What makes a checking account "good" depends on how you actually use money

There is no single best checking account because banks compete on different things. One bank might have no monthly fee but charge $3 per out-of-network ATM withdrawal. Another charges $12 a month but gives you unlimited ATM access nationwide. A third has no fees at all but requires a $10,000 minimum balance. The account that works for you depends on which of these trade-offs matters most to your daily life.

Start by looking at what you actually do with your money: How often do you use ATMs? Do you travel between states? Do you keep a large balance or a small one? Do you write checks? Do you overdraft sometimes? Once you know which features you actually need, you can ignore the rest and find the account that costs you the least.

Key Takeaways

  • Monthly fees, ATM fees, and overdraft fees are the three biggest costs to compare, and they vary wildly between banks.
  • A checking account is "good" only if it matches your actual spending habits — the cheapest account for someone else might be expensive for you.
  • National banks, credit unions, and online-only banks all have different fee structures and ATM networks, so compare all three types.
  • You can find fee schedules and ATM networks on each bank's website without opening an account or talking to anyone.

Monthly maintenance fees and how to avoid them

Most banks charge a monthly fee to keep a checking account open, but many waive it if you meet one condition. Common waivers include: keeping a minimum balance (often $500 to $2,500), setting up direct deposit, or maintaining a linked savings account. Some banks waive the fee for everyone. Others charge $10 to $15 a month with no way to avoid it.

If you cannot meet a minimum balance requirement, look for banks that waive fees through direct deposit instead — that is usually easier. If you do not have direct deposit, look for banks with no monthly fee at all. Online-only banks and many credit unions tend to have lower or zero monthly fees because they have fewer physical branches to maintain.

ATM access and out-of-network charges

ATM fees add up fast if you use machines outside your bank's network. A $3 fee per withdrawal might not sound like much, but if you withdraw cash twice a week, that is $312 a year. Some banks charge $2 per out-of-network withdrawal, others charge $4 or more. Some charge nothing at all.

National banks like Chase, Bank of America, and Wells Fargo have large ATM networks, so you may rarely pay out-of-network fees. Credit unions often belong to shared networks (like Allpoint or MoneyPass) that let you use thousands of ATMs for free. Online banks like Charles Schwab and Ally reimburse out-of-network ATM fees, which means you can use any ATM and get your money back. If you travel or live in a rural area, reimbursement or a large network matters more than if you stay in one city.

Overdraft fees and overdraft protection

An overdraft happens when you spend more than you have in your account. Banks can charge $25 to $40 per overdraft, and some charge multiple fees in a single day if you make several purchases while overdrawn. A few banks charge nothing for overdrafts. Others let you link a savings account so money transfers automatically before you overdraft.

If you sometimes run low on money, look for banks that offer overdraft protection (automatic transfers from savings) or banks that simply do not charge overdraft fees. Some banks also let you turn off overdraft protection entirely, which means your card will decline instead of charging you a fee — that is often the cheapest option if you want to avoid surprises.

National banks versus credit unions versus online banks

National banks (Chase, Bank of America, Wells Fargo, Citibank) have physical branches and large ATM networks. Monthly fees are common ($12 and up), but you can usually waive them with a minimum balance or direct deposit. ATM fees are lower because the network is huge. Overdraft fees are standard.

Credit unions are member-owned and often have lower fees than national banks. Monthly fees are rare or waivable through direct deposit. ATM networks are smaller but shared across many credit unions, so you may have free access to thousands of machines. Overdraft fees are sometimes lower or waivable. The catch: you have to be a member, which usually means living or working in a specific area or belonging to a specific employer or organization.

Online banks (Ally, Charles Schwab, Discover, Chime) have no physical branches but lower overhead costs, which means lower fees. Monthly fees are rare. Many reimburse out-of-network ATM fees. Overdraft fees are sometimes waived entirely. The trade-off is that you cannot deposit cash in person — you have to mail checks or use ATMs.

How to compare accounts side by side

Create a simple table with the banks you are considering and list the fees that matter to you: monthly maintenance, out-of-network ATM, overdraft, check printing, wire transfers, or anything else you use. Most banks publish this information on their website under "Pricing" or "Fees" — you do not have to call or visit a branch.

Then estimate your annual cost for each bank based on your actual habits. If you use out-of-network ATMs twice a week and overdraft once a month, calculate what that costs at each bank. The cheapest account on paper might not be the cheapest in practice if your habits do not match the fee structure.

Red flags that signal a bad deal

Avoid accounts that charge fees for common activities: depositing checks, transferring money between accounts, or checking your balance. Some banks charge $1 to $3 per check deposit or per transfer. These fees are outdated and most banks have stopped charging them, so there is no reason to accept them.

Also watch for banks that charge high fees but market themselves as "free" or "no-fee" accounts. Read the fine print. A bank that advertises no monthly fee but charges $4 per out-of-network ATM withdrawal is not actually free if you use ATMs regularly.

Frequently Asked Questions

Should I choose a bank based on branch locations?

Only if you regularly need to deposit cash, get cashier's checks, or talk to someone in person. If you mostly use your debit card and ATMs, branch locations matter less. Online banks work fine for most people who do not need physical locations.

Do I need to keep a large balance to avoid fees?

Not necessarily. Many banks waive monthly fees through direct deposit instead of requiring a minimum balance. If you do not have direct deposit, look for banks with no monthly fee at all — they exist, especially among online banks and credit unions.

What if I overdraft a lot?

Look for banks that either do not charge overdraft fees, offer overdraft protection (automatic transfers from savings), or let you turn off overdraft entirely so your card declines instead. Chime and some online banks have no overdraft fees. Credit unions often charge less than national banks.

Can I switch banks if I find a better deal?

Yes. You can open a new account at any time and close your old one. Your employer can update your direct deposit information, and you can set up bill pay at the new bank. It takes a few days to a week to fully switch, but there is no penalty for leaving.

Is it safe to bank online?

Online banks are insured by the FDIC just like national banks, so your money is protected up to $250,000 per account. Security depends on your own password and whether you use public WiFi — use a strong password and avoid banking on public WiFi, regardless of which bank you choose.