Checking out accounts

Along with moving come many annoying chores that most Americans have probably dealt with a few times. Moving across the country increases the number of such tasks, but also provides a chance to rethink things and avoid previous mistakes. I (Todd) am talking about changing bank accounts, internet providers, cell phone companies, etc. This post is about finding a new checking account, and how it seems to have paid off to take some time to find the best option for us.

First, some history. Last fall I spent a good bit of time searching for a decent savings account. All the accounts I had before offered pathetic interest rates. While the best rates obviously came on account with minimum balances several times our savings, I wanted to find something better than 1.5% interest. I quickly discovered that our traditional four walls and a roof bank couldn't compete with online only banks, who obviously cut overhead costs and pass the savings along with better interest. I ended up finding an account that boasted 4% (at Shorebank.com). Of course, the rate has gone down since then, but we're still much better off.

Learning from that experience, I've now researched and selected an online solution for our new checking account as well. In Pittsburgh we chose the most popular bank, mostly because it had several ATMs on campus and throughout the city. Also, it was free for students. This time around, we're going a different route. As far as checking accounts go, I wanted almost every feature you can ask for: no minimum balance, at least some interest, if not a decent amount, no monthly fees, overdraft protection, fraud protection, free atm/debit card, online access and billpay, and lots of ATM access, both in Phoenix, and back in Sheridan. Wells Fargo was the only traditional option, as it was the only bank I could find with ATMs both in Phoenix and Sheridan. However, online I found a bunch of choices, and am 95% sure that Schwab (yes, Charles Schwab, the investment firm) will be home to our checking. The amazing feature is that they cover all atm fees, making it free to use any atm anywhere we go, in the US at least. Also, they have all the other features I was looking for, including 0.75% interest. Deposits will be a bit of a hassle, but the other advantages make up for it.

For those of you who would like to learn more, http://www.checkingoptions.com has a good run down of some of the best choices.