the Price of Combination Checking and Savings Accounts

My checking account was set up in combination with a savings account and both of them together earn interest and fund any withdrawals or checks written on the account. The monthly fee of $14 includes ATM access and limited overdraft protection beyond the amount in my savings account. The monthly statement shows the combined balance and the combined accounts support each other so that I earn interest but the savings account is also able to cover any checks that exceed the checking account balance.

I really like having the combined accounts because I don't have to worry so much about an overdraft and I am able to earn interest on the total balance. The bank suggested this type of arrangement when I first opened the accounts and it has worked out well. I have not bounced any checks with this service and the savings account has been there a few times to cover the balance of outstanding checks. The fee is reasonable I think for this type of service and it is less than one bad check would cost so I think it is worth it. Having combined accounts makes it easier to transfer money and to see the total picture on the monthly statement. The ATM access on a national level is also one of the good features.

Ask about earning interest on both accounts and if they only pay on savings, then try to keep a minimal amount in checking and only transfer money to checking when you need to cover a withdrawal or check.