In today’s fast-paced world, it’s crucial to understand the variety of financial services available to you, including cashier’s checks. This guide will explore the ins and outs of obtaining a cashier’s check at Walmart and help you navigate your financial options with ease.
What is a cashier’s check?
A cashier’s check is a guaranteed form of payment issued by a bank or credit union. It’s a popular option for large transactions, such as purchasing a car or making a down payment on a home, due to its security, trustworthiness, and speed. When you request a cashier’s check, the financial institution withdraws the funds from your bank account and guarantees payment to the recipient, making it a safer option than personal checks.
Financial Services Offered by Walmart
Walmart offers a wide range of financial services through its MoneyCenter to help customers manage their finances conveniently. Some of the services available include:
Walmart Check Cashing Services
Walmart cashes various types of checks, such as payroll, government, tax refund, insurance settlement, and retirement disbursement checks, for a fee. This service is available at the customer service desk or at the Walmart MoneyCenter.
Money Orders
Walmart sells MoneyGram money orders, which can be used as an alternative to cashier’s checks for smaller transactions. You can get a money order at the customer service desk or at the Walmart MoneyCenter.
Bill Pay Services
Walmart’s bill pay services allow customers to pay their bills directly from the store. This service is available at the customer service desk and can be a convenient way to manage your finances without visiting your bank or credit union.
Prepaid Debit Cards
Walmart offers various prepaid debit card options that can be loaded with cash and used for purchases, bill payments, or to withdraw cash from ATMs.
Walmart Credit Card
The Walmart Credit Card allows customers to earn rewards for purchases made at Walmart and other participating retailers. Cardholders can also take advantage of special financing options and other benefits.
Tax Preparation Services
During tax season, Walmart partners with tax preparation service providers to offer convenient tax filing options for customers. These services are available at select Walmart locations.
Money Transfers
Walmart MoneyCenter allows customers to send money domestically and internationally through MoneyGram and other money transfer services. This service provides a convenient way to transfer money to friends and family, pay bills, or cover other financial needs.
Can I get a cashier’s check at Walmart?
Unfortunately, Walmart does not issue cashier’s checks. However, they do offer a range of alternatives, such as money orders and bill pay services.
Customers can purchase MoneyGram money orders as a substitute for cashier’s checks when dealing with smaller transactions. These money orders can be obtained at the customer service counter or the Walmart MoneyCenter.
Walmart’s in-store bill payment services may be another option to consider. This service enables customers to settle their bills directly, and offers a hassle-free method to handle your finances without the need for a bank account.
Can I cash a cashier’s check at Walmart?
Yes, you can cash a cashier’s check at Walmart. As part of their check cashing services, Walmart accepts various types of checks, including cashier’s checks, at the customer service desk or Walmart MoneyCenter.
Keep in mind that fees will apply, and the maximum amount you can cash may be subject to limitations. Make sure to bring a valid, government-issued photo ID to verify your identity and complete the transaction.
See also: Where Can I Cash a Cashier’s Check?
Where can I get a cashier’s check?
Although cashier’s checks aren’t available at Walmart, there are several places you can get one:
Traditional Banks and Credit Unions
Most brick-and-mortar banks and credit unions offer cashier’s check services to their customers. To get a cashier’s check from a financial institution, you’ll need to have a bank account with that institution. Simply visit your bank or credit union in person to request a cashier’s check.
Online Banks
Many online banks also provide cashier’s check services. These banks often have lower fees and more convenient processes, as you can request a cashier’s check through their website or mobile app without visiting a physical branch. The cashier’s check will then be mailed to you or the recipient.
Non-Bank Financial Service Providers
Some non-bank financial service providers, such as check-cashing stores or money service businesses, may offer cashier’s checks. However, these establishments typically charge higher fees for their services than traditional banks or credit unions. Be sure to research the legitimacy of these providers before obtaining a cashier’s check from them.
Specialized Apps or Financial Technology (Fintech) Companies
Certain Fintech companies or mobile banking apps may provide cashier’s check services to their users. These services might be convenient and accessible through their platform, but availability may vary, and fees might apply. As with non-bank financial service providers, always verify the legitimacy of the FinTech company or app before requesting a cashier’s check.
See also: How to Get a Cashier’s Check
Comparing Cashier’s Checks, Money Orders, and Personal Checks
Each form of payment has its advantages and disadvantages, so it’s essential to understand when to use each type.
Cashier’s Checks
Cashier’s checks are ideal for large transactions, as they provide a higher level of security and trustworthiness. The funds are guaranteed by the financial institution, making it difficult for the recipient to dispute the payment.
Money Orders
Money orders are suitable for smaller transactions and can be purchased at various locations, including Walmart, convenience stores, grocery stores, gas stations, and the postal service. Money orders are less expensive than cashier’s checks but have lower maximum limits.
Personal Checks
Personal checks are a convenient way to pay bills and make everyday purchases. However, they lack the security of cashier’s checks and money orders, as they can bounce if there are insufficient funds in your account.
Fees and Costs Associated with Cashier’s Checks
Fees for cashier’s checks vary depending on the financial institution. Traditional banks and credit unions often charge a fee for issuing a cashier’s check, while online banks may offer them for free or a lower fee. Walmart charges a maximum fee for money orders, which is generally less than the cost of a cashier’s check.
Conclusion
Although you cannot obtain a cashier’s check at Walmart, there are still many financial services available, including Walmart check cashing services, money orders, and bill pay. By understanding your financial options, you can make informed decisions about how to manage your money, whether that’s through a bank, credit union, or retail store like Walmart.
For further information about cashier’s checks, money orders, and other financial transactions, consult with your financial institution or explore additional resources available online.
A personal loan is money borrowed from a lender that can be used for nearly any purpose. These reasons include paying off debt, financing a large purchase such as a vehicle or a boat, or covering the cost of a major expense like a wedding or a home renovation.
Loans can be obtained from online lenders, local banks and credit unions and the funds are provided in a lump sum. Once you receive the cash, you must make payments until the debt has been fully repaid.
One of the biggest benefits of personal loans versus credit cards is that they come with a fixed interest rate and repayment terms.
What is a personal loan?
A personal loan is money you borrow from a bank or other financial institution with a set repayment period and consistent monthly payments. Most personal loans are unsecured, so you won’t have to put down collateral to borrow the money.
Loan amounts vary widely, from around $1,000 to $50,000 or more, and interest rates currently range from about 6 percent to 36 percent. Borrowers typically get between one and seven years to repay the money.
How a personal loan works
If you’re looking to get a personal loan, you’ll have to complete an application and wait for approval — a process that may take anywhere from a few hours to several days. Once you’re approved, the lender will disburse money into your bank account, and you use the funds for your intended purpose. You will also start to repay the money right away. Throughout the loan term, your lender will likely report your account activity to the credit bureaus. Making on-time payments can help you build a positive credit history.
Here’s an explanation of all the moving parts that make personal loans what they are.
Interest rates: Personal loans charge borrowers a fixed APR, or annual percentage rate, on top of the principal loan amount. This APR can vary depending on creditworthiness, income and other factors. The personal loan interest rate determines how much interest borrowers pay over the life of the loan.
Monthly payment: Personal loans come with a fixed monthly payment that you’ll make for the life of the loan, calculated by adding up the principal and the interest. You can typically secure a lower monthly payment if you agree to pay off your loan over a longer stretch of time.
Repayment terms: Repayment timelines vary for personal loans, but consumers are often able to choose repayment terms between one and seven years. However, some lenders may offer terms of up to 12 years on larger personal loans.
Origination fees: Some personal loans charge an initial origination fee on top of the original amount of your loan. While origination fees vary, it’s common to see origination fees as high as 10 percent of your loan amount.
How rates are determined
Personal loans may come with a fixed rate, in which the APR stays constant over the life of the loan, or a variable rate, which can fluctuate over time. The APR includes the personal loan’s interest rate in addition to the lender’s fees for servicing the loan.
Lenders sometimes base variable rates on a well-known index rate, such as the prime rate. The prime rate is the interest rate at which banks and other financial institutions lend to one another.
Variable interest rates can be capped so they won’t rise above a certain amount — even if the index rate increases. However, most personal loans come with fixed APRs, which means that your monthly payments will be predictable.
Your APR is determined based on several factors, the most important being your credit score. If you have a good credit score, you may qualify for a lender’s lowest rates — the best rates typically go to people with credit scores above 700. Some of the additional factors that may impact the APR you’re offered include:
Annual income: Lenders like to see a steady and reliable income source that can be used to make monthly payments. This can also result in a more favorable APR.
Payment history: Those with a solid history of making on-time payments typically qualify for lower rates.
Debt-to-income ratio: Your debt-to-income ratio is the amount of your monthly debt payments divided by your gross monthly income. This number is an important part of your financial profile and overall attractiveness to a lender, as it helps gauge your ability to make loan payments.
