What makes a checking account worth opening
A good checking account costs you nothing to maintain, lets you deposit and withdraw money without hassle, and doesn't penalize you for having a low balance. The best choice depends on whether you prefer walking into a physical branch, banking entirely online, or a mix of both. Some banks charge monthly fees unless you keep a minimum balance or set up direct deposit. Others charge nothing at all, regardless of how much money you have.
The banks and credit unions listed here have no monthly maintenance fees, no minimum balance requirements, and no hidden charges for basic checking. They differ in how many branches they have, whether they reimburse ATM fees, and what tools they offer for managing money online.
Key Takeaways
- Banks with no monthly fees and no minimum balance requirements exist at every size, from national chains to online-only institutions to local credit unions.
- A physical branch network matters if you deposit cash regularly or prefer to speak with someone in person; online banks have no branches but often reimburse ATM fees nationwide.
- Credit unions typically offer lower fees and better customer service than banks, but membership is limited to people who work for certain employers, live in certain areas, or belong to certain organizations.
- The fastest way to find a credit union you can join is to search the CO-OP or Allpoint networks, which let you use thousands of ATMs without fees.
- Opening an account takes 10 to 20 minutes online or in person, and you can usually start using your debit card within one to three business days.
National banks with no monthly fees
Chase and Bank of America are the two largest banks in the United States. Both offer checking accounts with no monthly maintenance fee as long as you have direct deposit or keep a small balance (usually $500 or less). Both have thousands of branches and ATMs nationwide. Chase reimburses out-of-network ATM fees up to $15 per month; Bank of America reimburses up to $25 per month. Both let you open an account online in about 10 minutes.
Wells Fargo and Citibank also offer no-fee checking accounts. Wells Fargo has the most branches of any U.S. bank and is strong in the West and Midwest. Citibank is strongest on the East Coast and in major cities. Both reimburse some out-of-network ATM fees, though the amounts vary by account type.
The trade-off with large national banks is that they have more rules, longer hold times on deposits, and less flexibility if something goes wrong. They are a safe choice if you want a familiar name and a branch near your home or work.
Online banks with no fees and ATM reimbursement
Ally Bank, Charles Schwab Bank, and Discover Bank are online-only institutions with no physical branches. All three have no monthly fees, no minimum balance, and reimburse all out-of-network ATM fees nationwide. This means you can use any ATM and get your money back. Opening an account takes 10 to 15 minutes on their websites.
Ally and Charles Schwab are known for fast customer service and clear, simple account terms. Discover Bank offers slightly higher interest rates on checking balances than most competitors. All three let you deposit checks by taking a photo with your phone.
The main drawback is that you cannot deposit cash in person. If you receive cash regularly and need to deposit it quickly, an online bank is not the best fit. If you mostly use direct deposit and ATMs, online banks often offer the best combination of low fees and high reimbursement.
Credit unions and their advantages
A credit union is a nonprofit financial institution owned by its members. Credit unions typically charge lower fees, offer better interest rates, and provide more personal service than banks. Many credit unions have no monthly checking fees and no minimum balance requirements. Some reimburse all ATM fees; others reimburse fees at partner ATMs only.
The catch is that you must be a member to open an account. Membership is usually limited to people who work for a specific employer, live in a specific geographic area, or belong to a specific organization (such as a union, military branch, or professional association). You cannot simply walk into a credit union and open an account the way you can at a bank.
To find a credit union you can join, start with the CO-OP Network or Allpoint websites, which let you search by employer, location, or organization. If you find a credit union that accepts you, you can usually open an account online or in person within a few days.
Regional banks worth considering
USAA (if you are military or a military family member), Schwab Bank (mentioned above), and regional banks like PNC, TD Bank, and SunTrust offer checking accounts with no monthly fees in their service areas. PNC is strong in the Northeast and Midwest. TD Bank operates mainly on the East Coast. SunTrust is largest in the Southeast.
Regional banks often have fewer branches than national chains but more than online banks. They tend to have friendlier customer service and faster problem resolution than the largest banks. If you live in an area where one of these banks has a strong presence, opening an account there can be a good middle ground between a national bank and an online bank.
What to compare before you choose
Before opening an account, write down the answers to these questions: Do you need a physical branch nearby? How often do you deposit cash? Do you travel and need ATM access in other states? Do you want to earn interest on your checking balance? Will you maintain a minimum balance, or do you need a no-minimum account?
Once you have those answers, compare the banks or credit unions that fit your situation on these points: monthly fee (should be zero), minimum balance (should be zero or very low), ATM reimbursement (full reimbursement is best), branch and ATM network (matters if you use them), and customer service availability (phone, chat, email, or in-person). Most banks publish this information on their websites in a section called "Checking Account" or "Account Features."
How to open an account once you decide
You can open a checking account online or in person. Online takes 10 to 20 minutes and requires a valid ID, Social Security number, and proof of address (a recent utility bill or lease). In person, you bring the same documents to a branch and speak with an employee, which usually takes 20 to 30 minutes.
After you open the account, the bank will mail you a debit card, which typically arrives within one to three business days. You can usually start using your account to receive direct deposits or transfers immediately, even before the card arrives. Some banks let you use a temporary digital card in their mobile app right away.
If the bank needs to verify your identity further (which happens occasionally), they may place a hold on your account for one to five business days. This is normal and does not mean anything is wrong.
Frequently Asked Questions
Do I need a minimum balance to avoid fees?
Most banks and credit unions listed here have no monthly fee regardless of your balance. A few require direct deposit or a small balance (usually $500 or less) to waive the fee. Check the specific account terms before you open, but you should never need to keep thousands of dollars in the account just to avoid a monthly charge.
Can I use any ATM without paying a fee?
It depends on the bank. Online banks like Ally and Charles Schwab reimburse all out-of-network ATM fees. Large national banks reimburse some fees (usually $15 to $25 per month). Credit unions often let you use partner ATMs for free through the CO-OP or Allpoint networks. Check your bank's ATM policy before opening.
How long does it take to receive my debit card?
Most banks mail debit cards within one to three business days of opening your account. Some banks offer a temporary digital card in their mobile app that you can use immediately for online purchases and contactless payments. If you need cash right away, you can usually withdraw it at a branch or ATM using a temporary card number.
What happens if I close my account soon after opening it?
Banks do not charge a fee for closing an account, but some may flag your account if you open and close it within a few days. This can make it harder to open accounts at other banks in the future. If you are unhappy with your choice, wait at least a few weeks before closing.
Can I open a checking account if I have bad credit?
Yes. Checking accounts do not require a credit check. Banks may check ChexSystems, which is a banking history report, but this is different from a credit report. Even if you have been denied a bank account in the past, you can usually open one now. Credit unions are often more flexible than banks if you have banking history issues.