There is no single best bank for everyone
The bank that works for you depends on how you actually use money: whether you need to deposit cash often, how many times a month you move money between accounts, whether you travel and need ATM access, and how much you keep in savings. A bank that charges nothing for overdrafts but has few ATMs nearby might be worse for you than one that charges a fee but has branches everywhere you go. The "best" bank is the one that matches your specific situation, not the one with the most marketing.
Start by listing what you do with your account most often. Do you deposit paychecks by phone or in person? Do you use ATMs multiple times a week? Do you send money to other people regularly? Do you keep less than $500 or more than $5,000 in the account? The answers to these questions matter more than any bank's reputation.
Key Takeaways
- The best bank for you depends on your actual habits—how often you use ATMs, whether you deposit cash, how many transfers you make, and how much money you typically keep in the account.
- Large national banks offer many ATMs and branches but often charge monthly fees unless you meet balance or deposit requirements; smaller banks and credit unions may have lower fees but fewer locations.
- Online-only banks have no monthly fees and higher savings rates but require you to deposit checks by phone or mail and offer no physical branches for cash deposits.
- Before opening an account, check the monthly fee, the minimum balance to avoid it, ATM access in places you actually go, and whether you can deposit cash without visiting a branch.
- You can open accounts at multiple banks to get the features you need—a checking account where you live and work, and a savings account online where rates are higher.
National banks versus regional banks versus credit unions
National banks like Chase, Bank of America, and Wells Fargo have thousands of ATMs and branches. If you travel often or move frequently, this matters. But they typically charge $10 to $15 per month unless you keep a minimum balance (often $1,500 or more) or have direct deposit set up. Some waive the fee if you maintain a certain balance in savings as well. The fee adds up to $120 to $180 a year if you do not meet their requirements.
Regional banks operate in specific states or regions—for example, PNC in the Northeast and Midwest, or Umpqua in the Pacific Northwest. They usually have lower monthly fees ($5 to $10) or no monthly fee at all, and lower minimum balance requirements. The trade-off is fewer ATMs and branches outside their region. If you live and work in one area and rarely travel, a regional bank often costs less.
Credit unions are member-owned cooperatives, not for-profit institutions. They typically have no monthly fees, lower minimum balances, and more forgiving overdraft policies. Many credit unions are part of shared branching networks, so you can use branches of other credit unions even if your own has few locations. The catch: you must be a member to open an account, which usually means working for a specific employer, belonging to a certain organization, or living in a specific area. Some credit unions let you join by making a small donation to a community organization.
Online banks and when they make sense
Online-only banks like Ally, Charles Schwab, and Discover have no monthly fees, no minimum balance requirements, and often pay higher interest on savings accounts. They work well if you rarely need to deposit cash and can manage your account entirely by phone or computer.
The real limitation is cash deposits. Most online banks do not have physical locations, so you cannot walk in and deposit cash. Some let you deposit checks by taking a photo with your phone. If you receive cash regularly—tips, side work, or payments from people who do not use digital payment—an online bank becomes inconvenient. You would have to deposit cash at an ATM that accepts deposits, and not all ATMs do.
Many people use both: a checking account at a local or regional bank for everyday spending and cash deposits, and a savings account at an online bank where interest rates are higher and there is no monthly fee.
What to check before you open an account
Monthly fee and how to avoid it. Write down the fee amount and the exact requirement to waive it—minimum balance, direct deposit amount, number of debit card transactions, or some combination. If the requirement is a $1,500 minimum balance and you typically have $800, that bank will cost you money every month.
ATM access where you actually are. Do not assume a bank's ATM network is useful to you. Check their ATM locator and search for machines near your home, your workplace, and anywhere else you go regularly. If you find only one ATM and it is five miles away, that matters. Some banks charge you a fee to use ATMs outside their network; others reimburse those fees. Both affect your real cost.
How you deposit checks and cash. Can you deposit checks by phone? Does the bank have a mobile app that lets you photograph checks? If you need to deposit cash, does the bank have branches or ATMs that accept cash deposits near you? If not, you will need a second account somewhere else.
