Checking accounts aren’t always cheap or easy to use, despite their importance. We’ve compiled a quick list of popular solutions. Americans lose billions every year through monthly maintenance fees, overdraft fees, or miscellaneous charges. Banks are starting to eliminate or reduce fees yet it can still add up. The Consumer Financial Protection Bureau (CFPB) reported a couple of months ago that “Banks continue to rely heavily on overdraft and non-sufficient funds (NSF) revenue, which reached an estimated $15.47 billion in 2019.” The middle class and lower class are losing out on opportunities. The FDIC says that over 7 million American adults don’t have a bank account. The most-cited reason why: because they can’t afford minimum balance requirements.
The below list has some no-fee options, which can help you avoid the worst outcomes; these accounts don’t require minimum balances either. Some are banks while others are fintechs (financial technology companies) who partner with banks. Note that this isn’t a top 10; it’s a somewhat subjective list, which may change in the future. The below options are in alphabetical order and we don’t recommend or endorse any specific product(s) here. Also be sure to opt out of “overdraft protection” when opening an account, if the option pops up during registration.
And check your local area for alternatives to big banks. Smaller credit unions typically don’t have big fees. This can save a lot of money in the long run.
Alliant Credit Union
Alliant doesn’t have any significant fees, other than an inactivity fee (to avoid this, just make a withdrawal or deposit at least once a year). They don’t have monthly maintenance fees or overdraft fees, and there isn’t a minimum/maximum balance requirement. They even offer a free box of checks, and some ATM fee rebates (up to $20 per month). Alliant’s checking account is also required to get their Visa Signature credit card.
Ally
Ally is a popular online-only bank which offers free checking and savings accounts, among other things. No minimum balance requirements or monthly maintenance fees. Some ATM fees are reimbursed (up to $10 per month) and there’s overdraft protection. Ally Bank eliminated overdraft fees in 2021. They’re one of the larger banks in America, in the top 25 according to one report, and keep fees low by not having physical branches. You can even deposit checks through your phone.
Capital One
Capital One doesn’t require a minimum balance. They don’t have monthly fees and you can even write checks. Capital One decided to do away with overdraft fees for 2022. According to CNBC, “It’s the largest U.S. bank yet to end the industry practice. The bank expects to lose $150 million in annual revenue as a result.” Capital One is one of the top 15 largest American banks (they say they’re number six). For the 360 account, you can withdraw/deposit cash at select locations, or CVS pharmacies. Capital One sometimes has sign-up bonuses to open a checking account. For example, in January 2021, they offered $400 for getting $1,000+ in direct deposits within 60 days.
Charles Schwab
The Schwab Bank High Yield Investor Checking account doesn’t have any fees or minimums. They even have unlimited ATM fee rebates, which is a rare benefit, and international usage. You do get a brokerage account at the same time, which doesn’t have fees or minimums either. Schwab is reportedly the 7th largest bank in America, as of late 2021, so people may feel more secure about using them compared to fintech options. Schwab also has sign-up bonuses (including $101 as an “starter kit”) and referral bonuses. One limitation: you’ll need to fund your checking account with $100+ to receive a box of free checks.
Current
Basic accounts are free and “premium” accounts are $5 per month. They don’t have minimums and don’t charge fees for overdrafts or other common charges. While technically not a bank itself, they partner with Choice Financial Group, Member FDIC; funds are secure.
Discover
Discover offers free checking and savings accounts. No monthly fees, including no balance or activity requirements, and a debit card which earns limited cash back rewards. Savings accounts earn interest while checking accounts don’t, and savings accounts usually have sign-up bonuses. You’d have to deposit a lot of cash though, either $15,000+ or $25,000+ for a $150 or $200 bonus. This is done by using a promo code (like “NW122”) while opening your new account. Checking accounts don’t have sign-up bonuses. As of late 2021, Discover was the 37th largest bank in America.
M1 Finance
A basic account is free and they’ll even refund some ATM fees (1-4 times per month). You do have to open a brokerage account first, which has a $25 minimum. This is one more step than most other options, although it can be useful in most situations. “M1 Spend checking accounts furnished by Lincoln Savings Bank, Member FDIC.” For more features: a premium account (M1 Plus) is free for the first year, then it costs $125 per year ($10.42 per month). The premium account lets you earn interest on your checking balance, write checks, and more. M1 Finance has sign-up bonuses for brokerage accounts, checking accounts, and their credit card. Using a friend’s link to sign up may add even more bonus cash.
Key Bank
Key’s basic account doesn’t require minimum balances, and they don’t have monthly maintenance fees. Although limited to 16 states, they have a large ATM network and are one of the 20 largest banks in the U.S. Higher tiers of Key Bank accounts do have waivable maintenance fees.
PenFed Credit Union
A basic account is free and requires just $25 to open. Their premium version (Access America Checking) is free with a $500+ daily balance or $500+ in monthly direct deposits. PenFed used to be only for military members and their families, and some government employees, but PenFed is now open to the public. As a large nationwide credit union, it should be easy to avoid traditional banking fees here. Your first box of checks is free, and they allow digital bill pay along with digital check deposits.
