What matters when you pick a bank for checking
The "best" bank depends on what you actually do with your money, not on which bank has the most branches or the biggest name. A bank that works for someone who keeps $10,000 in the account and never travels might be wrong for someone who moves money constantly and needs to deposit checks from their phone. Start by listing what you need: Do you need to deposit cash? Do you travel and need ATM access? Do you want no monthly fee, or are you willing to pay for perks? How much money do you usually keep in the account?
The real differences between banks show up in three places: monthly fees (and what you have to do to avoid them), ATM access, and how they handle overdrafts. A bank with a $12 monthly fee that you can waive by keeping $500 in the account costs nothing if you meet that threshold. A bank with no monthly fee but a $35 overdraft charge might cost you more if you occasionally slip below zero. The bank that works for you is the one whose actual costs and rules match how you actually behave.
Key Takeaways
- Monthly fees vary from zero to $15, and most can be waived by keeping a minimum balance, setting up direct deposit, or maintaining a linked savings account.
- ATM networks differ sharply—some banks have thousands of free ATMs nationwide, while others charge $2 to $3 per out-of-network withdrawal.
- Overdraft policies range from declining your transaction to charging $25 to $35 per overdraft, so read the fine print before you open the account.
- Online banks typically have no monthly fees and no minimum balance, but they have no physical branches and may not accept cash deposits.
- Credit unions often offer lower fees and better overdraft terms than national banks, but membership requirements and ATM access vary by location.
National banks with large branch and ATM networks
Chase, Bank of America, and Wells Fargo each have thousands of branches and ATMs across the country. Chase's basic checking account has no monthly fee if you keep $500 in the account or set up direct deposit. Bank of America charges $12 per month unless you maintain $1,500 or link a savings account. Wells Fargo charges $10 per month unless you keep $500 or have direct deposit. All three allow you to deposit checks by phone camera and offer overdraft protection if you link a savings account.
The advantage of these banks is physical access—you can walk into a branch to deposit cash, speak to someone in person, or resolve problems face-to-face. The disadvantage is that their fees are higher than smaller banks and online banks, and their overdraft policies are stricter. If you overdraw your account, they typically charge $35 per transaction and may process transactions in an order that maximizes overdrafts (highest to lowest rather than in the order they happened).
Online banks with no monthly fees
Ally, Charles Schwab, Discover, and Axos all offer checking accounts with no monthly fee and no minimum balance. They reimburse ATM fees charged by other banks, so you can use any ATM in the country without paying out of pocket. They have no physical branches, so you cannot deposit cash in person, but they all accept mobile check deposit and transfers from other banks.
Online banks work best if you rarely need cash, can deposit checks by phone, and do not need to speak to someone in person. They typically have lower overdraft fees than national banks, and some offer overdraft protection by linking to a savings account. The trade-off is that you cannot walk into a location to resolve problems, though most have phone and chat support available 24 hours a day.
Credit unions and regional banks
Credit unions like Navy Federal, State Employees Credit Union (SECU), and local credit unions in your area often charge no monthly fee and have lower overdraft fees than national banks. Many credit unions participate in shared branching networks, which means you can use branches of other credit unions to deposit cash and withdraw money. Some credit unions also participate in ATM networks that give you access to thousands of machines nationwide.
The catch is that credit union membership is restricted—you have to work for a specific employer, belong to a specific organization, or live in a specific county to join. If you are not already a member, you may not be able to open an account. Regional banks like Truist, PNC, and U.S. Bank fall between national banks and online banks: they have branches in their region, lower fees than the largest national banks, and often waive monthly fees for lower minimum balances ($100 to $300 instead of $500 to $1,500).
How to compare fees across banks
Before you open an account, write down the monthly fee, the minimum balance to waive it, and the overdraft fee. Then ask yourself: Will I keep that minimum balance? If not, what is the monthly fee? How often do I overdraw? If you overdraw once a year, a $35 overdraft fee costs you $35 per year. A $12 monthly fee costs you $144 per year. The math changes the answer.
Next, check the ATM network. If you travel or live in a city where you move around a lot, count how many free ATMs the bank has near you. Use the bank's ATM locator on their website and search for locations you actually visit—your home, your workplace, places you shop. If the bank has only 10 ATMs in your area and you need cash twice a week, you will pay out-of-network fees regularly. If the bank reimburses those fees (like online banks do), the math changes again.
What to check before you open the account
Read the account disclosure document, which the bank is required to provide. It lists the monthly fee, the minimum balance, what triggers overdraft fees, and how the bank processes transactions. Pay attention to the overdraft policy: some banks let you opt out of overdraft protection entirely, which means they will decline your transaction instead of charging you $35. Others charge the fee automatically unless you opt out in advance.
Check whether the bank offers overdraft protection by linking a savings account. If you have $200 in savings and you overdraw checking by $50, the bank can move $50 from savings to checking automatically, usually for a small fee ($0 to $5) instead of a $35 overdraft charge. This is worth setting up if you have any savings at all.
Frequently Asked Questions
Can I switch banks if I already have a checking account?
Yes. You can open a new account at a different bank while keeping your old one open. Once the new account is set up, update your direct deposit and automatic payments to the new account number. You can close the old account after a few weeks, once you are sure everything has switched over. Some banks offer a switching service that moves recurring payments for you.
What if I have bad credit or a history of overdrafts?
Most banks check ChexSystems, a banking history report, not your credit score. If you have overdrafted accounts or unpaid bank fees in the past, you may be denied. Second-chance banks like Chime, LendingClub, and GoBank do not use ChexSystems and will open accounts for people with banking history problems. They typically charge no monthly fee but may have limits on deposits or transfers.
Do I need a minimum deposit to open a checking account?
Most banks require no opening deposit—you can open the account with $0 and deposit money later. Some banks require $25 to $100 to open, but this is rare. Check the bank's website or call before you visit, because opening deposit requirements vary by account type and location.
What happens if I do not use my checking account for months?
Banks can close inactive accounts, usually after 12 months with no deposits or withdrawals. If they close your account, they will send any remaining balance to you by check or to your state's unclaimed property program. To keep an account active, make at least one deposit or withdrawal every few months, or set up a small automatic transfer.
Should I open a savings account at the same bank?
It can save you money on overdraft fees, because many banks let you link savings to checking for overdraft protection. However, you do not have to use the same bank for both. If another bank offers better savings rates, you can open savings there and still link it to checking at your main bank.