who travel extensively may need to have access to their banking accounts from remote locations. Online banks that offer online bill pay, e-mailed bank accounts and other e-services are very popular.
Overdraft accounts are used by many customers. Typically, these accounts work in one of two ways. Sometimes, the account is tied to another account (usually a checking account that’s tied to a savings account). When a check is written on the first account that would normally cause the check to bounce, money is automatically transferred from the second account to cover that amount. In other accounts, the account holder is allowed to write checks for a specific amount over the amount in the account at any given time – usually from $200 to $1,000. The customer is charged a fee for the overdraft privilege but the checks are paid instead of being returned to the person they were written to. This allows the account holder a bit of leeway in writing checks.
