The best checking accounts feature perks such as low minimum balances, no monthly fees, overdraft protection, and widespread ATM networks so you can access your money without added charges. Every bank’s account offerings are slightly different, so here’s how to go about finding the best checking account for you.
See our top picks for the 10 best free checking accounts>>
Our team compared more than 20 of the best checking accounts belonging to FDIC or NCUA-insured financial institutions that don’t charge monthly fees or require a minimum opening deposit. We examined key metrics, including monthly fees, overdraft fees, ATM reimbursements, rewards, bonuses, and more, to identify the 10 best accounts available today.
See our top picks for the 7 best checking account bonuses>>
We started with our existing methodology for the best free checking accounts, then narrowed down our picks based on the accounts that offered checking account bonuses.
How to find the best checking account for you
1. Understand your needs
All checking accounts have the same basic features: They allow you to deposit and withdraw money, and you can withdraw via check, debit card, or electronic transfer. But what kind of account is a good fit for you is based on your banking preferences.
There are several types of checking accounts. Depending on the bank you choose, you may have the following options:
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Student checking: These accounts are intended for children or college students. They usually have low minimum deposit requirements and no monthly fees. They also may earn higher interest rates than other checking accounts offer.
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Senior checking: Senior accounts are for older adults, such as those 55 and older. They have low balance requirements, and they rarely have monthly fees.
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Free checking: A free checking account is open to anyone 18 or older. These accounts do not have monthly fees, so you can accept and make payments without paying service or maintenance fees.
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Interest checking: Most checking accounts are not interest-bearing, so the money you keep in there won’t grow. However, some interest-bearing checking accounts allow you to earn interest, but they often have monthly fees or balance requirements. Be sure to read the fine print if you open one of these accounts.
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Rewards checking: A rewards checking account allows account holders to earn cash back or points on purchases. For example, you may earn 1% cash back on purchases made with your debit card. However, you usually must maintain a certain balance or complete a minimum number of transactions to qualify for the rewards.
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Online checking: Many banks offer online checking accounts, which you can open and manage digitally. These can make it easier to pay bills, transfer money, and manage your account no matter where you are.
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2. Research financial institutions
Once you know the type of checking account you want, you can decide where to open it. You can open a checking account with either a credit union or bank.
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Credit union: Credit unions are nonprofit organizations, and you have to become a member to open an account. Because credit unions are nonprofits, their accounts tend to have lower checking account fees and better rates than for-profit banking institutions.
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Bank: Banks are financial institutions that are privately owned institutions licensed to offer bank accounts and loans. They typically operate multiple branches in several states, and some offer their services nationwide.
Regardless of which type of institution you choose, make sure it’s backed by either the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA). Member FDIC and member NCUA organizations provide deposit insurance up to $250,000, protecting your money if your bank or credit union fails.
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3. Compare fees and charges
Checking account fees vary by financial institution, so review the deposit account agreement for the checking account you’re considering to review all qualifying fees. The deposit account agreement is usually available through a link at the bottom of the checking account’s page in the fine print. If you can’t find it, email the bank or visit a branch in person and request it. Common fees and terms to look out for include the following:
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Monthly service fees: Monthly service fees, sometimes referred to as account or monthly maintenance fees, are what some banks charge to keep your account active. You pay the monthly fee even if you didn’t complete any transactions.
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Fee waivers: Some banks will waive the monthly fee if you meet certain criteria, such as maintaining a minimum balance or setting up direct deposit.
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Overdraft fees: Banks and credit unions charge overdraft fees when your account balance isn’t high enough to cover debit card purchases you make. The fee for an overdrawn account can be steep — according to the FDIC, it’s typically around $35 per transaction.
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Non-sufficient fund fees: Non-sufficient fund fees are similar to overdraft fees. They occur when you write a check for more than you have in your checking account. The bank will decline the transaction but charge you the non-sufficient fund fee. The average NSF fee currently stands at $34.
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ATM fees: Generally, banks and credit unions provide fee-free ATMs (in-network). But if you use out-of-network ATMs, they may charge you a fee (in addition to the service charges the ATM operator charges for using its machines).
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4. Consider added features and services
Some banks and credit unions offer their customers additional features and services. For example:
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Mobile banking: Mobile banking apps are increasingly popular, especially if you like to keep an eye on debit card transactions and your daily balance, but not all banks have their own yet. If you prefer to use your phone for banking, check the bank or credit union’s mobile app availability.
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ATM fee reimbursements: Some banks and credit unions provide customers with rebates for out-of-network ATM fees. For example, you may be eligible for up to $20 per statement cycle in ATM withdrawal fee rebates.
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Free checks: Many banks and credit unions will issue customers their first box of paper checks for free. On some accounts, purchasing checks can be quite expensive.
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Online bill pay: Many banks and credit unions have online bill pay services that allow you to pay your utilities, credit card bills, and even subscription bills through your account. You can also schedule those payments in advance and set up recurring payments.
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Interest: Checking accounts don’t always pay interest, but some do. Make sure to compare rates if you’re looking for an interest-earning checking account.
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How to open a checking account
Now that you know what factors affect the best checking accounts, you can pick a bank and open your new account.
You will generally need to provide information about yourself so the bank can verify your identity. Below is a checklist of information and documentation you should have handy to open a checking account:
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Identification, such as a driver’s license or passport
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A second form of identification, such as your Social Security card, birth certificate, or utility bills listing your name and address
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Your Social Security number or taxpayer identification number
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Money for the initial deposit (typically between $25 and $100)
You need to fill out an application to open the account. The bank will verify your information and run a deposit account inquiry through a system like ChexSystems. If the bank or credit union approves your application, you can start using your account immediately, but it may take a few days to receive your debit card and checks. If you’re employed and receive monthly direct deposits, make sure you reach out to your HR or accounting department with your new banking information.
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Frequently asked questions
Do checking accounts earn interest?
Interest-earning checking accounts do exist. Unfortunately, high interest checking accounts are rare — most checking accounts have a low APY, if any. Based on the most recent data from the FDIC, interest-earning checking accounts have an average APY of 0.07%.
If you’re looking for an FDIC-insured account that offers high interest rates, a high-yield savings account may be a better option for your personal finance goals.
Can I have two checking accounts at the same bank?
Each bank has its own policies, but having more than one checking account with the same bank is usually possible for qualifying customers. Check with your bank to learn about the process for opening a second checking account. While some allow you to open another account online and link it to your online banking, others may require you to contact them or open the account in person.
What are some alternatives to checking accounts?
If a checking account doesn’t sound like the best fit for your personal finance goals, consider the following:
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Savings accounts: A savings account may be better if you’d prefer to build an emergency fund, save for a specific goal, or seek a higher interest rate than a checking account provides. These accounts often have monthly withdrawal limits and typically don’t come with account bonuses, debit cards, or checks.
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Money market accounts: Money market accounts have rates comparable to savings accounts but come with debit card access and checks. Monthly withdrawal limits may apply with a money market account.
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Prepaid debit cards: Prepaid debit cards are another alternative if you prefer not to open a new bank account and are accepted by most retailers. With a prepaid card, you can spend up to the full deposit amount added to the card. Once you’ve spent your card’s balance, you can reload it. Note: these cards typically have high fees.
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CDs: CDs — or certificates of deposit — are accounts that offer a guaranteed rate of return, as long you keep the money untouched for the entire term. CD terms range anywhere from one month to 10 years, with longer terms typically offering higher interest rates (though not always). If you withdraw money before the account reaches maturity, you’ll typically pay a penalty.
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