What matters when you pick a bank
The bank you choose affects how much you pay in fees, how easily you can deposit checks or withdraw cash, and what happens when something goes wrong with your account. There is no single best bank for everyone — the right choice depends on how you actually use money: whether you travel, whether you need to deposit cash regularly, whether you keep a low balance, whether you use your phone for banking.
Start by listing what you do with your checking account. Do you need to deposit checks by phone? Do you visit a physical branch? Do you travel and need ATMs everywhere? Do you keep less than $500 in the account most months? Once you know what matters to you, you can compare banks on the things that actually affect your life, not on marketing claims.
Key Takeaways
- Monthly maintenance fees range from zero to $15 depending on the bank and whether you meet balance or direct deposit requirements.
- ATM networks vary widely — some banks charge you to use another bank's ATM, while others reimburse those fees or have thousands of partner ATMs.
- Physical branches matter only if you need to deposit cash, get a cashier's check, or talk to someone in person about a problem.
- Online banks have no branches but usually charge no fees and offer higher interest rates, though depositing checks takes longer.
- Credit unions often have lower fees and better customer service than large banks, but you must be a member and their ATM networks are smaller.
Fee structures: what you actually pay each month
Most banks charge a monthly maintenance fee unless you meet one of their conditions. Those conditions are usually: keep a minimum balance (often $500 to $2,500), set up direct deposit, or maintain a certain number of debit card transactions per month. If you do not meet any condition, you pay the fee — typically $5 to $15 per month.
Some banks waive the fee for anyone under 25, or for students, or for anyone who opens an account online. Others charge no monthly fee at all, but make money from overdraft fees instead. An overdraft fee is what the bank charges when you spend more than you have — usually $25 to $35 per transaction. If you live paycheck to paycheck, overdraft fees can add up faster than a monthly maintenance fee.
Beyond the monthly fee, compare these: ATM fees (usually $2 to $3 if you use another bank's machine), wire transfer fees ($15 to $30), and what happens if your account goes negative. Some banks let you overdraft once or twice a month before charging; others charge when ready. Read the fee schedule on the bank's website before you open the account — it is usually under "Pricing" or "Fees and Charges".
ATM access: how easily you can get your cash
If you need cash regularly, ATM access matters more than almost anything else. Large national banks like Chase, Bank of America, and Wells Fargo have thousands of ATMs across the country. If you use an ATM that is not part of your bank's network, you pay a fee — usually $2 to $3 per withdrawal, plus a fee from the other bank.
Credit unions solve this through shared branching networks. A credit union member can walk into almost any other credit union in the country and withdraw cash or deposit checks for free. If you belong to a credit union, check whether it is part of the CO-OP network or Allpoint — these tell you how many ATMs you can use without a fee.
Online banks like Ally, Charles Schwab, and Discover have no physical ATMs of their own. Instead, they either reimburse all ATM fees you pay (so you can use any machine and get your money back), or they partner with networks like Allpoint that have tens of thousands of ATMs. If you rarely withdraw cash, this does not matter. If you withdraw cash twice a week, it matters a lot.
Physical branches: when you actually need to visit
You need a physical branch only if you do one of these things: deposit cash regularly, need a cashier's check, or want to talk to someone in person when something goes wrong. If you deposit checks by phone or mail, and you pay most bills online, you may never need a branch.
Large banks have branches everywhere. Credit unions have fewer branches but often have shared branching agreements — you can walk into a different credit union and do basic transactions. Online banks have no branches at all, which is why they can charge lower fees.
If you think you might need a branch, count how many are near your home and work before you open the account. A bank with one branch nearby is less useful than one with five. Check the bank's website and search for branch locations by zip code.
Online banking and mobile deposits
Every bank now offers online banking and a mobile app. The differences are in speed and reliability. Most banks let you deposit checks by taking a photo with your phone — you photograph the front and back, and the bank processes it within one to three business days. Some banks process mobile deposits faster than others; some have limits on how many checks you can deposit per month.
If you need to deposit checks regularly, test the mobile deposit before you commit. Some apps are slow or crash frequently. Others work when ready. You can usually test an app without opening an account by downloading it and seeing what information it asks for.
Online banking also includes bill pay, which lets you send money to anyone with a bank account or mailing address. Most banks offer this for free. Check whether the bank charges to set up automatic payments or to pay bills to businesses that do not accept electronic payments.
Large banks versus credit unions versus online banks
| Type | Monthly Fee | ATM Access | Branches | Best For |
|---|---|---|---|---|
| Large national bank (Chase, Bank of America, Wells Fargo) | $5–$15, waived with direct deposit or minimum balance | Thousands of ATMs nationwide | Hundreds of locations | People who need physical branches and nationwide ATM access |
| Credit union | $0–$5, often waived for all members | Shared branching network, usually free | Fewer locations, but shared access to other credit unions | People who want lower fees and personalized service |
| Online bank (Ally, Charles Schwab, Discover) | $0, no conditions | Reimburses fees or partner network | None | People who rarely need cash or branches and want no fees |
Large banks are safest if you need a physical location nearby and want ATMs everywhere. You will pay a monthly fee unless you meet their conditions, but you get what you pay for: access and convenience.
Credit unions charge lower fees and often have better customer service because they are member-owned. The catch is you must be a member — membership usually requires living in a certain area, working for a certain employer, or belonging to a certain organization. If you are may be able to access, a credit union is often the cheapest option.
Online banks charge no monthly fees and offer higher interest rates on savings, but you cannot deposit cash and cannot talk to someone in person. They work best if you use direct deposit, pay most bills online, and rarely need cash.
How to compare before you open an account
Write down what you actually do with your checking account: How often do you withdraw cash? Do you deposit checks? Do you travel? Do you keep a low balance? Then visit the websites of three banks that seem like they might work — one large bank, one credit union (if you are may be able to access), and one online bank.
For each bank, find and read the fee schedule. Look for: monthly maintenance fee and what waives it, ATM fees, overdraft fees, and mobile deposit limits. Then check how many ATMs or branches are near you. Finally, read the mobile app and see whether it is straightforward to use.
You do not need to choose the cheapest option. You need to choose the option that costs the least for how you actually bank. If you withdraw cash three times a week, an online bank with no ATM network will cost you more in ATM fees than a large bank with a $10 monthly fee.
Frequently Asked Questions
Can I switch banks after I open an account?
Yes, and it is easier than most people think. You can keep your old account open while you use the new one, or close it once everything has moved over. The main work is updating direct deposit with your employer and changing any automatic payments. Most banks have a tool to help you move money from your old account.
What if I have bad credit or a history of overdrafts?
Banks check ChexSystems, a database of banking history, not your credit score. If you have overdrafted or bounced checks, you may be denied. Some banks are stricter than others — credit unions and online banks often accept people that large banks reject. Call the bank and ask whether they accept people with ChexSystems records before you explore.
Do I need to keep a minimum balance?
Only if the bank requires it to waive the monthly fee. If you cannot meet the minimum, choose a bank that charges no monthly fee or waives it without a balance requirement. Online banks and many credit unions do not require a minimum balance.
Which bank is safest?
Any bank insured by the FDIC (Federal Deposit Insurance Corporation) is equally safe up to $250,000. All large banks and most credit unions are FDIC-insured. Check the bank's website or call to confirm — the FDIC logo usually appears at the bottom of the homepage.
Should I open a savings account at the same bank?
You can, but you do not have to. Some banks offer higher interest rates on savings than others. Compare savings rates across banks — online banks usually pay more interest than large banks. You can keep your checking account at one bank and your savings account at another.