The choice depends on what you need to do most often with your account

There is no single "best" bank for everyone. The right choice depends on whether you need to deposit cash regularly, whether you have a steady income, how often you travel, and whether you want to talk to a person or handle everything online. Start by listing what matters to you — then match it to what each bank actually offers, not what their ads promise.

The main split is between traditional banks (which have physical branches you can walk into) and online-only banks (which have no branches but usually charge fewer fees). Credit unions are a third option: they are member-owned, often have lower fees, but may have fewer branches and stricter rules about who can join. Each type has real trade-offs, and the cheapest option is not always the best one for your situation.

Key Takeaways

  • Banks with physical branches near your home or work let you deposit cash and talk to someone in person, but usually charge monthly fees unless you keep a minimum balance.
  • Online-only banks have no monthly fees and pay slightly higher interest on your balance, but you cannot deposit cash at a branch and must use ATMs or mail deposits.
  • Credit unions often have lower fees and better customer service than banks, but you must be a member (usually through your employer, school, or neighborhood) and they may have fewer ATMs.
  • The cheapest account is worthless if the bank's ATMs are far away or if you cannot deposit the way you actually need to.
  • Most banks let you open an account online in 10 to 15 minutes with just an ID and Social Security number, so you can test an account before fully switching.

Banks with branches: when you need to deposit cash or talk to someone

A traditional bank with physical locations is the right choice if you deposit cash regularly, prefer to speak with someone face-to-face, or need to do business during specific hours. Banks like Wells Fargo, Bank of America, Chase, and regional banks in your area all have branches where you can walk in, deposit cash, and ask questions about your account.

The trade-off is cost. Most banks charge a monthly fee ($10 to $15 is common) unless you keep a minimum balance in the account — often $500 to $1,500 depending on the bank. Some waive the fee if you set up direct deposit of your paycheck. A few regional banks and community banks have lower minimums or no monthly fees at all, so call or visit their website to ask what they charge.

If you choose a bank with branches, pick one where there is a location near your home, your workplace, or both. An ATM network matters too: some banks let you use other banks' ATMs for free, while others charge you $2 to $3 per out-of-network withdrawal. Ask before you open the account.

Online-only banks: when you rarely need cash and want no fees

An online-only bank like Ally, Charles Schwab, or Discover has no monthly fees, no minimum balance requirement, and usually pays you a small amount of interest on your balance. You do everything through a website or phone app: check your balance, transfer money, pay bills, and see your history. These banks are genuinely cheaper if you do not need to deposit cash often.

The limitation is that you cannot walk into a branch. To deposit cash, you either use an ATM (which may charge a fee if it is not part of the bank's network) or mail a check to the bank. Some online banks partner with other banks' ATM networks so you can deposit cash for free at thousands of locations — Ally and Charles Schwab do this — so check before you open an account.

Online-only banks work well if you get paid by direct deposit, pay most bills online, and rarely need to deposit cash. They are also a good second account to keep your savings separate from your spending. If you are new to banking and want to talk to someone, this may not be the best first choice.

Credit unions: lower fees and better service, with membership rules

A credit union is owned by its members rather than by shareholders, which means it can charge lower fees and offer better interest rates than a bank. Many credit unions have no monthly fees, no minimum balance, and will waive ATM fees at other credit unions through a shared network called CO-OP or Allpoint.

The catch is that you must be a member to open an account. Membership rules vary: some credit unions are open to anyone who lives or works in a specific county, others are only for employees of a particular company, and some require you to be a student or member of a specific organization. You cannot just walk in and open an account the way you can at a bank.

To find a credit union you can join, use the CO-OP locator or Allpoint website, or search "credit unions near me" and call to ask about membership. If you work for a large employer, your company may have its own credit union. If you are a student, your school may have one. Credit unions are worth the extra step to find if you can join one, because the fees and service are often better than banks.

What to compare when you are deciding between options

Once you have narrowed it down to a few banks or credit unions, compare these specific things:

  • Monthly fee. Ask what the fee is and what you have to do to avoid it (direct deposit, minimum balance, number of debit card transactions, etc.). If there is no fee, confirm that in writing.
  • Minimum balance. Some banks require you to keep a certain amount in the account at all times or they charge you. Ask what happens if you go below it.
  • How you deposit cash. Can you deposit at a branch, at an ATM, or by mail? Are there fees? If you do not deposit cash often, this may not matter.
  • ATM network. Ask how many ATMs you can use for free and where they are located. If you travel, ask whether the bank has ATMs in places you go.
  • Interest rate. Banks and credit unions pay you a tiny amount of interest on your balance — usually less than 0.5% per year. It is not much, but online banks and credit unions usually pay more than traditional banks.
  • Customer service hours. Ask when you can call or chat with someone if you have a problem. Some banks have 24/7 phone support; others only during business hours.

Write down the answers for each bank or credit union, then compare them side by side. The cheapest is not always the best — if the nearest ATM is 20 minutes away, that costs you time and frustration.

How to test an account before you fully switch

You do not have to commit to one bank forever. Most people have accounts at more than one bank, and it is normal to open a new account and keep your old one while you test whether the new one works for you.

Open the new account online (it takes 10 to 15 minutes) and deposit a small amount of money. Use it for a few weeks: deposit cash if that is something you do, withdraw from ATMs, transfer money, and call customer service with a question. See whether it feels right. If it does not, you can close it and move your money back to your old bank. If it does, you can gradually move your paychecks and bills over.

This approach takes a little longer than switching all at once, but it means you will not get stuck with a bank that does not work for you. It also means you can keep your old account as a backup while you learn how the new one works.

Red flags: what to avoid

Avoid banks that charge you to talk to customer service, charge high fees for small mistakes (like overdrafts), or make it hard to close your account. Some banks charge $25 to $35 if you overdraw your account by even a dollar, and some charge a fee just to speak with someone on the phone.

Also avoid banks that require you to maintain a very high minimum balance ($5,000 or more) unless you have that money sitting around. The interest you earn will not make up for the fees you pay if you fall below it.

Read the fee schedule before you open an account — most banks post it online. If you cannot find it or it is confusing, call and ask a person to explain it. A bank that makes fees hard to find is usually hiding something.

Frequently Asked Questions

Can I have accounts at more than one bank?

Yes. Many people have a checking account at one bank and a savings account at another, or keep an old account open while testing a new bank. There is no limit to how many accounts you can have. Just remember that each account is separate, so you need to track balances and fees for each one.

What if I do not have a Social Security number?

Most banks require a Social Security number or an Individual Taxpayer Identification Number (ITIN) to open an account. Some credit unions and community banks will open an account with just a passport and a local address. Call ahead and ask before you visit.

Do I need to keep a minimum balance to avoid fees?

It depends on the bank. Online banks and many credit unions have no minimum balance. Traditional banks usually require $500 to $1,500, though some waive it if you set up direct deposit. Ask the specific bank what their rule is.

Which bank is safest?

All banks and credit unions that are insured by the FDIC or NCUA protect your money up to $250,000 if the bank fails. This is a government may provide, so safety is not the deciding factor. Choose based on fees, location, and service instead.

How long does it take to open an account?

Online, most banks let you open an account in 10 to 15 minutes with an ID and Social Security number. At a branch, it may take 20 to 30 minutes because a person will ask more questions. You can usually start using the account the same day.