Overdraft policy. Banks handle overdrafts differently. Some charge a flat fee ($25 to $35) each time your account goes negative. Others charge a daily fee. Some let you link a savings account or credit card to cover overdrafts automatically. Some straightforward decline the transaction instead of charging a fee. Read the overdraft policy, not just the fee amount.
How to compare accounts side by side
| Feature | National Bank | Regional Bank | Credit Union | Online Bank |
|---|---|---|---|---|
| Monthly fee | $10–$15 (often waived) | $0–$10 | $0 | $0 |
| Minimum balance | $1,000–$2,500 | $300–$1,000 | $0–$500 | $0 |
| ATM locations | Thousands nationwide | Hundreds in region | Shared network access | Limited or none |
| Cash deposits | At any branch | At branches or ATMs | At branches or ATMs | Usually not possible |
| Savings interest rate | 0.01%–0.05% | 0.01%–0.05% | 0.01%–0.10% | 4.00%–5.35% |
Write down what matters to you most. If you deposit cash weekly, online banks are off the table. If you travel constantly, a national bank's ATM network might be worth the monthly fee. If you want the highest savings rate and rarely touch your money, an online bank wins. There is no wrong choice—only the choice that fits your life.
Opening an account and what to bring
Most banks require a government-issued photo ID (driver's license or passport) and proof of address (a recent utility bill, lease, or bank statement). Some ask for a second form of ID. A few ask for your Social Security number to check your banking history through ChexSystems, a database that tracks closed accounts and fraud.
You can open an account in person at a branch, by phone, or online. In-person is slowest but lets you ask questions. Online is fastest—sometimes you can start using the account the same day. By phone is in between. If you open online, the bank will mail you a debit card, which usually arrives within 5 to 10 business days. Some banks let you use a temporary card number before the physical card arrives.
Once the account is open, set up direct deposit if your employer offers it. This usually takes one pay cycle to set up. If the bank waives the monthly fee for direct deposit, this is how you avoid paying.
Red flags that a bank is not right for you
You are charged a monthly fee every month because you cannot meet the minimum balance. This is not a problem with you—it is a problem with that bank. Switch to one with a lower requirement or no requirement.
You are paying ATM fees regularly because the bank's machines are not near you. Again, switch. You should not pay $2 to $3 per transaction just to access your own money.
The bank charges you for things that seem basic: depositing a check, transferring money to another bank, or closing an account. Some banks do charge these fees, but many do not. You have options.
You cannot reach customer service when you need it. Try calling the bank's customer service line before you open an account. If you wait 20 minutes and reach a script, that is how it will be when you have a problem.
Frequently Asked Questions
Should I open an account at the bank where I have a credit card?
Not necessarily. Your credit card and checking account are separate products with separate fees and requirements. A bank might offer a good credit card but charge high checking account fees, or vice versa. Compare each product on its own terms. Many people have accounts at multiple banks.
What if I have bad credit or a history of overdrafts?
ChexSystems tracks closed accounts and fraud, not credit score. If you closed accounts badly or had fraud, some banks will decline you. Credit unions are often more forgiving. Some banks offer second-chance checking accounts designed for people with banking history problems, though they may have higher fees or lower ATM access. Call ahead and ask before you explore.
Can I switch banks later if I pick the wrong one?
Yes. You can open a new account at a different bank and move your money over. You will need to update direct deposit with your employer and change any automatic payments. The old account can stay open or you can close it. There is no penalty for switching, though it takes a few days for transfers to complete.
Do I need a savings account at the same bank as my checking account?
No. You can have a checking account at a regional bank near you and a savings account at an online bank with higher interest rates. They can be at completely different institutions. Just make sure transfers between them work smoothly—most banks let you link external accounts for transfers.
What is the difference between a checking account and a savings account?
A checking account is for money you use regularly—you get a debit card and can write checks. A savings account is for money you want to keep and earn interest on. Banks often charge lower fees on savings accounts and pay interest, but limit how many times per month you can withdraw. Use checking for spending and savings for money you are not touching.