Do you remember why you chose your current checking account?
If you got started early, your parents might have helped you open a kids’ checking or savings account at their bank’s branch. Or maybe you went with the credit union down the street from your work after getting your first W2 job.
Whatever the reason, location likely played a big part. Thankfully, you’re no longer confined to a financial institution for a checking account because of its proximity to you — or a brick-and-mortar site altogether, for that matter.
From higher interest rates to better benefits, it pays to expand your search beyond your local bank or credit union these days. Here’s how to choose the right checking account for you.
10 Best Checking Accounts for September 2022
Is it Time to Change Checking Accounts?
| Account | Rewards | ATM Access | Fees | ||
|---|---|---|---|---|---|
Chime Spending Accounts |
None |
60K+ fee-free ATMs |
None |
GET DETAILS | |
Varo Bank Account |
None |
55,000+ Allpoint ATMs |
Out-of-network ATM |
GET DETAILS | |
Chase Total Checking |
None |
16,000 ATMs |
Yes, but may be waived |
GET DETAILS | |
Chase College checking |
None |
16,000 ATMs |
None |
GET DETAILS | |
TD Bank Convenience Checking |
None |
700 ATMs |
Yes, but may be waived |
GET DETAILS | |
Axos Bank Essential Checking |
None |
Fee reimbursements |
None |
GET DETAILS | |
Ally Interest Checking |
Up to 0.25% |
55,000+ Allpoint ATMs |
None |
GET DETAILS | |
Consumers Credit Union Free Rewards |
2.09% |
Over 30,000 ATMs |
Overdraft fees |
GET DETAILS | |
Schwab Bank High Yield Investor Checking |
0.25% |
Fee reimbursements |
None |
GET DETAILS | |
Montgomery Bank New Start Checking |
None |
Bank & MoneyPass ATMs |
None |
GET DETAILS |
Chime Spending Account
- No monthly maintenance fees
- Free access to in-network ATMs
- A “Pay Friends” feature to give money to friends
Chime doesn’t charge overdraft fees or for overdraft protection, a monthly maintenance fee, foreign transaction fees or minimum balance fees. You can also open an easy-to-access connected savings account — it allows you to automate your savings with features like the round-up tool, which will round up your transactions to the nearest dollar and dump the change into savings. Bonus: Chime has a “Pay Friends” feature, so you don’t have to mess with cash, math or other apps to split the bill.
For a full run down of fees and services, check out our complete Chime Bank review.
Varo Bank Account
- No hidden fees
- Early access to your paycheck
- Tool to project your cash flow
With Varo, you’ll pay no monthly service fees, no extra fees for minimum balance requirements, no foreign transaction fees and no cash replacement fees. You’ll just pay out-of-network ATM fees and cash deposit fees if you deposit cash in-store through Green Dot®. Varo keeps tabs on how much you spend across all your accounts, too, so you can better analyze and project your cash flow. It also allows you to set spending caps so you have a better handle on your money.
For a full run down of fees and services, check out our complete Varo Bank review.
Chase Total Checking Account
- A hefty sign-on bonus for new customers
- Offers online, mobile and text banking
- Lots of branch locations in the U.S.
This Chase account has other fees. For example, you can use a Chase ATM for free, but you’ll pay a $3 fee for non-Chase ATMs in the U.S., Puerto Rico and the U.S. Virgin Islands and $5 outside of those locations — so, this account isn’t the best for frequent international travelers. Thankfully, the bank has branches and 16,000 fee-free ATMs in 33 states around the U.S., so you can avoid the fees if you’ve got one nearby.
Bonus (literally): You can get $200 when you open a new checking account. Getting it is pretty simple, too, compared with similar offers — open a new Chase Total Checking account* with $0, and set up direct deposit within 90 days of opening. Keep your account open for at least six months, or you’ll lose the bonus at closing.
For a full run down of fees and services, check out our complete Chase Bank review.
Chase College Checking Account
- New applicants can qualify for a bonus
- Lots of branches and ATMs in the U.S.
- No monthly service fee
New applicants can get a $100 bonus in their account just for signing up for paperless statements and making 10 qualifying transactions within the first 60 days. Debit card transactions count, so that should be easy.
No other rewards are a part of this account, but that’s typical with a student checking account. Beyond that, the account comes with the accessibility of one of the nation’s largest financial institutions, so ATMs are plentiful and online and mobile banking is available.
For a full run down of fees and services, check out our complete Chase Bank review.
TD Bank Convenience Checking
- Free online and mobile banking
- No maintenance fee for students 17-23 years old
- Monthly fee that can be waived easily
Anyone can open an online checking account, but TD's brick-and-mortar banks (and ATMs) are mostly located on the East Coast. With a $3 fee for using an out-of-network ATM, you might want to have a physical location nearby.
