Banks and credit unions that offer free checking with no monthly fees

Free checking accounts exist at most banks and credit unions, but "free" means different things at different places. Some charge nothing as long as you keep a minimum balance. Others charge nothing no matter what. Some waive fees only if you set up direct deposit. The fastest way to find one that matches your situation is to call three places and ask one question: "What is the monthly fee for a basic checking account, and what do I need to do to avoid it?"

Large national banks like Chase, Bank of America, and Wells Fargo all offer checking accounts with no monthly fee, though each has conditions. Chase's basic account requires either a minimum balance or direct deposit. Bank of America waives the fee if you maintain a $500 minimum balance or set up direct deposit. Wells Fargo requires either a $500 balance or direct deposit. If you cannot meet those conditions, these banks are not your best choice.

Credit unions almost always charge less or nothing. A credit union is a member-owned bank that typically serves people in a specific area, industry, or group. Credit unions tend to have lower fees and higher savings rates than big banks because they do not answer to shareholders — they answer to their members. If you work for a large employer, belong to a union, or live in a specific county, you likely may have access to for at least one credit union. You can search for credit unions you may have access to for at CO-OP.org or Shared Branch Locator, both free directories.

Key Takeaways

  • Free checking at large national banks usually requires either a minimum balance of $500 or direct deposit from your employer.
  • Credit unions offer free checking more often than banks and rarely require a minimum balance, but membership depends on where you work or live.
  • Online-only banks like Ally, Charles Schwab, and Discover have no monthly fees and no minimum balance requirements.
  • Before opening an account anywhere, call and ask what the monthly fee is and what you need to do to avoid it.
  • You will need a government ID, proof of address, and usually a phone number to open an account in person or online.

Online banks with no fees and no minimum balance

Online-only banks have no physical branches, which means lower costs for them and lower fees for you. Most offer free checking with zero monthly fees and zero minimum balance. You open the account on their website or app, and deposits work through mobile check deposit or transfers from another bank.

Charles Schwab Bank, Ally Bank, and Discover Bank all offer free checking with no monthly fee and no minimum balance. Schwab reimburses ATM fees worldwide, which is useful if you travel or live far from their ATMs. Ally and Discover do not reimburse ATM fees, but both have networks of ATMs you can use for free. All three let you deposit checks by taking a photo on your phone.

The trade-off is that you cannot walk into a branch to deposit cash or talk to someone in person. If you need to deposit cash regularly, an online bank is harder to use. If you mostly receive paychecks by direct deposit and pay bills online, an online bank works well.

Community banks and smaller regional banks

Community banks are independent banks that serve a specific city or region. They often have free checking with no minimum balance because they compete on service rather than size. You can find community banks in your area by searching "community bank near me" or asking at your local library or community center.

The advantage of a community bank is that you can talk to the same person each time you visit, and they often know local programs or resources. The disadvantage is that they may have fewer ATMs and less online technology than large banks. Some community banks charge for things that large banks do not, like wire transfers or overdrafts, so ask about fees before you open an account.

What you need to bring to open an account

Whether you go to a bank branch, a credit union, or open an account online, you will need the same basic documents. Bring a government-issued photo ID — a driver's license, state ID card, or passport. Bring proof of your current address, which can be a utility bill, lease, or mail from a government agency dated within the last 60 days.

You will also need a phone number where the bank can reach you. Some banks ask for a second form of ID or a Social Security number. If you do not have a Social Security number, some banks and credit unions will open an account using an Individual Taxpayer Identification Number (ITIN) instead — ask before you go in.

If you are opening an account online, you will upload photos of your documents instead of showing them in person. The process usually takes 10 to 15 minutes. Some banks verify your identity by asking questions about your credit history, which they can do when ready.

How to compare free checking accounts side by side

Before you choose, make a list of what matters to you. Do you need to deposit cash regularly? Do you have direct deposit from an employer? Do you travel and need ATM access everywhere? Do you prefer talking to a person or handling everything online?

Then call or visit three places and ask these questions: What is the monthly fee? What do you need to do to avoid it? How many ATMs do you have access to? Can you deposit checks by phone? What happens if you overdraw your account? Write down the answers and compare.

If you are new to banking or returning after a gap, the best account is the one you will actually use. A free account at a bank you trust and can reach easily is better than a slightly cheaper account that frustrates you.

Opening an account if you have had banking problems before

If you have been denied a bank account in the past, it was likely because of ChexSystems or Early Warning Services, two companies that track banking history. They record overdrafts, bounced checks, and closed accounts. Some banks check these records before opening a new account.

If you have been denied, you have options. Some banks and credit unions do not use ChexSystems — they make decisions based on your current situation instead. Call ahead and ask: "Do you use ChexSystems?" If they say no, you may be able to open an account. You can also request your ChexSystems report for free at chexsystems.com and dispute any errors before you explore.

Second-chance banking accounts exist at some banks specifically for people rebuilding their banking history. These accounts may have higher fees or lower limits than regular checking, but they give you a way back in. Ask your local credit union or community bank whether they offer them.

Frequently Asked Questions

Do I need a minimum balance to avoid fees?

It depends on where you open the account. Online banks like Ally and Charles Schwab have no minimum balance. Credit unions rarely require one. Large national banks usually require either a $500 minimum balance or direct deposit. Call before you open an account to know what you need to do.

Can I open a checking account without a Social Security number?

Yes. Some banks and most credit unions will open an account using an Individual Taxpayer Identification Number (ITIN) instead. Call your local credit union or community bank and ask whether they accept ITIN. Bring your ITIN documentation and a government ID when you explore.

What is the difference between a bank and a credit union?

A bank is a for-profit business owned by shareholders. A credit union is a nonprofit owned by its members. Credit unions typically charge lower fees and offer better rates because they do not need to make a profit. You usually have to meet a requirement to join a credit union — work for a certain employer, live in a certain area, or belong to a certain group.

How long does it take to open an account?

In person at a branch, it takes 15 to 30 minutes. Online, it takes 10 to 15 minutes. Some banks verify your identity when ready. Others take one to two business days to confirm your documents. You can usually start using your account the same day you open it, even if verification is still happening.

What if I want to switch banks later?

You can close an account and open a new one whenever you want. Before you close, make sure all your direct deposits and automatic payments are set up at the new bank. Ask your old bank how long it takes to close the account and whether they charge a fee. Most banks do not charge to close an account.