13 types of checking accounts

Checking accounts are a household money management staple, letting you pay bills and make purchases through electronic transfers, paper checks and debit cards. But not all of them work the same, and most people keep their account for nearly two decades, according to Bankrate’s Checking Fees Survey. That makes choosing the right type an important decision.

The best checking accounts either have no monthly fee or let you avoid these fees by meeting certain requirements. Many also offer ways to skip out-of-network ATM fees or get reimbursed. Evaluate the types of checking accounts against your needs before choosing one to make sure you get the one that best aligns with your financial journey.

Types of checking accounts

These are some of the most widely available types of checking accounts offered at banks and credit unions. Each has its uses, and finding what’s best for you will make for an easier time meeting your financial goals.

Everyday accounts

These are common, practical options for basic, day-to-day money management. An everyday account will provide all of the basics for receiving payments and making transactions, but not much else.

Traditional checking account

A traditional checking account is the standard option at most banks. You get paper checks, a debit card and access to online bill pay. Monthly fees typically range from $5 to $15, though many banks waive the fee if you maintain a minimum balance or set up direct deposit. Overdraft coverage is often available, but using it costs around $35 per transaction at most major banks.

Free checking account

True free checking means no monthly fees, no minimum balance and no catches. Online banks, like Ally Bank, excel here because the overhead to operate is lower than that of traditional banks. Some big banks also offer free checking, but you may need to set up direct deposit or keep a minimum balance. 

Interest-bearing checking account

An interest-bearing checking account pays you on your balance, but the rates vary widely. Some offer competitive rates, while others pay just 0.01% annual percentage yield (APY). Accounts marketed as high-yield checking sit at the top of that range — but there’s no standard definition for high-yield checking — so compare the APY and requirements rather than the label.

Depending on the bank, accounts may only pay the highest rate on balances up to a limit, such as $10,000 to $25,000 — with money above that earning much less. Banks like American Express and SoFi offer checking accounts with competitive rates. 

Accounts with extras

These accounts include perks on top of basic checking, but most come with conditions. They’re only worth it if you’ll actually use the extras.

Rewards checking account

You can earn cash back or points on debit card purchases with these accounts, similar to credit card rewards programs. Watch for requirements, like a minimum number of monthly transaction or balance limits that cap how much you can earn.

Premium checking account

Premium checking accounts bundle perks that you’d otherwise pay for separately, such as free checks, free money orders, waived ATM fees nationwide and sometimes a free safe deposit box.

The trade-off is a higher minimum balance requirement, often $5,000 to $25,000. Banks like Citibank and Wells Fargo market these as “relationship” accounts, with added benefits if you hold other products with them.

Private banking checking account

Private banking accounts require substantial deposits — often $100,000 or more across all your accounts with the bank. In return, you get perks like higher daily ATM withdrawal limits, free wire transfers and a dedicated banker.

By life stage or household

Some accounts are built around who you are or how you bank. Check the age and eligibility rules first, then compare each one with other options on the list that you think may be a good fit.

Joint checking account

A joint checking account gives two or more people shared ownership and access. It works well for couples managing household expenses. Any account owner can withdraw all the money or close the account without the other’s permission.

Student checking account

Banks design these accounts for students ages 16 to 25, with age ranges varying by bank. Student accounts typically waive monthly fees, offer overdraft forgiveness and include perks like ATM fee reimbursements. Many banks require you to verify your student status and convert the account to regular checking when you graduate or age out.

Teen checking account

These accounts let teenagers as young as 13 open a checking account, usually with a parent or guardian as a joint owner. Teen accounts typically include parental controls, spending alerts and educational tools. 

Some banks even go younger. Capital One accepts customers as young as 6 for its MONEY Teen Checking Account, and, similarly, the First Banking account from Chase Bank is available to kids ages 6 to 17.

Checking accounts for older adults

Banks typically offer these accounts to customers 55 or older, though age requirements vary. These accounts often include free checks, waived monthly fees and discounts on other banking services. But don’t assume an account branded for older adults is your best option, since a regular free checking account may offer better terms. Banks like Regions Bank and Valley National Bank offer senior-specific checking accounts.

Checking account for specific situations

These accounts each solve a particular problem and can come in handy if they fit your situation. Otherwise, free checking is often the simpler choice.

Checkless checking account

You can skip paper checks and focus on debit card and online transactions with checkless checking accounts. Some avoid overdraft fees by simply declining transactions that would overdraw your account. Banks like M&T Bank, U.S. Bank and Wells Fargo offer checkless options.

Second-chance checking account

If you’ve been denied regular checking due to past banking problems like excessive overdrafts or unpaid negative balances, a second-chance checking account may be a solid option. And most banks will let you upgrade to a regular account after six to 12 months of good standing. Second-chance accounts typically charge mandatory monthly fees and may not offer overdraft protection.

Business checking account

Business accounts separate your personal and business finances — which many businesses need. These accounts handle higher transaction volumes and may offer features like payroll processing and merchant services. Make sure to keep track though: Many business accounts charge per-transaction fees once you pass a monthly limit, typically 100 to 200 transactions. 

Online banks like Axos Bank, First Internet Bank and Live Oak Bank offer business checking accounts.

How to choose the right checking account

As you compare different checking accounts, consider how you actually bank. These five questions narrow down the field quickly:

• Can you meet the requirements? Many accounts waive fees only if you keep a minimum balance or set up direct deposit. If you can’t count on hitting those, choose a free checking account with no strings attached.
• Which digital features matter to you? Read the reviews of the bank’s mobile app for things like mobile check deposit and budgeting tools.
• How often do you use cash? If you regularly withdraw or deposit cash, check the bank’s ATM network and whether it reimburses out-of-network fees.
• Is the sign-up bonus worth it? Many banks offer a few hundred dollars for opening an account so compare bonuses. Keep in mind people tend to keep their checking account for years, so weigh the long-term value, like fees, interest and rewards.
• Does the bank have federal deposit insurance? If a bank is covered by the Federal Deposit Insurance Corp. (FDIC), your money is protected if the bank were to fail — but only up to the FDIC limits, so keep your balances within them.

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