A no fee checking account is an account that gives the account holder to open an account in a bank where they will be charged no fee on the minimum balance of the account. This kind of account is very useful for the people who generally maintain a low balance on their accounts. It is called a no fee checking account because the fee is not even charged for the usage of the ATM card at times. These accounts can be opened by anybody without many formalities. Then one might wonder that the bank is losing out on the fees that it could earn from these accounts. What is the benefit that the bank could be getting by letting a no fee checking account be opened?
The answer is quite simple. The banks look at the longer term perspective. The account is an attraction for a new customer towards the bank. Once the person becomes a customer of the bank with the account opened in his name then the bank can approach the customer for other services. These other services will generally include selling of the loans and getting investments from the new customer. The banks can try to reach their targets through the new customers that they have got through the non fee account. After opening the account the bank may approach the person depending on his financial standing to take a loan or to make investments through the bank. The other things can be the things that the bank will earn through.
This is not a wrong method. The no fee checking account is only a method to attract the customers to get in touch with the bank. The benefit that the bank will get out of the no fee checking account does not reduce the benefit that the customer will get. Hence it is a good option to open a no fee checking account. The only thing that has to be kept in mind is that the other charges that the bank offers do not cheat you in any way. Read the terms and conditions well before opening the no fee checking account.
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