Revolut
This is technically not a checking account, and technically not offered by a bank (fintech company). “Your funds are held by Metropolitan Commercial Bank, and are insured by the FDIC for up to $250,000.” Their basic account is free. Higher tiers are $10/month and $17/month respectively, which add a few more benefits. This could include airport lounge access, overseas medical insurance, and more. The paid tiers probably aren’t of interest to someone looking for a simple fee-free account. Travel credit cards may offer some of these benefits for free.
Santander
Santander Simply Right Checking doesn’t have a minimum balance requirement and overdraft fees are waived for overdrafts under $100. The $10 monthly fee is easily waived with one transaction per month (at least one direct deposit, withdrawal, transfer, etc.) which anyone can do. Paperless statements are also required. Santander is limited to fewer than a dozen states, but it’s easy to have a fee-free account, and they can have decent sign-up bonuses. It’s not the best option on this list, although Santander can still be alright.
SoFi
No minimums and no fees. Technically considered a cash management (brokerage) account, instead of a standard checking account. However, SoFi does partner with multiple banks, and recently purchased Golden Pacific Bancorp. This allows them to have a national bank charter, and SoFi plans to launch official checking and savings accounts soon. SoFi sometimes has sign-up bonuses for its multiple services. There’s also a cash reward for using a friend’s link to sign up for a SoFi account.
Upgrade
No minimums, no fees, and technically not a bank (fintech company) Funds are “FDIC insured up to $250,000 through Cross River Bank, Member FDIC.” Upgrade has some interesting benefits like a debit card which earns cash back rewards.
Other considerations:
- Square CashApp – Not actually a bank account, although some people use it like one. Services like Paypal, Venmo, and Coinbase can serve similar purposes.
- TD Bank Convenience Checking – TD Bank has higher minimums and fees compared to other options on this list, but it’s worth mentioning. There’s only a $100 minimum for checking accounts, and a $150 sign-up bonus “with qualifying direct deposits.” Aside from things like still having overdraft fees, a downside is their limited footprint. TD Bank only has branch locations in 15 states plus Washington DC. It isn’t available nationwide. Some people may feel safer with TD than an online-only option, because TD is one of the top 10 largest banks in America, and has many physical branches.
Avoiding bank fees at major institutions:
Bank of America has 3 main checking account tiers, and charges at least $4.95 per month (around $60 per year) unless you meet certain requirements:
- Tier 1: (1) Be a student under the age of 25, or (2) be enrolled in Preferred Rewards (requires $20,000+)
- Tier 2: (1) Have at least one $250+ direct deposit each month, or (2) have a $1,500+ daily balance, or (3) same as tier 1
- Tier 3: (1) Have at least $10,000 in Bank of America accounts, or (2) be enrolled in Preferred Rewards (requires $20,000+)
Chase Bank has 3 tiers (5 including Sapphire and Private Client accounts). Avoiding monthly fees:
- Tier 1: $4.95 monthly fee can’t be waived
- Tier 2: $12 monthly fee is waived with (1) $500+ in monthly direct deposits, or (2) have a $1,500+ daily balance, or (3) $5,000+ daily balance “in any combination of this account and linked qualifying Chase checking, savings and other balances.”
- Tier 3: $25 monthly fee is waived with (1) $15,000+ daily balance “in any combination of this account and linked qualifying Chase checking, savings and other balances” or (2) “a linked qualifying Chase first mortgage enrolled in automatic payments from your Chase account.”
Citi Bank separates accounts primarily into “everyday” and “premium” categories.
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- The first two everyday tiers have the same requirements: “Make 1 qualifying direct deposit or 1 qualifying bill payment per statement period or Maintain a combined average monthly balance of $1,500+ in eligible linked accounts.”
- The third tier requires “a combined average monthly balance of $10,000+ in eligible linked deposit, retirement and investment accounts.”
- Citi recently announced they’re going to eliminate overdraft fees, returned item fees, and overdraft protection fees in mid-2022.
Wells Fargo has a $25 minimum for its accounts.
- Tier 1: “The $5 monthly service fee is waived for primary account owners who are 13 – 24 years old.”
- Tier 2: Requires a $500+ daily balance, OR $500 or more in “total qualifying direct deposits,” OR A linked ‘Wells Fargo Campus ATM or Campus Debit Card’, OR be 17-24 years old
- Tier 3: Requires “$20,000 or more in statement-ending qualifying linked bank deposit account balances (checking, savings, time accounts (CDs), FDIC-insured IRAs) and investment account balances.”
Most major banks do, however, have sign-up bonuses to lure in new accounts. This can offset fees.
Disclaimer: This article was last updated in March 2022. Details may have changed since then. Please do your own research where applicable, to ensure you’re getting the best deal. Or contact us directly to benefit from our personalized consulting services!