There is no single "best" bank — it depends on what you need

The bank that works for you depends on how you plan to use it. Someone who needs to deposit cash weekly needs a bank with many branches or ATMs in their neighborhood. Someone who rarely visits a branch might prefer an online bank with no monthly fees. A person new to banking might value a bank with patient staff who explain things clearly. Before you compare banks, think about what matters most to you: location, fees, customer service, or something else.

This guide walks you through the main types of banks, what each one offers, and how to figure out which type fits your situation. You will also learn what to look for when comparing specific banks.

Key Takeaways

  • Traditional banks with physical branches are best if you need to deposit cash, speak to someone in person, or prefer face-to-face help opening an account.
  • Online banks usually charge no monthly fees and pay higher interest on savings, but you cannot deposit cash at a branch and customer service is by phone or chat only.
  • Credit unions are member-owned and often have lower fees and more flexible lending, but you can only join if you meet their membership rules.
  • The "best" bank for you depends on whether you value convenience, low fees, customer service, or access to cash — not on which bank is biggest or most famous.
  • Before opening an account, check the monthly fee, ATM access in your area, and how you will deposit checks or cash.

Traditional banks with branches near you

A traditional bank is one with physical locations you can walk into. These banks let you deposit cash and checks at a teller, speak to someone about your account, and get help in person if something goes wrong. If you do not have a computer at home, or if you are not comfortable banking online, a branch-based bank is usually the easiest choice.

The trade-off is that branch banks often charge a monthly fee — usually between $5 and $15 — unless you keep a minimum balance in the account or set up direct deposit. Some branch banks waive the fee if you are under 18, over 65, or a student. Ask about these discounts when you visit.

Branch banks are also useful if you receive cash payments and need to deposit them regularly. You can walk in during business hours and hand the cash to a teller. If you choose a large bank with many branches, you can deposit at any location, even if you opened your account at a different branch.

Online banks if you rarely need cash or branches

An online bank exists only on the internet. You open an account, manage your money, and contact customer service through a website or phone app. You cannot walk into a physical location. Most online banks charge no monthly fee and pay higher interest on savings accounts than branch banks do.

Online banks work well if you receive paychecks by direct deposit, pay bills online, and rarely need to deposit cash. You can deposit checks by taking a photo with your phone — the bank's app lets you photograph the front and back of the check, and the money appears in your account within a few business days.

The main limitation is cash. If you need to deposit cash, you cannot do it at an online bank. Some online banks partner with ATM networks so you can withdraw cash for free at thousands of ATMs, but depositing cash is not an option. If you receive cash regularly, an online bank is not a good fit.

Credit unions if you may have access to for membership

A credit union is a bank owned by its members rather than by shareholders. Credit unions are smaller than large national banks and usually serve a specific group — people who work for a certain employer, live in a certain area, or belong to a certain organization. To open an account at a credit union, you must meet their membership rules.

Credit unions often charge lower fees than traditional banks and may offer better interest rates on savings. They also tend to be more flexible about lending to people new to banking or with limited credit history. The downside is that credit unions have fewer branches and ATMs than large banks, so location matters more.

To find a credit union you can join, ask your employer if they sponsor one, check whether your city or county has a community credit union, or search the CO-OP network website to see which credit unions accept members in your area. When you call or visit, ask directly: "Do I meet your membership rules?"

What to compare when you narrow your choices

Once you know what type of bank suits you, compare specific banks on these points:

  • Monthly fee. What is the fee, and what do you have to do to avoid it? (Keep a minimum balance, set up direct deposit, use online banking, etc.)
  • ATM access. Can you withdraw cash for free near your home or work? If the bank has few branches, does it partner with other banks or ATM networks?
  • Check deposits. Can you deposit checks by phone app, or do you have to mail them or visit a branch?
  • Customer service. Can you reach someone by phone during hours that work for you? Is there a branch near you if you need in-person help?
  • Minimum opening deposit. How much money do you need to open the account? Some banks ask for $25; others ask for $100 or more.
  • Overdraft fees. If you spend more than you have, how much does the bank charge? Some banks charge $30 or more per overdraft.

You do not need to compare every bank in your area. Pick two or three that seem like a good fit, call or visit their website, and ask these questions. Write down the answers so you can compare them side by side.

Questions to ask before you open an account

When you are ready to open an account, ask the bank these questions before you hand over any money:

  • "What documents do I need to bring?" (Usually a photo ID and proof of address.)
  • "Is there a monthly fee, and how do I avoid it?"
  • "Can I deposit checks by phone app, or do I have to come to a branch?"
  • "What happens if I spend more money than I have in the account?" (This is the overdraft fee.)
  • "Can I access my account online and on my phone?"

Do not feel rushed. A good bank will answer these questions clearly and will not pressure you to open an account on the spot. If a bank makes you uncomfortable or does not answer your questions, you can visit a different bank.

Frequently Asked Questions

Is a big bank better than a small bank?

Not necessarily. Big banks have more branches and ATMs, which helps if you travel or move often. Small banks and credit unions often have lower fees and more personal service. The best choice depends on what matters to you, not on the bank's size.

What if I have bad credit or no credit history?

Most banks do not check your credit to open a checking or savings account. They may check ChexSystems, a different system that tracks banking history. If you have been denied a bank account before, ask the bank whether they use ChexSystems and whether they have accounts for people with banking problems.

Can I have accounts at more than one bank?

Yes. Some people keep a checking account at one bank and a savings account at another, or use one bank for everyday spending and another for savings. There is no rule against it, though managing multiple accounts takes more work.

Do I have to use online banking?

No. You can manage your account by visiting a branch, calling customer service, or using the phone app — whatever works for you. Online banking is available, but you do not have to use it if you prefer not to.

What if I do not have a permanent address?

Most banks require a mailing address to open an account. If you are unhoused or living in temporary housing, ask whether the bank will accept a shelter address, a trusted friend's address, or a PO box. Some banks and credit unions have programs for people without permanent addresses — call ahead and ask.