Table Of Content
What Is Senior Checking Account?
Senior checking account offers features that appeal to seniors. As you grow older, your financial needs change. In line with such changes, financial institutions offer a senior checking account.
A senior checking account is a regular account meant explicitly for older clients aged 55 years and above. The unique perks are aimed at providing support to senior citizens.
The requirements and perks vary from bank to bank, but free checks and fee waivers are some of the main exceptional features and selling points.
How Does It Work?
A senior checking account works the same as other checking accounts, but it is designed for clients of 55 years and above who are usually in retirement.
You can use your senior checking account to safely store your money and access and spend the funds without difficulties. Also, you can make payments or purchases using a debit card or check with a senior checking account.
Senior checking accounts have features and perks that make it easier for senior citizens to manage their finances.
Below are some of the benefits of operating a senior checking account.
- No transaction fees
- Free checks
- No or low minimum balance requirement
- No monthly service charges
- No statement processing fees
- No CD Penalties
Differences Between Senior and Traditional Checking Accounts
Checking accounts play an important part in the banking system. The accounts allow you to deposit funds, transfer, pay utilities, and do other routine financial transactions.
Although checking accounts are the same, a senior checking account differs from the others in the following ways.
- Unique perks. Senior checking accounts have unique perks geared towards supporting senior people—for example, free checks, no transaction fees, and waived CD penalties.
- Age requirements. Although senior and traditional checking accounts both serve the same purpose, senior checking accounts have an age requirement. You must be 55 years and above to be eligible to open a senior checking account.
- Application procedure. Although the account opening process is the same for traditional and senior checking accounts, you have to designate beneficiaries in a senior checking account.
Pros and Cons of Senior Checking Account
There are different pros to opening and operating a senior checking account, including:
Unique and additional perks
Adjusted to Seniors
Difficult to earn interest
You enjoy free checks and incur no monthly charges or transaction fees when you operate the account.
Senior checking accounts make it easier for senior citizens to manage their financial needs. In this regard, the accounts make it easy for senior citizens to access their funds.
For example, you can easily access funds by visiting a bank, using a debit card, writing a check, or making an online transfer.
Funds in a senior checking account are safe and secure because they are FDIC-insured.
Some banks offer senior checking accounts with monthly maintenance fees higher than other checking accounts.
As much as you can avoid common bank fees by maintaining a minimum balance, you may incur the expense if your minimum falls below the threshold.
Some banks with the best senior checking accounts are only in some regions.
This makes it difficult for senior citizens in other regions to access their accounts in person.
Some banks require a minimum balance for money in your senior checking account to earn interest. For a senior citizen, it may be difficult to raise the minimum balance if it is high.
Therefore, it might be best if you keep some funds in your senior checking account and some in a savings account with a high-interest rate.
How to Choose Senior Checking Account
The competition among banks for depositors' funds continues to increase the bonuses, rewards, and perks attached to checking accounts.
For seniors, promotions include discounts, free checking, and waived monthly fees for maintaining minimum account balances. Below are the factors to consider in choosing a senior checking account.
Before you sign up for a new senior checking account, you need to find out if they offer desired features—for example, good interest rates, free checks, or waived maintenance fees.
You can ask the bank representatives whether the accounts come with free or discounted checks. In this regard, a senior checking account with flexible terms is better than one without such terms.
Some banks have few branches, and some are only available online. The physical presence or lack of it can help you choose a senior checking account aligned to your needs.
Convenience is important for seniors when selecting an ideal checking account. Therefore, you also need to consider the ease of accessing banking services and the locations of the branch offices.
Given that some banks have minimum balance requirements, it is important to know the requirements that you need to fulfill to avoid paying monthly maintenance fees.
Also, many banks offer other checking account types, such as interest-bearing accounts, so check out if you can earn interest on your balance.
How to Open Senior Checking Account
Senior Checking Account Alternatives
Different people have unique financial situations that might require additional banking solutions to meet specific needs.
The good thing is that most banks offer checking and savings accounts and other money management options.
You can manage your finances with the following alternatives to a senior checking account
- Cash: This alternative is for you if you use cash and are mindful about spending and saving. The alternative is not insured, and you must be more disciplined about keeping track of your funds. With this alternative, you can visit billers’ payment centers to pay bills with cash
- Check-cashing services: You may rely on check-cashing services if you have a check to cash but do not have a bank account. You incur a fee for the services.
- Money orders: You can use this alternative to pay bills, make payments and send money. You can purchase money orders in several places, including a bank, retail stores, and post offices.
Although you pay fees for the money orders, you can track payments to ensure they are delivered to the right recipient.
- Prepaid cards: Using prepaid cards is ideal if you have a variable income and do not want to pay overdraft fees. Also, prepaid cards may offer transaction monitoring and fraud protection to protect your money from suspicious activity. Most prepaid cards come with access to online banking to manage your finances.
What Banks Offer a Senior Checking Account?
Some banks offer a free checking account that can be relevant for seniors (as well as other types of customers such as teens and minor accounts), and some banks offer accounts adjusted specifically for seniors.
Here are three examples of such accounts:
- TD Bank: TD bank 60 plus checking is a senior checking account that is best for paper statements and free checks. The interest-bearing account is available to customers aged 60 years and above. A debit card is included with the account, and you can get services in person from the bank's many branches. The bank can waive the $10 monthly fee if you maintain a minimum daily balance of $250.
- Axos Bank: The bank offers the golden checking account designed for people aged 55 years and above. The account earns interest on all account balances. Also, there are no maintenance fees, and you receive $20 for a referral.
- Regions Bank: The bank's LifeGreen 62+ checking account is available for clients over 62 years. The account allows you to earn cash back from some purchases. Other account perks include discounts on qualifying loans and discounts on safe deposit boxes.
Yes. Senior checking accounts are for clients aged 55 and above. Sometimes, you must be at a specific age to open an account. For example, you must be 62 years or older to open LifeGreen 62+ at Regions bank. When you open a senior checking account, you enjoy more perks than other accounts.
Yes. Some senior checking accounts offer promotions for potential customers and rewards and discounts existing clients to sell the products and increase the bank’s client base.
For example, LifeGreen 62+ offers promotions in the form of discounts. Also, you get cash-back rewards for some purchases, discounts on loans, and safe deposit boxes.