Where to look for a checking account

You can open a checking account at a bank, a credit union, or an online-only bank. Each type has different requirements, fees, and how quickly you can start using the account. The place you choose depends on what matters most to you — whether that's a physical branch you can visit, lower fees, or the ability to open without a credit check.

Banks are the most common option. They have physical locations, customer service by phone, and usually offer checking accounts with different features depending on how much money you keep in the account. Credit unions are member-owned financial institutions that often have lower fees than banks, but you have to meet membership requirements — usually based on where you work, where you live, or a group you belong to. Online-only banks have no physical branches but typically charge fewer fees because they have lower overhead costs.

Start by listing what you actually need: Do you need to deposit cash regularly? Do you want to talk to someone in person? Do you have a limited credit history? Your answers narrow down which type of institution makes sense for you.

Key Takeaways

  • Banks, credit unions, and online banks all offer checking accounts, and each has different fee structures, branch access, and opening requirements.
  • Credit unions often charge lower fees than banks but require you to meet membership criteria based on employment, location, or group affiliation.
  • Online banks typically have the lowest fees and fastest opening process but require you to deposit checks by phone camera or mail them in.
  • Before you search, decide whether you need in-person branch access, the ability to deposit cash, or a second-chance banking option.
  • You can compare accounts side by side using bank websites or third-party comparison tools that show monthly fees, minimum balance requirements, and overdraft policies.

Banks versus credit unions versus online banks

A traditional bank has branches where you can walk in, deposit cash, and speak to a teller. Most banks offer checking accounts with no monthly fee if you keep a certain balance — often $500 to $1,500 — or if you set up direct deposit. Some banks charge a monthly fee regardless, usually $10 to $15. Banks run a credit check and check ChexSystems (a banking history report) when you open an account, so a history of overdrafts or closed accounts may disqualify you.

A credit union works the same way as a bank but is owned by its members. Credit unions often have lower fees and may not check ChexSystems as strictly. The catch is membership: you might be able to join if you work for a certain employer, live in a certain county, attend a certain school, or belong to a certain organization. Some credit unions let you join if a family member is already a member. Search for credit unions in your area using the CO-OP network locator or Alliant Credit Union's locator tool to see which ones you can join.

An online bank has no physical branches. You deposit checks by taking a photo with your phone or mailing them in. You withdraw money at ATMs (usually free at a large network) or by transferring to another account. Online banks have the lowest fees — many charge nothing monthly — because they do not pay for buildings or tellers. They often have lower minimum balances too. The tradeoff is that you cannot deposit cash directly and cannot speak to someone in person.

How to search for accounts that match your needs

Start on the websites of banks and credit unions you already know. Look at their checking account options and write down the monthly fee, minimum balance requirement, overdraft fees, and whether they offer a second-chance account (sometimes called a "fresh start" account). Most banks list this information in a table on their website under "Checking Accounts" or "Personal Checking".

If you want to compare multiple accounts at once, use a third-party comparison tool like Bankrate, NerdWallet, or DepositAccounts. These sites let you filter by monthly fee, minimum balance, overdraft policy, and whether the bank checks ChexSystems. You can see side-by-side what each account costs and what you get for that cost.

If you have had trouble with banks before — overdrafts, closed accounts, or ChexSystems issues — search specifically for "second-chance checking" or "ChexSystems-free banks." Some banks and credit unions market accounts designed for people rebuilding their banking history. These accounts may have higher fees or lower limits on how much you can withdraw, but they do not require a clean banking record.

What information you need before you open an account

Have your Social Security number, a government-issued ID, and proof of your current address ready. Proof of address can be a utility bill, lease, or bank statement with your name and address on it — it usually has to be dated within the last 60 days. Some banks also ask for your employment information or income, though this is less common for checking accounts than for loans.

