Your First Quarter Financial Plan: Checking Account Basics
In our last post we took a look back at how we handled our finances last year to identify our weak spots. In today’s post, Lincoln Savings Bank
wants to help you set the foundation for your financial life by helping you get the right checking account
All checking accounts are not made equal. Some are very basic in nature with low or no fees, while some have more benefits and features that may have fees unless a minimum balance is maintained. Choosing the right personal checking account comes down to having an account that gives you exactly what you need without making you pay for features you don’t use.
Freedom- this account is for you if you want a basic checking account with no minimum balance and no monthly fee. Throw in free online banking and bill pay and this account is perfect for:
- High school students, college students and young adults
- People with strict budgets
- People who want to avoid any fees and don’t need advanced account features
Presidential- if you like to keep a little higher balance and don’t mind having a minimum balance, you’ve found your match. You also get all the premier features like online banking, online bill pay and check images on statements to help you stay on top of your finances. This account is perfect for:
- Those who manage household finances
- Anyone who keeps an average collected daily balance** over $500 in their checking account
- Those over 55 years old because the monthly fee is waived even if the minimum balance requirement is not met!
Abe- want to see your money work for you and get some extra benefits? This account is for you! Though you must maintain an average collected daily balance** of $2,500 to avoid paying any monthly account fees, you earn interest* that gets credited to your account. You also get a free small safe deposit box (where available) and online banking and bill pay. You should consider this account if:
- You maintain a higher checking account balance
- You appreciate the extra value and features
- You want some return on your investment
LSB also pays up to 1% CASH BACK1 on qualifying purchases with your LSB Debit card. The basic LSB debit card styles are FREE with your LSB checking account; the Panther Debit Card has an annual fee of $12.00 + tax. Just use your LSB debit card for every day purchases like groceries or gas, and watch your CASH BACK reward grow. Many LSB customers "cashed in" on this benefit in 2013, with LSB paying back over $133,934 to those customers!
Now that you have a better understanding of which checking account
best suits you, our next post will cover a savings plan to help you establish a better financial foothold. Check back later this week!
Lincoln Savings Bank, member FDIC
* Interest payment is based on the daily balance method. This method applies a daily periodic rate to the balance in the account each day. The interest rate and the annual percentage yield on the account may change at any time based on the bank's discretion.
**The average collected daily balance is calculated by adding the collected balance in the account for each day of the period and dividing that figure by the number of days in the period. The period we use is the monthly statement cycle.
- Presidential Checking: If avg. collected daily balance falls below $500 for statement cycle, then a $5.50 maintenance fee and $0.15 withdrawal fee for each debit over 25 applies.
- ABE Checking: If avg. collected daily balance falls below $2,500 for statement cycle, then a $7.50 maintenance fee and $0.15 withdrawl fee for each debit over 3 applies.
1 Cash back: Your account will be credited back a portion of your purchases each year (Jan. 1 to Dec. 31). Only signature-based Visa authorized purchases will qualify for credit. ATM transactions and purchases made with a PIN do not qualify.
- The first $4,999.99 will earn 0% annual percentage yield
- $5,000.00 - $9,999.99 will earn .25% annual percentage yield
- $10,000.00 and over will earn 1.00% annual percentage yield