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A checking account is a transaction-based account that allows you to pay bills, send money, and make purchases of goods and services. Checking accounts generally come with check-writing privileges, but not all accounts provide this option. Most checking accounts offer a debit card, which can usually be used for purchases or ATM withdrawals. Checking accounts are important for paying your bills and other expenses. They typically have no transaction limits to keep track of, unlike some savings accounts and money market accounts.
The best checking accounts usually don’t have a monthly service fee or they offer an easy way for you to avoid it. They also may reward you with interest, cash back or a sign-up bonus. Here are Bankrate's picks for the best checking accounts:
Bankrate's editorial team receives no direct compensation from advertisers, and our content is fact-checked to ensure accuracy. Our editorial and research teams analyzed more than 100 widely available financial institutions, made up of the biggest banks and credit unions, as well as a number of popular online banks.
To find the best checking accounts, Bankrate's editorial team analyzed various factors, such as fees, minimum balance requirements and annual percentage yield (APY) offered. All of the checking accounts listed are insured by the Federal Deposit Insurance Corp. (FDIC) at banks or by the National Credit Union Share Insurance Fund (NCUSIF) at National Credit Union Administration (NCUA) credit unions.
Account minimums, monthly service fees and ATM charges are some important things to consider when choosing a checking account. It's easy to find a checking account that doesn't charge fees and has minimal balance requirements. Many online banks offer them, and they are a good fit for many consumers.
Choosing a bank or credit union that's backed by the federal government will ensure your money is safe. Be sure to follow FDIC and NCUA limits and guidelines.
Bankrate's editorial team chose the criteria, developed a scoring system to determine the best checking accounts, and used its knowledge of financial services and banking experience to choose the best ways to rate them.
The following accounts can be found at most banks and credit unions. They’re federally insured for up to $250,000 and offer a safe place to put your money while earning interest.
CDs are best for individuals looking for a guaranteed rate of return that’s typically higher than a savings account. In exchange for a higher rate, funds are tied up for a set period of time and early withdrawal penalties may apply.
Checking accounts are best for individuals who want to keep their money safe while still having easy, day-to-day access to their funds. ATM and other transactional fees may apply.
Savings and MMAs are good options for individuals looking to save for shorter-term goals. They’re a safe way to separate your savings from everyday cash, but may require larger minimum balances and have transfer limitations.
At Bankrate, we regularly survey approximately 4,800 banks and credit unions in all 50 states to provide you with one of the most comprehensive comparisons of interest rates. All of the checking accounts below are insured by the FDIC at banks or the NCUA at credit unions. When selecting the best checking account for you, look for the highest yield while also considering introductory rates, minimum balances and accessibility.
We strive to help you make smarter financial decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. The top banks listed below are based on factors such as APY, minimum balance requirements and broad availability.
Heritage Bank is based in Spicer, Minnesota. It offers checking accounts, savings accounts and CDs and is best for those who want a high-interest checking account and refunds on ATM transactions.
NBKC Bank offers competitive rates on deposit accounts for business and personal customers. It is a good choice for customers who like to bank online, get competitive rates and avoid the array of fees many banks charge.
Navy Federal Credit Union is the world’s largest credit union serving millions of military members and their families. It’s a good fit for anyone looking for a credit union known for providing reliable customer service and an extensive network of branches, with more than 340 offices worldwide.
Ally Bank launched in 2009 as a one-stop shop for online-only banking customers from coast to coast. It is ideal for consumers comfortable with banking only online who want access to loans, high-yield deposit products and credit cards.
LendingClub Bank is an FDIC-insured online bank. It is an option for consumers looking for an online bank that offers competitive yields, low fees and ample ATM access. In February 2021, LendingClub acquired Radius Bank.
Capital One Bank is among the top 10 largest banks in the country, with branches in seven Eastern and two Southern states. It is ideal for consumers looking for a full-service bank with a wide network of no-fee ATMs and access to branches in select states.
TIAA Bank is an online institution offering deposit accounts with competitive rates and low minimum balances. It is good for customers who want a full-service online bank with competitive deposit yields.
