What makes a bank "good" depends on how you actually bank
There is no single best bank for everyone. A good bank for you is one that matches how you move money — whether you need to deposit cash often, rarely visit a branch, or want to talk to a person when something goes wrong. Before you compare banks, think about what you actually do: Do you get paid by check or direct deposit? Do you need to deposit cash? Will you use an ATM, or mostly online banking? Do you want a branch you can walk into?
Once you know what matters to you, you can narrow down to banks that fit. The biggest names — Chase, Bank of America, Wells Fargo, Citibank — have branches everywhere, which helps if you need to deposit cash or speak to someone in person. Smaller regional banks and credit unions often have lower fees and better customer service, but fewer locations. Online-only banks like Ally, Charles Schwab, and Discover have no monthly fees and higher interest rates on savings, but no physical branch at all.
Key Takeaways
- Choose a bank based on how you actually bank — cash deposits, branch visits, and customer service matter more than the bank's name.
- Big national banks have many branches and ATMs but often charge monthly fees unless you keep a minimum balance or set up direct deposit.
- Credit unions and regional banks usually have lower fees and better customer service, but fewer locations to visit.
- Online-only banks have no monthly fees and pay interest on checking accounts, but you cannot deposit cash in person.
- Before opening an account, check the monthly fee, minimum balance requirement, ATM network, and whether the bank reports to credit bureaus.
Monthly fees and minimum balance requirements
Most banks charge a monthly maintenance fee unless you meet certain conditions. Common conditions are: keeping a minimum balance (often $500 to $1,500), setting up direct deposit, or maintaining a certain number of debit card transactions per month. If you cannot meet these conditions, you will pay $5 to $15 per month just to have the account open.
Some banks waive the fee for students, seniors, or people under 25. Others waive it if you link a savings account or credit card to the checking account. Online-only banks almost never charge a monthly fee at all, because they have no branch costs to pass on to you. If you are starting out and do not have much money, an online bank or a credit union often costs less than a big national bank.
Cash deposits and branch access
If you get paid in cash or need to deposit checks regularly, you need a bank with branches or ATMs near you. Big national banks have thousands of ATMs across the country. Credit unions often share ATM networks with other credit unions, so you may have access to more machines than you think — ask before you join. Online-only banks have no ATMs of their own, though some partner with other banks or convenience stores to let you deposit cash.
If you rarely deposit cash and get paid by direct deposit, branch access matters much less. You can bank entirely on your phone and never visit a location. But if you are new to banking and want to talk to someone face-to-face when you have questions, a bank with a nearby branch is worth the extra fee.
Interest rates and savings features
Most checking accounts pay little or no interest on your balance. Online-only banks are the exception — they often pay 4% to 5% interest on checking account balances, which means your money grows slightly just by sitting there. Big national banks typically pay 0.01% or less, which is almost nothing.
If you plan to keep money in your checking account for a while, an online bank's higher interest rate adds up. If you move money in and out quickly and do not keep a balance, the interest rate does not matter. Some banks also offer a linked savings account with a higher interest rate, which is useful if you want to save money separately from your spending account.
Credit reporting and building credit history
Not all banks report checking account activity to credit bureaus. Some do, which means using your checking account responsibly — keeping it open, not overdrawing it — can help build your credit history. This matters if you are new to credit or rebuilding after problems. Ask the bank whether they report to the three major credit bureaus: Equifax, Experian, and TransUnion.
Banks that focus on people new to banking, like Chime or LendingClub, often report to credit bureaus as part of their service. Traditional banks vary — some report, some do not. If building credit is important to you, ask before you open the account.
Customer service and support options
When something goes wrong — a fraudulent charge, a missing deposit, a question about your balance — you need to reach someone who can help. Big banks have phone lines and branches, but wait times can be long. Credit unions and smaller banks often answer the phone faster and know your account personally. Online banks have phone and chat support, but no branch to visit.
Before opening an account, call the customer service number and see how long you wait. Try the chat feature if they have one. Read recent reviews on sites like Trustpilot or the Better Business Bureau to see what other customers say about getting help. A bank with fast, friendly support is worth more than a bank with a famous name.
Comparing specific types of banks
| Bank Type | Monthly Fee | Branch Access | Interest on Checking | Best For |
|---|---|---|---|---|
| Big national bank (Chase, Bank of America, Wells Fargo) | $10–$15, waived with direct deposit or minimum balance | Thousands of branches and ATMs nationwide | 0.01% or less | People who need to deposit cash often or prefer in-person service |
| Credit union | $0–$5, often waived | Fewer branches, but shared ATM networks | 0.5%–2% | People who want lower fees and personal service |
| Regional bank | $5–$12, often waived with direct deposit | Branches in specific regions only | 0.01%–1% | People in areas where the bank operates who want lower fees than national banks |
| Online-only bank (Ally, Charles Schwab, Discover) | $0 | No physical branches | 4%–5% | People who bank on their phone and do not need to deposit cash in person |
Frequently Asked Questions
What if I do not have an ID or Social Security number yet?
You will need a government-issued ID and a Social Security number or ITIN (Individual Taxpayer Identification Number) to open a checking account. If you do not have these yet, contact your local government office or the Social Security Administration to start the process. Some banks work with people in this situation — call ahead and ask.
Can I open a checking account online, or do I have to go to a branch?
Most banks let you start the process online, but you may need to visit a branch or mail in documents to finish. Online-only banks complete the entire process on your phone or computer. Big national banks usually require you to visit a branch in person at least once, especially if you are opening your first account.
What happens if I overdraw my account?
If you spend more money than you have, the bank will either decline the transaction or pay it and charge you an overdraft fee (usually $25–$35). Some banks offer overdraft protection, which links your checking account to a savings account and automatically transfers money if you run short. Ask about this before you open the account.
Should I open a checking account at the same bank where I have a savings account?
It is convenient to have both at one bank because you can transfer money between them when ready and see all your accounts in one place. But you are not required to — you can have a checking account at one bank and a savings account at another. Some banks offer discounts if you link multiple accounts, so ask.
How do I know if a bank is safe and will not lose my money?
Look for the FDIC (Federal Deposit Insurance Corporation) logo on the bank's website or ask when you call. FDIC insurance protects your money up to $250,000 per account, even if the bank fails. Credit unions have similar protection through the NCUA (National Credit Union Administration). If a bank is not insured, do not open an account there.