Checking accounts provide debit cards, offer direct deposit, let you pay bills and pull cash out of ATMs. Overall, most checking accounts lack originality — especially across small banks and credit unions.
It begs the question: If all checking accounts offer similar features, why would someone choose a bank that makes you pay for one? While there are plenty of great free checking accounts, some premium accounts offer extra perks that may make up for the cost.
Free vs. premium bank accounts
Free and premium checking accounts have similar features, but the premium ones come with extra perks that can go a long way.
Free checking accounts
Free checking accounts are straightforward: You’ll get a debit card, maybe some checks, online bill pay, the ability to set up direct deposit with your employer and so on. Most free accounts lack that extra punch and things like cashback rewards, an APY on your balance or discounts on other banking products.
There are a few free standout checking accounts with great features. Often, online banks or fintechs offer the best free accounts and come with these perks:
- No opening deposits
- No monthly or overdraft fees
- Early paychecks
- Moderate cashback rewards
- Small APY on balance
Premium checking accounts
If you don’t mind paying a monthly fee, a premium checking account might be worth it. These accounts can come with features you'd normally see with credit cards, plus all the regular functions of the best free accounts. You may also get access to exclusive loyalty programs, account bonus offers or discounts on the bank’s other products and services.
The catch with premium accounts is you’ll likely need to pay a monthly maintenance fee and meet balance requirements to unlock the best features. But you may also find a premium account that offers monthly fee waivers by meeting certain requirements.
Perks common with premium checking accounts can include:
- Cashback rewards
- APY on balance
- Travel perks
- No foreign transaction fees
- Possible fee waivers for meeting requirements
- ATM reimbursements
- Relationship discounts on other products
- High transaction and withdrawal limits
- Overdraft protection services
- Free wire transfers or same-day ACH transfers
- Higher APYs on savings products with the same institution
Should I get a premium or free account?
It all comes down to personal preference and your spending habits.
Consider a premium checking account if …
- You’re a globetrotter. If you travel a lot, it might be worth getting a premium checking account with travel perks, like no foreign transaction or ATM fees, discounts on flights and a miles reward program.
- You’re a big spender. Premium checking accounts may offer cashback rewards on everyday purchases, like gas, grocery shopping, food delivery and subscription services.
- You want all your banking in one place. Premium accounts often have relationship programs with the bank, offering things like loan discounts, more rewards with credit cards, higher APYs on your linked savings accounts and more. Just be sure you don’t exceed the typical insured amount of $250,000 if you have multiple accounts with the same bank.
Consider a free checking account if …
- You only need access to your paychecks. If you just need a regular checking account for everyday spending, a free one will suit you just fine.
- You don’t spend a lot. Often, cashback rewards with premium accounts only start to pay for themselves if you’re a big spender. And premium accounts with APYs usually have balance requirements, which may not be worth it if you don’t carry a large daily balance.
- Monthly fees hurt your budget. Premium accounts cost anywhere from $25 to $100 per month, and for many, the extra perks simply aren’t worth the price.
- You need a secondary account. If you already have a primary checking account and need another for your kids, spouse or just to pay bills, then a scarcely-used, free account makes sense. Premium accounts are only worth the cost if you use them frequently.
Weigh the benefits and cost
“You get what you pay for” — that’s what they say, anyway. But with checking accounts being one of the most standard and straightforward bank accounts, it’s not really something you have to pay for if you don’t want to. You can find ones with plenty of perks if you take the time to shop around for the right account.
About the author:
Bethany Hickey Bethany Hickey is a personal finance writer at Finder, specializing in banking, lending, insurance and crypto. Bethany’s expertise in personal finance has garnered recognition from esteemed media outlets, such as Nasdaq, MSN, Yahoo Finance and AOL. Her articles offer practical financial strategies to Americans, empowering them to make decisions that meet their financial goals. Her past work includes articles on generational spending and saving habits, lending, budgeting and managing debt. Before joining Finder, she was a content manager, where she wrote hundreds of articles and news pieces on auto financing and credit repair for CarsDirect, Auto Credit Express and The Car Connection, among others. Bethany holds a BA in English from the University of Michigan-Flint and was poetry editor for the university’s Qua Literary and Fine Arts Magazine.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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