With a massive branch network and breadth of product offerings, Chase is often viewed as the country's signature banking institution. If you like having quick access to branches and ATMs — and you live where the bank operates — Chase is a solid option.
A checking account is a financial tool that offers everyday access to your money. These accounts typically come with personal checks and a debit card. In recent years banks have expanded their checking account services to include online and mobile banking. With checking accounts, there's no limit to how often you can access your money. Unlike savings accounts, you can withdraw, transfer, write checks and make debit card charges as often as you'd like. Virtually all banks and credit unions offer checking accounts.
To clear checks and transfer funds, banks use the Federal Reserve's automated clearing house service, or ACH, a nationwide network operated by the two national ACH operators — the Reserve Banks and the Electronic Payments Network. Checking accounts are typically easy to set up with a small deposit. If they earn interest at all, it tends to be less than savings and money market accounts. However, checking accounts offer the same level of safety. Like savings and money market accounts, checking accounts are insured up to $250,000 by the Federal Deposit Insurance Corp. (FDIC) or by the National Credit Union Share Insurance Fund, depending on whether your account is at a bank or credit union.
Because of their accessibility and safety, checking accounts make for a good financial hub — a versatile account that can be used to pay bills, make purchases and receive deposits. Checking accounts can simplify your financial life. For example, you can set up your checking account to receive automatic deposits from your employer and make automatic withdrawals to pay your bills. Mobile apps enable you to make payments, transfer money and review your transaction history on the go.
Checking accounts come in several varieties, including versions geared to specific populations, such as seniors, teens, business owners or those who have checkered credit histories. Some offer perks, such as cash back for using debit cards or interest paid on the account balance. Regardless of your financial situation or needs, Bankrate can help you find the best type of checking account for you.
Some banks will pay you hundreds of dollars to get you to open a checking account, but these bonuses usually come with strings attached. For instance, Chase will pay $200 to new customers who open a Chase Total Checking account by Oct. 19, 2022, but they must set up direct deposit of a paycheck, pension or Social Security benefit and keep the account open for at least six months. Bankrate can help you find the best bank account sign-up bonuses.
Some banks will offer cash-back rewards, but these can require a sizable minimum balance.
Bankrate's 2022 checking account and ATM fee study found that 46 percent of non-interest-bearing accounts are free and don't charge monthly service fees. The majority of noninterest accounts will waive fees under certain conditions, such as direct deposit. Challenger banks, a term used to denote upstart banks like Chime and Current, also offer no-fee accounts.
Checking accounts typically have some general requirements. And if you don't meet them, it can be difficult to open an account.
It's important to be aware of minimums and fees when opening a checking account. Here's an explanation of the different types of minimum requirements and fees you may face:
Bank fees are costly. Even though Bankrate’s 2022 checking account and ATM fee study found that the average overdraft fee decreased from $33.58 last year to $29.80 this year, it’s still expensive to pay these fees.
Luckily, some banks have eliminated or cut overdraft fees.
A Bankrate survey published in January found that millennials and Generation Z have faced the brunt of these increasing costs, paying more than three times as much in bank fees than older generations.
In monthly checking account fees alone, the survey showed millennials paid $16 and Gen Zers paid $19, on average, versus $4 for Gen Xers and $2 for baby boomers. The disparity caused by bank fees most significantly affects working class people and people of color.
For many millennials and Gen Zers, tracking money and investing in the right savings account may not seem like a priority, especially given that they are increasingly overwhelmed by work, student debt and the ongoing pandemic. Unfortunately, these overlapping struggles also put younger generations at the most risk of conceding to higher bank fees or being less careful with their money. The cost of high monthly checking account fees can amount to over $400 a year, money that otherwise could have gone into emergency savings or investments.
Bypassing bank fees can be highly rewarding for both short- and long-term goals. With overdraft fees at all time highs, it’s crucial to prevent your account from being overdrawn. Some steps to take for preventing an overdraft fee include:
But perhaps the best way to curb overdraft fees is by switching to a bank that doesn’t charge them at all. Some banks, such as Capital One and Ally Bank, recently eliminated overdraft fees.
