Finding a checking account that meets your lifestyle and needs

Banks are responding to new regulations with product changes designed to help them recover lost revenue - and it can be very confusing to figure out just what those changes mean for your checking account.

The changes are vast. For example, a bank with a large branch network is behaving like an online financial institution with a new checking account that forces customers to only bank online and slaps them with a fee if they visit a local branch. Many banks are also charging fees for paper statements - some more than $8 a month - though there is one that offers a $1 discount on maintenance fees as an incentive for going paperless.

The new checking products are plentiful, but how do you determine which of the new accounts best fits your lifestyle and your current and future needs?

Tip 1: Choose branch banking, online banking or both.
Consumers need to determine if they need branch banking or online only, or a mixture of both. There are some banks that continue to offer the free checking accounts of the past - those with no minimum balance requirements - but many of these financial institutions are either online banks that don't have any branches, or small banks with only a few retail offices.

"If a consumer doesn't mind online-only banking and they want an account with no minimum balance requirements, an online bank or an online-only checking account may be a temporary option for them," says John Rosenfeld, head of retail deposits at TD Bank.

Wondering why it may be "temporary?" This brings us to tip two.

Tip 2: Stay ahead of the curve.
Online banks are also subjected to the new regulations on financial institutions. For this reason, experts don't think online banks will be able to continue offering checking accounts with no minimum balance requirements.

"The new regulations have sparked a wave of changes in the banking industry," says Rosenfeld. "Consumers who are shopping around for a new bank may want to only consider banks that have already made the necessary changes. The last thing anyone wants is to open an account, only to be forced to follow new rules soon after because their new bank took too long to adjust to the regulations."

Tip 3: Consider the perks of having access to branches.
Consumers who want the option to visit a local bank branch, but don't want any hassles to do so, can find checking accounts that fit their needs. Most banks' new checking products include unlimited access to their branches. TD Bank, for example, offers seven-day banking with extended hours 361 days a year - a potential perk for those who need access to branches - and a 24-hour call center that's operational year-round.

Also keep in mind that although direct deposit is a widely used service, you may still need to deposit checks. A customer who can visit a bank branch has an advantage over a customer who can't, as the latter is forced to rely on the postal service to make a deposit. The process can take several days for a check to clear and for the customer to have access to those funds.

Tip 4: Measure the pros and cons of the new kinds of free checking accounts.
Many banks have complex requirements in order to offer you "free checking," such as high balance requirements, minimum number of monthly direct deposits, or paying a certain number of bills online. Nevertheless, if you search hard enough, you can find a checking account with simple one or two requirements to get the perks of free checking.

TD Bank unveiled its "Convenient Checking" product, which Rosenfeld says is the "easiest way to free checking." The account requires a $100 daily minimum balance, an amount he says most customers are already able to maintain.

Tip 5: Watch out for hidden fees
Some financial institutions lure in new customers by offering checking accounts with no minimum balance requirements or maintenance fees, but slap customers with hidden fees for often-used banking services. For this reason, you should be mindful of banks that still offer the free checking accounts of the past, but charge fees for transfers by phone, bill pay services and account balance inquiries at ATMs owned by other banks. Some financial institutions also set a limit of checks their customers can write on a monthly basis and they charge customers a fee for going over that limit.