The best bank for you depends on how you use money, not on which bank is "best" in general
There is no single best bank because banks serve different needs. A bank that works well for someone who needs to visit a branch in person every week will frustrate someone who never sets foot in a physical location. A bank with low fees but limited ATM access might cost you more in time and travel than a bank with higher fees and ATMs everywhere. The right choice is the one that matches your actual habits: where you live, how often you need cash, whether you want to talk to a person, and how much money you typically keep in the account.
Start by listing what matters to you. Do you need a branch nearby? Do you travel and need ATM access in multiple states or countries? Do you want to deposit checks by phone camera, or do you prefer mailing them? Do you have a small balance or a large one? Once you know what you actually need, you can compare banks that offer it instead of comparing every bank against an imaginary perfect one.
Key Takeaways
- Large national banks offer many branches and ATMs but often charge monthly fees unless you maintain a minimum balance.
- Online-only banks typically have no monthly fees and higher interest rates on deposits, but no physical branches to visit.
- Credit unions may offer lower fees and better rates if you meet their membership requirements, but have fewer ATMs and branches than national banks.
- Local and regional banks can provide personalized service and branch access without the fees of large national chains, depending on the institution.
- The cheapest account is not always the best account if it lacks the services you use most often.
National banks: branches everywhere, but fees if your balance is low
Banks like Chase, Bank of America, Wells Fargo, and Citibank have branches in most cities and thousands of ATMs nationwide. If you need to deposit cash or speak to someone in person regularly, this access is real value. Their checking accounts typically come with debit cards, online banking, and mobile apps that work smoothly.
The catch is fees. Most national banks charge a monthly maintenance fee—typically $10 to $15—unless you meet conditions like keeping a minimum balance (often $500 to $1,500), setting up direct deposit, or maintaining a linked savings account. If you fall below the minimum, the fee hits your account. Some waive fees for students or seniors, so ask about that if it applies to you.
National banks make sense if you travel frequently within the US, need to deposit cash often, or want to handle problems face-to-face. They do not make sense if you keep a small balance and rarely visit a branch—you will pay more in fees than you earn in convenience.
Online-only banks: no monthly fees, but no branch to walk into
Banks like Ally, Charles Schwab, Discover, and Chime operate only online. They have no physical branches. In exchange, they charge no monthly fees, no minimum balance requirements, and often pay higher interest on your deposits than national banks do. A checking account at an online bank might earn 4% to 5% annual interest on your balance, while a national bank checking account earns close to zero.
The tradeoff is that you cannot walk into a location to deposit cash or speak to a teller. You deposit checks by taking a photo with your phone and uploading it through the app. You withdraw cash at ATMs—some online banks partner with large ATM networks so you have access nationwide, while others charge a fee if you use an out-of-network ATM. If you need to deposit cash frequently or live somewhere rural with few ATMs, this becomes a real problem.
Online banks work best if you rarely use cash, do not need to visit a branch, and want to avoid fees. They are also a good choice if you want your money to earn interest while sitting in checking.
Credit unions: lower fees and better rates, but membership requirements
Credit unions are member-owned financial institutions, not for-profit companies. They often charge lower fees than banks, pay higher interest on deposits, and offer better rates on loans. Many credit unions have no monthly checking account fees at all, even with a zero balance.
The barrier is membership. You can only open an account at a credit union if you meet their membership requirements. Some credit unions are open to anyone who lives or works in a certain county. Others require you to work for a specific employer, belong to a certain organization, or be related to an existing member. A few have opened their membership to anyone nationwide, but most are regional.
If you already may have access to for membership at a credit union—through your employer, your location, or a family member—it is worth comparing their checking account to what national banks and online banks offer. The fees are usually lower and the rates higher. If you do not may have access to, you cannot open an account there, so this option may not be available to you.
Local and regional banks: personal service without the national bank fees
Community banks and regional banks operate in specific areas—a single state, a few states, or a region like the Southeast or Midwest. They typically have fewer branches and ATMs than national banks, but more than online banks. Many charge lower monthly fees than national chains and offer better customer service because they know their customers personally.
The risk is that a local bank may fail or be acquired by a larger bank, which can change your account terms or move your money without warning. Your deposits are insured by the FDIC up to $250,000, so your money is safe, but your account experience may change. Also, if you move to a different region, your bank may not have branches where you go.
Local and regional banks work well if you live in an area with strong community banks, do not plan to move soon, and value personal relationships with your bank. They are less practical if you travel frequently or expect to relocate.
How to compare the banks you are considering
Once you have narrowed down your options to two or three banks, compare them on the specific things that matter to you. Create a simple table with these rows: monthly fee (and what waives it), minimum balance requirement, interest rate on deposits, ATM network size, number of nearby branches, mobile app features, and customer service hours.
Then calculate the real cost. If a national bank charges $12 per month but you will never meet the minimum balance, that is $144 per year. An online bank with no fee but 4% interest on a $2,000 balance earns you $80 per year—so the online bank is $224 ahead over a year, even before counting the value of your time. If you need to deposit cash weekly and the online bank charges $2.50 per out-of-network ATM use, that is $130 per year, which changes the math.
The best bank is the one where the fees you actually pay plus the services you actually use add up to the lowest total cost and the most convenience for your life right now.
What to do if you are not sure where to start
If you have no bank account yet and feel overwhelmed by the choices, start with an online bank. Open an account at Ally, Chime, or Discover—they have no monthly fees, no minimum balance, and no penalty if you close the account later. Use it for a month or two and see how it feels. Do you miss having a physical branch? Do you run into problems depositing cash? Does the mobile app work the way you want?
Once you know what you actually need, you can switch to a bank that offers it. Switching is free and takes about a week. You do not have to get it right the first time, and you do not have to stay with a bank that does not work for you.
If you already have a bank account and are thinking about switching, the same logic applies. List what is not working about your current bank, then find a bank that solves that problem. Do not switch just because another bank seems popular or has a good reputation—switch because it actually serves you better.
Frequently Asked Questions
Do I need to keep a minimum balance to avoid fees?
It depends on the bank. National banks usually require a minimum balance—often $500 to $1,500—to waive the monthly fee. Online banks and many credit unions have no minimum balance requirement at all. Check the specific bank's terms before opening an account, because the fee can add up quickly if you fall below the minimum.
Can I use any ATM with any bank's debit card?
You can use any ATM, but you may pay a fee. Most banks charge $2 to $3 if you use an ATM that is not part of their network. Some online banks partner with large ATM networks like Allpoint or MoneyPass to reduce out-of-network fees. Ask the bank about their ATM network before opening an account if you use cash frequently.
What happens to my money if the bank fails?
Your deposits are insured by the FDIC (Federal Deposit Insurance Corporation) up to $250,000 per account. This means if the bank fails, the FDIC will return your money. This protection applies to all banks—national, online, local, and credit unions (which are insured by the NCUA instead). Your money is safe regardless of which bank you choose.
Is it better to have a checking account at the same bank where I have savings?
It can be convenient to have both at the same bank because you can transfer money between them instantly and see all your accounts in one place. However, you do not have to. You can have checking at one bank and savings at another if one bank offers better rates or lower fees for each account type. Many people do this to get the best terms for each account.
How long does it take to open a checking account?
Online banks can open an account in minutes—you provide your Social Security number, address, and ID information through the app, and the account is ready to use immediately. National banks and credit unions may take a few minutes in person or a few hours online. You can usually start using the account the same day, though it may take a few business days for your debit card to arrive by mail.