Types of personal loans
While most personal loans work similarly, there are differences among loan products and lenders. Here are the main types of personal loans you should be aware of.
Unsecured personal loans: Most personal loans are unsecured, meaning you don’t have to put down any collateral to qualify. With an unsecured personal loan, you’ll receive a lump sum of cash, then repay your loan with fixed monthly payments over a fixed repayment timeline.
Secured personal loans: Secured personal loans require you to put down collateral to qualify. Instead of putting down cash as collateral, you may be able to use other assets, such as a home, a boat or a car. The lender may be able to seize those assets if you fall behind on payments.
Credit-builder loans: Credit-builder loans don’t extend you a line of credit. Instead, they are deposited into a savings account, and you make payments on your balance for the duration of the loan. Lenders report your payments to the credit bureaus, and at the end of the loan, you receive your payment in full, minus loan fees.
Specialized lenders: Some service-oriented companies offer personal loans to their customers as a means of helping them afford their products or services. You might, for example, be offered financing by a home improvement store when you buy an appliance. These loans are typically convenient but don’t always offer the best rates and terms.
Common uses of personal loans
One big benefit of personal loans is that you can use your loan proceeds however you want. This makes personal loans incredibly diverse and flexible. Here are some of the most common applications.
Debt consolidation
Debt consolidation loans are unsecured personal loans offered to consumers who need to consolidate high-interest credit card debt or debt from other loans. These loans tend to come with lower interest rates that can help consumers save money on interest or secure a lower monthly payment.
Financing big events
Consumers with a pricey event like a wedding, a honeymoon or a vacation often take out personal loans to fill the gaps in their budget. Once the event is over, they get the benefit of repaying their loan with fixed monthly payments and a fixed interest rate over time.
Investing in yourself
It’s common to take out personal loans for educational purchases, such as pursuing a workplace certification or attending a career-boosting seminar. That said, many lenders prohibit the use of personal loans to cover college tuition fees, which is something to keep in mind.
Besides investing in your education, you can also get a personal loan to pay for procedures that improve your self-image, such as dental implants or cosmetic surgery.
Home improvement projects
While home equity loans and home equity lines of credit (HELOCs) are popular with consumers who want to take on remodeling projects, these home improvement loans require you to put up your home as collateral. For this reason, many consumers turn to unsecured personal loans instead of home equity products.
With an unsecured personal loan, you can borrow the money you need for a project without putting your home on the line.
Pay for emergency expenses
Personal loans also work well for emergencies, such as surprise medical bills, an urgent roof replacement or even funeral expenses. Since some personal loans let consumers apply online and receive funding within a few business days, they can provide exceptional peace of mind and financial support when an emergency strikes.
How to get a personal loan
If you’re ready to apply for a personal loan, take these steps first:
Pull your credit: A higher credit score will improve your chances of getting approved for a personal loan with the best rates and terms. If your credit score is on the lower end, dispute any errors on your credit reports and take steps to improve your credit score before applying.
Pay down debt if you can: A lower debt-to-income ratio can also help you qualify for a loan with good terms. If yours is high — around 45 percent or more — then paying off some of your debts or increasing your income will help.
Get quotes from multiple lenders: Once your finances are in order, get loan quotes from several lenders. Compare APRs, loan amounts, loan terms and lender reputation. Some lenders offer prequalification, which allows you to estimate your loan terms without hurting your credit.
Submit documents to your lender: When you decide on a lender, you’ll need to formally apply for the loan and submit various financial information. This could include bank statements or pay stubs. If you don’t have a job, be prepared to show how you plan to make payments.
Receive the money: If your loan application is approved, the lender should send you the funds within a few business days. You can then use the money for your intended purpose. Setting up payment reminders can help you avoid late fees and bruises to your credit.
Common mistakes when using a personal loan
Here are some common mistakes people make when taking out a personal loan — and how you can avoid them:
Borrowing more than you can afford: If you take out a personal loan and fall behind on payments, it will cost you in the long run. You may have to pay a late fee, and your credit score may drop. Before taking on debt, use a personal loan repayment calculator to help budget.
Getting stuck with high costs: Gathering quotes from multiple lenders can help you spot the best deal and potentially save you interest. Compare interest rates, fees and lender reputation before applying for the loan.
Ignoring the loan costs: Even if you’re aware of the interest and fees baked into your loan, you might not think about how much you’re paying. For example, you can borrow $10,000 but depending on interest and fees the loan could end up costing well over $12,000. Use a calculator to see just how much your loan will cost.
Alternatives to personal loans
A personal loan may not be the best choice for everyone. Depending on your financial circumstances and how you plan to use the money, it may make more sense to investigate other lending options, including:
Credit card
As a revolving line of credit, using a credit card allows you to repeatedly borrow funds as needed. However, credit cards have some downsides, including variable interest rates, annual fees and late fees.
A credit card is also not a good choice for major expenses, especially because you could accrue substantial interest if you don’t pay the balance in full at the end of each billing cycle.
Cash-out refinance
The proceeds from a cash-out refinance can be used for nearly any purpose, including home remodeling, consolidating high-interest debt or any other financial need. A cash-out refinance replaces your existing home loan with a bigger mortgage and you receive the difference between the two mortgages in a lump sum payment.
This option can often be a less expensive way to access cash because refinance rates are typically lower than personal loans. Just be careful not to borrow more than you need.
Home equity line of credit (HELOC)
A HELOC allows you to borrow only what you need when you need it. This approach to borrowing can be better for people who need access to cash on an ongoing basis. HELOCs often have interest rates that are lower than personal loans.
Home equity loan
A home equity loan is a second mortgage that provides you with a lump sum of money. This type of loan allows you to borrow against the equity in your home, usually at a lower interest rate than other types of loans.
Next steps
If you need to borrow money and prefer the stability of a fixed repayment schedule and fixed monthly payment, a personal loan could be exactly what you need. To get the best loan rates and terms, take steps to become an attractive borrower by improving your credit score and keeping other debts at a minimum.
It’s also important to shop around and compare personal loan rates with multiple lenders in the personal loan space, including companies that offer online loans.
Frequently asked questions
There’s no one best way to borrow money, the best type of loan depends on your financial situation and what your goals are. Personal loans are great for short- to medium-term borrowing at rates that are lower than credit card rates for purposes like debt consolidation, emergencies, or home improvement. However, you typically can’t use one to pay for business expenses, college tuition or the down payment of a house.
Almost anyone can apply for a personal loan, but there’s no guarantee that you’ll get approved. While they can be easier to qualify for than many loans, you’ll still need to have reasonably good credit and a source of income to pay the loan back. If you have collateral to offer, secured personal loans are usually easier to qualify for.
Personal loans usually have lower interest rates than credit cards, making them a better option if you’re planning to borrow money for a midsize to large expense. Credit cards, on the other hand, have the benefit of letting you draw money as you go — something you can’t do with a personal loan.That said, if you’re not careful with your spending, the buy now, pay later approach of a credit card could send you down a cycle of debt, impacting your credit. In the end, the best credit product for you will depend on your money habits and what you need the funds for.
A new home may be one of the biggest purchases you’ll make in your life. Before you begin shopping for the right home to buy, you’ll need to explore mortgage options if you’re planning to finance the purchase.
Not all home loans are the same, though. So, doing your research before moving forward can help you select the most suitable option for your financial situation and possibly keep more money in your pocket. Plus, you’ll know what to expect, in terms of guidelines, when you apply.
Types of mortgages
Conventional loan – Best for borrowers with a good credit score
Jumbo loan – Best for borrowers with excellent credit looking to buy an expensive home
Government-insured loan – Best for borrowers who have lower credit scores and minimal cash for a down payment
Fixed-rate mortgage – Best for borrowers who’d prefer a predictable, set monthly payment for the duration of the loan
Adjustable-rate mortgage – Best for borrowers who aren’t planning to stay in the home for an extended period, would prefer lower payments in the short-term and are comfortable with possibly having to pay more in the future
1. Conventional loan
Conventional loans, which are not backed by the federal government, come in two forms: conforming and non-conforming.
Conforming loans – As the name implies, a conforming loan “conforms” to the set of standards put in place by the Federal Housing Finance Agency (FHFA), which includes credit, debt and loan size. For 2023, the conforming loan limits are $726,200 in most areas and $1,089,300 in high-cost areas.
Non-conforming loans – These loans do not meet FHFA standards. Instead, they cater to borrowers looking to purchase more-expensive homes or individuals with unusual credit profiles
Pros of conventional loans
Can be used for a primary home, second home or investment property
Overall borrowing costs tend to be lower than other types of mortgages, even if interest rates are slightly higher
Can ask your lender to cancel private mortgage insurance (PMI) once you’ve reached 20 percent equity, or refinance to remove it
Can pay as little as 3 percent down on loans backed by Fannie Mae or Freddie Mac
Sellers can contribute to closing costs
Cons of conventional loans
Minimum FICO score of 620 or higher is often required (the same applies for refinancing)
Higher down payment than some government loans
Must have a debt-to-income (DTI) ratio of no more than 43 percent (50 percent in some instances)
Likely need to pay PMI if your down payment is less than 20 percent of the sales price
Significant documentation required to verify income, assets, down payment and employment
Who are conventional loans best for?
