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What to Consider Before Choosing a Checking Account [Checklist]

A checking account helps you manage your everyday finances. You may use it to deposit your paycheck, pay bills, make debit card purchases, withdraw cash, and transfer money. Because you’ll likely use it often, finding the right checking account features is essential.

Choosing a checking account can be challenging with so many options. Banks and credit unions offer accounts with different fees, minimum balance requirements, ATM access, and other features. This checklist helps you compare accounts and find the best checking account for how you bank. 

COMPARE CHECKING ACCOUNT FEES

Checking account fees can vary significantly between financial institutions, so it's important to understand what you'll be charged. Credit unions like Fibre Federal Credit Union are member-owned, not-for-profit financial institutions. This structure may allow them to offer lower fees and better rates. 

Here are some fees to look for at any financial institution:

• Monthly service fee: This fee may be waived if you maintain a required balance or meet other criteria.

• Overdraft fee: When you spend more money than you have in your account, your financial institution may charge an overdraft fee to cover the transaction. 

• Out-of-network ATM fee: You may be charged a fee when you use an ATM outside your bank or credit union’s network.

• Returned-item/NSF fee: You may be charged a fee when you don’t have enough money in your account to cover a transaction.

Checking accounts advertised as “free” may still charge fees for additional services, like wire transfers, stop payment orders, and replacement checks. “Free” usually means the account doesn’t have monthly service fees.

CHECK MINIMUM BALANCE REQUIREMENTS

Some checking accounts have minimum balance requirements that can determine if you are charged a monthly fee. Before opening an account, check for an opening deposit requirement and any minimum daily balance you must maintain. 

Some financial institutions waive minimum balance requirements when you meet qualifying criteria, such as setting up direct deposit or maintaining a required balance across linked accounts. 

CONSIDER ATM AND BRANCH ACCESS

Convenient ATM and branch availability can make a difference in how you manage your account. Before opening a checking account, consider the: 

• ATM network: Does the financial institution have convenient ATM locations?

• ATM fee reimbursements: Does the bank or credit union reimburse fees charged for using out-of-network ATMs?

• Deposit access: Can you deposit cash and checks, or can you only make withdrawals?

• Withdrawal limits: How much can you withdraw each day?

If you prefer in-person banking, also check for nearby branches and hours that fit your schedule.  

REVIEW OVERDRAFT OPTIONS

An overdraft is when you don't have enough money in your checking account to cover a transaction. When this happens, your bank or credit union may decline it. They may also cover it and charge you a fee.

Review the overdraft protection options available. With some financial institutions, you can link your checking account to your savings account. If an overdraft occurs, funds are automatically transferred from your savings to cover it. This service may incur a fee. Other financial institutions may offer an overdraft line of credit.

COMPARE ONLINE AND MOBILE BANKING FEATURES

Mobile and online banking make it easy to manage your checking account at home or on the go. These services let members handle many banking tasks without waiting for a branch to open. Compare these features:

• Mobile check deposit: Can you deposit checks remotely with your smartphone?

• Bill pay: Can you schedule and pay bills through the mobile app?

• Money transfers: Can you transfer money between accounts or send money to others?

• Account alerts: Can you set up text or email alerts for transactions, low balances, and other account activity?

Also, check which security features the financial institution uses to protect your account, like two-factor authentication and encryption. Some mobile banking apps also offer biometric login, which lets you sign in with your fingerprint or facial recognition.

UNDERSTAND FUNDS AVAILABILITY

Funds availability refers to when deposited money becomes available to use. The timing can vary by deposit method, so compare policies for in-person, ATM, and mobile check deposits. 

Deposit cutoff times also matter. A deposit made after the daily cutoff may be treated as if it were made the next business day, which could delay access to the funds.

LOOK AT DEBIT CARD FEATURES

Most checking accounts come with a debit card for in-store and online purchases and ATM withdrawals. Since debit card features can vary, compare: 

• Contactless payments: Can you make transactions without inserting the debit card into a payment terminal?

• Digital wallet compatibility: Can you add your debit card to Apple Pay, Google Pay, and Samsung Pay? 

• Card controls: Can you lock or unlock your debit card through the mobile app if it’s lost or stolen?

• Transaction limits: Are there daily limits on debit card transactions or ATM withdrawals?

