Why Some Banks Provide Free Checking Accounts To Borrowers
If you are ready to get a mortgage loan to buy a house and decide to use a new bank for the loan, the bank might offer you a free checking account. While you may not have to open a checking account with the bank, it might be helpful if you do. Checking accounts often offer perks, and getting a free one might help you save money in the long run. Here are several things you should understand about opening a free checking account with the lender you use for your mortgage.
Why Banks Offer Free Checking Accounts with Loans
When banks offer loans to people, they often encourage them to open accounts with them by offering free accounts. Banks encourage this for several reasons. The first reason is to have a closer connection with the borrower. If the borrower has an account, he or she will utilize more of the bank's services. Secondly, the borrower can easily set up automatic payments with the bank for the loan if he or she has an account with the bank. When borrowers set up electronic payments, the bank's risks decrease.
Banks also benefit from this by receiving deposits from account holders. Banks use this money to fund loans and projects, and this is what keeps a bank going.
You Can Use It for Direct Deposits
If your bank offers a free checking account when getting a loan, they may also encourage you to switch your direct deposits to the account. By switching your direct deposits to the bank that gives you a mortgage, you can easily make your mortgage payments. Doing this also simplifies your banking matters because you can handle all your banking business at one bank. You never have to pay for direct deposit services, so you should consider doing this, too.
The Benefits of Having a Free Checking Account
While the bank benefits from you having a checking account, you also benefit from this event. If you currently have a checking account that is not free, you benefit by having one now that will not cost you anything. Saving money is vital, and if a free account helps you save some money, it is worthwhile.
Additionally, this bank might offer some features with the account that are beneficial to you. For example, they might pay you interest on the money in your account. They may offer free bill-pay services. You might also have access to many other helpful features with the account. The best part is that you will not have to pay any fees for having the account.
One other thing to know is that many banks offer promotions with free checking accounts. They may provide you with a cash reward if you keep a specific amount of money in the account for the first few months. They may also offer you cash or prizes if you use your account a particular number of times during the first few months.
Why You Should Never Pay Fees to Have a Checking Account
It is always wise to look for a bank that offers free checking accounts. You should never have to pay fees to have a checking account when so many banks offer them for free. When you look for a free checking account, compare the features that the accounts provide. From there, choose the best account for your needs and desires.
Almost every bank in this country offers checking accounts, but some are not free. If you would like to learn more about getting a free one, contact a bank that offers free accounts to find out how to get one.
To learn more, contact a resource like FCCU - First Community Credit Union.