Author: Hannah Morgan
The world is continually moving forward, and with it comes several changes. Take checking accounts, for instance.
Free checking accounts are starting to disappear, and for the ones that remain, a couple of them are implementing charged fees if the account does not exceed the minimum level. But there are still those that offer free checking, provided that owners abide by the requirements to avoid monthly fees.
Typically, these checking accounts are for low-income earners. They only need to sign up for a direct deposit and maintain a monthly deposit. Two of the largest banks that still offer such checking accounts are the Bank of America and Wells Fargo.
The Big Banks and their Economical Checking Accounts
Checking accounts usually allow unlimited deposits and withdrawals. Thus, making them an excellent choice in covering your daily spending.
Opting for a checking account instead of other bank account types is also (considerably) ideal for low-income earners.
However, in exchange for this kind of flexibility, these types of bank accounts pay much lower interest rates, if they pay any at all, compared to other account types that let you grow your money over time.
Let’s review the bank of America and Well Fargo Checking Accounts features.
Bank of America Checking Accounts
This American multinational bank and financial service company offers its customers Advantage Plus Banking which is a flexible checking account that charges a monthly fee of $12.
Fee? Why is it not free? Well, the account is free if you fall into these categories:
- Students under 24 years old: These people can be eligible for a waiver if they are still enrolled in high school, vocational program, college, or university.
- People who can maintain a direct deposit of at least $250 per month into their bank account
- Maintaining a minimum of $1,500 daily balance
ATMs of the Bank of America do not charge fees, but you’ll be charged a $2.50 fee per transaction at non-Bank of America ATMs and might as well be charged by the ATM provider.
Wells Fargo Checking Accounts
Similar to the Bank of America, Wells Fargo charges a monthly fee of $10 for its Everyday Checking account, but it is can be avoidable if you are under these are
- Between the ages of 17 to 24. once the owner turns 25, the account automatically charges a monthly fee unless one of the other criteria is met
- Maintaining a minimum daily balance of $500
- Maintaining Direct deposits of at least $500 per month
Similar to Bank of America, Wells Fargo’s ATM transactions and withdrawals are free at its ATMs’. However, there is a $2.50 charge for non-Wells Fargo ATMs plus an additional fee by the ATM provider.
Conclusion
Bank of America and Wells Fargo are good options for low-income earners because the minimum direct deposits are not overly costly and heavy for the pocket. However, the condition that account owners need to deposit $250 per month or a total of $3000 yearly for the Bank of America and $500 per month in direct deposits or $6000 annually for Wells Fargo needs to be met to operate a free checking account.