Best available rates across different account types for Tuesday, November 05, 2024
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Monthly checking account fees can add up to a big expense, which is why it pays to find a free checking account for everyday banking needs.
The best free checking accounts offer perks, such as a high annual percentage yield (APY) that pays interest on your balance, out-of-network ATM reimbursement and/or free bank checks.
Note: Annual percentage yields (APYs) shown are as of Nov. 4. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.
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.
EverBank offers certificates of deposit (CDs) in terms ranging from three months to five years, as well as savings, money market and checking accounts, many of which pay competitive yields. Minimum deposit requirements are reasonable. EverBank doesn’t charge ATM fees and will reimburse you up to $15 each month for fees paid at other U.S. ATMs.
Quontic offers a variety of products with easy-to-meet opening deposit requirements and above-average annual percentage yields (APYs). Customers have access to a huge ATM network as well as digital tools that include Apple Pay, Google Pay, Samsung Pay and Zelle. Another big plus: Deposit accounts don’t have monthly service fees, including overdraft fees.
Ally Bank is regularly recognized as one of the best online banks in the country, and for good reason. Ally offers savers competitive rates and requires no minimum deposits. Its mobile app enables customers to organize their savings into “buckets,” such as for emergencies, vacations and housing.
In addition to its lending products, LendingClub offers deposit accounts that include a high-yield savings account that pays a competitive rate, charges no monthly service fee and comes with an ATM card. The bank also offers a rewards checking account that earns a tiered APY as well as CDs that pay competitive rates.
Many consumers think Discover provides only credit cards, but it’s also a top online bank offering savings, money market and checking accounts as well as CDs. Discover impresses by charging no fees for its deposit products and by offering savers competitive rates. You can also reach bank representatives over the phone 24/7.
Bank5 Connect is an online-only division of Massachusetts-based BankFive. It offers a high-interest checking account, as well as a savings account and CDs that earn rates well above national averages. Residents of Massachusetts and Rhode Island aren’t eligible to open a Bank5 Connect account.
When you sign up for a SoFi bank account, you’ll receive both a checking and a savings account. You’ll qualify for a competitive yield on both accounts when you use direct deposit or add at least $5,000 every 30 days. Perks include early direct deposit, no maintenance fees and no minimum balance requirements.
It may be best known for its credit cards, but American Express is also a bank that offers a savings account, checking account and CDs that earn high yields. The checking account earns points for debit card purchases — although you’ll need to have had an American Express card for a certain amount of time to be eligible for the account.
A division of First Citizens Bank, CIT Bank offers a high-yield savings account as well as some CDs that earn yields above national averages. The interest-bearing checking account earns a higher yield on greater balances. The bank doesn’t charge ATM fees, and it reimburses up to $30 per month in other bank’s ATM fees.
Note: Annual percentage yields (APYs) shown are as of Nov. 4. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.
The Cashback Debit account from Discover Bank earns 1 percent cash back on eligible debit card purchases up to $3,000 each month. The account doesn’t charge a monthly maintenance fee and doesn’t require any minimum deposit amount.
With this account, customers with direct deposit can receive their paychecks up to two days early. Fee-free access is available at 60,000 ATMs in the U.S. through the MoneyPass and Allpoint networks.
NBKC Bank is an online bank that also operates four branches in Kansas and Missouri. The NBKC Everything Account offers a competitive annual percentage yield (APY) among free checking accounts and requires no minimum opening deposit.
Other benefits include reimbursement of up to $12 in ATM fees charged by ATMs outside the NBKC or MoneyPass networks.
Ally Bank offers a checking account that doesn’t have a monthly maintenance fee or a minimum opening deposit. It also pays 0.10 percent APY on balances less than $15,000 and 0.25 percent APY with a minimum daily balance of $15,000.
Ally’s interest checking account also offers freebies, such as free standard checks and access to free Allpoint and MoneyPass ATMs. Ally eliminated overdraft fees in June 2021.
This checking account earns a little bit of interest on all balances and doesn’t require money to open or maintain the account. It also gives you fee-free access to more than 70,000 Capital One, MoneyPass and Allpoint ATMs.
You can open a 360 checking account either online or at a Capital One location.
Capital One does not charge overdraft fees.
This checking account doesn’t charge monthly maintenance fees and offers a cash-back option. Quontic Bank pays 1 percent cash back on qualifying debit purchases with this checking account. This account provides surcharge-free access to 90,000 ATMs nationwide.
Free checking accounts offer the promise of avoiding the monthly maintenance fees that many banks charge on checking accounts, though some fees — even on free accounts — are unavoidable. Be sure to understand the rules governing your account.
Some banks will waive (or reimburse) ATM fees, so it’s important to know which networks your bank participates in. In compiling our list of best free checking we used total ATM figures directly from each bank’s website.
Generally, it should take under half an hour to open an account. There are some circumstances where it might take longer.
The account opening process may take longer if you have a credit freeze on your credit file, and the bank’s policy is to contact at least one credit bureau during the account-opening process. If there is a freeze on your credit in place, check with the bank before applying to see whether you need to lift the credit freeze at only one credit bureau or whether you need to do this at multiple bureaus.
At an online bank, you’re almost always able to open an account online. Many brick-and-mortar banks also let you open up accounts online.
An online bank may also allow you to apply for an account over the phone.
Many free accounts can end up costing you checking account fees if you don’t meet the bank’s requirements. Make sure you know what these rules are before opening an account.
Some fees to watch for:
There are free checking accounts that offer you a competitive APY and charge no fees. But you’ll likely need to set up a direct deposit or make a certain number of debit card purchases to qualify for the higher APY. At some banks, both direct deposit and a minimum number of debit card purchases may be required.
Unlike most savings accounts and money market accounts at online banks, this high APY might be capped if your balance goes beyond a certain amount. When this is the case, any balance amount that surpasses a certain threshold earns less than the top-yielding online savings accounts and money market accounts. Therefore, transferring any excess balances to higher-earning accounts (like savings accounts or money market accounts) is a good way to optimize your earning power.
Before opening a free checking account, weigh the pros and cons to see if it’s the right product for you.
There are many options that have low minimum balance requirements. Some accounts might not require any minimum balance to open or maintain the account.
With some accounts, you may be able to use any ATM convenient to you for free.
Paying maintenance fees on a checking account should be avoidable. Save this money, and instead of paying these fees to a bank, use it to pay bills or build an emergency fund.
Some free checking accounts may offer you more perks and benefits, such as free checks, cash back on debit card purchases or a high APY.
If you need to make a certain number of debit card purchases to meet the account requirements to get a higher APY, you might be better off with a cash back or rewards credit card. Compare these options to see which is better for you.
Many checking accounts are free, as long as you maintain a certain minimum balance. But some accounts might have high minimum balances. Having a lot of money in a checking account that isn’t earning a high APY, just to avoid a maintenance fee and earn some perks, might not be worth as much as having your money in a high-yield savings account.
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 credit unions that are members of the 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.
