What is a Checkless Checking Account? Should I Open an Account?

If you are looking  for a new checking  account where you wont have to worry about overdraft fees each month, a checkless checking account might  be a good option for you.  Banks like Bank of America and Citibank offer check-free banking options that come with built-in overdraft protection along with the same features that you’d get with a regular checking account.

Checkless checking accounts are becoming more common amongst financial institutions to to increase the use of digital banking as more and more consumers rely on online and mobile banking and debit cards for their banking needs.

In this guide, I will break down what a checkless checking account is as well as the pros and cons of  the account. Be sure to continue reading if this sounds like something you are interested in.

How Do Checkless Checking Accounts Work?

While the details vary from bank to bank, the general principles behind checkless checking are the same. You do your banking online or via a mobile app, and when you need to access cash or make a purchase, you use your debit card.

These e-checking accounts have low or no monthly service fees and you can’t spend more than what’s in your account, so you won’t face overdraft fees.

On the flip side, you will not be able to write paper checks which could be a problem if you often send checks out to people.

What Fees Does The Account Have?

Even though you won’t have to worry about overdraft fees with a checkless checking account, there might be monthly maintenance fees associated with these kinds of accounts. With the SafeBalance account, the fee is $4.95 a month and there’s no way to get it around it. But compared to a $35 overdraft fee, that’s a pretty small price to pay. Citibank customers with a checkless checking account are charged a monthly service fee of $10, but you can avoid it by making one qualifying direct deposit a month, one qualifying bill payment per month or maintaining a $1,500 average monthly balance.

Should You Open this Account?

If you need a straightforward, simple way to manage your money, a checkless checking account can allow you to do that with minimal fees. That doesn’t mean, however, that it’s the right option for everyone. If you occasionally need to write a personal check or make a bill payment using a money order, your bank might not allow you to order one through the checkless account or you might have to pay a separate fee for these services.

Customers who’d like to have access to checks without having to pay extra may be better off going with a traditional checking account instead and opting out of overdraft protection altogether. That way, you still have the convenience of writing checks when you need to and you can monitor your account on your own to avoid ending up in the red.

Conclusion

Overall, checkless checking accounts are a great account. They allow you to do all your banking at the touch of your fingertips either through online or through the mobile app. Another great feature about this account is that you won’t have to worry about overdraft fees. However, if you are a person who writes checks often, I would not  recommend getting this account.

On BankDealGuy, we’ve compiled the best top cash management accounts for your convenience. If you are interested in checking accounts, visit our list of bank promotions to possibly get a sign-up bonus along with your account. You may also want to check out savings accounts if you want to get started on saving up money.