It is important to pay close attention to what the banks are charging you for fees on your checking account. I recently opened another checking account with my bank and just deposited a check which I had received from a client. I was intending to use this account just for one line of business. The bank had advertised “totally free checking,” but after I had written a few checks, all of a sudden the checks started bouncing. They said that I had failed to wait the required time to write checks.
To make a long story short, I ended up paying $295.00 in fees. When I asked for the account to be closed, they said they could not close it and they would continue to charge fees daily until it was closed. I was in shock. I had been reading about the problems that others were having with their credit cards and bank fees. I finally paid off the fees and closed the account.
When looking around for a checking account, read the contracts carefully. Often in a rush to open the accounts, some people fail to ask about and read about all of the charges. In my case, the contracts were online. I don’t know if there is a way to avoid all of the charges, but ask about all the fees before opening a new account, especially a business account.
It seems the banks are looking for ways to make up for losses on the home mortgages that went bad. This should end when the new credit card legislation goes into effect in February 2010. But between now and then be very careful about your banking habits.