Start with what you actually use your account for

The best checking account is the one that matches how you spend and move money, not the one with the most features you'll never touch. Before you compare banks, write down what you do with a checking account: Do you visit a branch in person, or do you only use ATMs and your phone? Do you write checks, or do you pay everything online? Do you move money between accounts often, or does it sit mostly still? Do you overdraft sometimes, or never?

These answers matter because they determine which fees will actually hit you. A bank with no monthly fee but a $3 overdraft charge costs you nothing if you never overdraft—but costs you $36 a year if you do it four times. A bank with a $12 monthly fee but unlimited free transfers costs you $144 a year if you transfer money twice a week, but costs you nothing if you never transfer.

Key Takeaways

  • Monthly fees, overdraft fees, and ATM fees vary wildly between banks, so compare only the fees you will actually pay, not all possible fees.
  • Some banks waive their monthly fee if you keep a minimum balance or set up direct deposit, so check what conditions apply to the account you're considering.
  • ATM access matters most if you use cash regularly—some banks have thousands of ATMs nationwide, while others have few or charge you to use another bank's ATM.
  • Online banks typically have no monthly fees and no minimum balance, but they have no physical branches, so you cannot deposit cash or speak to someone in person.
  • Credit unions often have lower fees and better customer service than large banks, but you must be a member to open an account, and membership rules vary by credit union.

Compare the fees you will actually pay, not every possible fee

Banks list dozens of fees in their fee schedules, but most of them will never touch your account. Focus on the ones that match your habits. If you never overdraft, ignore overdraft fees. If you never use another bank's ATM, ignore out-of-network ATM fees. If you never write checks, ignore check-printing fees.

The fees that matter to most people are: monthly maintenance fee (if any), overdraft fee (if you overdraft), out-of-network ATM fee (if you use ATMs outside the bank's network), and wire transfer fee (if you send wires). Write these down for each bank you're considering, then add up what you'd pay in a year based on your actual habits. A bank that looks cheap on paper might be expensive in reality.

Many banks waive their monthly fee if you meet certain conditions. Common conditions are: keeping a minimum balance (often $500 to $2,500), setting up direct deposit, or maintaining a certain number of debit card transactions per month. Read the fine print—some banks waive the fee only if you meet all conditions, while others waive it if you meet any one of them.

Decide whether you need a physical branch

Online banks (banks with no physical locations) almost always have lower fees and no monthly maintenance charge, because they don't pay for buildings and staff. But you cannot walk in to deposit cash, and you cannot sit down with someone to talk through a problem. If you never deposit cash and you're comfortable solving problems by phone or chat, an online bank saves you money.

If you deposit cash regularly, you need either a physical branch or a partner network. Some online banks partner with retail locations (like CVS or Walgreens) where you can deposit cash for free. Others charge you to deposit cash at a partner location. Check the specific bank's policy before you open an account.

Large national banks have thousands of branches and ATMs nationwide, which matters if you travel or move often. Regional banks and credit unions have fewer locations but may serve your area well. If you live in one place and rarely travel, branch count matters less than fee structure.

Check ATM access and what it costs

If you use cash regularly, ATM access is not a small detail. Some banks have their own ATM network (Chase has over 16,000 ATMs nationwide; smaller banks have far fewer). Some banks belong to a shared network where you can use other banks' ATMs for free. Some banks charge you $2 to $3 every time you use an ATM outside their network.

If your bank has few ATMs near where you live or work, you'll pay out-of-network fees regularly. Do the math: if you withdraw cash twice a week and pay $3 per out-of-network withdrawal, that's $312 a year. A bank with a higher monthly fee but free ATM access might cost you less overall.

Online banks often reimburse out-of-network ATM fees (up to a certain amount per month), which effectively gives you access to any ATM nationwide. If you use ATMs frequently, this can save you significant money compared to a traditional bank with a small ATM network.