COMPARE CHECKING ACCOUNT DIVIDENDS 

Not all checking accounts earn dividends. Because checking accounts are used for everyday transactions, their yields are generally lower than savings accounts and other dividend-bearing accounts. 

If a checking account earns dividends, compare the annual percentage yield (APY). Also check for any balance, debit card transaction, or direct deposit requirements for earning the advertised rate.

CONSIDER CUSTOMER SERVICE AND CONVENIENCE 

The level of customer service a financial institution offers can make the difference between good and truly great. When comparing financial institutions, consider:

• Live banking support: Can you reach someone when you need assistance by phone, live chat, video call, or other convenient channels? 

• Shared branch access: If it’s a credit union, does it participate in shared branching so you can receive service at other credit unions?

• Multilingual support: Can you talk to someone in your preferred language?

At a credit union, members are owners rather than just account holders, which can translate to more personalized service when questions come up. 

FIBRE FEDERAL CHECKING ACCOUNT OPTIONS

Fibre Federal offers Choice Checking and Money Market Checking, each with different features, requirements, rates, and fees. Compare the current account details before deciding which one works best for you. 

Choice Checking

Choice Checking has no monthly maintenance fee or minimum balance requirements. Members who meet the monthly requirements can earn premium dividends and receive ATM fee refunds. 

Money Market Checking

Money Market Checking offers money market dividends and requires a $1,500 opening deposit. 

FIND THE RIGHT CHECKING ACCOUNT

The best checking account for you depends on how you plan to use it. Compare fees, balance requirements, digital banking tools, ATM availability, and other features before you decide.

Ready to open a checking account? Compare Fiber Federal's checking accounts and choose the features that best fit your banking style.

Compare Checking Account Options

7 Must-Know Benefits of a Checking Account

A checking account is an essential tool for managing your money. You can use one to pay bills online, receive direct deposit payments, and make everyday purchases with a debit card. 

Beyond making everyday transactions easier, checking accounts offer a variety of features that can simplify money management, provide added security, and help you stay organized. Here are seven important benefits to know. 

1. CONVENIENT ACCESS TO YOUR FUNDS

A checking account gives you easy access to your money whenever you need it. Instead of relying on cash or waiting for business hours, you can manage your finances in several convenient ways, including: 

• Writing paper checks for rent, bills, or other payments

• Making in-store and online debit card purchases

• Withdrawing cash from ATMs

• Setting up direct deposit for faster access to paychecks

• Paying bills through online banking or automatic payments

• Transferring money between accounts

Because a checking account gives you multiple ways to access your money, your funds are always available when you need them. For example, if an emergency or unexpected expense arises, you can quickly withdraw cash from an ATM, use your debit card for purchases, or transfer funds through Online Banking. 

2. YOUR MONEY IS FEDERALLY INSURED

One of the most important checking account benefits is knowing your money is federally insured. If your account is with a credit union, deposits are insured by the National Credit Union Administration (NCUA). If your account is with a bank, deposits are insured by the Federal Deposit Insurance Corporation (FDIC).

Federal deposit insurance helps protect your money by:

• Covering accounts for up to $250,000 per depositor, per bank or credit union

• Providing a safer alternative than storing cash at home

• Giving you peace of mind knowing your money is federally backed

This protection is one of the many reasons why keeping your money in a checking or savings account is safer than using cash or prepaid cards.

3. SECURELY MANAGE YOUR MONEY

With a checking account, you can stay connected to your finances and access your accounts from almost anywhere. Many banks and credit unions offer digital tools that make it easier to review spending, keep an eye on account activity, set savings goals, and stay informed about your finances.

Depending on the financial institution, these tools may include:  

• Annual credit reports 

• Regular credit score checks 

• Budgeting tools 

• Mobile alerts

• Bill payment reminders

• Automatic savings transfers

• Mobile check deposits

With these features, a checking account can be more than a place to keep your money. It can serve as a central hub for managing day-to-day finances and staying organized. 

4. AVOID COSTLY FEES

Another advantage of a checking account is that it can help you avoid unnecessary fees. Without one, everyday tasks like cashing checks, transferring money, or paying bills may cost more than they need to. 

