What are the different types of checking accounts, and how do you choose the right one for you?

Checking accounts are part of the banking system.Deposit accounts give consumers a place to deposit their money, make transfers, write checks, pay bills, and do other banking transactions.Checking accounts are insured for up to $250,000 per depositor by the Federal Deposit Insurance Corporation, but how do you know which account is right for you?

Before opening a checking account, you should be aware of your options.Not all checking accounts are created the same.Your checking account should complement your financial situation because it is unique to you.Before you go to the bank to open your account, you need to think about a few things.

How much you keep on average every month will help you decide which checking account to open.Will the balance be consistent over the course of the account?Will you only have a large balance at certain times of the year?Minimum balance requirements justify some of the perks of some accounts.

Consider the fees associated with each account.If you maintain a certain amount of money each month, you can avoid service charges.You should check to see if the account you are interested in charges extra for things such as in-branch transactions.Automatic payments can be made from your account or you can set up direct deposits.Knowing the bank's fee structures for each account can help you save or spend less money each year.

Some checking accounts pay interest.If you want to earn a little more, you can find a bank that gives you interest and a place to do your everyday banking.At the end of the month, interest is deposited directly into the checking account.

If you prefer personal interaction, you will probably want a checking account at a bank that has a lot of branches.You will fare well with an online bank if you can do without.The convenience of online and mobile banking with a debit card is what these institutions offer.Because they don't offer teller service, many of these banks allow you to use different banks' automated teller machines as well, which makes cash withdrawals easier and cheaper.

Here is a list of the different types of checking accounts that most banks offer.

A regular checking account will allow you to deposit and withdraw money from an ATM, write checks, pay bills, and make purchases using a debit card.If you keep enough money in your account, many banks will waive the monthly fee for account holders.

A regular checking account pays little or no interest.If you are looking for a little income, you may want to open a companion savings account.

Premium checking accounts may be right for you if you have a five-figure sum in your checking account.A high balance in your account will allow you to avoid paying a monthly fee and provide perks such as ATM fee reimbursements, free checks, and earning a little bit of interest.You can receive discounts on other services from the bank, such as a slightly lower mortgage interest rate or free financial advice.Even if you can easily meet the minimum balance requirement, a premium checking account is not the best option.

The extra perks are great, but other options could be even better.You can earn a higher return on your excess cash if you put it in a money market account, government bonds, or a certificate of deposit.Most people don't need to keep high balances in their checking accounts if they have large, regular outflows, such as a high mortgage payment, large student loan repayment, estimated tax payments, and/or hefty insurance premiums.It is possible to get a better rate on services or better advice with another institution.

Even if you can easily meet the minimum balance requirement, a premium checking account may not be the best option.

Every month, interest-bearing checking accounts give you a small return on your account balance.Regardless of your balance, some accounts pay a flat interest rate, while others pay more.The interest rate will almost certainly be below the inflation rate, but it might be comparable to what some savings accounts pay, giving you the best of both worlds.If the account's fees are too high, you may not open it.Even if it pays less or no interest, you may be better off with a free checking account.

A free checking account doesn't have to have a minimum balance to avoid a fee.That doesn't mean that every service associated with the checking account will be free.Out-of-network ATM fees are one of the services you may have to pay for.You are already getting the benefit of not paying a monthly fee, so these accounts may not pay any interest.Some free checking accounts pay interest.

Lifeline accounts are for customers who can only maintain a small balance but want to receive banking services.In exchange for allowing you to keep an account with a very low or no minimum balance requirement, the bank may require other things that save it money, such as writing only a limited number of checks each month and receiving monthly statements electronically instead of by mail.Some of these accounts don't have check-writing privileges and may not allow overdrafts.They will decline any transaction that exceeds your available balance.

If your bank has closed your checking account in the past because of a negative balance, you may be able to get a second chance.In exchange, you will have to pay a monthly fee of up to $20 and your account may have restrictions that other checking accounts don't have.All 50 states have these accounts available through banks and credit unions.You may be eligible for a regular checking account once you have maintained your account in good standing.

How will a bank know if a checking account has been closed in the past?Banks look at ChexSystems and Early Warning Services reports before allowing you to open an account.If banks deny your checking account applications and you don't know why, you should order copies of your bank credit reports and review them for errors.

If you don't have a history of fraud and meet basic account opening requirements, there's a checking account for you.If you are looking for a specific feature, such as an account for someone who always has a low balance or account that pays interest, look for accounts specifically marketed toward people with those requirements.

Checking account names are just marketing labels.An interest-bearing checking account may be more expensive than a free one if you have a high balance.Changing checking accounts can take a long time, so try to get an account that you will be happy with.If you have a second-chance account, choose a bank that you can stay with for a long time.