There are many reasons why people prefer banks with free checking and no minimum balance.
In this article, we will explore 10 of those reasons, and then go ahead to share drawbacks associated with opening an account with banks with free checking and no minimum balance, before finally sharing 20 banks with free checking and no minimum balance.
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10 Reasons People Prefer Banks with Free Checking and No Minimum Balance
People enjoy opening an account with banks with free checking and no minimum balance for the following reasons:
Minimal Banking Experience
Once you open an account that has no minimum balance, it automatically gives you a minimal banking experience.
You can simply place your focus on just organizing your finance, carrying out your transactions, and making use of the bank services available to you without you crosschecking your account to see if any fee has been deducted.
This is what most people enjoy when they bank with no minimum balance, they don’t stress over unnecessary fees for services they barely use.
Innovative Features
People are attracted to banks like this because they offer interesting features that entice them.
Banks are constantly trying to outdo each other and retain the most customers, so this makes them develop enticing customer service, innovative features, and added value to users of these accounts.
Low Income
People who do not earn so much feel included with this type of banking service.
While the regular banking method is not economically conducive to the low-income earner, banks with free checking and no minimum balance ensure these persons have access to banking services without any type of financial constraint.
This approach by banks has greatly contributed to economic growth for marginalized communities within USA, and the reduction of socioeconomic disparities.
Different Priorities
While some people’s dream is to own a business, others dream of buying a house, some want to gain higher education, and so on and so forth.
Banks with free checking and no minimum balance grants account holders the flexibility to organize their income to achieve their various dreams.
The account holders also do this without having to keep a certain minimum balance in their accounts.
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Easy For Gig and Freelance Workers
In the world today, a lot of people run a lot of gigs and carry out freelancing jobs, and a basic feature of this type of employment is irregular income as employment may not be steady.
During times when there is a shortage of income for freelancers, banks with free checking and no minimum balance allow them to still bank without worrying about having to maintain a minimum balance.
Easy for First Time Bankers
Young adults who are new to the world of banking find it easier and more conducive to start out with banks with free checking and no minimum balance.
They sort of provide a foundation for new and young bankers before they feel ready to move on to a more robust type of banking.
Transparency
This is probably the reason most people make use of banks with free checking and no minimum balance.
They do not face issues of hidden and absurd charges as people who use other types of banking services do.
They offer transparency that is enjoyed by their target market, which is essentially persons that do not have money to give away for services they barely use.
Increased Savings
People can save more with a free mind when they are not mandated to maintain a minimum balance.
This feeling of freedom and flexibility allows users to save more, knowing that at any point in time, they can use their entire money for any project that they have in mind.
Reduced Financial Stress
The absence of excessive charges and a minimum balance helps to eliminate the financial stress of users.
They do not panic over going low a certain amount, they enjoy the peace that comes with knowing they have complete access to all their funds.
This improves users’ emotional and mental well-being and fosters better relationships with their banks.
In conclusion, we can see that the motivation behind people opening accounts with banks with free checking and no minimum balance revolves around ease, transparency, easy accessibility, and flexibility.
Not everyone banks the usual way, and this option offers services to customers with unique needs.
These services promote inclusion by means of promoting fair business practices and financial barriers.
10 Drawbacks of Banks with Free Checking and No Minimum Balance
Even though it seems like banks with free checking and no minimum balance are so perfect that nothing could possibly go wrong, there are some drawbacks associated with banking this way.
Below are some of the drawbacks of banks with free checking and no minimum balance.
Lower Interest Earnings
These banks provide a low or no interest on your deposited funds. This might discourage you from opening an account with them because you will lose out on potential earnings that you would have gotten if you had a regular account with a minimum balance.
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Increase Services Fees
Although you are enjoying a free checking account, you may be charged higher for extra services like using out-of-network ATMs, overdrafts, wire transfers, etc.
This may make you feel like there’s no difference between this and a regular account.
Lesser Account Features
Having an account with free checking and no minimum balance means you will likely forgo lots of features that regular account users have.
These services may include personalized financial advice, discounted loans, free checks, etc. Meanwhile, these are premium services that customers with higher accounts enjoy.
Less Personalized Financial Services
There are so many people who utilize accounts with free checking and no minimum balance, this means you may forgo personalized services because these banks may not have sufficient resource/customer support for the multitudes of people using this service.
You may not get timely results when you lay a complaint with your bank, you may experience overcrowding at your local bank branch, and even experience slow speed on the bank’s mobile app.
Reduced Motivation to Save
People with higher accounts enjoy good interest rates, which motivates them to increase their savings.
However, there is no interest rate, waived fees, or exclusive reward programs for users of accounts with free checking and no minimum balance.
Users of free checking accounts miss out on these perks and may not have as much zeal to save as users of higher accounts.
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Social Stigma
People have more regard for users of higher accounts while they see people who use accounts with free checking and no minimum balance as broke people.
So, you might get tagged as a poor person if you make use of this account.
For those who do not care about how they are perceived financially, this will not be a problem for them.
Limited Access to ATMs
These banks do not have a large network of ATMs, this would require most users to make use of out-of-network machines which would incur more charges on your account.
To avoid these fees, careful planning needs to be employed.
20 Banks with Free Checking and No Minimum Balance
Below are 20 USA banks with free checking and no minimum balance. If you have weighed the pros and cons of using banks with free checking and no minimum balance, and it is still something you want, then feel free to open an account with any of these banks:
Bank of America: Their Advantage SafeBalance Banking account has no minimum balance and no minimum balance requirement.
U.S Bank: Their Easy checking account offers you a good enough range of digital banking tools and no minimum balance requirement.
Chase Bank: This bank has a large network of ATM machines and allows users to create a total checking account that has no monthly fees when these persons meet the requirements.
Current: This is a mobile bank app that offers zero overdraft fees, 15 times the average interest, and no minimum balance on its premium checking account.
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Empower: This is a free mobile banking app that offers its customers a checking account that has no minimum balance requirement.
Betterment: This offers its customers a cash management account that has no minimum balance requirement, competitive APY, and no monthly charges.
Schwab Money: This bank provides its customers with a high-yield investor checking account that has an unlimited ATM fee reimbursement and no minimum balance.
SoFi Money: This bank offers its customers a hybrid checking and savings account that has high-interest rates, no minimum balance, and no monthly charges.
Simple: This is an online banking platform that offers customers an easy-to-use app for customers to navigate while operating their checking accounts.
FNBO Direct: This bank’s online checking does not charge monthly fees, and it is a no-minimum balance account.
NBKC Bank: This bank not only offers a checking account with no minimum balance, but they also provide up to 12-dollar ATM fee reimbursement every month.
Other Banks With Free Checking and No Minimum Balance Are:
- Radius Bank
- Huntington Bank
- CIT Bank
- Varo Bank
- Discover Bank
- Axos Bank
- Capital One 360
- Chime
- Ally Bank
