Our goal is to share information and products that are truly helpful to renters.
If you click on a link or buy a product from one of the partners on our site, we get paid a little bit for making the introduction. This means we might feature certain partners sooner, more frequently, or more prominently in our articles, but we’ll always make sure you have a good set of options. This is how we are able to provide you with the content and features for free. Our partners cannot pay us to guarantee favorable reviews of their products or services — and our opinions and advice are our own based on research and input from renters like you. Here is a list of our partners.
Checking accounts for low balances
When you need a checking account but can’t worry about minimums
You know how it is — you get your paycheck, spend what you need to for a week, and then pinch pennies to make your money stretch until your next paycheck. As of today, most of us still need a checking account. But when you’re living paycheck to paycheck you need to know the best checking accounts for low balances to avoid penalties and overdraft fees.
Things to consider when searching for a low-balance checking account
Even when you decide that you want a checking account with no minimum balance requirement, there are a few things you’ll still need to think about.
- Will your account alert you if your balance drops too low?
- Do you want a big bank or a new, digital option?
- Do you want a checking account that offers interest on the money in your account?
Take a close look at all the options. Start with our recommendations above. We think they’re a pretty good mix of no-fee, no-minimum account.
And, while you’re at it, consider getting a savings account, too. Having one or the other is nice, but having the right pairing of savings and checking accounts can set you up quite nicely with the financial foundation you’ll want. Then, earn and spend your money!
What is an initial deposit?
The money you put into your checking account when you first open it is called your initial deposit. Nowadays, a lot of accounts call for a very small initial deposit or, in lots of cases, no deposit at all! This gives you a lot of flexibility, as you won’t have to pull together a ton of money just to have a checking account.
Find the right account and you can get up and running right away, putting money in your checking account as you go. And, if you choose the right account, you won’t have to worry too much about keeping a ton of money in it at any one time.
What is considered a “low balance?”
This can vary from account to account and bank to bank. And having a low balance can have a lot of impact in certain accounts.
For example, some accounts offer benefits if you have a high balance, such as interest on your money.
Others impose a penalty if your balance drops below a certain amount, such as charging you a monthly fee. This can be a real blow, as they’re taking money from you when you’re already falling below a certain threshold. And these levels can vary widely from account to account.
It’s often better to just not worry about minimum balances at all by choosing a checking account with no minimum.
According to Yahoo Finance, the average median checking account balance for an American under the age of 35 is $1,200, Considering the fact that we all have to pay things like rent, cell phone bills, and grocery bills, that’s not a lot of money.
Your balance can easily drop quite low, and you don’t want to face a penalty if you end up in that situation once — or more than once!
What penalties can I expect if the balance of my checking account is too low?
If the account falls below the minimum balance it may be assessed fees, denied interest payments, or closed. For certain types of accounts, you could face significant penalties if you keep your balance too low, such as overdraft fees or fees for insufficient funds.
But the good news is, there are a lot of great accounts that don’t have any penalty at all for having a low balance. In fact, some of the best checking accounts have no minimum balance requirements at all.
So, avoid getting hit by fees and penalties by choosing a checking account that has no minimum. That way, you can go about your business without having to micromanage your account (though we do recommend you keep it above zero.
If you think it’s going to dip below that mark over the course of a month, you should look closely at checking accounts that have no overdraft fees)
What about a no minimum balance checking account?
This is usually the best option for young people and people who have been used to living paycheck-to-paycheck. Of all the factors to consider when picking a checking account, this could be the most important one.
Find an account that has no minimum balance and you won’t have to worry about when you’re getting paid, when your rent is due, or when you have to make that car repair you’ve been holding off on. Just keep your balance above zero and you should be in good shape. These accounts are common these days, so be sure to look for them!
Your renters rights, in your state.
Explore what you need to know.
- Alabama Renters Rights
- Alaska Renters Rights
- Arizona Renters Rights
- Arkansas Renters Rights
- California Renters Rights
- Colorado Renters Rights
- Connecticut Renters Rights
- Delaware Renters Rights
- Florida Renters Rights
- Georgia Renters Rights
- Hawaii Renters Rights
- Idaho Renters Rights
- Illinois Renters Rights
- Indiana Renters Rights
- Iowa Renters Rights
- Kansas Renters Rights
- Kentucky Renters Rights
- Louisiana Renters Rights
- Maine Renters Rights
- Maryland Renters Rights
- Massachusetts Renters Rights
- Michigan Renters Rights
- Minnesota Renters Rights
- Mississippi Renters Rights
- Missouri Renters Rights
- Montana Renters Rights
- Nebraska Renters Rights
- Nevada Renters Rights
- New Hampshire Renters Rights
- New Jersey Renters Rights
- New Mexico Renters Rights
- New York Renters Rights
- North Carolina Renters Rights
- North Dakota Renters Rights
- Ohio Renters Rights
- Oklahoma Renters Rights
- Oregon Renters Rights
- Pennsylvania Renters Rights
- Rhode Island Renters Rights
- South Carolina Renters Rights
- South Dakota Renters Rights
- Tennessee Renters Rights
- Texas Renters Rights
- Utah Renters Rights
- Vermont Renters Rights
- Virginia Renters Rights
- Washington Renters Rights
- West Virginia Renters Rights
- Wisconsin Renters Rights
- Wyoming Renters Rights
- Washington, D.C. Renters Rights