The best bank depends on what you actually use
There is no single best bank for everyone. The right choice depends on whether you need to visit a branch in person, how often you move money between accounts, what you pay in fees, and whether you want customer service by phone or online chat. A bank that works well for someone who visits a branch weekly will frustrate someone who never goes inside one.
Start by listing what matters to you: branch locations, ATM access, monthly fees, overdraft policies, mobile app quality, or the ability to deposit checks by phone camera. Then compare banks on those specific points rather than on reputation alone. A smaller regional bank might have better branch coverage in your area than a national chain, or an online-only bank might have zero monthly fees while a local bank charges $12.
Key Takeaways
- National banks like Chase and Bank of America have thousands of branches and ATMs but often charge monthly fees unless you keep a minimum balance.
- Credit unions typically offer lower fees and better customer service but may have fewer ATMs and branches outside your region.
- Online banks have no monthly fees and higher interest rates on savings, but you cannot deposit cash or visit a physical location.
- Compare the actual fees you will pay based on your habits—overdraft charges, out-of-network ATM fees, and minimum balance requirements—rather than choosing by name alone.
- Most banks let you open an account online in 10 to 20 minutes with a government ID and Social Security number.
National banks: branches everywhere, but watch the fees
The largest banks—Chase, Bank of America, Wells Fargo, Citibank—have thousands of branches and ATMs across the country. If you travel frequently, move between states, or like walking into a physical location to deposit cash or speak to someone, a national bank gives you that option almost anywhere.
The trade-off is fees. Most national banks charge $12 to $15 per month for a basic checking account unless you keep a minimum balance (often $1,500 to $2,500), set up direct deposit, or maintain a linked savings account. Overdraft fees run $30 to $35 per transaction. Out-of-network ATM withdrawals cost $2 to $3 per use. If you overdraft twice a month and use an out-of-network ATM weekly, you could pay $100 to $150 in fees alone.
Some national banks waive monthly fees for students, military members, or people over 55. Ask about these before you open an account. Chase, for example, waives fees for accounts linked to a Chase student ID or for customers 18 to 24 years old.
Credit unions: lower fees, smaller footprint
A credit union is a member-owned financial institution, not a for-profit bank. Most credit unions charge no monthly fee, have lower overdraft fees ($15 to $25), and pay slightly higher interest on savings accounts. Customer service is often faster because credit unions are smaller and have fewer customers per employee.
The catch is reach. Your credit union may have only 10 to 50 branches, all in one state or region. If you move or travel, you lose convenient access. However, most credit unions belong to a shared branching network or ATM network (like CO-OP or Allpoint), which means you can use thousands of other credit union ATMs and branches for free, even if they are not your bank.
To join a credit union, you must meet membership requirements—often based on where you work, where you live, or a group you belong to. Some credit unions are open to anyone in a geographic area; others require you to work for a specific employer or be a member of a specific organization. Search for credit unions in your area at CO-OP.org or CULookup.com to see which ones you can join.
Online banks: no fees, no branches
Online banks like Ally, Charles Schwab, Discover, and Chime have no physical branches and no monthly fees. They also pay higher interest on savings accounts (currently 4% to 5% annually, compared to 0.01% at most national banks). You can open an account in 15 minutes on your phone and manage everything through an app.
The limitation is cash. You cannot walk in to deposit cash, and most online banks do not accept cash deposits at all. If you receive cash regularly—tips, side work, or payments from people who do not use digital transfers—an online bank will not work for you. Some online banks partner with retail locations like Walgreens or CVS to let you deposit cash, but this is not universal and may cost a fee.
Online banks are best if you rarely use cash, do not need to visit a branch, and want to avoid fees. They are worst if you need to deposit cash regularly or prefer talking to a human on the phone.
Regional banks: middle ground between local and national
Regional banks operate in multiple states but not nationwide. Examples include PNC, U.S. Bank, KeyBank, and Regions Bank. They offer more branches than credit unions but lower fees than the largest national banks. Monthly fees range from $0 to $10, and many waive fees if you keep a modest balance ($500 to $1,000).
A regional bank makes sense if you live in or frequently travel within its service area. Check the bank's website to see which states it covers. If you move outside that region, you lose branch access, though you can usually keep the account open and use ATM networks.
What to compare before you choose
| Feature | What to Look For |
|---|---|
| Monthly fee | What is the base fee, and what waives it? (Direct deposit, minimum balance, age, student status) |
| Overdraft fee | How much per overdraft, and does the bank allow overdraft or decline the transaction instead? |
| ATM access | How many ATMs does the bank own, and what networks does it belong to? (CO-OP, Allpoint, MoneyPass) |
| Out-of-network ATM fee | Does the bank charge you for using another bank's ATM, and does it reimburse out-of-network fees? |
| Minimum balance | Is there a minimum to open the account, and a separate minimum to avoid fees? |
| Mobile app | Can you deposit checks by phone camera, transfer money, and pay bills through the app? |
| Interest rate | What does the bank pay on savings accounts? (Checking accounts rarely pay interest.) |
| Customer service hours | Is phone support available 24/7, or only during business hours? |
Most banks publish this information on their website under "Checking Account" or "Pricing." If you cannot find it, call or chat with the bank and ask directly. Do not assume fees are the same across all accounts—banks often have multiple checking products with different fee structures.
How to open an account once you decide
Most banks let you open a checking account online without visiting a branch. You will need a government-issued ID (driver's license or passport), your Social Security number, and a way to fund the account (a debit card, another bank account, or a wire transfer). The process takes 10 to 20 minutes.
Some banks require you to verify your identity in person or by video call, especially if you have no banking history. A few still require you to open an account in a physical branch, though this is becoming rare. Check the bank's website to see whether online opening is available in your state.
Once your account is open, you will receive a debit card in 7 to 10 business days and can start using the account immediately through the mobile app or online banking portal. Set up direct deposit if your employer offers it—most banks waive monthly fees for accounts with direct deposit, and it is the fastest way to get paid.
Frequently Asked Questions
Can I switch banks without losing my money?
Yes. Your money stays in your old account until you transfer it. Most banks can transfer money from another bank in one to three business days. You can keep both accounts open during the switch, then close the old one once you confirm the transfer went through. Do not close the old account until all pending checks have cleared.
What if I have bad credit or a banking history?
Credit score does not affect checking account approval. Banks check ChexSystems, a database of banking history, not your credit report. If you were flagged for fraud or bounced many checks, you may be denied. Some banks offer second-chance checking accounts with higher fees but no ChexSystems check. Ask the bank directly whether you can open an account before you apply.
Do I need a minimum balance to open an account?
Most banks do not require a minimum to open a checking account, but some require a small deposit ($25 to $100) to fund it initially. A few banks require a higher minimum balance to avoid monthly fees—this is different from the opening requirement. Read the fee schedule carefully to see both numbers.
Which bank has the best customer service?
Customer service quality varies by location and time of day. Credit unions generally rank higher for phone support because they have fewer customers per representative. Online banks like Ally and Charles Schwab are known for fast chat support. National banks have longer wait times but more phone lines. Try calling the bank's customer service line before you open an account to see how long you wait.
Can I have checking accounts at multiple banks?
Yes. Many people keep accounts at two or three banks for different purposes—one for everyday spending, one for savings, one for a specific goal. There is no limit to how many accounts you can open, though each bank will run a ChexSystems check. Having multiple accounts does not hurt your credit score.