If you have a strong credit score and can afford to make a sizable down payment, a conventional mortgage is probably your best pick. The 30-year, fixed-rate conventional mortgage is the most popular choice for homebuyers.
2. Jumbo loan
Jumbo mortgages are home loan products that fall outside FHFA borrowing limits. Jumbo loans are more common in higher-cost areas such as Los Angeles, San Francisco, New York City and the state of Hawaii, where home prices are often on the higher end.
Pros of jumbo loans
Cons of jumbo loans
Down payment of at least 10 percent to 20 percent required in many cases
A FICO score of 700 or higher usually required
Cannot have a DTI ratio above 45 percent
Must show you have significant assets in cash or savings accounts
Usually require more in-depth documentation to qualify
Who are jumbo loans best for?
If you’re looking to finance a home with a selling price exceeding the latest conforming loan limits a jumbo loan is likely your best route.
3. Government-insured loan
The U.S. government isn’t a mortgage lender, but it does play a role in making homeownership accessible to more Americans. Three government agencies back mortgages: the Federal Housing Administration (FHA), the U.S. Department of Agriculture (USDA) and the U.S. Department of Veterans Affairs (VA).
FHA loans – Backed by the FHA, these home loans come with competitive interest rates, and help make homeownership possible for borrowers without a large down payment or pristine credit. You’ll need a minimum FICO score of 580 to get the FHA maximum of 96.5 percent financing with a 3.5 percent down payment. However, a score as low as 500 is allowed if you put at least 10 percent down. FHA loans require two mortgage insurance premiums, which can increase the overall cost of your mortgage. Lastly, with an FHA loan, the home seller is allowed to contribute to closing costs.
USDA loans – USDA loans help moderate- to low-income borrowers who meet certain income limits buy homes in rural, USDA-eligible areas. Some USDA loans do not require a down payment for eligible borrowers. There are extra fees, though, including an upfront fee of 1 percent of the loan amount (which can typically be financed with the loan) and an annual fee.
VA loans – VA loans provide flexible, low-interest mortgages for members of the U.S. military (active duty and veterans) and their families. There’s no minimum down payment, mortgage insurance or credit score requirement, and closing costs are generally capped and may be paid by the seller. VA loans charge a funding fee, a percentage of the loan amount, which can be paid upfront at closing or rolled into the cost of the loan along with other closing costs.
Pros of government-insured loans
Cons of government-insured loans
Mandatory mortgage insurance premiums on FHA loans that cannot be canceled unless refinancing into a conventional mortgage
Loan limits on FHA loans are lower than conventional mortgages in most areas, limiting potential inventory to choose from
Borrower must live in the property (although you may be able to finance a multi-unit building and rent out other units)
Could have higher overall borrowing costs
Expect to provide more documentation, depending on the loan type, to prove eligibility
Who are government-insured loans best for?
Are you having trouble qualifying for a conventional loan due to a lower credit score or minimal cash reserves for a down payment? FHA-backed and USDA-backed loans could be a viable option. For military service members, veterans and eligible spouses, VA-backed loans are often better than a conventional loan.
4. Fixed-rate mortgage
Fixed-rate mortgages maintain the same interest rate over the life of your loan, which means your monthly mortgage payment always stays the same. Fixed loans typically come in terms of 15 years or 30 years, although some lenders allow borrowers to pick any term between eight and 30 years.
Pros of fixed-rate mortgages
Monthly principal and interest payments stay the same throughout the life of the loan
Easier to budget housing expenses from month to month
Cons of fixed-rate mortgages
If interest rates fall, you’ll have to refinance to get that lower rate
Interest rates typically higher than rates on adjustable-rate mortgages (ARMs)
Who are fixed-rate mortgages best for?
If you are planning to stay in your home for at least five to seven years, and want to avoid the potential for changes to your monthly payments, a fixed-rate mortgage is right for you.
5. Adjustable-rate mortgage (ARM)
Unlike the stability of fixed-rate loans, adjustable-rate mortgages (ARMs) have interest rates that fluctuate with market conditions. Many ARM products have a fixed interest rate for a few years before the loan changes to a variable interest rate for the remainder of the term. For example, you might see a 7-year/6-month ARM, which means that your rate will remain the same for the first seven years and will adjust every six months after that initial period. If you consider an ARM, it’s essential to read the fine print to know how much your rate can increase and how much you could wind up paying after the introductory period expires.
Pros of ARMs
Lower fixed rate in the first few years of homeownership (although this isn’t a guarantee; as of late, 30-year fixed rates have actually been similar to those for 5/6 ARMs)
Can save a substantial amount of money on interest payments
Cons of ARMs
Monthly mortgage payments could become unaffordable, resulting in a loan default
Home values may fall in a few years, making it harder to refinance or sell before the loan resets
Who are adjustable-rate mortgages best for?
If you don’t plan to stay in your home beyond a few years, an ARM could help you save on interest payments. However, it’s important to be comfortable with a certain level of risk that your payments might increase if you’re still in the home.
Other types of home loans
In addition to these common kinds of mortgages, there are other types you may find when shopping around for a loan:
Construction loans
If you want to build a home, a construction loan can be a good choice. You can decide whether to get a separate construction loan for the project and a separate mortgage to pay it off. A construction-to-permanent loan, which merges construction costs and financing into a single loan product, is also an option.Both options typically require a higher down payment and proof that you can afford the monthly payments.
Interest-only mortgages
With an interest-only mortgage, the borrower makes interest-only payments for a set period – usually between five and seven years- followed by payments for both principal and interest You won’t build equity as quickly with an interest-only mortgage, though, since you’re initially only paying interest for a set period. Still, these loans are best for those who know they can sell or refinance, or for those who can reasonably expect to afford the higher monthly payment later.
Piggyback loans
A piggyback loan, also referred to as an 80/10/10 loan, actually involves two loans: one for 80 percent of the home price and another for 10 percent. You’ll make a down payment for the remaining 10 percent.These loan products are designed to help the borrower avoid paying for mortgage insurance. While eliminating those PMI payments might sound appealing, keep in mind that piggyback loans require two sets of closing costs, and you’ll also accrue interest on two loans. Crunch the numbers to find out if you’re really saving enough money to justify this unconventional arrangement.
Balloon mortgages
Another type of home loan you might come across is a balloon mortgage, which requires a large payment at the end of the loan term. Generally, you’ll make payments based on a 30-year term, but only for a short time, such as seven years. When the loan term ends, you’ll make a large payment on the outstanding balance, which can be unmanageable if you’re not prepared or your credit situation deteriorates. You can use Bankrate’s balloon mortgage calculator to see if this kind of loan makes sense for you.
Next steps to getting your mortgage
Now that you have an idea of the right kind of loan for your home purchase, it’s time to find the right mortgage lender to make it happen. Every lender is different, and it’s important to comparison shop to find the best terms that fit your finances. From the brick-and-mortar bank and credit unions in your neighborhood to online-only mortgage companies, there is a wide range of options to choose from. Read Bankrate’s lender reviews of some of the leading names in mortgages, and follow this guide to find the best lender.
Check out these resources for more information about types of mortgages and available lenders:
Choosing the right checking account can be a daunting task, especially with the variety of options available. The type of checking account you choose can significantly impact your ability to manage your finances, pay bills, and save for the future. This article aims to help you understand the different types of checking accounts and guide you in selecting the best one for your needs.
10 Types of Checking Accounts
Here are 10 different types of checking accounts, each tailored to meet different needs and tastes.
1. Traditional Checking Account
A traditional checking account is a basic bank account that allows you to deposit and withdraw funds, write checks, and access your money through ATMs. These accounts are simple to use and are ideal for individuals who require a standard checking account for everyday transactions.
Pros:
Easy to open and use
Widely available at most financial institutions
Typically offers free or low-cost access to ATMs
Cons:
May charge monthly maintenance fees
Low or no interest on account balance
Limited features compared to other types of checking accounts
Best suited for: Individuals seeking a basic checking account for everyday transactions
2. Premium Checking Account
Premium checking accounts offer a variety of enhanced features and benefits, such as higher interest rates, lower fees, and access to exclusive services. These accounts are designed for customers who maintain higher account balances and require additional perks.
Pros:
Enhanced features and benefits
Lower fees or waived fees for certain services
May offer higher interest rates than traditional checking accounts
Cons:
Requires a higher minimum balance to avoid monthly maintenance fees
May not be available at all financial institutions
Not ideal for individuals with low account balances
Best suited for: Customers with high account balances seeking additional perks and services
3. Interest-Bearing Checking Account
Interest-bearing checking accounts allow you to earn interest on your account balance, similar to a savings account or money market account. These accounts are sometimes referred to as high-yield checking accounts. They typically require a higher minimum balance to avoid monthly fees, but they can be a practical option for those looking to grow their money while still having easy access to funds.