Understand what happens if you overdraft

An overdraft happens when you spend more money than you have in your account. Banks handle this in different ways, and the cost varies. Some banks automatically decline the transaction (you pay nothing, but your card gets rejected). Some banks cover the transaction and charge you an overdraft fee (usually $25 to $35 per overdraft). Some banks let you set up overdraft protection, which transfers money from a savings account or linked account to cover the shortfall.

If you overdraft occasionally, overdraft fees add up fast. Four overdrafts a year at $35 each costs $140. Some banks offer overdraft forgiveness (they waive the fee once or twice per year if it's your first overdraft). Some banks charge a lower fee if you overdraft by a small amount. Read the overdraft policy carefully—it's often where banks make money off customers who are already struggling.

If you never overdraft, this doesn't matter. If you overdraft sometimes, compare overdraft fees between banks and factor them into your total cost. If you overdraft frequently, look for a bank that offers overdraft protection or a lower overdraft fee.

Consider credit unions if you're a member

Credit unions are member-owned financial institutions, not for-profit companies. They typically charge lower fees, pay higher interest on savings accounts, and offer better customer service than large banks. Many credit unions have no monthly maintenance fee and no minimum balance requirement.

The catch: you must be a member to open an account. Membership rules vary. Some credit unions are open to anyone who lives or works in a certain area. Others are open only to employees of a specific company, members of a specific organization, or people who belong to a specific profession. Some credit unions have joined shared branching networks, which means you can do basic transactions at other credit unions' branches nationwide.

If you're already a member of a credit union (through your employer, a union, a professional association, or your neighborhood), compare their checking account to the banks you're considering. You may find it's cheaper and offers better service.

Test customer service before you commit

You won't know how good a bank's customer service is until you need it. Before you open an account, try contacting the bank with a simple question: call their phone number, use their chat feature, or visit a branch. How long do you wait? Is the person helpful? Do they answer your question clearly, or do they try to sell you something?

Read recent reviews on sites like Trustpilot or the Better Business Bureau, but focus on reviews about the specific issue that matters to you. If you care about overdraft handling, look for reviews about that. If you care about ATM access, look for reviews about that. One person's complaint about no branches doesn't matter if you never visit branches.

Some banks offer better service through certain channels. A bank's phone line might have long wait times, but their chat support might be fast. A bank might have poor branch service but excellent online tools. Think about how you'll actually contact the bank when you need help, and test that channel specifically.

Frequently Asked Questions

Should I open an account at the bank where I have a savings account?

Not necessarily. Some banks offer discounts if you link multiple accounts, but the discount is often small (like $5 off a monthly fee). Compare the checking account fees at your current bank to other banks' fees. If another bank is significantly cheaper, switching is worth it—you can keep your savings account where it is, or move it later if the new bank offers better savings rates.

What's the difference between a checking account and a savings account?

A checking account is for money you spend regularly—it comes with a debit card and check-writing ability. A savings account is for money you're setting aside—it typically earns interest and has limits on how often you can withdraw. Most people need both. Checking accounts rarely earn interest; savings accounts are not meant for frequent spending.

Do I need to keep a minimum balance?

It depends on the bank. Many banks require a minimum balance to waive the monthly fee (often $500 to $2,500). Some banks have no minimum balance at all. If you can't maintain a minimum balance, look for a bank that doesn't require one, or choose a bank where you can waive the fee through direct deposit or debit card transactions instead.

Can I switch banks if I already have an account somewhere else?

Yes. You can open a new account at any time. To move your money, you can transfer it yourself, or ask your new bank to help you move automatic deposits and bill payments. Keep your old account open for a few weeks while you make sure everything has switched over, then close it. You don't need permission from your old bank to leave.

What should I do if my bank starts charging fees I don't want to pay?

Banks change their fees and policies regularly. If your bank adds a fee or raises an existing fee, you have options: meet the conditions to waive the fee (like setting up direct deposit), switch to a different account type at the same bank, or switch to a different bank. You're not locked in—compare your options and move if it makes sense.