The best thing about this financial institution is it’ll pay you — just for opening an account. For a $300 bonus and an interest-yielding account, consider TD Bank’s higher-tier Beyond Checking account. You must meet certain criteria (and be a new customer) to earn this bonus. (And double-check when the offer ends.)
Axos Bank Essential Checking
- Up to 1.00% APY on certain accounts
- Requires balance of only $1
- Unlimited ATM-fee reimbursement in the U.S.
Axos offers a lot if you’re in the market for an online-only checking account. On top of no fees, Axos will also reimburse you by the end of the next business day for unlimited ATM fees within the U.S.
Regarding spending abroad — per a rep via live chat, you’ll pay a 1% service transaction charge on purchases made in other countries. So, even though this online bank account is flexible, it isn’t ideal for international travelers.
For a full run down of fees and services, check out our complete .
Ally Interest Checking Account
- Use any Allpoint ATM in the U.S. free of charge
- No overdraft fees
- Up to 0.25% APY
With a daily balance of $15,000 or more, this checking account yields 0.25% interest. Below $15,000, it’s 0.10%. That tops a lot of bank accounts, but it’s not as impressive as we’d expect for an account with “interest” in the name — and that balance requirement is a beast. We expect more when checking accounts earn interest.
You can access Ally Interest Checking online or through the Ally app, so it’s an accessible choice for anyone within the U.S.
For a full run down of fees and services, check out our complete Ally Bank review.
Consumers Credit Free Rewards
- Earn 2.09% interest
- All ATM fees in the U.S. are reimbursed
- Branches in IL; anyone in U.S. can bank online
With this Consumers Credit Union plant, account holders will earn 2.09% interest on your balance up to $10,000. You’ll also have all ATM fees reimbursed, as long as you:
- Make 12 debit card purchases each month without using the PIN (as a credit transaction).
- Have at least one direct deposit or ACH credit of $500 or more each month.
- Enroll in e-documents.
In addition to that, you can earn 3.09% or 4.09% APY (annual percentage yield) on balances up to $10,000 if you meet CCU Visa credit card spending requirements: $500 and $1,000, respectively.
All CCU branches are in Illinois, but anyone can open and manage an account online and through the mobile app.
Schwab Bank High Yield Investor
- Easy-to-use app
- ATM-fee reimbursements around the world
- No fees or minimum deposit required
The downside? Schwab’s online-only High Yield Investor Checking account must be linked to a Schwab One brokerage account. Luckily, there are no fees or minimum deposits to open either account, as long as you open them together.
Neither account comes with monthly fees or a minimum balance, but “other account fees, fund expenses and brokerage commissions may apply” to the brokerage account once you begin investing, according to the Schwab site.
The checking account offers a variable interest rate. If you want to grow your savings through Schwab, you’ll want to invest through the brokerage account.
Montgomery Bank New Start
- Low minimum deposit to open an account
- No service fees or required monthly balance
- Free debit card
This account is loaded with freebies and other extras, such as free direct deposit, unlimited check writing and a free debit card. You can also open interest-bearing accounts with the bank if you’re interested in other options. Additionally, Montgomery Bank offers a business checking account, too.
Check out our current list of bank promotions for a chance to gain a monetary bonus when signing up for a new bank account.
What is a Checking Account?
A checking account is a place to store money at a bank, credit union or other financial institution. The money in a checking account is typically reserved for regular, everyday expenses, as opposed to a savings account. Checking accounts usually distribute paper checks and a debit card to members as well.
How to Choose a Checking Account
You probably already know that you need a checking account and if it comes with a free debit card, that’s even better. A checking plan serves as the primary hub for your money. It’s where your paychecks and direct deposits land, and, from there, you use the money to pay bills, buy the stuff you need and hopefully slide some of it into a savings account. Maintaining a savings account is a smart personal finance decision.
Picking a bank account is a personal choice. What makes checking accounts “good” depends largely on your financial situation and goals. Checking accounts come in a lot of varieties these days, each with different features and benefits. You can pick from online-only banks to those with physical branches, and from those that pay interest to those that offer free checking accounts and no fees for out-of-network ATM use. It’s up to you to do the research and find the one that will benefit you and your lifestyle the most.
But we can tell you a few things that make certain checking accounts worth opening. Here are a few important features to keep in mind when looking for the best checking accounts:
- Fees: How much will it cost you to manage your money with this account? Make sure you know the monthly fee — or fees — to maintain the account. Also, understand the account’s overdraft fee protection.
