The best place depends on what matters most to you

There is no single "best" checking account — the right choice depends on how you bank and what costs you most. Some people need a branch they can walk into. Others never visit a physical location and care only about low fees. Some want a relationship with a person who knows their name. Others prefer to handle everything on their phone.

The main choice is between a traditional bank (with physical branches), a credit union (member-owned, usually smaller), and an online-only bank (no branches, all digital). Each has real trade-offs. A branch is convenient if you deposit cash regularly or need to talk to someone in person. Online banks often charge no monthly fees and pay interest on your balance. Credit unions sometimes offer better rates but may have fewer ATMs.

Start by asking yourself three questions: Do I need to deposit cash in person? Do I want to talk to a banker face-to-face? How much money will I keep in this account? Your answers will narrow the field quickly.

Key Takeaways

  • Traditional banks offer physical branches and ATMs everywhere, but often charge monthly fees unless you keep a minimum balance.
  • Credit unions are member-owned and may offer lower fees and better rates, but have fewer ATM locations and stricter membership rules.
  • Online banks typically charge no monthly fees and pay interest on checking balances, but you cannot deposit cash in person or speak to someone by phone.
  • The cheapest account is not always the best — a $5 monthly fee at a bank near your home may cost less than driving to an ATM.
  • You can open an account at most banks and credit unions online, but some still require an in-person visit or a video call to verify your identity.

Traditional banks: branches and ATMs everywhere

A traditional bank has physical locations where you can deposit checks and cash, withdraw money, and speak to a banker. The largest banks — Chase, Bank of America, Wells Fargo, Citibank — have thousands of branches and ATMs across the country. If you travel frequently or move often, this network is valuable.

The trade-off is cost. Most large banks charge a monthly maintenance fee ($10 to $15 is common) unless you meet conditions like keeping a minimum balance, setting up direct deposit, or maintaining a linked savings account. Some waive the fee for students or seniors. Read the fee schedule carefully — it is usually on the bank's website under "Checking Account" or "Account Pricing."

Smaller regional banks and community banks often have lower fees than national chains and may offer better customer service because they know their customers. The downside is fewer ATMs and branches if you move or travel. You can find community banks in your area through the Community Bankers Association website or by searching "[your city] community bank."

Credit unions: lower fees, but membership matters

A credit union is owned by its members rather than shareholders. This structure often means lower fees, better interest rates on savings, and lower rates on loans. Many credit unions charge no monthly fee for a basic checking account, or the fee is waived if you maintain a small balance ($100 to $500).

The catch is membership. You can only join a credit union if you meet their membership rules. Some are open to anyone who lives or works in a certain area. Others require you to work for a specific employer, belong to a union, or be related to a current member. A few are open only to military families or government employees. You can search for credit unions you might join at CO-OP (a credit union network) or through the Credit Union Locator tool.

Credit unions also have fewer ATMs than large banks. However, most credit unions participate in shared branching networks, which means you can conduct basic transactions at other credit unions' branches. This helps if you travel, but it is not the same as having your own bank's ATM on every corner.

Online banks: no fees, but no cash deposits

An online bank exists only on the internet. You open an account, deposit checks by photographing them with your phone, and withdraw money at ATMs or through transfers. You never visit a physical location. Popular online banks include Ally, Charles Schwab, Discover, and Chime.

The main advantage is cost. Most online banks charge no monthly fee, no minimum balance, and no overdraft fees (though policies vary). Many also pay interest on your checking balance — usually a small amount, but more than traditional banks offer. Because they have no branches to maintain, they pass the savings to customers.

The main disadvantage is cash. If you receive cash regularly — tips, payments from side work, or cash gifts — you cannot deposit it directly at an online bank. You would need to visit an ATM that accepts deposits, transfer the money through another bank, or use a service like Walmart or CVS (which some online banks partner with). If you rarely handle cash, this is not a problem. If you do, it is a real inconvenience.

What to compare when you are deciding

Once you have narrowed the type of bank, compare these specific features:

  • Monthly fee: What is it, and what conditions waive it? (Direct deposit, minimum balance, linked accounts, student status.)
  • Overdraft policy: What happens if you spend more than you have? Some banks charge $30 to $35 per overdraft. Others decline the transaction instead. Some online banks offer overdraft protection for free.
  • ATM access: Can you withdraw money without a fee? How many ATMs does the bank or network have near you?
  • Deposit methods: Can you deposit checks by phone? Can you deposit cash? Are there limits on how many checks you can deposit per month?
  • Customer service: Can you reach someone by phone, email, or chat? Is there a branch near you if you need in-person help?
  • Interest rate: Does the account pay interest on your balance? How much? (Online banks usually pay more.)

Write down the top three options and compare these features side by side. The cheapest is not always the best — a bank with a $5 monthly fee but an ATM near your home may cost less than an online bank if you have to pay $3 per out-of-network ATM withdrawal.

How to open an account

Most banks and credit unions let you start the process online. You will need a government-issued ID (driver's license or passport), your Social Security number, and proof of your current address (a recent utility bill or lease). Some banks verify your identity when ready through an online system. Others ask you to upload photos of your documents. A few still require you to visit a branch or have a video call with a banker.

The process usually takes 10 to 15 minutes online. Once approved, your account opens when ready, and you can start using it the same day. The bank will mail you a debit card and checks (if you want them) within 5 to 10 business days. Some online banks send a temporary card number you can use right away while you wait for the physical card.

Before you open the account, read the account agreement — it is a legal document that spells out fees, rules, and what happens if something goes wrong. Banks are required to provide this, usually as a PDF on their website. It is long and dense, but skim it for the fee section and overdraft policy.

Starting with a bank near you, then expanding

If you are new to banking or returning after a gap, consider opening your first account at a bank or credit union with a physical location near you. Having a place to go if you have a question or problem is valuable while you are learning. Once you are comfortable with how checking accounts work, you can open a second account at an online bank for savings or to take advantage of better interest rates.

Many people end up with accounts at more than one bank — a local bank for everyday use and cash deposits, and an online bank for savings. This is normal and fine. Start straightforward, then add accounts as you need them.

Frequently Asked Questions

Can I open a checking account if I have never had one before?

Yes. Banks do not require banking history. You will need a government ID, Social Security number, and proof of address. Some banks check ChexSystems (a banking history database), but a first-time account holder will have no history to check. If you have had accounts before and closed them badly, some banks may decline you, but many will not.

What if I do not have a Social Security number?

You can open an account with an Individual Taxpayer Identification Number (ITIN) instead. Not all banks accept ITINs, so call ahead or ask online before you visit. Credit unions and community banks are more likely to accept them than large national banks.

Do I need a minimum balance to open an account?

No. Most banks let you open an account with $0 and deposit money later. However, some banks charge a monthly fee unless you keep a minimum balance (often $500 to $1,500). Read the fee schedule before you open the account so you know what to expect.

Can I switch banks later if I change my mind?

Yes, and it is easier than you might think. You can keep your old account open while you move your money and set up direct deposit at the new bank. Once everything is moved, close the old account. The new bank can sometimes help you move automatic payments and direct deposits, though you may need to update them yourself.

Which bank is safest?

All banks and credit unions insured by the FDIC or NCUA protect your money up to $250,000 if the bank fails. This is a federal may provide, so safety is not the difference between banks. The difference is service, fees, and convenience. Choose based on what works for your life.