Potential fees you may avoid with a checking account include:

• Check cashing fees

• Money order fees

• Bill payment processing fees

• Wire transfer fees

• Fees charged by non-bank ATMs 

These costs can quickly add up. A checking account can reduce or eliminate the need for many of these services by giving you direct access to your money and everyday payment tools.  

For example, if you need to cash a check, you can do it at a local branch without paying a fee. If you need to pay a bill, you can write a check or pay online. Setting up direct deposit also allows your paychecks to be deposited directly into your account, eliminating the need for check-cashing services.

5. EASY EXPENSE TRACKING AND BILL PAY 

A checking account can provide greater visibility into your spending. With a mobile banking app, you can view transactions in real time and see where your money goes each month. Regularly reviewing your transaction history can support budgeting efforts and encourage more intentional spending habits. 

With a checking account, you can:

• Quickly see how much you spent on gas, groceries, or dining

• Check whether you have already paid a bill

• Track spending while traveling or on vacation

• View recent purchases and deposits

• Search your transaction history for payments or purchases

• Spot potential fraud quickly

A checking account can also simplify payments and help you stay organized. For example, you can schedule automatic bill payments for recurring expenses like utilities, insurance, car payments, or your rent or mortgage, so you don’t miss due dates. Knowing your bills are paid automatically provides peace of mind and prevents late fees or damage to your credit score.

6. OVERDRAFT PROTECTION

Overdraft protection is another valuable checking account benefit. Depending on the overdraft service available on your account, it can provide an added layer of protection when your balance is lower than expected and may help reduce declined transactions or returned payments. 

Depending on the bank or credit union, overdraft protection may offer:

• Transfers from a linked savings account

• Grace periods to repay negative balances

• Reduced risk of declined transactions 

Overdraft protection can minimize interruptions when your account balance is lower than expected. For example, if your checking account is linked to an eligible savings account, funds may be transferred automatically when an overdraft occurs. 

7. EARN DIVIDENDS ON YOUR BALANCE

Some checking accounts do more than just hold your money — they help it grow. While banks may pay interest on checking account balances, credit unions may pay dividends to members. 

Dividend-bearing checking accounts, like Fibre Federal Credit Union's Choice Checking, reward qualifying account activity by paying dividends on balances up to $20,000. To earn the higher dividend rate, you'll need to:

• Make 12+ debit card transactions of $5+

• Receive E-Statements

• Have one direct deposit, automatic electronic payment, or credit card purchase each cycle

If you don't complete a requirement during a cycle, you'll still earn dividends, but at a lower rate.

For members who already use their checking account for everyday spending and direct deposit, Choice Checking offers an opportunity to earn more from everyday balances. 

CHECKING ACCOUNT BENEFITS WITH FIBRE FEDERAL

At Fibre Federal, our checking accounts are designed to make everyday money management easier. From everyday spending and digital banking tools to opportunities to earn dividends, we offer account options to match a variety of banking styles. With features like Online and Mobile Banking, free E-Statements, debit card access, and Online Bill Pay, you can manage your money on your schedule, from almost anywhere.

Open a checking account today for a better way to manage your money.

Explore Our Checking Account Options

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How Long Are Home Loans? Mortgage Terms Explained

Not all home loans are the same, and mortgage terms can vary significantly. That's why understanding how home loans work is so important. Knowing how different loan terms and types of mortgages affect your budget can help you choose the right home loan for your needs. Let's take a look at how different loan terms work, what they mean for your monthly payment, and how they affect your total borrowing costs.

UNDERSTANDING MORTGAGE TERMS

When you take out a mortgage, the loan term is the maximum amount of time you have to repay the money you borrowed, plus interest. For example, a 30-year mortgage gives you 30 years to pay off your home loan. However, you can always make extra payments or pay off your mortgage early to save on interest. 

If your financial goals change, refinancing may allow you to switch to a shorter or longer loan term. Refinancing replaces your mortgage with a new mortgage that may have a different interest rate and monthly payment. Closing costs apply when you refinance, so be sure to consider whether the benefits outweigh the costs.  

How long are home loans? In the U.S., the most common home loan term is 30 years. At Fibre Federal, we offer mortgages with terms of 10, 15, 20, and 30 years. The right term for you depends on your budget, long-term plans, and how quickly you want to build equity. 

