Free checking means that the account doesn't charge a recurring fee, such as a monthly maintenance fee, and doesn't have a minimum balance requirement to avoid a fee.

Under banking laws and regulations, a bank cannot advertise an account as "free" if it charges a regular maintenance or activity fee for the account. But the bank can offer a free account and still charge for certain services, such as check printing, ATM use, or overdrafts.

A checking account is considered free if it doesn't charge monthly maintenance fees or require a minimum balance. Some banks may offer a checking account that will waive the maintenance fee if you have your direct deposit going into this account.

There are four reasons why financial institutions offer free checking. They: 1) Expect to make money on interchange fees from debit card use; 2) Want to gather deposits; 3) Think it's a springboard to growing a customer relationship; and/or 4) Believe free checking is a basic human right.

Here are some proven tips:

1. Utilize free checking and savings accounts. Many banks still offer them.
2. Sign up for direct deposit.
3. Keep a minimum balance.
4. Keep multiple accounts at your bank.
5. Use only your bank's ATMs.
6. Don't spend more money than you have.
7. Sign Up for Email or Text Alerts.

Why Do Banks Charge Fees? Banks charge fees to help make a profit. Bank fees allow financial institutions to recoup operating expenses. Banks also make money on loans, via interest and other fees.

Some of these accounts are advertised as “free”, which means the account has zero fees. A free checking account is a basic checking account that doesn't charge any recurring fees. However, just because it doesn't charge a monthly maintenance fee, a free account doesn't mean that everything is free.

If you find a checking account that doesn't charge any monthly fees, you may not be off the hook just yet. Other bank fees may still apply. Even a free account may charge overdraft fees, out-of-network ATM fees, bounced check fees or a fee to stop payment on a check.

A checking account provides a great tool for money management, keeping your money both safe and easily accessible. However, many banks and credit unions charge a fee to own a checking account. These fees generally range from $4 to $20 although they can reach higher depending on your bank and account type.

Most traditional banks require you to maintain a minimum account balance to avoid monthly service charges. These typically range from $100 to $2,500, though most are much closer to the lower end.

If you have a free checking account, the bank gets to keep that extra $100 as profit. This is also why banks require you to have a minimum balance in order to open a checking account. Under federal regulations, banks need to keep a certain amount of money on hand to accommodate all of their daily transactions.

Here are some proven tips:

1. Utilize free checking and savings accounts. Many banks still offer them.
2. Sign up for direct deposit.
3. Keep a minimum balance.
4. Keep multiple accounts at your bank.
5. Use only your bank's ATMs.
6. Don't spend more money than you have.
7. Sign Up for Email or Text Alerts.