3 Checking Account Features That Are Overrated and 3 That Really Matter

There are a lot of checking accounts vying for your business these days. This competition is great for you because it means banks have to offer more to attract new business, but it can also make it tough to know which accounts deserve to hold your cash.

Some perks sound great on paper, but they don't offer any long-term benefit. Others aren't as flashy, but they make your life a lot easier. Here are three checking account features that are overhyped and three that could seal the deal for you.

Three checking account features that are overrated

Here are three checking account perks that aren't as special as they seem.

1. Interest-bearing option

Some checking accounts enable you to earn interest on your funds, just like you can with a savings account. But even the best checking account interest rates are usually under 1.00%. By contrast, some high-yield savings accounts are currently offering 5.00%. Given this difference, it's much better to put extra cash in a savings account rather than a checking account if you're trying to grow your wealth.

2. Free checks

Some bank accounts give you your first book of checks free when you open an account. It's nice, but it's probably not going to save you that much. Ordering checks from a bank might be expensive, but you can order 100 new checks online for less than $5. Plus, most people pay bills electronically these days rather than writing out checks.

3. Bonuses for new customers

Some banks offer bonuses that could be worth $100 or more to new checking account customers if they complete qualifying activities within the first few months of account opening. This could include setting up direct deposit, maintaining a certain minimum balance, or making a certain number of debit card purchases.

A checking account bonus can be a great tiebreaker if you're on the fence about which bank to choose, but it's a one-time deal. You'll still have the account even after obtaining the bonus, so make sure you actually like its features. Otherwise, you'll have to go through the hassle of closing it and moving your money elsewhere.

Three checking account features that actually matter

Here are three of the most important features to look for when choosing a checking account.

1. Lack of fees

Maintenance fees are still common among brick-and-mortar checking accounts. If you can't get them waived, you could pay up to $30 per month to keep your money in the bank.

Fortunately, most online checking accounts don't have maintenance fees. Some banks are also willing to waive overdraft fees in some situations, which could be a lifesaver if you occasionally spend more money than you have in your account.

2. Fee-free ATM access

Most banks give you access to a fee-free ATM network, but they can vary in size. A brick-and-mortar bank may only have fee-free ATMs at its branches, while an online bank might partner with a nationwide ATM network, like Allpoint, so customers can access cash anywhere.

But anyone can end up in a situation where they don't have fee-free ATM access. Most banks don't charge their customers for using these, though the ATM owner may tack on its own fee. However, some banks now offer monthly reimbursements for these fees. This could be a valuable perk for those who worry about losing money to out-of-network ATM fees.

3. Strong online and mobile tools

People do most of their banking online these days, and that's only possible thanks to mobile banking apps and online tools that enable you to view your balance, transfer funds, and pay bills. But these tools differ in how easy they are to use.

A mobile app that's clunky and prone to glitches could make managing your money too frustrating. That's why it's worth taking a few minutes to check out the bank's mobile app reviews before opening an account there. Whenever possible, go with a bank whose app has favorable reviews.

What to do if you're still on the fence

Hopefully, you've got a clearer idea of which checking accounts are worth your time and which you should avoid. But if you're still on the fence, think about how you plan to use the account. Ask yourself questions like:

• Will I need to deposit or withdraw cash often?
• Will I need to transfer money to other accounts or other banks often?
• How do I plan to withdraw money from the account most often?
• Are the bank's limitations on daily withdrawals or electronic transfers restrictive for me?
• Am I comfortable with the customer service hours and methods the bank offers me?

Use this information to rule out banks that are poor fits. When you get down to your top two or three, do a deep dive into their features and fee schedules to determine which is the right choice for you.