If you are opening an account online, you will upload photos of your ID and address proof. If you are opening in person at a branch, bring the physical documents. The process usually takes 10 to 20 minutes in a branch or 5 to 10 minutes online. You will get a debit card in the mail within 7 to 10 business days, though some banks offer a temporary digital card you can use when ready.

Understanding fees before you commit

The main fees to compare are the monthly maintenance fee, overdraft fees, and ATM fees. A monthly maintenance fee is what the bank charges just for having the account open — it ranges from $0 to $15 depending on the bank and account type. Many banks waive this fee if you keep a minimum balance or set up direct deposit.

An overdraft fee is what you pay if you spend more money than you have in the account. This fee is usually $25 to $35 per overdraft. Some banks charge multiple overdraft fees in a single day if you make several transactions over your balance. A few banks offer overdraft protection, which means they transfer money from a savings account or line of credit to cover the overdraft instead of charging a fee — but this only works if you set it up in advance.

ATM fees happen when you use an ATM that is not part of your bank's network. Most banks offer free ATM access at their own branches and at a network of partner ATMs. If you use an out-of-network ATM, you might pay $2 to $3 per transaction. Online banks often reimburse out-of-network ATM fees or partner with a large ATM network to keep fees low.

Checking your banking history before you explore

Before you open an account, check your ChexSystems report. ChexSystems is a database that banks use to see whether you have had problems with previous accounts — overdrafts, bounced checks, or accounts closed due to misuse. You can request a free copy of your ChexSystems report at ChexSystems.com. If there are errors on your report, you can dispute them.

If your ChexSystems report shows closed accounts or overdraft history, you have two options: wait for the negative information to age off (usually after five years), or look for banks that do not check ChexSystems. Some online banks and credit unions do not pull ChexSystems reports, or they are more lenient about past issues. Asking a bank directly whether they check ChexSystems can save you time — a hard inquiry (when a bank checks your report) can temporarily lower your credit score.

Comparing online opening versus in-person opening

Opening online is faster and you can do it at any time. You upload your ID and address proof, answer questions about your identity, and the account opens within minutes to a few hours. You get a temporary digital debit card when ready that you can use online or in stores. The physical card arrives in the mail within 7 to 10 business days.

Opening in person at a branch takes longer — you have to go during business hours and wait your turn — but you can ask questions and get help on the spot. Some people prefer this if they are not comfortable with technology or want to understand the account before committing. A few banks still offer same-day debit cards in the branch, so you can start using the account when ready.

If you have trouble opening online because of identity verification issues, opening in person with your physical ID usually resolves the problem. Some banks also require in-person opening if you do not have a U.S. address or if you are a non-citizen without a Social Security number.

Frequently Asked Questions

Do I need a credit card to open a checking account?

No. A checking account does not require a credit check or a credit card. Banks check ChexSystems (your banking history) and verify your identity, but they do not look at your credit score. You can open a checking account even if you have no credit history or bad credit.

Can I open a checking account if I have been denied before?

Yes, but you need to know why you were denied. If it was because of ChexSystems, look for a bank that does not check ChexSystems or wait for the negative mark to age off. If it was because you could not verify your identity, try opening in person with your physical ID. If it was because you do not have an address, some online banks accept a mailing address or a shelter address.

What is the difference between a checking account and a savings account?

A checking account is for money you use regularly — you get a debit card and checks to spend it. A savings account is for money you want to keep and earn interest on. Most people have both. You can open them at the same time, and many banks offer a package deal with lower fees if you have both.

How long does it take to open a checking account?

Online opening takes 5 to 10 minutes and the account is active within hours. In-person opening takes 10 to 20 minutes and the account is active when ready. Your physical debit card arrives in the mail within 7 to 10 business days, but you can use a temporary digital card right away.

What happens if I close my checking account?

You withdraw any remaining money, and the account closes. The bank reports the closure to ChexSystems. If you closed the account because of overdrafts or disputes, this negative mark stays on your ChexSystems report for five years. If you closed it for a neutral reason, it has less impact on your ability to open accounts elsewhere.