Compare Chequing Accounts (2024)

FAQs

How do you compare checking accounts? ›

Whether you're looking to get better interest rates, better customer service, or simply a change of pace, switching banks is a great option.

Really, there's no hard and fast rule about how many checking accounts any one person should have. The number and type of accounts that works for you will depend on many factors, including your financial goals, spending habits, and comfort level with monitoring and managing multiple accounts.

Chase checking accounts are generally a solid bet if you have easy access to their ATMs and can avoid the monthly fees. If you're not in the Chase branch network, can't avoid the monthly fees or are looking to earn interest on your checking, check out NerdWallet's best credit unions and top online banks.

Traditional Checking Account

A traditional checking account is the most common bank account you'll encounter. It provides basic functionality for everyday banking needs. With a traditional checking account, you typically have access to services including check writing, a debit card and online banking.

A common rule of thumb for how much to keep in checking is one to two months' worth of expenses. If your monthly expenses are $4,000, for instance, you'd want to keep $8,000 in checking. Keeping one to two months' of expenses in checking can help you to stay ahead of monthly bills.

The ideal number of bank accounts depends on your financial habits and needs. You might be happy with just two accounts – checking and savings – or you may want multiple accounts to separate business and personal expenses, share a bank account with a partner or maintain separate accounts for various financial goals.

2 Drawbacks of switching banks

Switching banks can also affect your credit score, as opening and closing accounts can lower your average account age and reduce your credit history.

Is it OK to keep all your money in a checking account? ›

Not necessarily. Money in a checking account is easy to access, and keeping balances above the bare minimum can help you avoid monthly maintenance fees. But having a bloated checking account means you're missing out on higher returns in a savings or retirement account.

Switching banks can be a bit of a pain, though it may not actually take that long. Many online bank accounts let you open an account from home whenever it's convenient for you. All you need is some personal information and possibly an initial deposit.

Anything over that amount would exceed the FDIC coverage limits. So if you keep more than $250,000 in cash at a single bank, then you run the risk of losing some of those funds if your bank fails.

The act of closing a bank account, such as a checking or savings account, does not directly affect your credit score. Your credit score is not directly affected by your checking and savings account activity. That includes account closures.

There's no set number of bank accounts you should have. The number of bank accounts that are right for you depends on your personal financial situation and goals. You may have too many bank accounts if you cannot manage them all or you're no longer contributing to them all.

when comparing checking accounts, interest earned on the account is the most important factor.

The four basic types are checking account, savings account, certificate of deposit and money market account. Each kind of account serves a different purpose. For instance, a checking account is geared toward covering everyday expenses, while a savings account is designed to help achieve short-term financial goals.

If you can keep track of your transactions and account balances, it's perfectly safe to have three checking accounts. Spreading your funds around can help with budgeting, maintaining FDIC coverage, and leveraging different banking services.