What are the Pros and Cons of a No Deposit Checking Account?

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  • Written By: N. Madison
  • Edited By: Jenn Walker
  • Last Modified Date: 20 March 2020
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An individual may enjoy far more pros when he opens a no deposit checking account than cons. The primary pro is the lack of the deposit itself, as a person may appreciate being able to open a checking account when he's short on funds. Likewise, a person may prefer to avoid depositing funds that would be virtually inaccessible until he received paper checks or a debit card. Additionally, some people may prefer a no deposit checking account because they can make their initial deposits via direct deposit. No deposit checking accounts don't have many disadvantages other than fees that may be charged with any type of checking account.

The main pro of a no deposit checking account is the fact that a person can open it without having cash on hand at the time. For example, if an individual knows he needs a checking account but is waiting for a first paycheck, he can establish an account in time for cashing his first check. Likewise, an individual does not have to leave his house to open a no deposit bank account. Since no deposit is required, an individual doesn’t have to travel to a local branch to make a deposit or even purchase postage to mail the deposit to the bank.


When an individual opens a new checking account, he often has to wait a significant amount of time to receive paper checks and debit cards he can use to make transactions. This means he cannot use the deposit he has made right away. Essentially, the money he provides for a deposit is on hold until he receives paper checks or a debit card from the bank. With a no deposit checking account, a person may still have to wait to receive his paper checks and debit card in the mail, but his money is not on hold while he waits.

Another pro of a no deposit checking account is the ease of direct deposit. If, for example, a person wants to fund his checking account with a direct deposit, he may do so. With a regular type of checking account, a person will usually have to fund the account with an opening deposit and then arrange the direct deposit once the initial deposit has been processed. If an individual opens a no deposit checking account, however, he can use his first direct deposit as his initial deposit.

There aren’t really many cons involved with a no deposit checking account. Those cons that do exist include those found with other types of checking accounts as well. For example, some no deposit checking accounts may require an individual to pay account-related fees, such as account maintenance charges. In addition, these accounts typically include ordinary charges for things that may go wrong with a person’s checking account, such as bounced checks or overdrafts caused by debit card purchases that exceed the account holder’s available balance.



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