For a long time, I kept my primary checking at the local branch of a large international bank. Over the years, though, they slowly bled me with lots of little fees here and there: a monthly maintenance fee, a $2 charge on pretty much every ATM use, and overdraft fees that were sometimes triggered by the other fees (yes, at least twice, I was hit by an overdraft fee when maintenance and ATM fees emptied my account).

After estimating that the fees were costing me almost $20 a month - and also considering that I was not earning any interest on the balance - I made the move to switch my primary checking account to another free checking account, which is basically fee-free. It’s worth the constant money savings to switch your primary checking account to a bank that’s happy to have your business and treats you well - a $20 swing per month for me was quite nice.

And when I switched, I received free checks, a free Debit Card which doubles as a Visa Card, and no fees at ATMs, not only for my bank, but any ATMs. Not only that, but the bank people were nice, friendly, sincere, and were open early, later and on weekends and holidays. If this sounds too good to be true, then you are at the wrong bank. And guess what, free checking allows you to have additional accounts if you need them for free, for taxes, charity donations, or individual accounts for the kids. I personally have set up several accounts for this purpose and it makes taxes and record keeping that much easier.

So how can you tell if it’s worth your time to switch to another checking account? Here’s what I would do.

Evaluate your current checking. Do you end up losing money every month because of your checking account? Are you really annoyed by fees or customer service? Those are usually the signs that you need to be looking for a different checking account. I’m often amazed at how atrocious the checking account for most people really is.

Make a list of required and desired checking account features.

1. Do you need to be able to write immediate paper checks?
2. What about ATM use?
3. Do you need a check card?
4. Do you desire a return on your deposits?
5. Do you need a local branch to conduct business in?

Everyone’s needs are different. If you have a strong banking relationship with your current bank and they have loaned you money, or more importantly you need to borrow more in this tough market, than staying with the same bank probably makes sense. But for everyone else, it makes sense to switch.

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The Bottom Line

There are several good bank options out there now. Our favorites are Commerce Bank and Wamu, which give truly cost free checking with no minimum balance, free ATM anywhere, and free checks. Wamu even gives free checks for life. Other good options are Wachovia and Bank of America.

If you have larger deposits, you should still shop around. Many non bank “banks” such as Charles Schwab and etrade offer the highest interest rates on your money – much higher than traditional banks, but be sure to check which funds are insured.