Is Free Checking a Good Deal? - Video

The word "free" is always a good one to hear, but when discussing banking, words can be deceiving. Free checking can be an excellent way to bank, but only if it fits in with the rest of your financial priorities.

When the idea of a free checking account entered the banking world, it was revolutionary. What does free checking mean though? Is it just free from the traditional monthly checking account fees or is everything really free? It almost sounds too good to be true and most of the time it is. Free checking may be partly free or even mostly free, but do be aware there may be other fees hidden that can affect your banking experience.

Some banks boast of free checking, but there are obvious fees such as those assessed by using the accounts ATM card, for using the debit feature on your card, for printing checks, for using a bank teller and so on.

Almost every bank has some version of free checking where you pay no fees for simply having the account but the perks may vary according to the bank. I think free checking is always the way to go if it provides enough of what you need.

The accounts I'd definitely avoid are ones that charge for using your debit card and fees for not maintaining a minimum balance. Paying money to use your own money is a pain.

Free checking can definitely be a good deal if it includes what's important to you. If it doesn't, then why open the account up, even if it is free? On the other hand, if free checking fits you're your overall fiscal plans then it can be a great deal.