What "best" means depends on how you bank

No single bank has the best checking and savings account for everyone. The right choice depends on whether you need a physical branch, how often you withdraw money, what balance you keep, and whether you want to earn interest on savings. A bank that works well for someone who visits a branch weekly and keeps $10,000 in savings may be wrong for someone who banks entirely online and has $500 to start with.

The comparison that matters is between three types of banks: national banks with physical branches (Chase, Bank of America, Wells Fargo), regional banks that serve specific areas, and online-only banks (Ally, Charles Schwab, Marcus). Each has real trade-offs. National banks charge monthly fees but have ATMs everywhere. Online banks pay higher interest on savings but have no tellers. Regional banks fall somewhere in between.

Key Takeaways

  • National banks charge $10 to $15 monthly fees on checking unless you meet balance or deposit requirements, but offer thousands of ATMs and branches.
  • Online banks typically charge no monthly fees and pay 4% to 5% annual interest on savings accounts, but have no physical locations.
  • The account that costs you the least money over a year depends on your balance, how many times you withdraw cash, and whether you need a branch.
  • Comparing the same checking and savings pair across three banks takes about 15 minutes and reveals hundreds of dollars in annual difference.

National banks: branches and ATMs, but monthly fees

Chase, Bank of America, and Wells Fargo each have 4,000 to 6,000 branches and ATMs nationwide. If you need to deposit cash, withdraw at a teller, or talk to someone in person, these banks make that easy. The cost is a monthly maintenance fee—usually $12 to $15—unless you meet conditions like keeping a minimum balance (often $1,500 to $2,500) or setting up direct deposit.

Chase's Total Checking charges $12 monthly but waives the fee if you maintain a $500 balance or receive direct deposit. Bank of America's Checking Account charges $12 monthly and waives it with a $1,500 balance or $250 in monthly direct deposits. Wells Fargo's Everyday Checking charges $10 monthly and waives it with a $500 balance. On savings, these banks pay 0.01% to 0.05% annual interest—roughly $1 per year on $1,000.

The real cost is the fee. If you keep $500 and avoid the fee through direct deposit, you pay nothing. If you keep $300 and have no direct deposit, you pay $144 per year just to have the account. Add in the fact that you earn almost nothing on savings, and a national bank makes sense only if you need the branch network.

Online banks: no fees and higher savings interest

Ally, Charles Schwab, Marcus, and Discover have no physical branches and no monthly checking fees. Their checking accounts are free. Their savings accounts currently pay 4% to 5% annual interest—meaning $40 to $50 per year on $1,000, compared to $1 at a national bank.

The trade-off is access to cash. Online banks reimburse ATM fees (so you can use any ATM and get your money back), but you cannot deposit cash at a teller or visit a branch. If you rarely withdraw cash and never need to deposit coins or checks in person, an online bank costs you nothing and pays you more on savings. If you deposit cash weekly or need to talk to someone face-to-face, it does not work.

Charles Schwab's checking account stands out because it reimburses all ATM fees worldwide, making it useful even if you travel or live somewhere with few ATMs. Ally's checking account offers the same feature domestically. Marcus by Goldman Sachs has no checking account—only savings—so it works best paired with a checking account elsewhere.

Regional banks: a middle ground with local presence

Credit unions and smaller regional banks often charge no monthly checking fee and pay higher savings interest than national banks—usually 0.5% to 2%—without requiring the high balances that national banks demand. They have fewer branches and ATMs than Chase or Bank of America, but more than an online bank.

A credit union in your area might offer free checking with no minimum balance and 1% interest on savings. That beats a national bank's $12 fee and 0.01% interest, but the savings rate still lags behind online banks. Regional banks make sense if you want some branch access, live in an area where a specific credit union or bank operates, and do not want to pay national bank fees.

To find regional options, search "[your state] credit unions" or "[your city] community banks." Call three and ask about checking fees, minimum balances, savings interest rates, and ATM networks. Many credit unions let you join if you live or work in their service area, even if you do not have a family member already there.

How to actually compare accounts side by side

Write down the three banks you are considering. For each, note: (1) monthly checking fee and what waives it, (2) minimum balance to avoid the fee, (3) savings interest rate, (4) whether ATM fees are reimbursed, and (5) number of branches or ATMs near you. Then calculate your annual cost.

Example: You keep $800 in checking and $2,000 in savings, and you withdraw cash twice a month. National bank A charges $12 monthly ($144 per year) because your balance is below the $1,500 minimum. It pays 0.01% on savings ($0.20 per year). Total cost: $144 minus $0.20 = $143.80. Online bank B charges nothing and pays 4.5% on savings ($90 per year). Total cost: $0 minus $90 = negative $90 (you gain money). The online bank saves you $234 per year—unless you need a branch, in which case the national bank is worth the cost.

This math changes if your situation changes. If you receive $3,000 in monthly direct deposit, the national bank waives its fee, and the comparison becomes much closer. If you keep $10,000 in savings, the online bank's higher interest rate saves you even more.

What happens with checking and savings together

Most people open checking and savings at the same bank for convenience. Some banks offer a small bonus (usually $50 to $200) for opening both accounts within a certain time frame. These bonuses are real money, but they happen once. The monthly fee or interest rate difference matters every month.

You do not have to keep checking and savings at the same place. Many people open checking at a national bank for the branch network and savings at an online bank for the interest rate. This takes more effort to manage but can save money. If you go this route, set up a transfer between banks so money moves easily when you need it.

Red flags when comparing

Watch for accounts that advertise a high interest rate on checking. Banks sometimes offer 5% or higher on checking balances up to $500, then 0.01% on anything above that. This is a marketing trick—the rate applies only to a small amount, and you have to meet strict conditions (like 15 debit card transactions per month) to get it. Read the fine print before you open the account.

Also check whether the bank charges fees for things you might do: overdraft fees (usually $30 to $35 per overdraft), fees to transfer money out, fees to close the account, or fees for falling below a minimum balance. Some banks charge $5 to $10 just to talk to a teller. These are rare at major banks but common at smaller ones, so ask.

Frequently Asked Questions

Can I switch banks without losing money?

Yes. Open the new account, transfer your balance, and close the old one. The only cost is time. Some banks charge a fee to close an account if you do it within a certain period (usually 90 days to a year), so ask before you open. Most do not charge to close.

Do I need both checking and savings, or can I use just one?

You can use just checking if you do not save money. But if you keep money you are not spending soon, a savings account with interest (even 0.5%) is better than checking, which usually pays nothing. Many people use checking for monthly bills and savings for emergencies or goals.

What if I have a very small balance, like $100?

An online bank is your best choice. National banks charge monthly fees that eat into a small balance. Online banks charge nothing and pay interest. Even at 4% interest, $100 earns $4 per year—not much, but better than paying $12 per month to a national bank.

Does it matter which bank I choose if I never use the account?

Yes, because some banks charge inactivity fees if you do not use the account for a set period (usually six months to a year). Read the account agreement to see if there is an inactivity fee. If you open an account and do not plan to use it, close it instead of letting it sit.

What if I need a bank that offers both checking and savings with no fees?

Online banks like Ally, Charles Schwab, and Discover offer both with no monthly fees. If you need a physical branch, a credit union in your area may offer free checking and savings with no minimum balance. Call your local credit union to ask.