Pros:
Earn interest on account balance
Retain easy access to funds for everyday transactions
May offer additional benefits, such as lower fees
Cons:
Higher minimum balance requirement
Interest rates may be lower than savings accounts or money market accounts
May charge a monthly maintenance fee if minimum balance is not met
Best suited for: Customers looking to earn interest on their checking account balance
4. Rewards Checking Account
Rewards checking accounts offer cashback or rewards for everyday transactions, such as using your debit card for purchases or setting up direct deposits. These accounts can help you earn extra money for your spending habits while still providing standard checking account features.
Pros:
Earn rewards or cashback for everyday transactions
Competitive interest rates
May have additional perks and benefits
Cons:
May require a higher minimum balance to avoid fees
May have more restrictions than a standard checking account
Rewards may be subject to limitations or expiration dates
Best suited for: Customers seeking rewards or cashback for their everyday transactions
5. Senior Checking Account
Senior checking accounts cater to individuals aged 50 or 60+, depending on the financial institution, offering age-specific benefits and discounts. These accounts may have lower fees, higher interest rates, and special perks tailored to the needs of seniors.
Pros:
Age-specific benefits and discounts
Lower fees or waived fees for certain services
May offer higher interest rates than traditional checking accounts
Cons:
Limited availability to individuals within a specific age range
May have fewer features than premium checking accounts
Not ideal for individuals outside the eligible age range
Best suited for: Individuals aged 50 or 60+ seeking age-specific benefits and discounts
6. Student Checking Account
Student checking accounts are specifically designed for college and university students, offering low or no fees and minimal account requirements. These accounts often provide free access to online and mobile banking, making it easy for students to manage their finances while at school.
Pros:
Low or no monthly maintenance fee
Minimal account requirements
Access to online and mobile banking
Cons:
May have lower interest rates
Limited features and benefits
Account may convert to a regular checking account after graduation
Best suited for: College and university students looking for low-fee or no-fee accounts with minimal requirements
7. Business Checking Account
Business checking accounts are designed for small business owners and entrepreneurs, offering specialized account services, such as payroll management and invoicing. These accounts typically have higher transaction limits and may offer additional perks tailored to the needs of a business.
Pros:
Specialized account services for businesses
Higher transaction limits
May offer additional perks and benefits tailored to business needs
Cons:
May have higher monthly fees than personal checking accounts
May require a higher minimum balance to avoid fees
Not suitable for personal use
Best suited for: Small business owners and entrepreneurs needing specialized account services
8. Checkless Checking
Checkless checking accounts cater to individuals who prefer online and mobile banking and rarely write checks. These accounts typically offer low or no fees, as well as a debit card, and access to digital tools for managing transactions, such as bill pay and mobile check deposit.
Pros:
Ideal for those who rely on online and mobile banking
Low or no monthly fees
Digital tools for managing transactions
Cons:
Not suitable for individuals who frequently write checks
May have fewer features than other checking accounts
Limited access to paper checks
Best suited for: Individuals who prefer online and mobile banking and rarely write checks
9. Private Bank Checking
Private bank checking accounts are designed for high-net-worth individuals requiring personalized banking services and tailored solutions. These accounts often provide access to dedicated financial advisors, higher transaction limits, and exclusive investment opportunities.
Pros:
Personalized banking services and tailored solutions
Access to dedicated financial advisors
Higher transaction limits and exclusive investment opportunities
Cons:
High minimum balance requirements
Limited availability to high-net-worth individuals
May have higher fees than regular checking accounts
Best suited for: High-net-worth individuals requiring personalized banking services and tailored solutions
10. Second-Chance Checking
Second-chance checking accounts are designed for individuals with a history of banking issues, such as overdrafts or bounced checks, looking to rebuild their financial reputation. These accounts may have higher fees or additional restrictions but can help individuals establish a positive banking history over time.
Pros:
Opportunity to rebuild financial reputation
Access to standard checking account features
Easier to open than other regular checking accounts
Cons:
Higher fees or additional restrictions
May require completion of a financial education course
May have fewer features than other checking accounts
Best suited for: Individuals with a history of banking issues looking to rebuild their financial reputation
How to Choose the Right Checking Account
Selecting the right checking account is crucial for managing your finances effectively. It’s important to consider your financial goals, banking habits, and preferences when evaluating checking accounts. Here’s a comprehensive guide to help you make an informed decision:
Identify your needs and preferences: Start by determining what features are most important to you, such as low fees, high interest rates, ATM access, online banking, or specific account perks. Consider your banking habits, such as how often you use ATMs, write checks, or make transactions, to help you find the right fit.
Review account types: Familiarize yourself with the different types of checking accounts above and assess the pros and cons of each account type to determine which suits your needs best.
Compare financial institutions: Investigate various banks and credit unions to compare their checking account offerings. Research the reputation, customer service, and convenience factors of each institution. Don’t forget to consider online banks, which may offer competitive rates and low fees.
Evaluate fees and charges: Carefully examine each account’s fee structure, including monthly maintenance fees, ATM fees, overdraft fees, and any other charges. Some accounts waive fees if you maintain a certain minimum balance, set up direct deposit, or meet other requirements.
Consider interest rates and rewards: If earning interest on your account balance or receiving rewards for everyday transactions is important to you, compare the interest rates, annual percentage yields (APY), and rewards programs of various accounts. Keep in mind that higher interest rates or rewards may come with additional requirements or fees.
Assess accessibility and convenience: Consider how easy it is to access your account and perform transactions, such as depositing checks, withdrawing cash, or making payments. Look for accounts with extensive ATM networks, user-friendly mobile apps, and convenient branch locations, if applicable.
Evaluate overdraft protection options: Understand the different types of overdraft protection available, such as linking your checking account to a savings account or a line of credit. Compare the costs and benefits of each option to find the best solution for managing your account.
Read the fine print: Before opening a new checking account, carefully review the terms and conditions, including any limitations or requirements that may impact your banking experience. Ensure you’re aware of any potential fees, restrictions, or changes to the account’s features over time.
Bottom Line
Understanding the different types of checking accounts can help you choose the right one for your needs. When selecting a checking account, consider your financial goals, banking habits, and preferences.
Research and compare options from various financial institutions to find the best checking account for you. By choosing the right checking account, you can better manage your finances and work towards a secure financial future.
Saving money is a crucial aspect of personal finance. Understanding the different types of savings accounts and selecting the right one for your needs can help you grow your money and achieve your financial goals.
In this article, we’ll explore various types of savings accounts, including traditional savings accounts, money market accounts, certificates of deposit (CDs), high-yield savings accounts, cash-management accounts, and specialty savings accounts.
6 Types of Savings Accounts
Here are the six primary types of savings accounts, each designed to meet varying financial needs and goals.
1. Traditional Savings Accounts
Traditional savings accounts are a popular choice for those looking to start saving money. They are typically offered by traditional banks and credit unions and are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA).
Key Features
Low minimum deposit requirements
Limited transactions per month
Modest interest rates
Pros and Cons
Traditional savings accounts are easy to open and maintain, making them an ideal choice for beginners. They offer a secure place to store your money, with the backing of federal deposit insurance. However, the interest rates on these accounts are typically lower than other types of savings accounts.
Ideal for: Emergency Funds and Short-Term Savings Goals
A traditional savings account is a great place to start building your emergency fund or saving for short-term goals, such as a down payment on a car or a vacation. They provide a safe place to store your money while earning modest interest.
See also: Best savings accounts for 2023
2. High-Yield Savings Accounts
High-yield savings accounts offer higher interest rates than traditional savings accounts, making them an attractive option for savers looking to maximize their interest earnings.
Key Features
Higher interest rates than traditional savings accounts
Online and mobile access
Minimal fees
Pros and Cons
High-yield savings accounts offer competitive interest rates, often higher than those found at traditional banks. They typically come with low or no monthly fees and provide easy online and mobile access. However, these accounts may have limited branch locations, making it difficult for some users to visit a physical location.
Ideal for: Maximizing Interest Earnings While Maintaining Liquidity
A high-yield savings account is an excellent choice for those looking to earn a higher return on their savings while still maintaining easy access to their funds.
See also: Best high-yield savings accounts for 2023
3. Money Market Accounts
Money market accounts are a type of savings account that typically offer higher interest rates than traditional savings accounts. They are offered by banks, credit unions, and non-bank financial institutions.
Key Features
Higher interest rates compared to traditional savings accounts
Limited check-writing and debit card privileges
Minimum balance requirements
Pros and Cons
Money market accounts offer higher interest rates than traditional savings accounts, making them an attractive option for those looking to earn more on their savings. They also provide some liquidity with limited check-writing and debit card access. However, these accounts typically require a higher minimum balance to maintain, and there may be monthly fees if the balance falls below a certain threshold.