- Safety: If something happens to the institution where you hold your account, will your money be protected? Make sure your checking account is NCUA- or FDIC-insured.
- Interest rates and APY: Does a particular checking account offer interest on your money to keep it in an account? (These types of accounts tend to offer no or low interest rates and APY, but there are high-interest checking accounts out there.)
- Rewards: What do you earn in return for using the account? Are you rewarded for making regular direct deposits or keeping a high balance, for example?
- Minimum balance: Is there a minimum or average daily balance needed to maintain the account? Or to open the account? Minimum balance requirements can range for $5 to $5,000 and you’ll want to know this before you open an account be it at a branch of through online banking.
- Accessibility: What are the requirements to open this account (again, minimum balance requirements, and earn the rewards?
- Mobility: Can this account travel and move with you? How are the online banking features? Do direct deposits make your banking life easier? How good is the financial institution’s app in making mobile check deposits easier? Are you considering online banks or only those with physical branches?
Types of Checking Accounts
There are a few varieties of checking accounts out there that offer different benefits. You just need to figure out which kind will work best for you. Some of your options are:
- Student Checking: These accounts usually feature minimal fees and no minimum balance. They also don’t offer a lot of perks. They’re bare-bones accounts designed for cash-strapped students who just need the basics.
- Express Checking: This is the checking account for today’s digital person. If you don’t like going to the bank, this could be for you. These accounts are designed for use on computers, phone apps, ATMs or by telephone. You may actually get a fee for going to a live teller. The upside is fees are minimal as long as you keep banking digitally.
- Joint Checking: Need to share a checking account with a spouse or another person? A joint account lets you both put money in and take money out as needed.
- Fresh Start or Second Chance Checking: If you’ve run into financial trouble and have had your accounts closed, it can be tough to get a new account. These accounts are designed to minimize the bank’s risk, but they allow you to open a new account. If you maintain it well for an extended period of time, it may open opportunities for you to upgrade.
- Rewards Checking: Rewards checking offers the highest perks, such as annual percentage yield (APY) interest on the account balance. Debit card purchases could also receive cashback bonuses or earn points for things like airline travel or gift cards. Some, however, will come with an annual fee.
Check out our current list of bank promotions for a chance to gain a monetary bonus when signing up for a new bank account.
Checking Account vs. Savings Account
financial setup. You want to have one location for more regular, everyday expenses (checking) and one for longer-term savings and goals (savings).
Checking Account Pros and Cons
There are advantages and disadvantages to checking accounts and below are the most common.
Pros
- Relatively easy and quick to open
- Low- or no-fee account options
- Typically offer a free checkbook and debit card
Cons
- Usually don’t earn interest
- Certain accounts have fees (like overdraft and minimum balance requirements) that can add up quickly if you’re not vigilant
Savings Account Pros and Cons
The following pros and cons of savings accounts can help you decide how to use them.
Pros
- Relatively easy and quick to open
- Offers interest
- Easy to access your money in times of need (versus a CD, for example)
Cons
- Interest rates can vary over time
- Certain accounts have fees or requirements (like a particular monthly balance to earn a higher interest rate)
When it comes to checking and savings accounts, don’t think of it as an either-or situation — it’s a good idea to have both. You can also mix and match. For instance, you might go for an online checking account and a local credit union for a savings account.
You can have multiple checking accounts, too; perhaps one offers a new-member bonus for an influx of free cash, while another offers free overdraft protection for regular spending. Alternatively, when it comes to savings accounts, one might offer a higher annual percentage yield, while another offers other saving products like a money market account.
Regardless of the checking account or savings account you choose, it’s a good move to keep your money in a secure place
Choosing a Bank vs. a Credit Union vs. a FinTech Company for Your Checking Account
Similarly, opening a checking account, period, is generally a good move, regardless of where you do it.
Keep your own habits and preferences in mind, especially when it comes to choosing between a brick-and-mortar (bank or credit union) and online-only setup. Consider fees, from initial to ongoing, as well to make sure the account doesn’t end up costing you.
Ultimately, though, don’t get hung up on too many details: When it comes to personal finance, it ultimately comes down to what works for you and your situation.
Methodology
We graded 10 of our favorite bank and credit union accounts on the factors that we like to see in any checking account — no fees, free ATMs, good rewards, easy setup and accessibility.
If an account has a monthly fee or out-of-network ATM charges, we highlighted some more positive qualities (think: a low minimum balance requirement, interest checking account offering or a free debit card). With that said, we prioritized those checking accounts that nixed monthly maintenance fees, featured savings accounts and had no-charge or reimbursed out-of-network network ATM fees.
Here are the best checking accounts we found across (online) banks, credit unions and other financial institutions.
