What matters when you pick a bank
The "best" bank for a checking account depends on how you actually use money—whether you need a physical branch, how often you travel, what fees you can tolerate, and whether you want to bank where you already have savings or investments. No single bank is best for everyone. What matters is matching the bank's structure to your life.
Start by deciding whether you want a traditional bank with physical locations, an online-only bank, or a credit union. Each has different trade-offs. A traditional bank gives you a branch to walk into; an online bank usually charges no monthly fees; a credit union often has lower rates on loans and higher rates on savings, but membership is restricted. Then narrow by the specific features that affect you most: overdraft policies, ATM access, minimum balance requirements, and customer service availability.
Key Takeaways
- Traditional banks like Chase, Bank of America, and Wells Fargo have branches everywhere but often charge monthly fees unless you maintain a minimum balance or set up direct deposit.
- Online banks like Ally, Charles Schwab, and Discover have no monthly fees and no minimum balance, but you cannot deposit cash or visit a branch in person.
- Credit unions typically offer better rates on savings and loans, but membership is limited to people who work in certain industries, live in certain areas, or belong to certain organizations.
- The cheapest option for most people is an online bank paired with a second account at a bank with branches for the rare times you need to deposit cash.
- Overdraft fees and ATM fees vary widely—some banks charge $35 per overdraft while others charge nothing, so read the fee schedule before you open the account.
Traditional banks with branch networks
Chase, Bank of America, and Wells Fargo are the three largest banks in the United States by branch count. All three have checking accounts available in every state. Chase has roughly 4,700 branches; Bank of America has roughly 4,300; Wells Fargo has roughly 4,200. If you need to walk into a physical location regularly—to deposit cash, get a cashier's check, or talk to someone in person—one of these three will almost certainly have a branch near you.
The trade-off is fees. Chase's basic checking account requires either a $500 minimum daily balance or direct deposit to avoid a $12 monthly fee. Bank of America's basic account requires a $1,500 minimum balance or direct deposit to avoid a $12 monthly fee. Wells Fargo's basic account requires a $500 minimum balance or direct deposit to avoid a $10 monthly fee. If you cannot meet the minimum balance and do not have direct deposit, you will pay the monthly fee. Overdraft fees at all three are $35 per transaction.
Regional banks like PNC, U.S. Bank, and TD Bank operate in specific parts of the country and often have similar fee structures to the big three. If you live in the Northeast, TD Bank has extensive branch coverage. If you live in the Midwest or Mid-Atlantic, PNC and U.S. Bank have significant presence. Check whether a regional bank has branches where you actually spend time before opening an account.
Online banks with no monthly fees
Ally Bank, Charles Schwab Bank, Discover Bank, and Marcus by Goldman Sachs are online-only banks that charge no monthly fees, require no minimum balance, and pay interest on checking balances (though the rate is typically 0.01% to 0.25%, which is minimal). You cannot walk into a branch or deposit cash directly, but you can deposit checks by taking a photo on your phone, and you can withdraw cash at ATMs.
Charles Schwab stands out because it reimburses ATM fees charged by other banks worldwide—if you use an out-of-network ATM and pay a $3 fee, Schwab refunds it. This matters if you travel or live somewhere without many ATMs. Ally and Discover have their own ATM networks but charge you if you use a different bank's ATM. Marcus has no ATM network at all, which makes it less practical as a primary checking account.
The main limitation of online banks is that you cannot deposit cash except by mailing it in (which is slow and risky). If you receive cash regularly—tips, payments from side work, cash gifts—an online bank alone will not work. The solution most people use is to open a checking account at an online bank for regular spending and a second account at a traditional bank or credit union specifically for depositing cash when needed.
Credit unions
Credit unions are member-owned financial institutions that often offer better rates on savings accounts and loans than traditional banks. Navy Federal Credit Union is the largest by membership; State Employees' Credit Union (in North Carolina) and Pentagon Federal Credit Union are also large. But membership is restricted—you must work for a specific employer, live in a specific geographic area, or belong to a specific organization to join.
If you are a member, credit union checking accounts typically have no monthly fee, no minimum balance, and lower overdraft fees than traditional banks (often $25 instead of $35). Some credit unions reimburse ATM fees like Charles Schwab does. The downside is that credit unions have fewer branches and ATMs than large banks, so access depends on where you live and whether your credit union is part of a shared branching network.