Switching to a bank with lower or no fees is especially worthwhile for younger workers to get a head start on saving. Monthly maintenance fees — which hit younger consumers hardest — in particular, are easily avoidable. Many online banks charge no monthly fees and also feature low minimum balance requirements, another key consideration for younger workers in entry-level jobs or working in the gig economy with inconsistent income. When considering a new account or bank to switch to, Bankrate’s list of best banks can help guide you towards one that suits your needs and saves you money.
Both checking and savings accounts can be found at banks, credit unions and community banks. The relatively recent adoption of online and mobile banking allows seamless transfers from one account to another. But checking and savings accounts differ in important ways.
| Checking Account | Savings Account | |
|---|---|---|
| Purpose | Checking accounts are for everyday use: paying bills, buying groceries, debit card transactions. | Savings accounts are for stashing cash for emergencies, large purchases and longer-term goals. |
| Accessibility | Offer unlimited withdrawals. | Are limited to six withdrawals per month. There are some exceptions. |
| Flexibility | Offer several methods for spending the money, including debit cards, paper checks, mobile apps and third-party payment services, such as Zelle. | They are less flexible. Many accounts don't come with check-writing. Some do come with an ATM card, but not all of them. |
| Earnings | Often do not pay interest and if they do, the yield is paltry. | Are more likely to be interest-bearing and the yields are better |
| Bank Checking Accounts | APY | Monthly Fee |
|---|---|---|
| Heritage Bank eCentive Checking | 1.52%* | $0 |
| NBKC Bank Everything Account | 1.01% | $0 |
| Navy Federal Credit Union Flagship Checking | 0.35%-0.45%** | $0 |
| Ally Interest Checking | 0.10%-0.25%*** | $0 |
| LendingClub Bank Rewards Checking | 0.10%-0.15%**** | $0 |
| Capital One 360 Checking | 0.10% | $0 |
| TIAA Bank Yield Pledge Checking | 0.10% | $0 |
| Chase Premier Plus Checking | 0.01% | $25***** |
Annual percentage yields (APYs) shown are as of Sept. 30, 2022. Bankrate's editorial team updates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products.
*APY requires account holders to make at least $500 in total debit card purchases in a month, have at least one direct deposit or ACH payment each month, and receive electronic statements. APY applies to balances up to $25,000.
**0.35% APY for balances of zero to $9,999; 0.4% APY for balances of $10,000 to $24,999; and 0.45% APY on balances of $25,000 or more.
***0.25% APY paid on balances of $15,000 or more; 0.1% APY on balances under $15,000.
****0.1% APY on balances of $2,500-$99,999.99; 0.15% APY on balances of $100,000.
*****$25 fee can be waived each monthly statement period with an average beginning day balance of $15,000 across accounts, or a linked qualifying Chase first mortgage automatically paid through your Chase account.
These financial institutions are featured in our checking account rate research: Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank 5 Connect, Bank of America, Bank of the West, Barclays, Bask Bank, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO Harris Bank, Bread Savings (formerly Comenity Direct), BrioDirect, Capital One Bank, Chase Bank, CIBC USA, CIT Bank, Citibank, Citizens, Citizens Bank (Rhode Island), Credit One Bank, Comerica Bank, Customers Bank, Delta Community Credit Union, Discover Bank, Emigrant Direct, Fifth Third Bank, First Citizens Bank, First Internet Bank, First Technology Federal Credit Union, FNBO Direct, Golden 1 Credit Union, Heritage Bank NA, Huntington National Bank, Investors Bank, Investors eAccess, KeyBank, LegacyTexas Bank, Limelight Bank, Live Oak Bank, Morgan Stanley Private Bank, M&T Bank, Marcus by Goldman Sachs, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, PenFed Credit Union, PNC Bank, Popular Direct, PurePoint Financial, Quontic Bank, Randolph-Brooks Federal Credit Union, Regions Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, State Employees' Credit Union, Suncoast Credit Union, Synchrony Bank, TD Bank, TIAA Bank, U.S. Bank, UFB Direct, Union Bank (California), U.S. Bank, USAA Bank, Vio Bank, VyStar Credit Union, Wells Fargo and Zions Bank.