Making the Most of Checking Account Promotions

Competition amongst banks to get the checking account business of good customers is fiercer than ever. That is why you may have noticed so many different checking account promotions around these days. Not only are banks offering perks like free checking or reduced account fees no matter what your balance but many are also adding incentives like iPod giveaways or gift certificates as checking account promotions.

A free iPod when you open a checking account would probably sound great to most of us. As would getting rid of that account fee every month, after all every penny counts these days. But before you rush in to the nearest branch of that bank offering a really checking account promotions make sure you understand exactly what you are signing up for and how to recognize a good bank when you see one.

The only way to know what checking account is right for you is by understanding your own checking account habits. Take time to review your statements. Look at how many checks you write every month and your ending balance. Bounced any checks recently? If the answer is a sheepish yes looking for an account with overdraft protection may be more valuable than a free toaster. 

Online banking is a must for almost everyone these days. Chances are you probably do not even write that many paper checks anymore as so many companies offer online payment services these days. So before you sign up for a new checking account based on the promises of an enticing looking checking account promotion research that aspect of your potential new bank’s services as well.

A critical element in selecting the right checking account is knowing the minimum balance you'll carry day in and day out. Many institutions let you open a checking account with less than $100, often as little as $20  but require a much higher minimum -- maybe several hundred dollars higher -- to avoid fees. Dip below that and sorry, there goes your free checking and the fees may be higher than you thought, landing you with a nasty end of the month surprise.

There are many great checking account options available these days but the fact that some of them come with some nice checking account promotions should always be looked upon as a bonus rather than reason for picking a certain bank or account type. Figuring out which account will suit your needs in the long run is far more important.

Having said that if you read through all the fine print, review all the options and discover that is indeed a good option for you by all means take advantage of those great checking account promotions. It never hurts to have an extra toaster around the house and even if you have an iPod it would make a great gift for someone …