Ideal for: Those Seeking Higher Returns with Some Liquidity
If you’re looking for a savings account that offers higher interest rates than a traditional savings account, but still provides some access to your money, a money market account may be the right choice for you.
See also: Best money market accounts for 2023
4. Certificates of Deposit (CDs)
Certificates of deposit (CDs) are time-based deposit accounts that offer fixed interest rates for a specified term. They are offered by banks, credit unions, and other financial institutions.
Key Features
Fixed interest rates for a specified term
Early withdrawal penalties
Various term lengths
Pros and Cons
CDs offer higher interest rates than traditional savings accounts and money market accounts. They are a low-risk investment option, making them ideal for long-term savings goals. However, CDs require you to lock your money away for a set period, and early withdrawal penalties may apply if you need to access your funds before the term ends.
Ideal for: Low-Risk Investments and Long-Term Savings Goals
If you have a long-term savings goal or are looking for a low-risk investment, a CD may be the right choice for you.
5. Cash-Management Accounts
Cash-management accounts are a hybrid of checking and savings accounts, offering the benefits of both types of accounts in one convenient package.
Key Features
High-interest rates
No minimum balance requirements
Flexible access to funds, including check-writing and debit card privileges
Pros and Cons
Cash-management accounts offer high-interest rates and the flexibility of a checking account, making them an appealing option for those who want the best of both worlds. However, these accounts are typically offered by online banks and non-bank financial institutions, so access to brick-and-mortar branches may be limited.
Ideal for: Those Seeking Flexibility, Convenience, and High Returns
A cash-management account is perfect for individuals who want a high-interest savings account combined with the convenience of a checking account.
6. Specialty Savings Accounts
Specialty savings accounts are tailored to help individuals save for specific financial goals. These accounts often come with unique features, benefits, and tax advantages. Let’s take a closer look at three common types of specialty savings accounts.
Health Savings Accounts (HSAs)
Health Savings Accounts (HSAs) are designed to help individuals save for qualified medical expenses on a tax-advantaged basis. They are available to those who are enrolled in a high deductible health plan (HDHP).
Key Features
Tax-deductible contributions
Tax-free withdrawals for qualified medical expenses
Funds can be invested, and investment earnings are tax-free
Unused funds roll over from year to year
Pros and Cons
HSAs offer significant tax advantages, allowing you to save and invest money for healthcare expenses without paying taxes on contributions, earnings, or withdrawals for qualified expenses. However, HSAs are only available to those enrolled in an HDHP, and there are annual contribution limits. Additionally, using HSA funds for non-qualified expenses can result in taxes and penalties.
Ideal for: Saving for Healthcare Expenses with Tax Advantages
If you have a high deductible health plan and want to save for future medical expenses while enjoying tax benefits, an HSA may be the right choice for you.
Education Savings Accounts (ESAs)
Education Savings Accounts (ESAs) are designed to help families save for education expenses, such as tuition, books, and other related costs. The two main types of ESAs are the Coverdell Education Savings Account and the 529 Savings Plan.
Key Features
Tax-free withdrawals for qualified education expenses
Wide range of investment options
Contribution limits and eligibility requirements may apply
Pros and Cons
ESAs offer tax advantages, allowing you to grow your savings tax-free and make withdrawals for qualified education expenses without paying taxes. However, there are contribution limits, and eligibility requirements may apply. Additionally, using ESA funds for non-qualified expenses can result in taxes and penalties.
Ideal for: Saving for Education Expenses with Tax Advantages
If you’re planning to save for future education costs, such as college tuition or private K-12 schooling, an ESA may be the right choice for you.
Individual Development Accounts (IDAs)
Individual Development Accounts (IDAs) are designed to help low-income individuals save for specific financial goals, such as purchasing a home, starting a business, or paying for higher education.
Key Features
Matching funds provided by non-profit organizations or government agencies
Financial education and counseling services
Eligibility requirements based on income and other factors
Pros and Cons
IDAs offer the unique benefit of matching funds, which can significantly boost your savings. They also provide financial education and counseling services to help you achieve your financial goals. However, IDAs have strict eligibility requirements based on income, and there may be restrictions on how the funds can be used.
Ideal for: Low-Income Individuals Saving for Specific Financial Goals with Matching Funds
If you meet the eligibility requirements and have a specific financial goal in mind, an IDA can be a valuable tool to help you save and achieve your objectives with the support of matching funds and financial education services.
How to Choose the Right Savings Account for You
Selecting the right savings account is an important step in achieving your financial goals. To make the best decision, consider the following factors and follow these steps to guide you through the process:
Step 1: Assess Your Financial Goals and Priorities
Before choosing a savings account, it’s crucial to understand your financial objectives. Consider your short-term and long-term goals, such as:
Building an emergency fund
Saving for a down payment on a house or car
Planning for retirement
Funding a child’s education
Saving for a vacation or other significant purchase
Understanding your goals will help you determine the type of savings account that best aligns with your priorities and financial timeline.
Step 2: Compare Interest Rates, Fees, and Account Features
Once you’ve identified your financial goals, start comparing interest rates, fees, and account features across different savings account options. Factors to consider include:
Annual percentage yield (APY): The APY represents the interest rate you’ll earn on your savings over a year, taking into account compounding. A higher APY will result in greater interest earnings.
Fees: Be aware of any monthly maintenance fees, ATM withdrawal fees, excess transaction fees, or other charges that may apply to the account. Look for accounts with low or no fees to maximize your savings.
Account features: Evaluate the account’s accessibility, such as online and mobile banking capabilities, branch locations, and customer service. Consider any unique features or benefits, such as rewards programs or cash-back offers.
See also: Best 5% Interest Savings Accounts of 2023
Step 3: Consider the Accessibility and Customer Service of the Financial Institution
When choosing a savings account, it’s essential to evaluate the financial institution’s accessibility and customer service. Factors to consider include:
Branch locations and hours: If you prefer in-person banking, opt for a financial institution with convenient branch locations and hours.
Online and mobile banking: Ensure the financial institution offers robust online and mobile banking services, allowing you to manage your account, transfer funds, and check your balance with ease.
Customer service: Assess the quality of customer service, including responsiveness, availability, and knowledge of the institution’s representatives.
Step 4: Diversify Your Savings Strategy to Take Advantage of Different Account Types
Diversifying your savings strategy by utilizing different types of savings accounts can help you maximize your interest earnings, meet various financial goals, and manage risks. Consider opening multiple accounts, such as:
A high-yield savings account for your emergency fund or long-term savings goals
A money market account for short-term goals or to maintain liquidity
A certificate of deposit (CD) for low-risk, long-term investments
Specialty savings accounts, such as a Health Savings Account (HSA) or an Education Savings Account (ESA), to save for specific financial goals with tax advantages
Bottom Line
Understanding the various types of savings accounts can help you make an informed decision about where to store your money and how to grow your savings. By choosing the right account for your needs, you can maximize your interest earnings, maintain liquidity, and achieve your financial goals. Start saving and growing your money today!
When Minnesota resident Sherry Shannon was short on cash after her car broke down in 2013, she turned to a storefront payday lender for a $140 loan. She remembers the process as quick and easy — she signed on the dotted line, got the cash and was out the door within minutes.
But when it came time to repay, the combination of her monthly bills, plus the triple-digit interest rate on her payday loan, meant she was short on cash again, so she took out another loan.
As the amount she owed ballooned, Shannon says she soon felt trapped by her debt.
“I experienced homelessness once, and I didn’t want to be homeless again, so I had to keep taking [payday loans] out just to pay my rent and my light bill,” she says. “I didn’t see any way out of this.”
Shannon’s story doesn’t stand alone. Payday lenders operate in 32 states, and about 12 million Americans use payday loans each year, according to research from the Pew Charitable Trusts. Though these loans may be advertised as a way to cover a one-time emergency cash shortage, borrowers often use them for important recurring expenses such as rent and utilities, and the cost can be exorbitant.
If you’re trying to get out of payday debt, there are ways to break the cycle, especially if you know where to turn in your community.
How payday loans work
Payday loans are short-term, small-dollar loans typically capped at $500. They’re considered high-interest because of their fee structure.
A typical two-week $100 payday loan comes with $15 in fees — which equates to an annual percentage rate of 391% — according to the Consumer Financial Protection Bureau. For context, financial experts consider 36% the maximum APR a loan can have to be affordable.
Because payday loans are relatively easy to get, they can also feel like a surefire solution to an urgent financial problem, says Anne Leland Clark, executive director of Exodus Lending, a nonprofit based in St. Paul, Minnesota, that helps families break out of predatory loan debt. But when people can’t repay, their financial situation becomes more precarious.
“Payday loans may provide immediate relief in a financial crisis or a financial trauma, but then it almost retraumatizes you,” Clark says. “It causes more stress, and people fall into a cycle where they aren’t able to catch up.”
