What Are Common Types of Checking Accounts?

You could call this a "regular checking account." At its heart, a basic checking account lets you write checks, cash or deposit checks, and withdraw money. A traditional checking account includes a debit card, though some free checking accounts may charge ATM fees for withdrawals, depending on which bank's ATM you use. Regular checking accounts may or may not include online bill pay and automatic payment scheduling. A basic bank account like this makes a good starter account. For some folks, it might be all they need. 

The next step up is the premium checking account. These accounts tend to come with more perks. Often included are a debit card with no ATM fees at other banks, free checks and money orders, and online bill pay. Many premium checking accounts also give you overdraft protection. And by maintaining a specific minimum balance in your account, premium accounts often waive monthly service fees. Some premium accounts pay interest as well as offering additional free or discounted services.

A student checking account is usually similar to basic checking accounts, though there may be limitations. To qualify, you generally need to be in high school or college or be 17-23 years old. Most banks don't charge monthly maintenance fees for student checking accounts. Most of the time you'll be able to make debit card purchases and pay bills with a debit card. But you may be restricted to the issuing bank's ATMs for cash transactions to avoid extra fees.

Senior accounts are a great resource for those who qualify — typically, those age 60 or older. The accounts usually require a minimal balance to have the monthly fee waived. Some will earn interest on its balance. Like most accounts, senior accounts often include a debit card. Other usual perks include free checks, money orders, bank checks, and paper statements.

Business checking is a must-have if you're running a business. Each account type carries its own perks, costs, and limitations. Some waive monthly fees with large enough balances. Some have a minimal fee and no balance requirements at all. Interest checking accounts are also available. If you tend to maintain a large balance, one of these interest-bearing accounts might be a good choice.

Business checking often includes other valuable merchant solutions like invoicing customers and processing credit card or online payments. Some accounts include analytics to track sales, trends, spending patterns, and more. Other common perks are 24/7 customer support and additional accounts under your business name.

As we've covered, a monthly maintenance fee might be charged if your balance falls below requirements. If monthly fees have been waived by a recurring direct deposit, and the deposit is missed/delayed, expect fees. Sometimes there's a fee for using non-bank ATMs. Writing too many checks in a month or making excessive withdrawals can sometimes trigger a fee. If you travel, check for foreign transaction/ATM fees. Other fees you might see for paper statements, money order or official bank checks, transfers and wires, and early closing charges.

If you write a check when your account doesn't contain enough funds to cover it but the bank pays the transaction, that's an overdraft. That applies even if it's your own check you wrote for yourself. The amount for overdraft fees varies, but $35 each occurrence is common. If that check is resubmitted again, expect another fee.

Overdraft protection, however, could save you from such fees. It may take the form of a savings account tied to your checking, covering shortages. (Of course, you must have enough in savings to cover the difference.) Also, the bank might waive the fee if the shortage falls under a certain amount. Then you might have until the close of the next business day to make a deposit and correct the overdraft.

Mobile banking has truly changed the way we bank. Using your smartphone, tablet, or PC, you can manage your accounts 24/7. Review your debit purchases, account balances, deposits, and more. With mobile deposit, snap photos of a check and deposit it without visiting a bank branch. Some online apps also let you send and receive money from friends and family. Do your banking from the comfort of your home or on the go.

When you have a debit card, they tend to have one of two kinds of ATM fee plans. The first lets you freely use any ATM owned by your bank, but there's a charge for non-bank ATMs. (Those are also called out-of-network ATMs.) The fees in this case are typically passed on from the originating bank or ATM operator. It might be a flat fee, say $1.50 to $3 per transaction. It might include a percentage of the transaction. Or it might include an ATM operator fee, plus a percentage, plus a non-bank ATM surcharge. That may add $4, $5, or more to your transaction.

The second plan is a free use of bank-owned ATMs — and your bank covers non-bank ATM charges for you. This perk is usually associated with premium checking. If you plan to use non-bank ATMs, a premium account might be what you need.

Most basic checking accounts don't pay interest. But some premium and other deposit accounts earn interest. Rates are usually tied to tiers of account balances. Higher balances get you higher interest rates, and so earn more monthly. If you're interested in earning more than the usual checking account rates, check into savings accounts or CDs.

Compare checking account types¹