Regions Bank is a regional bank with strengths in customer service and branch access, but costs more than online alternatives
Regions Bank is a mid-sized bank headquartered in Birmingham, Alabama, with over 1,400 branches across the South and Midwest. Whether it is "good" depends on what you need: if you value in-person service, local branches, and don't mind paying monthly fees, it works. If you want the lowest fees and highest savings rates, you will find better options online.
Regions charges $12 per month for its basic checking account (waived if you keep $500 in the account or set up direct deposit). Its savings accounts earn interest rates well below what online banks offer—typically 0.01% to 0.05% APY, compared to 4% to 5% at online savings banks. The trade-off is that you can walk into a branch, talk to a person, and handle problems face-to-face.
Key Takeaways
- Regions charges $12 monthly for checking unless you maintain a $500 minimum balance or receive direct deposit, making it more expensive than most online banks.
- Savings rates at Regions are significantly lower than online banks—expect 0.01% to 0.05% APY instead of 4% to 5%—so holding cash there costs you money over time.
- Regions has over 1,400 physical branches, which is valuable if you need in-person service, deposit checks by hand, or withdraw cash regularly.
- Regions offers standard checking, savings, money market, and CD products, but does not stand out for rates, rewards, or features compared to competitors.
Monthly fees and minimum balances
Regions charges $12 per month for its basic checking account. You can avoid this fee in three ways: keep a $500 daily balance, set up direct deposit of any amount, or maintain a $2,500 balance in a linked savings account. Most people find the direct deposit waiver easiest—even a small paycheck counts.
If you do not meet any of these conditions, you pay $12 every month. Over a year, that is $144 just to have a checking account. Online banks like Ally, Charles Schwab, and Discover offer checking with no monthly fee and no minimum balance at all.
Regions also offers premium checking accounts (Regions Premium Checking) with higher minimums ($2,500 to $10,000) and higher monthly fees ($25 to $35), marketed toward people who want perks like higher interest rates and fee waivers on certain services. These accounts rarely make financial sense unless you are moving a large amount of money and value the branch network heavily.
Interest rates on savings and money market accounts
Regions savings accounts earn between 0.01% and 0.05% APY depending on the account type and your balance. A money market account might earn slightly more—around 0.10% to 0.15%—but still lags far behind online options. At these rates, $10,000 in a Regions savings account earns roughly $1 to $5 per year.
Online banks like Marcus, Ally, and American Express Personal Savings currently offer 4% to 5% APY on savings accounts with no monthly fee and no minimum balance. The same $10,000 would earn $400 to $500 per year. Over five years, the difference is thousands of dollars.
Regions CDs (certificates of deposit) also offer lower rates than online competitors. A one-year CD at Regions might pay 4% to 4.5% APY, while online banks offer 5% to 5.5%. If you are locking money away for a set term, the higher rate compounds significantly.
When Regions Bank makes sense
Regions works well if you live or work in one of its branch states (primarily Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, South Carolina, Tennessee, or Texas) and you value in-person banking. If you deposit checks by hand, need to withdraw cash frequently, or prefer talking to a banker face-to-face, the branch network is real value.
Regions is also a reasonable choice if you keep most of your money elsewhere (at an online bank for savings, for example) and use Regions only for checking and bill pay. In that case, the $12 monthly fee is a small cost for convenience, and you are not losing much by keeping a low balance there.
Small business owners in Regions' footprint may find the bank useful for business checking and local relationship banking, though you should compare rates and fees with online business banks and credit unions first.
When to look elsewhere
If you want to maximize interest on savings, online banks are the clear choice. If you want to avoid monthly fees, you have dozens of options with no minimum balance and no direct deposit requirement. If you live outside Regions' branch states, there is no reason to bank there at all.
Credit unions often offer better rates and lower fees than Regions, especially if you are a member through your employer or community. Compare your local credit union's checking and savings rates before opening a Regions account.
If you are choosing between Regions and a national bank like Chase or Bank of America, Regions usually offers slightly better customer service and lower overdraft fees, but all three charge monthly fees and offer below-market interest rates. An online bank beats all three on cost and rate.
How Regions compares to online banks
| Feature | Regions Bank | Online Banks (Ally, Marcus, etc.) |
|---|---|---|
| Monthly checking fee | $12 (waived with $500 balance or direct deposit) | $0 |
| Savings APY | 0.01% to 0.05% | 4% to 5% |
| Physical branches | 1,400+ | 0 (online only) |
| Customer service | Phone, branch, online chat | Phone, online chat, email |
| Minimum balance | $500 (for fee waiver) | $0 |
Overdraft fees and other costs
Regions charges $36 per overdraft, which is standard across most banks. However, Regions allows up to four overdraft fees per day, meaning a single day of overspending could cost you $144. Online banks like Ally and Charles Schwab do not charge overdraft fees at all—they either decline the transaction or cover it interest-free.
Regions also charges fees for wire transfers ($15 to $25 depending on direction), stop payments ($30), and account research requests. These are common across banks, but online banks often waive them or charge less.
Frequently Asked Questions
Is Regions Bank FDIC insured?
Yes. Regions Bank is FDIC insured, meaning deposits up to $250,000 per account type are protected if the bank fails. This is standard for all banks and credit unions in the United States.
Does Regions offer online banking and mobile apps?
Yes. Regions has a mobile app and online banking portal for checking balances, transferring money, paying bills, and depositing checks by photo. The app is functional but not notably better or worse than competitors.
Can I avoid the $12 monthly fee?
Yes, in three ways: keep $500 in your checking account, set up direct deposit, or maintain $2,500 in a linked savings account. Direct deposit is the easiest option for most people.
Should I move my savings to Regions?
No. Regions savings rates are too low to justify moving money there. If you already bank with Regions, keep checking there for convenience but move savings to an online bank earning 4% to 5% APY.
Is Regions better than Chase or Bank of America?
Regions, Chase, and Bank of America all charge monthly fees and offer low interest rates. Regions has slightly better customer service and lower overdraft fees, but an online bank beats all three on cost and rate. Choose based on branch location and personal preference, not financial advantage.