Checkless checking account: what it is and how it works
For some, writing a check may only happen once in a blue moon, or never at all. There are checking accounts designed to eliminate checks altogether, and you might consider one if you find that checks aren’t important to your personal finances.
Alternatively, a checkless checking account might be a suitable option for someone who is a minor or who has previously been denied a regular checking account.
Here’s everything you need to know about this unique type of checking account.
What is checkless checking?
As the name suggests, a checkless checking account is a transactional account that you cannot write checks to. Checkless checking accounts can reduce the risk of overspending because your payment options are limited and overdraft coverage isn’t available in most cases.
Someone who has been rejected for a traditional checking account (for example, because they have not paid back overdraft fees in the past) may find it easier to be approved for a non-checking checking account. The bank can enable you to establish a good banking relationship with one of these slightly more restricted accounts.
Many non-current checking accounts are also suitable for younger people who are expanding their banking experience. The account may be free of charge for younger persons and allow minors to open it together with an adult.
Although you can’t write checks against a checkless checking account, you can usually still deposit checks, whether at a branch or through mobile check deposit.
Top checkless checking accounts
Pros and cons of checkless checking accounts
Is a Non-Checking Account Right for You?
There are a few scenarios where a checking account might be ideal:
- You have been rejected for a checking account in the past because of a history of bad checks being written or overdrafts not being paid.
- You are a minor or have a minor child and want to establish a good banking relationship.
- You already have a check-writing bank account and want to open another account that you’ll use primarily for debit card spending or bill payments.
If you can open a regular checking account and don’t already have an account to write checks to, a non-checking checking account may not be the first account type to consider. You may need to write a check, although this is rare.
In 2021, 46% of US consumers said they had written a check at least once in the last 30 days, according to the Survey and Diary of Consumer Payment Choice. It is useful to have the ability to write checks in case a check is needed.
Anyone who has previously been rejected for a checking account also has other options. There are some second chance checking accounts that come with check writing privileges. However, second chance accounts may come with higher monthly fees that cannot be waived. Therefore, it is important to compare fees before deciding on an account.
Even minors can find accounts with checks. Many banks offer teen checking accounts that can be opened jointly by parents and children. For example, Capital One offers a MONEY checking account for teens that doesn’t have a monthly fee or minimum balance.
bottom line
Checkless checking accounts could be a good option for minors and those who have been turned down for a traditional checking account. They might also be suitable for someone who wants to open an additional transactional account, primarily used for debit card transactions or other types of electronic payments.
Otherwise, it’s important to have an account that you can use to write checks because you never know when you might need to send a check to an elderly relative or pay a check-only landlord. Browse standard checking accounts or consider a money market account that allows for a limited number of checking transactions each month.
