Oct 18, 2023
One of the good things about getting older is that you find a myriad of deals and discounts aimed toward seniors and often people several years younger than the typical retirement age. Even your bank might have something for you.
Some banks offer special “senior checking” accounts that can come with attractive perks. But these accounts also can have drawbacks that should make you think twice. Here's how to decide if a senior checking account is worth it for you.
What is a senior checking account?
Checking accounts for seniors are similar to regular checking accounts, though typically it can be easier to avoid annoying fees. You might qualify for senior checking as early as age 50 or 55.
Must Read
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Robert Kiyosaki begs investors not to miss this ‘explosion’ — says this 1 asset will surge 400% in a year
- Vanguard reveals what could be coming for U.S. stocks, and it’s raising alarm bells for retirees. Here’s why and how to protect yourself
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Benefits of a senior checking account
The accounts can offer a multitude of benefits, including:
Advertisement
- Waived account maintenance fees
- Interest on your deposits
- No overdraft fees
- Free checks
- Discounted or free safe deposit boxes
- Free personalized financial advice
- Discounts on movie tickets
These perks might be very appealing to you, especially if you prefer to go to physical bank branches rather than do your banking online.
More: Best banks of 2023
Drawbacks of a senior checking account
One of the main drawbacks of a senior checking account is that many come with requirements that some seniors may have difficulty meeting.
You might incur fees if you can't maintain an average monthly balance or make a certain amount of direct deposits each month. Or, there may be a minimum balance that must be met before you can start earning interest on your account.
For example, TD Bank offers TD 60 Plus Checking SM), which comes with free checks, money ordes and paper statements, plus allows you to earn interest on your balance. But the checking account charges a $10 monthly maintenance fee — double that of some regular checking accounts — if you can't maintain a daily balance of $250. That's as much as $120 a year.
Advertisement
Keep in mind that the account perks can vary greatly by institution and may not have as much value in your state. In Massachusetts, seniors 65 and older are eligible for free checking accounts and savings accounts at state-chartered banks.
Read More: Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
Is senior checking right for you?
Before you sign up for a senior checking account, make sure you can follow the requirements — to avoid potential costs.
If an account requires direct deposits, you might easily comply if you’re already making regular withdrawals from an IRA or 401(k).
You can sidestep senior checking fees if you set up those withdrawals to automatically direct-deposit into your account. This could make senior checking — and its perks — a better deal than some regular checking accounts.
But another thing to consider is whether the benefits of senior checking match your needs.
Maybe what you really want is to generate higher interest. You may find a high-yield checking account that offers better interest than senior checking, and with no fees.
Advertisement
For example, the Charles Schwab Bank Investor Checking™account charges no monthly fees, includes unlimited ATM fee rebates and has no foreign transaction fees. That's perfect for seniors with the travel bug.
And, know that many of the perks associated with senior checking may be given to you anyway, particularly if you have a long-standing relationship with the bank and have kept a lot of money in your savings account or have maintained other high balances.
Banks like to keep their loyal customers happy, so they won’t take their business elsewhere.
More: Best retirement planning tools
You May Also Like
- Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast
- This 20-year-old lotto winner refused $1M in cash and chose $1,000/week for life. Now she’s getting slammed for it. Which option would you pick?
- Warren Buffett used these 8 repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)
- Here are 5 easy ways to own multiple properties like Bezos and Beyoncé. You can start with $10 (and no, you don’t have to manage a single thing)
Rudro is an Editor with Moneywise. His work has appeared on Yahoo Finance, MSN Money and The Financial Post. He previously served as Managing Editor of Oola, and as the Content Lead of Tickld before that. Rudro holds a Bachelor of Science in Psychology from the University of Toronto.
-1741291165.png)
-1697727014.jpg)
