Low Income

Low Income

Low  Income

Economy or no frills checking; these accounts are for people who keep low average balances and write just a few checks a month and pay at Atlanta title pawn. There is usually a small monthly fee and, often, access to your account by way of an automated teller machine. The first 10 or 15 checks may be free, with fees of 50 cents or more for each check over the limit (if you write a lot of checks, you should be in regular checking). This simplified service is offered by about half the banks, although it may be restricted to students or the elderly.

If you sometimes bounce checks or want to have instant credit on tap, go for: Overdraft Checking; This lets you write checks for more money than you have in your checking account. At some banks, checks will be covered with funds switched from your savings account. At others, the checks are paid with a loan on which you are charged 10 to 16 percent. Some banks lend only in $50 increments, so if you write a check for $7 more than you have, you will have to borrow $50 to cover it. Monthly repayments may be deducted from your account automatically. The right to use overdraft checking may come free or it may cost you $15 to $20 a year plus a fee every time funds are transferred. In either case, you pay interest on the loan amount. The fees ain’t cheap, but they’re cheaper than bouncing a check.

Free checking: No bank can advertise that its checking account is free unless it truly is. That means no monthly maintenance fees, no per check fees, and no fees for falling below the minimum balance. The only allowable charges are those for ATM use, bounced or stopped checks, printing checks, and a few other minor items.

Money market mutual funds; these, too, are normally for investors. Rates of interest change daily but are always higher than those on the banks interest-paying checking accounts. The funds that offer checking (about half of them do) charge lower fees than banks and zero for falling below the minimum balance. You can arrange to have your paycheck deposited directly. Most won’t cash checks smaller than $100, so they are no good for everyday checking. But at this writing, a couple takes checks in any amount. You may want to use your money fund as a small business checking account or use Atlanta title pawn.