The payday loan debt cycle
A debt cycle is when repeat borrowing leads to an ever-increasing debt that may demand even more borrowing to manage it.
According to 2014 research from the CFPB, four out of every five payday loans are reborrowed after the initial two-week term. The CFPB’s research also shows that most borrowers end up owing more in fees than the original loan amount.
That was the case with Shannon. Though her initial loan was $140, she eventually paid $500 in fees while making little progress in paying down her principal loan amount.
The quick turnaround time on payday loans is part of why they’re so hard to repay, says Clark. Chances are, if you’re short on cash when you borrow, you’ll still be short on cash two weeks later when you have to repay the loan in one lump sum plus the interest you owe.
If borrowers can’t repay, they may be able to renew the loan depending on their state. However, renewals require an additional fee, making it that much harder to catch up when the loan comes due again.
“Even when people feel like they’re making progress, they’re not actually paying down their loans,” says Yasmin Farahi, deputy director of state policy and senior policy counsel at the Center for Responsible Lending in Durham, North Carolina. “That’s how the cycle continues. They’re paying some amount, but it’s not enough to get them out from under this.”
Clark and Farahi emphasize that borrowers shouldn’t feel ashamed for being stuck in a payday loan debt cycle. Though consumer finance education can help, they say greater regulatory efforts are needed to address the issue truly.
“It’s important for consumers to understand that this is really a policy problem,” Farahi says. “It’s up to policymakers to ensure that we’re getting rid of these kinds of loan sharks, not up to consumers to learn how to swim with the sharks.”
Breaking free of payday loan debt
Shannon eventually found her way to Exodus, which offered her a zero-interest, 12-month loan to refinance her payday debt.
She’s now free of payday loans but wants others to know how easy it is to become trapped. Though Shannon admits it’s hard to do, she says the key is reaching out for help before the loan gets out of control.
If you’re struggling with payday loans, consumer advocates strongly recommend exploring the options below to help you pay off the debt.
Research organizations in your area that offer financial assistance
Your city or state should have organizations that provide financial assistance to community members in need. Look for nonprofits, charities and religious groups. Some organizations may specifically address payday debt, like Exodus does in Minnesota, while others may offer general financial assistance to help cover necessities, such as rent or groceries. Use the money you save on those expenses to pay off your payday debt.
Reach out to a nonprofit credit counseling agency
Credit counseling agencies specialize in helping people with their finances, including getting out of debt. Credit counselors can work with you to create a budget, manage your bills and explore your debt payment options, including a debt management plan. With a debt management plan, you pay the credit counseling organization, which then pays off your creditors and may charge you a fee.
Take out a small-dollar loan from a credit union or bank
More credit unions and banks are offering small-dollar loans. These loans could help you pay off payday debt and be left with a more affordable loan instead.
Your neighborhood credit union is a great place to start. Though you’ll need to become a member before applying for a loan, membership is easy and affordable at most credit unions. Some federal credit unions also offer small loans, including payday alternative loans or PALs. These loans can range from $200 to $1,000 and cap borrowing costs to keep the loan affordable. You’ll need to be a credit union member for one month before applying. However, some credit unions offer a second type of PAL that allows you to apply immediately and has higher loan amounts.
Banks are also increasing their small-dollar lending, though you’ll need an existing account in good standing to apply. Even if your account isn’t in good standing, it doesn’t hurt to call the bank, explain your situation and see if they’re willing to offer you a loan.
Borrow money from a family member or friend
If you’re unable to get help from an organization or financial institution, don’t be afraid to tap your network. It can be hard to ask a family member or friend for money. Still, you can make it more comfortable by writing down mutually agreed-upon loan terms — including when and how you’ll pay them back and if you’ll pay interest — so the expectations are clear.
Many people find themselves in financial trouble at one point or another, so remember that getting back on your feet means you may be able to help someone else in the future.
Illinois is home to Chicago, one of the most populous cities in the U.S. But whether you live in Chicago, Joliet, Carbondale, or one of the many small towns in Illinois, there’s a bank for you.
The state is home to a wide range of bank branches, from large, national banks to small lenders and credit unions. When you’re ready to shop banks in Illinois, there are several factors to consider.
10 Best Banks in Illinois
1. BMO Harris
Although BMO Harris is a regional bank, it’s headquartered in Chicago, so it has a heavy Illinois presence. The bank has been around since 1882 and has long been considered one of the best banks in Illinois.
In addition to branches in Illinois, Indiana, Arizona, Missouri, Minnesota, Kansas, Florida, and Wisconsin, BMO Harris also offers ATM access through the MoneyPass network. They have a checking account option with no monthly maintenance fees, as well as a robust mobile banking app to manage your account.
Fees:
No monthly service fee
$15 overdraft fee
Balance requirements:
$25 opening deposit
No minimum daily balance required
ATMs:
Fee-free at 40,000+ BMO Harris and MoneyPass ATMs nationwide
$3 fee for out-of-network transactions
Interest on balance:
0.01% APY on savings
Additional perks:
Spending habit analysis available in mobile app
Competitive loan rates
2. U.S. Bank
Illinois residents looking for a national bank should check out U.S. Bank. U.S. Bank has ATMs across Illinois and the rest of the country, and a full selection of savings accounts and checking accounts, as well as an online banking option.
Currently, one of U.S. Bank’s best deals is its Bank Smartly Checking account, which pays interest on your balance and currently offers a $300 sign-up bonus. What makes this one of the best checking accounts, though, is that if you enroll in Smart Rewards, you’ll earn rewards based on your account balance.
Fees:
$6.95 monthly fee (waived with qualifying direct deposits or minimum balance)
$36 overdraft fee (waived up to $50)
Balance requirements:
$25 minimum deposit to open
No minimum daily balance required
ATMs:
Fee-free at 4,700 ATMs nationwide
$2.50 transaction fee for each out-of-network ATM
Interest on balance:
Up to 0.05% APY on Bank Smartly checking
0.01% APY on savings
Additional perks:
Automatically move up interest tiers as your balance grows
Additional rewards for seniors, children, military, and veterans
3. Chime
Chime is another online bank that operates without local branches. You’ll have everything you need in the app, with online banking features like peer-to-peer payments and an ATM locator.
You can also sign up for a Chime High-Yield Savings Account and earn interest rates of 2.00% APY on your balance. With automatic savings features, money can be automatically moved from your checking account to savings to help you set money aside for the future.
Fees:
No monthly fees
No overdraft fees
Balance requirements:
No minimum deposit to open
No minimum daily balance required
ATMs:
Fee-free at 60,000+ ATMs nationwide
$2.50 transaction fee for out-of-network ATMs
Interest on balance:
2.00% APY on savings accounts
Additional perks:
Spot Me covers up to $200 in overdrafts
Round Ups feature automatically moves money into savings
4. Huntington Bank
Huntington Bank is a regional bank with branches in Illinois, Ohio, Colorado, Florida, Indiana, Kentucky, Michigan, Minnesota, Pennsylvania, West Virginia, and Wisconsin. There are multiple tiers of checking accounts, but if you’re looking for the basics, the Asterisk-Free Checking Account is fully free with no minimum balance requirement.
Before choosing this bank, check for branches and ATMs in your area. Cash withdrawals are only fee-free at Huntington-owned ATMs. But if you’re fine with relying on mobile banking apps for all of your banking services, you’ll likely find everything you need while traveling.
Fees:
No monthly service fee
$15 per-transaction overdraft fee after balance goes $50 in the negative
Balance requirements:
No minimum opening deposit
No minimum daily balance required
ATMs:
Fee-free at more than 1,600 Huntington Bank ATMs nationwide
$3.50 fee for each out-of-network transaction
Interest on balance:
Up to 0.06% APY on savings
Additional perks:
View current account balance without logging in
Standby Cash offers quick access to credit line
5. Chase
Those who prefer a national bank might like Chase Bank, which has branches throughout Illinois, as well as 47 other states (excluding Alaska and Hawaii). New customers can qualify for a $200 bonus by opening an account and setting up direct deposit within 90 days.
There are multiple checking account options, but Chase Total Checking is the most popular. There’s a $12 fee each month, but if you’re taking advantage of the bonus, direct deposit accounts waive the fee as long as at least $500 is coming in each month.
Fees:
$12 service fee per month (waived with $500 in qualifying deposits or $1,500 daily balance)
$34 per transaction (waived with Overdraft Assist)
Balance requirements:
No minimum deposit to open
No minimum daily balance required ($1,500 to waive $12 monthly fee)
ATMs:
Fee-free at more than 16,000 Chase Bank ATMs nationwide
$3-$5 fee for each out-of-network transaction
Interest on balance:
Up to 0.01% APY on savings
Additional perks:
$200 bonus for new checking account with direct deposit
Checking accounts available for children ages 6 to 17
6. CIT Bank
CIT Bank is an online-only bank that is geared toward helping you set money aside for the future. One notable product is the CIT Platinum Savings account, which offers 4.75 APY on balances of $5,000 or more if you deposit at least $100 monthly.
