Types of accounts

Here is a quick look at the common types of checking accounts. When you shop around, however, keep in mind that banks may use different -- and somewhat fancy -- names for these accounts.

• Basic checking -- This account is for the customer who uses a checking account for little more than bill-paying and daily expenses, and does not maintain a high balance. Some basic accounts require direct deposit or a low minimum balance to avoid fees.
• Interest-bearing -- Usually requires a minimum balance to open, with an even higher balance to maintain in order to avoid fees. For example, a bank may require just $100 to open an account, but will charge $22 in service fees each month if you do not maintain a $10,000 balance. With some accounts, the higher your balance, the more interest you earn. Interest is paid monthly, at the conclusion of your statement cycle.
• Joint checking -- An account owned by two or more people, usually sharing a household and expenses. Each co-owner has equal access to the account. Most types of accounts, whether it's basic checking, savings or money market, allow for joint use.
• Express -- Designed for people who prefer to bank by ATM, telephone or personal computer, this account usually boasts unlimited check writing, low minimum balance requirements, and low or no monthly fees. The catch? You pay fees for using a teller. These accounts are especially popular with students and younger customers who are on the go and don't want to spend a lot of time on banking transactions.
• Lifeline -- These "no-frills" accounts for low-income consumers are typically products with monthly fees ranging from zero to $6; require a low, if any, minimum deposit and balance; and allot a certain number of checks per month. Many banks, thrifts and credit unions offer such accounts. Lifeline accounts are required by law in Illinois, Massachusetts, Minnesota, New Jersey, New York, Rhode Island and Vermont. In those states, minimum terms, fees and conditions are set by law, not by individual banks.
• Senior/student checking -- Many institutions offer special checking deals if you are a student or age 55 or over. The perks vary from bank to bank, but may include freebies on checks, cashiers and traveler's checks, ATM use, better rates on loans and credit cards, or discounts on everything from travel to prescriptions.
• Money market -- This account combines checking with savings and/or investment opportunities to help you pursue higher earnings. Requires high minimum deposit to open -- usually $1,000 to $10,000; higher balances to maintain in order to avoid fees; and has tighter limits on checking transactions than other accounts. Pays more interest than basic checking or savings accounts. This account is for people who can afford to maintain a high balance and do not write more than three to five checks each month.

For the latest information about average fees for different types of accounts, read the Bankrate.com Checking Account Study, the most-complete and unbiased survey that compares thousands of accounts from hundreds of institutions. To search for a specific account in your area, use Bankrate's checking account search engine.