Have you ever heard of a checkless checking account? I know what you might be thinking, people get checking accounts to have access to the benefits and one of those things being checks. It is actually a growing trend among credit unions and banks because more people want online banking and things are becoming more digital.

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How Checkless Checking Works

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 online checking accounts have little to no monthly service fees. Additionally, you cannot spend more than what’s in your account, so you’ll never have to face overdraft fees. In general you can still use a checkless checking account the same way you would use any other checking account, but you just won’t have access to checks.

The reason it is impossible to overdraft with a checkless checking account is because any transaction that would put your balance in the negative is automatically declined. The only time you’d have to worry about going over would be if a transaction was authorized for one amount but the actual charge was more.

Are There Other Fees?

Although you don’t have to worry about overdraft fees, as mentioned in the above section, there will be some fees that will always be there. Monthly maintenance fees are generally associated with these kinds of accounts.

Just like any other banking product you are considering, be sure you read all the find print associated with the products. Each financial institution has their own take on checkless checking accounts and the fees that come with it, so reading the fine print will keep you from getting surprised.

Should You Open a Checkless Checking Account

A checkless checking account is a great way to manage your money using a straightforward, simple method with minimal fees. However, this doesn’t mean it is the best option for everyone. For example, you may find that you need to write a check occasionally or make a bill payment using a money order. An account like this will not allow you those options so you’ll have some issues.

If you are this type of customer or someone who relies on checks then consider going for a traditional checking account and foregoing overdraft protection altogether. Through this channel, you will still have the ability to write checks when you need to and still be able to monitor your account.

Bottom Line

When you decide on checking accounts, compare them to see which one has the right benefits and tools for you. Factor in the cost because a checkless checking account could be cheaper than a regular checking account. Once you’ve thought about all of this, simply choose the right banking product for you. For more posts like this, check out our list of bank guides!