To find a credit union you can join, search the CO-OP Network or Shared Branch locator on the Credit Union National Association website. You can also ask your employer's human resources department whether they sponsor a credit union for employees.
Comparing fees across banks
| Bank Type | Monthly Fee | Minimum Balance | Overdraft Fee | ATM Access |
|---|---|---|---|---|
| Chase (traditional) | $12 (waived with direct deposit or $500 balance) | $500 | $35 | 4,700+ branches |
| Bank of America (traditional) | $12 (waived with direct deposit or $1,500 balance) | $1,500 | $35 | 4,300+ branches |
| Wells Fargo (traditional) | $10 (waived with direct deposit or $500 balance) | $500 | $35 | 4,200+ branches |
| Ally (online) | $0 | $0 | $0 | Out-of-network ATMs charge you |
| Charles Schwab (online) | $0 | $0 | $0 | All ATM fees reimbursed |
| Discover (online) | $0 | $0 | $0 | Out-of-network ATMs charge you |
| Credit Union (varies) | $0 | $0 | $25 (typical) | Shared branching network |
How to decide between them
If you have direct deposit from an employer or regular income source, a traditional bank's monthly fee disappears. In that case, the question becomes whether you value branch access enough to justify the overdraft fees and account restrictions. If you rarely need a physical branch and do not receive cash, an online bank like Charles Schwab or Ally is cheaper and simpler.
If you receive cash regularly or need to deposit cash frequently, you have three options: open an account at a traditional bank and pay the monthly fee, open an account at a credit union if you may have access to, or open two accounts—one online bank for everyday spending and one traditional bank or credit union for cash deposits. The two-account approach costs nothing if the traditional bank waives its monthly fee through direct deposit.
If you travel internationally or use ATMs frequently outside your home area, Charles Schwab's ATM fee reimbursement is worth the account opening. If you stay in one place and have a nearby branch, a regional bank or credit union may serve you better than a national chain.
What to check before you open an account
Before opening an account anywhere, read the fee schedule on the bank's website. Look specifically for: monthly maintenance fees and what waives them, overdraft fees, insufficient funds fees, ATM fees for out-of-network use, and fees for closing the account early. Some banks charge $25 to close an account within a certain period, which is rare but worth knowing.
Check the bank's customer service hours. Traditional banks typically offer phone support during business hours only. Online banks like Ally and Charles Schwab offer phone support 24/7. If you need help at midnight on a Sunday, this matters. Also verify that the bank is FDIC insured (for traditional banks) or NCUA insured (for credit unions). This protects your money if the bank fails. Every bank mentioned in this article is insured, but it is worth confirming for any bank you consider.
Frequently Asked Questions
Do I need to keep a minimum balance to avoid fees?
It depends on the bank. Online banks like Ally and Charles Schwab have no minimum balance requirement. Traditional banks like Chase and Bank of America require $500 to $1,500 in your account daily to waive the monthly fee, though direct deposit waives the requirement instead. Credit unions typically have no minimum balance. Read the fee schedule before opening an account.
Can I use any ATM with a checking account?
You can use any ATM, but you may be charged a fee if it is not your bank's ATM. Charles Schwab reimburses these fees. Ally and Discover do not. Traditional banks have their own ATM networks, so using their ATM is free. Credit unions participate in shared branching networks that let you use other credit union ATMs for free.
What happens if I overdraft my account?
If you spend more than you have, the bank covers the transaction and charges you an overdraft fee, typically $35 at large banks and $25 at credit unions. Some online banks like Ally do not charge overdraft fees at all. You can also ask your bank to decline transactions instead of overdrafting, which prevents the fee but may cause a payment to fail.
Is it safe to bank online?
Online banks are FDIC insured just like traditional banks, so your money is protected if the bank fails. Security depends on your own practices—use a strong password, do not share your login, and enable two-factor authentication if the bank offers it. Online banks typically have the same security protections as traditional banks.
Can I switch banks later if I change my mind?
Yes. You can close an account at any time and move your money to a different bank. Some banks charge a small fee to close an account early, but most do not. You will need to update your direct deposit and any automatic payments with your new account number, which takes a few days to process.