The chart below compares the advantages and trade-offs of common mortgage terms:

The shortest mortgage term lenders offer is 10 years, while the longest is 40 years. While 30-year mortgages are the most popular option, terms longer than 30 years aren't common. A 40-year loan may give you a lower monthly payment, but it usually has stricter qualification requirements and a higher interest rate, meaning you'll pay significantly more interest over time.

HOW MORTGAGE AMORTIZATION WORKS

Mortgage amortization is the process that determines how much of your monthly payment goes toward the principal and interest over the life of the loan. When you start making payments on your loan, a larger portion goes toward interest. As you continue paying down the loan, more of your payment goes toward the principal.

Amortization affects how quickly you can build equity. Because more of your payments go toward interest in the beginning, your equity grows slowly at first. Later, as more of your payments go toward the principal, you build equity more quickly. Making extra payments can increase your home equity, reduce the amount of interest you pay, and potentially help you pay off your loan sooner.

The chart below shows how principal and interest are allocated:

HOW MORTGAGE TERMS AFFECT INTEREST RATES

When comparing mortgage terms, it's important to look at the annual percentage rate (APR) rather than just the interest rate. The APR includes the interest rate, loan fees, and mortgage points, giving you a more complete picture of your borrowing costs. 

The length of the mortgage term can have a significant impact on your APR. Short-term fixed-rate loans of 10 or 15 years usually have lower APRs because they're considered less risky and are repaid more quickly. On the other hand, longer loan terms of 20 or 30 years typically have higher APRs because the longer repayment period extends the loan and increases the lender's risk. 

Here are the key differences between shorter and longer mortgage terms:

Short-term mortgages (10 to 15 years)

• Typically have lower APRs

• Have higher monthly payments

• Cost less in total interest 

Long-term mortgages (20 to 30 years)

• Typically have higher APRs

• Have lower monthly payments

• Cost more in total interest 

With adjustable-rate mortgages (ARMs), your interest rate can increase or decrease over time based on market conditions. With fixed-rate mortgages, your rate is locked in and won't change over the life of the loan. Other factors can also affect your interest rate, including your credit score, loan-to-value (LTV) ratio, down payment amount, and current market conditions.

HOW MORTGAGE TERMS AFFECT MONTHLY PAYMENTS & BORROWING COSTS

The loan term you choose doesn't just affect your APR; it also affects your monthly payment. A longer loan term of 30 years allows you to spread out your payments over more time, giving you lower monthly payments. This can make your mortgage easier to fit into your budget, and it may even give you the flexibility to afford a higher-priced home.

If you finance a home with a shorter term, you'll pay off your loan balance sooner. Although a shorter term typically gives you a higher monthly payment, it often comes with a lower APR and allows you to build equity in your home more quickly.

A longer loan term can lower your monthly payment, but it can significantly increase your borrowing costs. The longer your repayment period, the more total interest you'll pay.

The chart below compares the monthly payment and total interest paid for a $400,000 fixed-rate conventional mortgage at 6% interest for 15- and 30-year terms.

A 30-year mortgage can cost more than twice as much in total interest as a 15-year mortgage. That's why it's important to choose the shortest loan term that you can comfortably afford. 

WHEN TO CHOOSE A SHORT-TERM MORTGAGE

A short-term home loan can help you save money and build equity faster, but it’s not the right choice for every borrower. A 15- or 20-year mortgage may be a good fit if:

You Can Afford a Higher Monthly Mortgage Payment 

Although a shorter loan term will increase your monthly payment, it could help you save tens of thousands of dollars in interest over the life of your mortgage, depending on your loan balance. It can help you become mortgage-free sooner and free up money for other goals, like planning for retirement.

You Want to Build Equity Faster  

With a 15-year mortgage, a larger portion of your payment goes toward the principal each month. This allows you to build home equity more quickly than you would with a longer loan term. Having more equity can give you additional borrowing options in the future, like a home equity loan or HELOC, which can be used for home improvements, debt consolidation, or other major expenses. 

You Don’t Plan to Stay in Your Home Long

If you expect to sell your home within a few years, a shorter mortgage term may help you pay down your loan balance more quickly. This could leave you with more equity when you sell, potentially increasing the amount you can put toward your next home.

