What makes a checking account "good" depends on how you use money
There is no single best bank for everyone. A good checking account for you means low or no monthly fees, ATM access where you actually live or work, customer service you can reach when you need it, and features that match how you spend and deposit money. Some people need a branch they can walk into; others never set foot in one. Some need to deposit checks by phone; others use direct deposit only. Start by listing what you actually do with your money, then find a bank that doesn't charge you for it.
The banks that advertise most heavily are not always the cheapest or most convenient. A large national bank with thousands of branches may charge $15 a month for a basic account, while a credit union or online bank charges nothing. The trade-off is usually branch access — if you never need to deposit cash in person, you can save money by going online.
Key Takeaways
- Monthly maintenance fees range from $0 to $15 or more, and many banks waive them if you keep a minimum balance or set up direct deposit.
- ATM fees add up quickly if your bank's network doesn't include machines near your home, workplace, or regular stops — check the ATM map before you open an account.
- Overdraft fees can be $25 to $35 per transaction, so compare whether banks offer overdraft protection or let you opt out entirely.
- Online banks and credit unions often have lower fees than large national banks, but require you to deposit checks by phone or mail rather than in person.
- Your current bank may not be the best fit for your life now — switching takes a few hours and can save you hundreds of dollars a year.
Monthly fees and how to avoid them
Most banks charge a monthly maintenance fee unless you meet one of their conditions. Common conditions are: keep a minimum balance (often $500 to $1,500), set up direct deposit, or maintain a certain number of debit card transactions per month. Some banks waive the fee for everyone; others charge it to everyone but refund it if you meet the condition.
Read the fine print about minimum balance. If the bank requires $1,000 to stay in your account at all times to avoid a $12 monthly fee, you are paying $144 a year to use your own money. An online bank with no minimum and no fee is better, even if it takes an extra day to transfer money out. Credit unions often have lower minimums or no minimums at all, especially if you are a member of a group they serve — teachers, military families, employees of a specific company, or people who live in a certain county.
ATM access and out-of-network fees
If you use an ATM that is not part of your bank's network, you pay a fee — usually $2 to $3 per withdrawal. That adds up to $50 to $100 a year if you withdraw cash twice a week. Before opening an account, use the bank's ATM locator tool to count how many machines are within a mile of your home, workplace, and places you go regularly. If there are fewer than three, look elsewhere.
Some banks belong to shared networks that let you use thousands of ATMs for free. Allpoint, MoneyPass, and CO-OP are the largest. Credit unions often participate in these networks, which means a small local credit union may give you access to more ATMs than a large national bank. Online banks usually reimburse out-of-network fees, so you can use any ATM and get your money back at the end of the month.
Overdraft fees and protection options
An overdraft happens when you spend more than you have in your account. Banks charge $25 to $35 per overdraft transaction, and some charge multiple times a day if you make several purchases while overdrawn. A single mistake can cost you $100 or more in fees alone.
You have options. Some banks let you opt out of overdraft protection, which means a transaction will be declined rather than charged a fee — you simply cannot spend money you do not have. Other banks offer free overdraft protection linked to a savings account or credit line, so money transfers automatically if you go negative. Ask about this before you open an account, because the policy varies widely and the difference can save you hundreds of dollars.
Online banks versus traditional banks versus credit unions
| Type | Monthly Fee | ATM Access | Check Deposit | Best For |
|---|---|---|---|---|
| Online Bank | Usually $0 | Reimburses out-of-network fees | Phone or mail | People who rarely use cash or branches |
| National Bank | $0–$15 | Thousands of branches and ATMs | In person or phone | People who need frequent branch access |
| Local/Regional Bank | $0–$12 | Limited to local area | In person or phone | People who live or work in that region |
| Credit Union | Usually $0 | Shared networks plus local branches | In person or phone | Members of the group it serves |
Online banks (Ally, Charles Schwab, Discover, Chime) charge no monthly fee and reimburse ATM fees, but you cannot deposit cash in person or walk into a branch. Check deposits go by phone camera or mail. They work well if you get paid by direct deposit and rarely need cash.
National banks (Chase, Bank of America, Wells Fargo, Citibank) have thousands of branches and ATMs, but charge monthly fees unless you meet their conditions. They are useful if you deposit cash often or need to speak to someone in person, but you will pay for that convenience.
Credit unions are member-owned and often charge no monthly fee. You must be a member of the group they serve — your employer, your union, your military branch, your county, or a professional association. Many credit unions belong to shared branching networks, so you can use branches of other credit unions for free. This gives you branch access without the high fees of a national bank.
How to switch banks without losing money or access
Switching takes about two hours of setup time and a few days for money to move. Start by opening the new account while your old account is still active. Set up direct deposit at your new bank first — your employer usually takes one pay period to switch it over. Once you see a deposit at the new bank, you know it is working.
Transfer your existing balance using an ACH transfer (usually free and takes one to three business days) or a wire transfer (faster but may cost $15 to $25). Update automatic bill payments and subscriptions to pull from the new account. Keep the old account open for at least one month in case a check or payment clears late. Once you are sure nothing is coming in or going out, close it.
Do not close the old account before the new one is fully set up. If something goes wrong with the transfer, you need the old account to fall back on.
Questions to ask before you open an account
Call or visit the bank's website and confirm these details in writing:
- What is the monthly maintenance fee, and what are all the ways to waive it?
- How many ATMs are in the network, and where are the nearest ones to me?
- What is the overdraft fee, and can I opt out?
- Can I deposit checks by phone or mail, or only in person?
- Is there a minimum balance requirement?
- How long does it take to transfer money between accounts?
- What is the customer service phone number, and what are the hours?
Frequently Asked Questions
Should I use the bank where I have my savings account?
Not necessarily. Some banks charge less for checking than savings, or vice versa. You can have a checking account at one bank and a savings account at another. Many people keep savings at a high-yield online bank and checking at a local bank or credit union for convenience.
What if I have bad credit or a history of overdrafts?
Some banks use ChexSystems, a reporting system that tracks overdrafts and closed accounts. If you are flagged, you may not be able to open an account at a traditional bank. Credit unions and some online banks do not use ChexSystems or are more lenient. Call ahead and ask whether they check your history before you apply.
Do I need to keep a certain amount of money in my checking account?
Only if the bank requires a minimum balance to waive the monthly fee. If you cannot keep that amount in the account, choose a bank with no minimum or no monthly fee. Keeping money you cannot afford to spend just to avoid a fee defeats the purpose.
Can I have more than one checking account?
Yes. Some people keep one account for bills and one for spending money, or one at a local bank and one at an online bank for emergencies. There is no limit, but each account you open may show up on your credit report and affect your ability to borrow money.
What happens if I close my account and still have checks outstanding?
The checks will bounce and you will be charged a fee. Before closing an account, wait at least two months after your last check to make sure nothing is still pending. If you are not sure, transfer the balance to your new account and keep the old one open for a few more months.