But CIT is great if you’re in the market for a checking account, too. With CIT eChecking, you get one of the rare interest checking accounts that comes with no monthly fees or minimum balance. Although there are no ATMs or branches, CIT does refund up to $30 a month for non-network ATMs.
Fees:
No monthly service fee
No overdraft fee
Balance requirements:
$100 minimum deposit to open
No minimum daily balance required
ATMs:
No CIT ATMs available
Up to $30 monthly in non-network ATM fees refunded
Interest on balance:
Up to 0.10% APY on checking
Up to 0.25% APY on checking with $25,000+ balance
Up to 4.75% APY on savings
Additional perks:
Up to 1.00% APY on savings with $100 monthly deposit
Up to 5.00% APY on CDs
7. Fifth Third Bank
Another regional bank with a heavy Illinois presence is Fifth Third Bank out of Ohio. You’ll find branches in Illinois, Ohio, Florida, Georgia, Indiana, Kentucky, Michigan, North Carolina, South Carolina, Tennessee, and West Virginia.
Fifth Third Bank offers a variety of account options, but the most popular checking account is Momentum Checking, which has no monthly fee. Your checking account comes with Extra Time, which notifies you of insufficient funds so that you can avoid overdraft fees.
Fees:
No monthly service fee
$37 overdraft fee
Balance requirements:
No minimum opening deposit
No minimum daily balance required
ATMs:
Fee-free at more than 40,000 Fifth Third and MoneyPass ATMs nationwide
$3 fee for out-of-network transactions
Interest on balance:
0.01% APY on savings
Additional perks:
Identity theft monitoring available through Trilegiant for a fee
Fifth Third Extra Time notifies you of overdrafts to let you deposit money by the end of the day
8. PNC Bank
PNC is one of the larger regional banks, with a presence in 27 states, including Illinois. Currently, you can earn a bonus of up to $200 when you open a checking account and enroll in qualifying Virtual Wallet products.
Where PNC really excels is in its online and mobile banking offerings. Its checking account comes with no monthly service fees or minimum balance requirement, and Low Cash Mode lets you manage things when funds get low.
Fees:
No monthly service fees
$36 maximum overdraft charges per day in Low Cash Mode
Balance requirements:
No minimum deposit to open
No minimum daily balance required
ATMs:
Fee-free at 60,000+ ATMs nationwide
$3 transaction fee for out-of-network ATMs
Interest on balance:
2.00% APY on savings
4.30% APY on high-yield savings account
Additional perks:
$200 bonus with Virtual Wallet signup
Low cash mode helps you when funds are low
9. Ally
While there are no physical branches, Ally Bank builds everything you need into its online and mobile banking platforms. You’ll not only get a free checking account with no fees or minimum daily balance requirement, but both checking and savings accounts offer interest on your balance.
There are some activities that mobile banking can’t handle, though. Ally has you covered on those, too. You’ll have fee-free access to 43,000 AllPoint ATMs in Illinois and nationwide. One downside is that you can’t deposit cash at partner retailers as you can with some other online-only accounts.
Fees:
No monthly service fee
No overdraft fees
Balance requirements:
No minimum opening deposit
No minimum daily balance required
ATMs:
Fee-free at more than 43,000 AllPoint ATMs nationwide
Up to $10 in fees at non-AllPoint ATMs reimbursed per statement cycle
Interest on balance:
0.25% APY on checking
3.75% APY on savings
Additional perks:
Spending buckets help you budget
Access to paycheck up to two days early
10. GO2Bank
Another online banking option open to Illinois residents is GO2Bank. You can do most of your banking through their app, including mobile check deposit, online bill pay, and the ability to manage your account.
One unique thing this mobile bank offers is the ability to deposit cash at retailers nationwide. GO2Bank’s savings accounts come with 4.50% APY on balances up to $5,000.
Fees:
$5 per month (waived with eligible direct deposit)
$15 per-transaction overdraft fee
Balance requirements:
No minimum deposit to open
No minimum daily balance required
ATMs:
Fee-free at 55,000+ ATMs nationwide
$3 transaction fee for out-of-network ATMs
Interest on balance:
4.50% APY on savings accounts
Additional perks:
Earn up to 7% by purchasing e-gift cards in the app
Deposit cash at 90,000+ retail locations nationwide
Illinois has plenty of options, whether you go with an Illinois bank or one headquartered elsewhere. The best banks in Illinois combine low fees with features that make banking convenient for you. Don’t rule out online bank options, since you can easily find one with all the features you need, along with fee-free access to local ATMs.
Finding the Best Banks in Illinois
With so many options, it can be tough to narrow down the list of the best banks in Illinois. Whether you choose a local, national, or regional bank, though, it’s important to find the one that offers what you need. Here are some features to consider in your search for a new bank.
FDIC Insurance
When you turn your money over to someone else, you’ll want to make sure it’s safe. If the economy crashes or a bank fails, you won’t want to lose your money. In the U.S., the Federal Deposit Insurance Corporation covers consumers. But that coverage is limited to $250,000 in principal and interest per depositor, per account. Additionally, investment products aren’t covered, although your money market account, individual retirement accounts, and other types of savings account options likely are.
It’s also important to note that not all banks are insured by the FDIC. Whether you’re going with a large, corporate lender or opening a checking account online, research to make sure it’s FDIC insured. Also, pay close attention to limits and make sure you don’t exceed $250,000 with each account.
ATM/Branch Access
At one time, you’d have to rely on local branches and ATMs to deposit checks and withdraw cash. But thanks to tools like Apple Pay and Samsung Pay, you don’t even have to pull out your wallet to make a purchase. Still, you’ll occasionally need some cash, which is why the best banks in Illinois go beyond digital solutions.
Whether you choose a national bank or you open an account online, pay close attention to how you’ll get that help when you need it. Many online bank accounts now partner with ATM networks like AllPoint and MoneyPass to give you that option. Some let you deposit cash through local retailers for a fee.
Low Fees, Great Features
It’s easier than ever to find a checking account with no monthly fees. Even those that do charge monthly maintenance fees will sometimes waive them as long as you have your paycheck electronically deposited or maintain a minimum balance from day to day.
But as you’re researching the best banks in Illinois, it’s important to consider all the costs. If you choose a fee-free online banking option, for instance, but you’ll be paying $10 or more a month for ATMs, it might be worth it to go with one of the national banks that charge a small monthly fee.
Advantages and Disadvantages of Local Banks
National banks have a heavy presence throughout Illinois, but some of the best banks in Illinois are smaller and more community-based. Here are some advantages of going with a local bank:
May provide more personal service
Savings account interest rates may be more competitive
Might have lower rates on auto loans and personal loans
Credit score requirements can be more flexible
There are a few disadvantages, as well, including:
Online banking features might not be as developed
ATM access may be limited while traveling
May have fewer specialized accounts
Savings Accounts
It can be easy to look around for the best checking accounts when you’re planning on making a switch. But saving for the future is important, too. You might find a local bank has lower fees on checking, but a national bank offers better interest yields on its savings accounts. When the benefits outweigh the costs, it could affect your choice.
There are a few other things to consider in a savings account. Some have an initial deposit, while others require a sizable balance for their higher interest rates. Furthermore, consider how often you’ll need to withdraw funds from the account. Many savings accounts limit you to six fee-free withdrawals and transfers per statement cycle under Regulation D.
Other Products and Services
Although checking accounts and savings accounts are top priority with a bank account, there are some other things to consider. You may find the best banks serve as a one-stop shop for all your lending needs, from money market accounts to CDs to mortgage loans. You may instead be someone who prefers to bank with multiple lenders.
It’s also important to look at the payment features your bank offers. Your bank account will likely come with a debit card. Can you earn rewards for using it? If your Illinois bank has credit card options, check for perks, rewards, and APR with those as well. Some financial institutions offer bonuses for new accounts or credit card sign-ups, and that can be another way to cut costs with a new bank.
With a thriving oil industry and bustling tourist population, Alaska is a great place to live and work. As with most states, you’ll find a combination of banking options in Alaska, from national banks to local banks and credit unions.
But finding the right bank can take time. The list below combines local banks, online banks, national banks, and credit unions.
10 Best Banks in Alaska
Alaska bank customers look for a variety of features in a bank. You’ll want to keep costs low while maximizing your earnings, but convenience is also a factor. Here are 10 of the best banks and credit unions in Alaska.
1. First National Bank Alaska
For more than a century, First National Bank Alaska has served the state’s consumers. The first branch was in Anchorage, but today there are branches and ATMs across the state, including Kodiak, Fairbanks, and Wasilla.
First National Bank Alaska has multiple checking options, including teen and military accounts. Direct Deposit Checking comes with a $7 monthly service fee that can be waived with qualifying direct deposits.