WHEN TO CHOOSE A LONG-TERM MORTGAGE

A long-term mortgage of 20 to 30 years helps you spread your loan payments over a longer period. A longer loan term may make sense when:

You Want a Lower Monthly Mortgage Payment

A 30-year loan provides more time to pay off your home, which lowers your monthly payment. This can give you more breathing room in your budget to cover daily expenses, build an emergency fund, contribute to retirement savings, or work toward other financial goals. Lower monthly payments may also make it easier to qualify for a home that fits your needs.

You Want the Flexibility to Make Extra Payments

Choosing a longer-term mortgage doesn't mean you have to pay it off slowly. You can make additional payments toward the principal whenever your budget allows. This gives you the benefit of lower monthly payments while allowing you to pay off your mortgage ahead of schedule if your financial situation changes.

You Want to Buy the Most House You Can Afford

A longer loan term may increase the amount you qualify to borrow by lowering your monthly mortgage payment. This can give you more flexibility when choosing a home and help you find one that truly fits your needs. It may allow you to purchase a larger home or choose a property in a preferred neighborhood.

Frequently Asked Questions

Can you change your mortgage term?

Yes. You can change your mortgage term later by refinancing your home loan. Keep in mind, however, that refinancing may change your interest rate and involve closing costs, so it's important to compare your options before making a decision.

What's the difference between a fixed-rate and adjustable-rate mortgage?

With a fixed-rate mortgage, the interest rate stays the same throughout the life of the loan, and your principal and interest payments won't change. An adjustable-rate mortgage (ARM) offers a fixed interest rate that may be lower than fixed-rate mortgages for an introductory period. After that, the rate can increase or decrease over time based on market conditions.

What is the average mortgage term?

The most common mortgage term is 30 years. However, many lenders also offer mortgages with terms of 10, 15, and 20 years.

Should I get a 15- or 30-year mortgage?

It depends on your budget and financial goals. A 15-year mortgage can help you pay off your home sooner, build equity faster, and save money on interest, but it comes with higher monthly payments. A 30-year mortgage offers lower monthly payments, but you'll typically pay more interest over the life of the loan. 

Can you pay off a mortgage early?

It depends on the mortgage lender. With Fibre Federal, there are no early prepayment penalties. Paying off your mortgage early could help you save money on interest, depending on your remaining balance.

CHOOSE THE MORTGAGE THAT’S RIGHT FOR YOU

Choosing the right mortgage term is one of the most important financial decisions you'll make when buying a home. That's why comparing different loan terms and considering how long you plan to stay in your home is essential. The mortgage you choose will affect your monthly payment, total borrowing costs, and how quickly you build equity. 

Ready to take the next step? Explore our low-rate mortgage loans and find the term that works best for your needs and budget.

Social Security Seminar: Sept 15

The Social Security Roadmap: How Claiming Decisions Impact Lifetime Income

Presented by: Cindi Hill, CFP®, ChFC®, RICP®, CRPC®, ABFP®, NSSA® Owner, CKH Retirement Pathways

Tuesday, September 15

6pm-7:30pm

Fibre Federal Credit Union Operations Building

796 Commerce Ave Suite 200, Longview, WA

 

Social Security is an important piece of your retirement plan, and the choices you make can affect your income for years to come. Learn what to consider so you can make an informed decision with confidence.

Topics will include:

• Social Security basics
• When to claim
• Spousal benefits
• Strategies based on earnings
• Coordinating benefits

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Fibre Federal Credit Union and Fibre Financial Group are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Fibre Financial Group and may also be employees of Fibre Federal Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Fibre Federal Credit Union or Fibre Financial Group. Securities and insurance offered through LPL or its affiliates are:

The LPL Financial registered representatives associated with this website may discuss and/or transact business only with residents of the states in which they are properly registered or licensed. No offers may be made or accepted from any resident of any other state.

Your Credit Union (“Financial Institution”) provides referrals to financial professionals of LPL Financial LLC (“LPL”) pursuant to an agreement that allows LPL to pay the Financial Institution for these referrals. This creates an incentive for the Financial Institution to make these referrals, resulting in a conflict of interest. The Financial Institution is not a current client of LPL for advisory services. Please visit https://www.lpl.com/disclosures/is-lpl-relationship-disclosure.html.

LPL Financial Form CRS

1168389-02-04