Free checking accounts are becoming the most popular ways to bank these days.  What could possibly be more attractive than saving money with a checking account with no fees and no minimums?  While it may seem the smart financial choice for the money-savvy consumer, it is important to be aware of potential add-on costs and fees that could quickly add up for a free checking account. 

Here are 5 tips for keeping your checking account from breaking the bank:

Initial Deposit - Know how much money you will need to deposit into your new free checking account.  Many banks have no minimums, but it is more common to find that you will need an initial $50-$500 investment to open your checking account.  Some banks will waive this minimum if you already have a line of credit or savings account with that bank branch; others will lower the initial deposit if it is regularly funded with an electronic deposit. 

Minimum Balance - If you find yourself low on funds in your checking account, will your bank charge you fees?  Ask about minimum balance fees before opening your checking account.  If the minimum required amount is too high, it may cause financial hardship to maintain that minimum balance.  With minimum balance fees starting at $25, it may not be worth keeping that extra money in the bank.  Many banks offer no minimums on a free checking account and will be happy keep it open with just a few dollars-a truly "free" checking account is required by law to have no minimum balance requirements.  You should always check the minimum balance fees for your checking account as required by your specific bank branch.

Research Fees - With the invention of online banking, it is now easier than ever to see where your checking account money has gone, and copies of checks and deposits can usually be viewed without the assistance of a personal banker.  However, what if you needed some additional information on a financial transaction?  Many banks charge fees for copies of statements or cleared checks.  If this is a service that you may find yourself using frequently, it will be worth it to find out how much it will cost you, if any bank fees apply at all, before you open your checking account.

Overdraft and Bounced Check Fees - While no one plans on having fees for insufficient funds in their checking accounts, it can happen to even the best of us.  Banks can charge extra costs as much as $39 for a money overdraft or bounced check, and many banks will charge an additional daily fee for each day that your checking account is overdrawn.  Find out in advance what overdraft and bounced check fees apply at your bank, and feel free to shop around to get the best deal in regards to checking account overdrafts.

Debit Cards - Debit cards are a standard add-on to many free checking accounts.  The added convenience of swiping a debit card, which is attached to your checking account, is forcing many customers to abandon checks altogether.  Be aware of what it may cost-in other words, what fees may apply-for using your debit card, and plan your trips to the ATM machine accordingly.  Using an ATM machine that isn't affiliated with your bank can cost up to $4, and some banks will also charge a Point-of-Sale (POS) fee for every transaction you make at a retailer with your debit card.

With so many banks competing for your money and businesses, there is no excuse for getting overcharged for "free" checking.  Do your bank research ahead of time-ask plenty of questions, and feel confident enough to take charge of your money and banking decisions. By partnering with the right financial institution, free checking can be a useful tool for keeping you finances on track.