Recapping the 10 Best Checking Accounts of September 2022
- Chime Spending Account: Best for Digital Features
- Varo Bank Account: Best for cash back
- Chase Total Checking Account: Best for Promotional Offers
- TD Bank Convenience Checking Account: Best for Free Mobile Banking
- Axos Bank Essential Checking Account: Best for Online Customers
- Ally Interest Checking Account: Best for No Fee Perks
- Consumers Credit Union Free Rewards Checking: Best for High Balance Benefits
- Schwab Bank High Yield Investor Checking: Best for International Travelers
- Chase College Checking Account: Best for Responsible Students
- Montgomery Bank New Start Checking Account: Best for No-Frills Banking
Frequently Asked Questions (FAQs) About Checking Accounts
When it comes to choosing the best checking accounts, there’s a lot of information out there. Here, we’re answering some of the most popular questions about checking accounts.
A checking account is where you hold money at a bank, credit union or other financial institution. You typically use this account to pay for everyday expenses or bills. Depending on where you have you bank, you can access your cash in person, or via an ATM or debit card. Unlike a savings account — which you use for an emergency fund or other financial goal — checking accounts should be fairly accessible for regular spending usually with a debit card. They don't normally accrue interest.
Every checking account — whether it’s through a physical or online bank, credit union or other fintech setup — will have its own requirements. Generally, to open a checking account, you need to be at least 18 years old (though guardians can sometimes co-sign an account for a minor) and have a government ID (such as a passport or driver’s license). You’ll likely also need to supply contact information and possibly an opening deposit.
The best bank to open an account will depend on your needs. If you prioritize banking at a physical institution with plenty of locations where you can interact with staff in person, you might choose to go with a big-name chain. If you prefer a bank where you might qualify for higher interest rates in lieu of having access to brick-and-mortar locations, an online setup might work best for you. No matter your choice, it’s a good idea to evaluate it over time; if a bank ends up not being over time.
The best free checking account will vary based on your wants and needs in a banking account. You’ll want to look for an account that has no or a low monthly fee, a free debit card and easy access to your money — whether that is an ATM, a physical branch, an app or all of the above. Bonus: look for a free checking account that also offers a new-user bonus. Right now, Chime, Varo and Axos are overall solid free options for checking. Shop around and look for a checking account that’s best for you.
Wells Fargo and Chase each offer online checking accounts, among other banking products. But they also have monthly fees, too. Good news: Well Fargo will eliminate non-sufficient fees funds (NSF) fees in the third quarter of 2022 and give customers early access to eligible direct deposits. Each has online and in-person banking; so, one could be a better fit depending on branch locations in your area. Chase often offers significant new-user sign-on bonuses.
What makes a bank good for a checking account weighs largely on what you prioritize in both a bank and an account. As a whole, you want to consider fees (how much does it cost you to keep your money there?), rewards (do you earn anything for banking with them?), accessibility (what are the requirements to open and keep your account open?) and mobility (does the bank charge foreign transaction fees?). Bonus points if they give out a… bonus, too, for being a new account holder.
The interest earned on checking accounts is considered taxable income. So, your bank, credit union or financial institution will send you a 1099-INT form each year your account earns interest over $10. You file this paperwork along with your yearly taxes. And don’t let this income being taxed deter you from saving money; a traditional or high-yield savings account is still a worthwhile tool for your money.
Contributor Kathleen Garvin (@itskgarvin) is a personal finance writer based in St. Petersburg, Florida, and former editor and marketer at The Penny Hoarder. She owns a content-writing business and her work has appeared in U.S. News, Clark.com and Well Kept Wallet.
*Chime disclosure:
Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank or Stride Bank, N.A.; Members FDIC.
*Chase fine print:
“Checking offer is not available to existing Chase checking customers, those with fiduciary accounts, or those whose accounts have been closed within 90 days or closed with a negative balance. To receive the $200 checking bonus: 1) Open a new Chase Total Checking account, which is subject to approval AND 2) Have your direct deposit made to this account within 60 days of account opening. Your direct deposit needs to be an electronic deposit of your paycheck, pension or government benefits (such as Social Security) from your employer or the government. After you have completed all the above requirements, we’ll deposit the bonus in your new account within 10 business days. You can only receive one new checking account-related bonus per calendar year. Bonus is considered interest and will be reported on IRS Form 1099-INT.
“Account Closing: If your checking account is closed within six months after opening, we will deduct the bonus amount at closing.”
Editorial Disclosure
This content is not provided by the bank advertiser. Opinions expressed here are the author’s alone, not those of the bank advertiser. This site may be compensated through the bank advertiser Affiliate Program.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
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