What Is a Senior Checking Account?

What Is a Senior Checking Account?

Senior checking accounts are similar to standard checking accounts, but have features tailored to the needs of older banking customers. Opening a senior checking account typically requires proof that you’re 55, 60 or 62 (depending on the bank or credit union).

The specifics of senior checking accounts vary from one financial institution to another, here are some features you may see:

• Free standard checks and discounts on customized checks
• Interest on checking account balances
• A limited number of non-network ATM fees waived or reimbursed
• No account maintenance fees, or minimal requirements to waive maintenance fees (such as maintaining a balance of $250)
• 24/7 access to customer service by phone
• Discounts on safe deposit boxes
• Free services such as notary, cashier’s checks, money orders and wire transfers
• Special interest rates on certificates of deposit (CDs) or loans
• Fee-free savings accounts
• Rewards points for using your debit card

That said, many of the senior checking account capabilities touted by banks are common to other types of checking accounts. For example, senior checking accounts may promote features such as free online bill pay, digital statements, mobile check deposit, contactless debit cards, direct deposit, 24/7 customer service and Zelle, which are standard features of most traditional checking accounts.

Rewards checking accounts often offer points or cash back on debit card purchases, while interest checking accounts earn interest (although generally at a low rate). Lower-interest loans, waived out-of-network ATM fees and discounted services are perks included with many premium checking accounts.

Senior checking accounts tend to be offered by smaller regional banks or credit unions to help attract customers who prefer the personalized service they offer. The nation’s four biggest banks—Bank of America, JPMorgan Chase, Citibank and Wells Fargo—do not offer senior checking accounts.

Pros and Cons of Senior Checking Accounts

Senior checking accounts have some benefits, but there are also drawbacks to be aware of.

Pros of Senior Checking Accounts

• They offer free or discounted checks. Checks are a big selling point for senior checking accounts. If you write a lot of checks, look for a bank that offers unlimited free checks; some senior accounts limit you to one free box per year.
• Fees may be lower than similar accounts. For example, Farmers & Merchants Bank offers a senior checking account with a $5 monthly maintenance fee, which is waived if you maintain an average daily balance of $250, make $250 in direct deposits per month or make at least five debit card purchases per month. The bank’s other checking accounts have service fees ranging from $8 to $50 per month and require much higher minimum balances to waive the fees.
• They may offer d iscounted bank services. Depending on the bank and your needs, receiving free or discounted cashier’s checks, money orders, notary services and safe deposit boxes may mean significant savings.
• They provide access to better interest rates. Senior checking accounts offering lower annual percentage rates (APRs) on loans and higher annual percentage yields (APYs) on your account balance could save—or earn—you more money.

Cons of Senior Checking Accounts

• They may not offer services you want. If you never buy money orders, need to have documents notarized or use a safe deposit box, you may not be persuaded by some of the features a senior checking account offers.
• Other types of checking accounts could make more financial sense. If you’re comfortable with an online-only bank, a high-yield checking account generally earns a higher APY than an interest-bearing senior checking account. Do you keep $15,000 or more in accounts with one bank, including savings, investment and retirement accounts? That could qualify you for a premium checking account, which typically offers more perks, discounts and services than a senior checking account.
• Many promoted services are available with standard checking accounts. Online banking, mobile apps and online bill payments are common features of traditional checking accounts; there’s no need to opt for a special senior account to get them.
• Surprise fees could eat up your savings. Even if your senior checking account offers free checks and low or no maintenance fees, fees for overdrafts, nonsufficient funds, stop payments and out-of-network ATM use could cancel out the savings. Pay attention to the fine print.

Is a Senior Checking Account Worth It?

If you’re old enough to qualify for a senior checking account, does it make sense to switch? Explore options at your current bank, as well as other banks and credit unions, to decide if opening a senior checking account is worthwhile. But don’t limit your research to senior checking accounts—examine all the checking accounts available, considering the following.

• What services and features matter most to you? Special interest rates on loans and CDs won’t make a difference if you don’t plan to use those products.
• Can you meet minimum balance requirements? Otherwise, you might end up paying maintenance fees.
• What fees are associated with the account? Consider overdraft fees, ATM fees, nonsufficient funds fees and stop payment fees, as well as fees for services you may use, such as money orders or wire transfers.
• Does the bank or credit union have enough branches and ATMs?
• Do the bank’s customer service options suit your preferences?
• Is the bank or credit union federally insured? Better protect your money by choosing a bank insured by the Federal Deposit Insurance Corp. (FDIC) or credit union insured by the National Credit Union Administration (NCUA). FDIC or NCUA insurance guarantees your deposits up to $250,000 per depositor and ownership category if the financial institution fails.

If your current bank offers a senior checking account, you may be able to switch your existing checking account and keep your original account number. This eliminates the need to update your direct deposit, online bill pay and automatic transfer information. Ask your bank if this is an option; otherwise, you’ll need to open a different account with a new number.

How to Open a Senior Checking Account

Opening a senior checking account is easy to do. After selecting the bank or credit union you want, be prepared to provide the following:

• Government-issued photo identification, such as your driver’s license, state ID card, passport or military ID
• Social Security number
• Birthdate
• Contact information
• Proof of your current address (such as a mortgage statement or utility bill)

Use this information to complete an application, which you can generally do either online or in person at a bank or credit union that has physical branches. If an initial deposit is required, have cash or a check on hand, or provide the account number and routing number of an account from which you’ll transfer funds.

If you plan to close your other checking account, wait until all outstanding payments and deposits have cleared and your account has a positive balance. You can usually close an account in person at a bank branch, by calling customer service or by requesting account closure in writing. Be sure to change any online bill payments, direct deposits or automatic transfers from your previous checking account to your new, senior checking account.

The Bottom Line

For seniors on a fixed income, senior checking accounts may deliver some savings. But if you’re itching to switch your bank account, consider all your options—not just senior checking accounts. Depending on your financial situation and goals, a checking account with no age requirements could make more sense. While you’re getting your financial life in order, consider signing up for free credit monitoring from Experian. You’ll get alerts to important changes in your credit report that could signal fraud, helping to protect your hard-earned money so you can enjoy your golden years.