Many banks offer free checking accounts. What may be the opportunity costs associated with free checking?

Question

Quizplus · Accepted Answer

Free checking accounts typically have low interest rates or high minimum balance requirements. This means that the opportunity cost of using a free checking account is missing out on the potential to earn higher interest or having to maintain a larger balance to avoid fees. Additionally, some free checking accounts may not offer overdraft protection, which could result in costly fees if a transaction is made without sufficient funds.

Many Banks Offer Free Checking Accounts