The best checking account depends on how you bank, not on which bank is "best"
No single bank works best for everyone. The right choice depends on whether you need a physical branch nearby, how often you use ATMs, what fees matter most to you, and whether you want to bank online only or in person. A bank that works well for someone who visits a branch weekly might be terrible for someone who never sets foot in one. Start by listing what you actually do with your account — then match a bank to that behavior.
The major national banks (Chase, Bank of America, Wells Fargo, Citibank) have the most branches and ATMs, but charge monthly fees unless you meet balance or deposit requirements. Online-only banks (Ally, Charles Schwab, Discover) typically charge no monthly fee and pay higher interest on balances, but you cannot deposit cash in person. Credit unions often have lower fees and better rates, but membership is restricted and their ATM networks are smaller unless you join a shared branching network. The choice is not about which bank is objectively best — it is about which one matches how you actually use money.
Key Takeaways
- National banks offer the most branches and ATMs but usually charge monthly fees unless you maintain a minimum balance or direct deposit.
- Online-only banks have no monthly fees and pay interest on checking balances, but you cannot deposit cash in person and customer service is phone or chat only.
- Credit unions often charge lower fees and offer better rates, but you must meet membership requirements and their ATM networks are smaller.
- The best account for you depends on your actual banking habits — how often you use branches, whether you deposit cash, and what balance you typically keep.
National banks: branches everywhere, but fees unless you meet requirements
Chase, Bank of America, Wells Fargo, and Citibank have thousands of branches and ATMs across the country. If you need to walk into a physical location to deposit checks, withdraw cash, or talk to someone in person, a national bank gives you the most options. Most of these banks also offer mobile apps and online banking that work well.
The catch is monthly fees. Chase's basic checking account charges $12 per month unless you keep $500 in the account or set up direct deposit. Bank of America charges $12 per month unless you maintain $1,500 or have a may have access to direct deposit. Wells Fargo charges $10 per month unless you meet similar requirements. These fees add up to $120 to $144 per year if you do not meet the conditions. Some national banks waive fees for students or seniors, so ask about your situation.
If you already have a savings account or credit card at a national bank, bundling your checking account there sometimes lowers or removes the monthly fee. Check your specific bank's current terms, because these requirements change.
Online-only banks: no monthly fees and interest on your balance
Ally, Charles Schwab, Discover, and similar online-only banks charge no monthly fee, period. They also pay interest on checking balances — currently around 4% to 5% depending on the bank, though rates change. If you keep $1,000 in your account, that interest adds up to $40 to $50 per year instead of costing you $120 in fees.
The tradeoff is that you cannot walk into a branch or deposit cash at a teller window. All deposits happen through mobile check deposit (you photograph the check with your phone), ACH transfer from another bank, or wire transfer. If you never deposit cash and do not need in-person service, this is often the cheapest and most rewarding option. Customer service happens by phone or online chat, not in person.
Charles Schwab's checking account is unusual because it reimburses ATM fees worldwide, even at banks that are not part of its network. That matters if you travel or live somewhere without many Schwab ATMs. Most other online banks reimburse fees only at their own ATM network or partner networks.
Credit unions: lower fees and better rates, but membership rules apply
Credit unions are nonprofit organizations owned by their members. They typically charge lower monthly fees (often zero) and pay higher interest on checking balances than national banks. Some credit unions have no minimum balance requirement at all.
The catch is that you must meet membership requirements to join. Some credit unions are open to anyone who lives or works in a specific area. Others require you to work for a particular employer, belong to a certain organization, or be related to an existing member. You cannot simply walk in and open an account the way you can at a national bank. Search for credit unions in your area or your employer to see what is available to you.
Credit unions also have smaller ATM networks than national banks. However, most credit unions participate in shared branching networks or CO-OP networks that let you use other credit union branches and ATMs without fees. Ask the credit union about its network before you join.
What to compare when you are choosing between accounts
| Factor | What to Look For |
|---|---|
| Monthly fee | What is the fee, and what do you have to do to avoid it? (Direct deposit, minimum balance, etc.) |
| Interest rate | Does the account pay interest on your balance? Online banks usually do; national banks usually do not. |
| ATM access | Can you use ATMs without fees? How many ATMs are in places you actually go? |
| Deposit methods | Can you deposit cash? Can you deposit checks by phone? Do you need to visit a branch? |
| Overdraft fees | What does the bank charge if you spend more than you have? Some banks charge $35 per overdraft. |
| Customer service | Can you reach someone by phone 24/7, or only during business hours? Is there a branch nearby if you need in-person help? |
Start with the factors that matter most to your life. If you deposit cash regularly, online-only banks are not an option. If you never visit a branch, paying for one is a waste. If you keep a small balance, interest rates matter more than minimum balance requirements. Write down your top three needs, then search for accounts that meet all three.
How to avoid common mistakes when switching banks
If you are moving your checking account from one bank to another, do not close the old account immediately. Keep it open for at least a month after you switch. Checks you wrote might still clear against the old account, and some automatic payments might still be set to the old account number. Closing too fast can cause overdrafts or bounced payments.
Before you switch, update your direct deposit with your employer or benefits provider. This usually takes one or two pay periods to take effect. Set up any automatic bill payments at the new bank before you close the old one. If you have automatic payments set up, log into each one and change the account number — do not assume the bank will forward them.
Some banks offer a switching service that moves your automatic payments for you, but you are responsible for checking that they moved correctly. Verify that your first few paychecks and bill payments go to the right place before you close the old account.
Frequently Asked Questions
Do I need to keep a minimum balance to avoid fees?
It depends on the bank. National banks usually require $500 to $2,500 in the account to waive monthly fees. Online banks typically have no minimum balance requirement. Credit unions vary widely. Check the specific bank's current requirements before you open an account.
Can I have checking accounts at more than one bank?
Yes. Many people keep a checking account at a national bank for in-person deposits and a second account at an online bank to earn interest on savings. Just make sure you can track both accounts and meet any minimum balance requirements at each one.
What is 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 checks. A savings account is for money you want to keep and earn interest on. Most banks require you to open both, though you can use only one if you want.
Should I choose a bank based on interest rates?
Only if you keep a large balance in your checking account. If you have $500 or less, the interest you earn is a few dollars per year. If you have $5,000 or more and use an online bank paying 4% to 5%, interest becomes worth considering. For most people, avoiding monthly fees matters more than earning interest.
What if I need to deposit cash but want to use an online bank?
Some online banks partner with retail chains like Walgreens or CVS to let you deposit cash for a small fee. Others let you deposit cash at a partner bank or credit union. Ask the online bank about its cash deposit options before you open an account if this matters to you.