Banks and credit unions that don't charge monthly fees

Most national banks and many regional ones offer checking accounts with no monthly maintenance fee. The catch is usually that you have to meet one condition: 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 entirely if any one of these conditions is met. Others require all of them.

National banks with no-fee checking include Chase (SafeBalance), Bank of America (eChecking), Wells Fargo (Way2Save), and Citibank (Basic). Each has different balance requirements and transaction minimums. Credit unions typically have lower minimums than national banks—often $25 to $100—and many waive fees for members who use direct deposit or maintain a small balance.

Online-only banks like Ally, Charles Schwab, and Discover have no monthly fees and no minimum balance requirements at all. The tradeoff is that you cannot walk into a physical branch. You deposit checks by phone camera, withdraw cash at ATMs (often free nationwide through their networks), and handle everything online or by phone.

Key Takeaways

  • National banks and credit unions offer free checking if you meet one condition, such as direct deposit or a minimum balance of $500 to $1,500.
  • Online-only banks charge no monthly fee and have no minimum balance, but you cannot visit a branch in person.
  • Credit unions often have lower balance minimums than national banks and may waive fees for direct deposit alone.
  • Read the fine print before opening: some banks charge overdraft fees, ATM fees, or fees for paper statements that can add up quickly.
  • You will need a government ID, Social Security number, and proof of address to open an account at any bank or credit union.

How to compare free checking accounts

The monthly fee is only one cost. Before you open an account, check what the bank charges for overdrafts, ATM withdrawals outside its network, paper statements, wire transfers, and account closure. A bank with no monthly fee but a $35 overdraft charge can cost you more than one with a small monthly fee and no overdraft penalty.

Look at the ATM network. National banks have thousands of branches and ATMs nationwide. Credit unions often share ATM networks with other credit unions, so your access depends on which network your credit union belongs to. Online banks typically reimburse ATM fees or partner with networks like Allpoint or MoneyPass, which have thousands of ATMs but may not be near you.

Check whether the bank offers the features you actually use: mobile check deposit, bill pay, account alerts, or the ability to send money to other people. Some free accounts have limited features. Others offer everything a paid account does.

Credit unions versus banks

Credit unions are member-owned cooperatives, not corporations. They typically have lower fees, lower minimum balances, and more flexible lending than banks. The downside is that credit unions have fewer branches and ATMs unless they belong to a large shared network.

To join a credit union, you usually have to meet a membership requirement: work for a certain employer, live in a certain area, belong to a certain organization, or have a family member who is already a member. Some credit unions have opened their membership to anyone, but most still have restrictions. You can search for credit unions near you at CO-OP.org or Shared Branch to see which networks they belong to and what ATM access you would have.

Banks have no membership requirement. You can walk in and open an account the same day. But banks charge higher fees on average and often have higher minimum balances than credit unions.

Online banks and what you give up

Online banks have no physical locations. You cannot deposit cash, speak to someone in person, or get a cashier's check the same day. You deposit checks by taking a photo with your phone, and you withdraw cash at ATMs or by transferring money to another bank's account.

Online banks are cheapest because they have no branch overhead. Most charge no monthly fee, no minimum balance, and no ATM fees (either because they reimburse them or because they partner with a large ATM network). Customer service is by phone, email, or chat, usually available 24/7.

Online banking works well if you rarely need cash, do not deposit checks often, and are comfortable managing money on your phone or computer. If you deposit cash regularly or need to speak to someone in person, a local bank or credit union is a better fit.

What you need to open an account

Every bank and credit union will ask for a government-issued photo ID (driver's license, passport, or state ID), your Social Security number, and proof of your current address. Proof of address can be a recent utility bill, lease, mortgage statement, or bank statement in your name.

Some banks will also run a ChexSystems check, which is a banking history report similar to a credit report. If you have unpaid overdrafts or closed an account in bad standing at another bank, ChexSystems will flag it. A few banks specialize in second-chance accounts and will open an account for you even with a negative ChexSystems record, though they may charge higher fees or require a larger deposit.

You do not need a credit card, a job, or a minimum amount of money to open a checking account. You can open one with $1 or even $0 at many banks, though some require a small opening deposit.

Banks that accept people with banking problems

If ChexSystems shows unpaid overdrafts or a closed account, most mainstream banks will deny you. Some banks and credit unions offer second-chance checking accounts specifically for people in this situation. These accounts may have higher fees, lower ATM limits, or require a deposit, but they let you rebuild your banking history.

Chime, LendingClub, and GoBank are online banks known for accepting people with negative ChexSystems records. Some credit unions also have second-chance programs. Call ahead and ask whether they will open an account for someone with banking issues before you apply.

You can also request a ChexSystems report about yourself for free at chexsystems.com. If there is an error, you can dispute it. Errors are common and can be corrected within 30 days.

Opening an account online versus in person

Most banks let you open a checking account online in 10 to 15 minutes. You provide your ID and address information, answer security questions, and fund the account by linking another bank account or setting up a transfer. The account is usually active within one business day.

Opening in person at a branch takes 20 to 30 minutes. You bring your ID and proof of address, sign paperwork, and can fund the account immediately with cash or a check. You walk out with a debit card (or it arrives in the mail within 5 to 10 business days) and can start using the account right away.

Online opening is faster and you can do it anytime. In-person opening lets you ask questions and get a debit card immediately. Neither costs more than the other.

Frequently Asked Questions

Can I open a checking account if I don't have a Social Security number?

Most banks require a Social Security number or Individual Taxpayer Identification Number (ITIN). Some banks and credit unions will open an account with an ITIN if you provide additional documentation. Call ahead to ask. A few banks have programs for undocumented immigrants, though these are rare and vary by location.

What happens if I close a checking account and then want to open another one?

If you closed the account in good standing (no unpaid fees or overdrafts), opening a new account is straightforward. If you closed it with a negative balance or unpaid fees, ChexSystems will show it and most banks will deny you. Pay the debt first, then wait 30 to 90 days before applying again, or look for a second-chance account.

Do I need direct deposit to get a free checking account?

Not always. Many banks waive the monthly fee if you have direct deposit, but they also waive it if you maintain a minimum balance or make a certain number of debit card transactions per month. Online banks waive fees for everyone, regardless of direct deposit. Check the specific bank's requirements before you open.

Can I open a checking account for someone else?

No. The person whose name is on the account must be present (in person or online) to open it and provide their own ID and Social Security number. A parent can open a joint account with a minor child, but the child's information is still required.

What if I want to keep my current bank but avoid monthly fees?

Call your bank and ask what conditions waive the fee: direct deposit, minimum balance, debit card transactions, or paper statement opt-out. Many banks will waive the fee if you meet just one condition. If your bank will not waive it, switching to a bank with no monthly fee costs nothing and takes about an hour.