Check Out Your Checking Account Options

While you may pat yourself on the back for having a free account, you've missed out on the returns that money could have earned if you had placed it in a higher yielding account.

(For example, say your bank requires a minimum balance of $750, but pays just 0.1% or even zero interest -- typical for an account with a relatively low minimum. If you moved those funds to a different account earning 3%, after three years you could have earned an extra $70.)

Not Sufficient Funds (NSF)

Many institutions offer overdraft protection as a courtesy, yet charge an NSF fee of $30 or so for every transaction you make once you've overdrawn your account.

If you are careful to monitor your balance, however, this is an easy fee to avoid. Even better, many banks allow you to link your checking and savings accounts to cover overdrafts.

Some institutions will even transfer money automatically from one account to the other, free of charge.

Limited Transactions

Accounts that tout themselves as "fee free" (i.e., no maintenance fees, no minimum required balance, etc.) sometimes limit the number of transactions you can make in a given month. You may be allowed only a certain number of checks or ATM withdrawals in a given month. If you exceed those limits, you'll be charged a couple dollars for each transaction over the limit.

In conclusion, when you choose a checking account, don't just go for one that says it's free, or for the one that offers the highest rate. Make sure you look closely at the fee and rate schedule to see if the account's features line up with your financial needs.