There is no single "best" bank — the right choice depends on what matters most to you

The bank that works best for you depends on whether you value low fees, in-person branches, online tools, customer service, or some combination of these. A bank that is perfect for someone who visits a branch weekly might be wrong for someone who banks entirely on their phone. Before you compare specific banks, think about how you actually plan to use your account: Will you deposit checks by phone? Do you need to withdraw cash often? Will you have questions you want to ask a person?

Once you know what matters to you, you can narrow down from the hundreds of options to a handful worth investigating. This section walks you through the main types of banks and what each one typically offers.

Key Takeaways

  • Large national banks have many branches and ATMs but often charge monthly fees unless you maintain a minimum balance or set up direct deposit.
  • Credit unions typically charge lower fees and offer better customer service, but you must be a member of the group they serve (your employer, your neighborhood, your profession).
  • Online-only banks have no monthly fees and higher interest rates on savings, but no physical locations if you need to deposit cash or speak to someone in person.
  • Community banks fall between national banks and online banks — fewer branches than Chase or Bank of America, but more personal service and lower fees than either.
  • The best choice for you depends on whether you value convenience, low fees, customer service, or online tools more than the others.

Large national banks: Many locations, but watch the fees

Banks like Chase, Bank of America, Wells Fargo, and Citibank have thousands of branches and ATMs across the country. If you travel often, move frequently, or like the option to walk into a branch, this convenience has real value. Their websites and apps are also well-developed because they have the budget to build them.

The trade-off is fees. Most large national banks charge a monthly maintenance fee — often $10 to $15 — unless you meet certain conditions. Common ways to avoid the fee include setting up direct deposit (your paycheck goes straight to the bank), maintaining a minimum balance (often $500 to $1,500), or keeping a savings account at the same bank. If you do not meet any of these conditions, you will pay the fee every month, which adds up to $120 to $180 per year.

Large banks also tend to charge overdraft fees if you spend more than you have in your account. These fees range from $25 to $35 per transaction and can stack up quickly if you are not careful. Some banks now offer overdraft protection, which links your checking account to a savings account and transfers money automatically if you go negative — but this service may have its own fee.

Credit unions: Lower fees and better rates, but membership requirements

A credit union is a bank-like institution owned by its members rather than by shareholders. Because they are not trying to make a profit for outside investors, they typically charge lower fees and offer better interest rates on savings accounts. Many credit unions have no monthly maintenance fee at all, regardless of your balance or direct deposit.

The catch is that you must be a member of the group the credit union serves. Some credit unions are open to anyone who lives or works in a specific county. Others serve employees of a particular company, members of a union, or people in a specific profession. A few serve customers of a particular religious organization or alumni of a particular school. You cannot straightforward walk in and open an account — you have to meet the membership requirement first.

To find a credit union you can join, start with the CO-OP Network or Shared Branch network websites, which let you search by location or employer. If you find one you are may be able to access for, ask about their checking account options. Many credit unions also participate in shared branching, which means you can conduct transactions at other credit unions' branches even if you are not a member of those unions.

Online-only banks: No fees, but no physical locations

Banks like Ally, Charles Schwab, and Discover have no physical branches. You open an account online, deposit checks by taking a photo with your phone, and withdraw cash at ATMs (usually for free at a large network). Because they have no buildings or tellers to pay for, they charge no monthly fees and often pay higher interest on savings accounts.

This works well if you are comfortable handling everything by phone or computer and rarely need to deposit cash. If you get a paycheck, you can set up direct deposit. If you receive a check from someone else, you can photograph it with the bank's app. If you need cash, you can use an ATM or transfer money to another bank account.

Online-only banks are not the right choice if you need to deposit large amounts of cash regularly, prefer to speak to a person, or want the security of a physical location you can visit. Some people also find it harder to trust a bank they cannot walk into, even though online banks are insured the same way as traditional banks.

Community banks: A middle ground between national banks and online banks

Community banks are smaller, locally-owned institutions that serve a specific city or region. They typically have fewer branches than Chase or Bank of America — maybe 5 to 50 locations instead of thousands — but more personal service and lower fees. Many community banks charge no monthly maintenance fee and offer better customer service because they are not processing millions of accounts.

Community banks are a good choice if you want to support a local business, value personal relationships with your banker, and live in an area where one exists. The downside is that if you move, your bank may not have branches in your new location. You can still use your account, but you will lose the convenience of nearby branches and ATMs.

To find community banks in your area, search online for "community banks near me" or ask friends and neighbors which banks they use. Many community banks are members of the CO-OP Network, which gives you access to ATMs nationwide even if your bank has only a few branches.

What to compare before you decide

Once you have narrowed down to a few banks, compare them on these specific points:

  • Monthly maintenance fee: Is there one? What do you have to do to avoid it?
  • Overdraft fees: How much does the bank charge if you spend more than you have? Does it offer overdraft protection?
  • ATM access: Can you withdraw cash for free? How many ATMs does the bank have, or what networks does it belong to?
  • Deposit methods: Can you deposit checks by phone? Can you deposit cash? How long does it take for deposits to show up in your account?
  • Customer service: Can you reach someone by phone? Is there a branch near you? Do they offer chat or email support?
  • Interest rate: Does the checking account earn any interest? (Most do not, but some online banks do.)

You do not need the bank with the most features. You need the bank that has the features that matter to you, at a price you can afford.

How to open an account once you have chosen

Once you have decided on a bank, opening an account takes 15 to 30 minutes. You will need a government-issued ID (a driver's license or passport), your Social Security number, and proof of your address (a utility bill, lease, or bank statement). Some banks also ask for your employment information, though this is not required.

You can open an account online, by phone, or in person. Online is usually fastest — you upload your ID, answer questions about yourself, and sign electronically. In-person gives you a chance to ask questions and meet the staff. By phone is a middle ground.

After you open the account, the bank will issue you a debit card (usually within 5 to 10 business days) and give you online access so you can check your balance and transfer money. You can start using the account as soon as it is open, even if your debit card has not arrived yet.

Frequently Asked Questions

Is it better to have one bank or multiple banks?

Most people do fine with one bank. Having multiple accounts at different banks can be useful if one bank's ATM network does not cover where you live, or if you want to keep savings separate from spending money. But starting with one bank is simpler and easier to manage.

Do I need to worry about my money being safe at a smaller bank?

No. All banks and credit unions that take deposits are required to carry insurance through the FDIC (Federal Deposit Insurance Corporation) or NCUA (National Credit Union Administration). This means your money is protected up to $250,000 per account, regardless of the bank's size. A small community bank is just as safe as Chase.

What if I open an account and hate it?

You can close it and move to a different bank. There is no penalty for closing a checking account. You will need to move any automatic payments or direct deposits to your new account, but this takes a few minutes. Many people switch banks at least once before finding one they like.

Can I open a checking account online if I do not have a computer?

Yes. You can call most banks and open an account by phone, or visit a branch in person. Online is fastest, but not required. Ask the bank what documents they need and whether they can mail you a form to sign and return.

Do I need a minimum balance to open an account?

Most banks do not require a minimum balance to open an account. Some may ask for an initial deposit of $25 to $100, but this is just to fund the account — it is not a separate requirement. Once the account is open, you can let the balance drop below that amount without penalty, unless the bank charges a fee for low balances (which is rare).