Fees:
$0-$7 monthly maintenance fee depending on account
$33 per-item fee for overdrafts
Balance requirements:
No minimum opening balance
No minimum daily balance with Direct Deposit Account
ATMs:
Fee-free access at First National Bank Alaska ATMs
Interest on balance:
0.10% APY on select checking
0.08% to 0.25% APY on savings
Additional perks:
Free checkbook
Health Savings Account available
2. Northrim Bank
Northrim Bank takes a unique approach to its checking setup. You’ll get one checking account that automatically adjusts as your balance changes. Northrim is a community-based bank with branches only in Alaska.
If your paycheck is automatically deposited to your account, you’ll qualify for a fee-free account that earns money. South Central Alaskan account holders can earn up to 0.11% APY on checking account funds, but check your own region for current rates.
Fees:
$0-$12 maintenance fee, depending on tier
$29 per-item fee for overdrafts
Balance requirements:
Minimum opening balance: $100
No minimum daily balance
ATMs:
Fee-free ATM access at First National Bank Alaska ATMs
Up to $10 in out-of-network costs reimbursed monthly
Interest on balance:
Up to 0.11% APY in South Central region on checking
Up to 0.75% APY in South Central region on savings
Additional perks:
Highest tier account waives all out-of-network ATM costs and incoming wire transfer charges
Easy-to-use mobile app makes online banking a breeze
3. Global Credit Union
Formerly Alaska Federal Credit Union, Global Credit Union offers two tiers of checking: Core Checking and Latitude Checking. There are branches throughout North America, so if you regularly travel to the U.S., this might be the best option.
Like many credit unions, Global Credit Union offers competitive rates as a benefit to members. Unlike other credit unions, though, membership is fairly open. You’ll need to pay $5 and be a resident of Alaska, Washington, Idaho, California’s San Bernardino County, or Arizona’s Maricopa County to qualify.
Fees:
No monthly maintenance
$25 fee for balances that fall below a $25.01 deficit
$5 membership fee
Balance requirements:
No minimum opening balance
No minimum daily balance
ATMs:
Fee-free use of Global Credit Union ATMs
Fee-free withdrawals at 55,000 Allpoint locations
Interest on balance:
No APY on checking
0.10% APY on savings
Additional perks:
Competitive rates on auto loans
Mobile tools to help with managing finances
4. Denali State Bank
Fairbanks residents interested in a local bank should check out Denali State Bank. Most of Denali’s branches are in Fairbanks, but you’ll have online banking through the mobile app, as well as refunds on up to $25 monthly ATM withdrawals.
The best thing about Denali State Bank is its rates. Choose Free Kasasa Cash Checking and you’ll earn 2.00% APY on your money. Denali’s savings accounts earn up to 0.50% APY.
Fees:
No maintenance fee
$30 NSF fee per occurrence
Balance requirements:
$100 minimum to open
No minimum daily balance
ATMs:
Up to $25 fee refund per month
Interest on balance:
Up to 2.00% APY on checking
Up to 0.50% APY on savings
Additional perks:
ATM fee refund of up to $25 monthly
Cash-back checking option available
5. Chime
While many local bank options offer online services, Chime is an online-only service. You’ll have everything you need in the app, from mobile check deposits to bill pay.
Chime uses two services for cash withdrawal: the AllPoint and MoneyPass networks, with more than 60,000 locations across the country. If you need to add cash to your account, you can do that at more than 8,500 participating Walgreens locations for free.
Fees:
No maintenance fee
No overdraft fee
Balance requirements:
No opening deposit required
No minimum daily balance
$200 minimum qualifying deposits per month required
ATMs:
Fee-free at more than 60,000 ATMs in the AllPoint and MoneyPass networks
Interest on balance:
Up to 2.00% APY on savings
Additional perks:
Round Ups help you build savings automatically
Access to paycheck up to two days early
6. GO2Bank
Mobile banking customers may find Go2Bank provides a great Alaska banking experience. There are no branches, but you’ll get cash withdrawals at 55,000 AllPoint ATMs.
What makes Go2Bank stand out is its security features. You’ll get popular services like fraud alerts and a debit card lock feature. If you’re working to rebuild your credit, you may also be interested in GO2Bank’s secured Visa.
Fees:
No maintenance fee
$15 overdraft fee (avoid by resolving overdraft within 24 hours)
Balance requirements:
No opening deposit required
No minimum daily balance
ATMs:
Fee-free at more than 55,000 ATMs in the AllPoint network
Interest on balance:
Up to 4.50% APY on savings
Additional perks:
Secured Visa allows you to build credit
Access to paycheck up to two days early
7. Wells Fargo
With branches from Barrow to Anchorage, AK, Wells Fargo might be the best bank if you’re looking for a large, corporate financial institution. Currently, Wells Fargo is offering a $300 opening bonus.
One downside to Wells Fargo is the monthly maintenance costs. You can avoid those costs by maintaining a $500 balance or having $500 or more in qualifying income each month.
Fees:
$10-$35 monthly (waived with minimum balance)
$35 overdraft fee
Balance requirements:
$25 opening deposit required
$500 minimum daily balance to waive service fee
ATMs:
Fee-free at more 12,000 ATMs across the globe
Out-of-network waivers available with some accounts
Interest on balance:
Up to 0.26% APY on savings (higher rates available for large balances)
Additional perks:
$300 bonus for opening an account
Teen and student checking account options
8. Matanuska Valley Federal Credit Union
If you can maintain a checking balance of at least $2,000, consider Matanuska Valley Federal Credit Union, a not-for-profit cooperative that welcomes members across Alaska and in Hawaii. Matanuska Valley offers checking and savings accounts, as well as life insurance and accounts for small businesses.
If you regularly deal with cash, though, MVFCU might not be the right fit. You’ll be limited to MVFCU ATMs, which are only in Alaska and Hawaii. But MVFCU does have a feature called Live ATMs, which enhances your customer service options.
Fees:
No monthly fee
$18 overdraft fee
Balance requirements:
No minimum balance required
ATMs:
Fee-free at locations across Alaska
Interest on balance:
Up to 4.32% APY on savings depending on balance
Additional perks:
Live ATMs offer enhanced services
Enhanced savings vehicles like Christmas clubs and New Child accounts
9. First Bank of Alaska
Small businesses might want to take a look at First Bank of Alaska as a great place to park their money. You’ll get 150 free monthly transactions, along with fee-free checking as long as you’re maintaining a $2,500 balance.
But First Bank isn’t just for business accounts. You can also get low-cost personal checking. There are three accounts to serve customers, along with a teen account. They come with maintenance costs, but they can be waived if you keep a minimum balance and set up direct deposit.
Fees:
$4-$10 (waived with minimum balance)
Balance requirements:
$2,500 minimum balance plus direct deposits to avoid fee
$1-$200 opening balance depending on account
ATMs:
Fee-free at locations across Alaska
Interest on balance:
Up to 0.12% APY on checking
Up to 0.15% APY on business checking
Up to 0.20% APY on savings
Additional perks:
Variety of checking account options
Great rates for businesses
10. Northern Skies Federal Credit Union
All Alaska residents are eligible for membership in Northern Skies Federal Credit Union. You’ll get savings rates above the national average and flexible overdraft fees.
Northern Skies FCU offers two checking account options, each with its own benefits. You’ll also earn dividends, which can help you with your retirement planning.
Fees:
$5 (waived with minimum balance)
Balance requirements:
$100 minimum balance or direct deposits to avoid fee
$5 opening balance
ATMs:
30,000 fee-free ATMs worldwide
Interest on balance:
Up to 5.00% APY on checking
Up to 0.10% APY on savings
Additional perks:
Competitive rates on loans
Credit union tools help with managing personal and business assets
The best bank puts its residents first, providing convenient tools like online banking and mobile apps. But it’s also important to look into features that will help you save money. Compare offerings across multiple banks and find the right bank to fit your own needs.
How to Choose the Best Alaskan Bank
Before you start searching for a bank account, there are some things to consider.
Minimum balance: Consider if a bank requires you to maintain a certain balance in your account or if they allow a zero balance. This can affect your flexibility in managing your money.
Opening deposit: Determine the initial deposit required to open an account, as some banks may require a larger sum to get started.
Fees: Be aware of any monthly maintenance fees associated with checking accounts, and understand the minimum balance requirements to avoid these charges.
Mobile banking: Whether you go with an online bank or a brick-and-mortar bank with a branch down the street, conveniences like mobile check deposit can save time.
Interest rates: Compare the annual percentage yield (APY) offered by different banks on checking and savings accounts to maximize your potential earnings.
Cash accessibility: Ensure that your chosen bank provides convenient options for depositing and withdrawing cash when necessary.
Extras: Consider if a bank offers additional services, such as wealth management, investment options, or certificates of deposit (CDs), to meet your future financial needs.
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If youâre a furloughed government employee, you are likely feeling a good deal of stress and uncertainty about how to manage your finances during the government shutdown. While missing a paycheck is a financial moment no one wants to experience, there are many ways you can keep your financial health intact. Thereâs no need to
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