The best place depends on what you need the account to do

There is no single best checking account for everyone. The right choice depends on whether you need a physical branch you can walk into, how much you have to deposit, what fees matter most to you, and whether you want to bank online, by phone, or in person. A large national bank offers branches everywhere but often charges monthly fees. A credit union may have lower fees and better customer service but fewer locations. An online bank has no monthly fees and higher interest rates but no physical branch at all.

Start by listing what actually matters to you: Do you deposit cash regularly? Do you need to speak to someone in person? Do you travel and need ATM access? Do you want to avoid fees? Once you know what you need, you can compare the three main types of places to bank and pick the one that fits.

Key Takeaways

  • National banks and regional banks offer physical branches and ATMs but typically charge monthly maintenance fees of $10 to $15 unless you meet balance or deposit requirements.
  • Credit unions usually charge lower or no monthly fees and offer better interest rates, but you must be a member and may have fewer ATM locations.
  • Online banks have no monthly fees and higher savings rates but no physical branch, so you cannot deposit cash in person or speak to someone face-to-face.
  • Your choice should depend on how you actually bank: in person, online, or a mix of both.
  • You can open an account at most banks and credit unions online in 10 to 20 minutes with a government ID and Social Security number.

National and regional banks: branches and ATMs everywhere, but fees apply

Large national banks like Chase, Bank of America, Wells Fargo, and Citibank have thousands of branches and ATM networks across the country. If you need to deposit cash, withdraw money, or talk to a teller in person, a national bank is the most convenient option. They also offer the widest range of products — checking, savings, credit cards, loans — all under one roof.

The trade-off is cost. Most national banks charge a monthly maintenance fee of $10 to $15 unless you meet conditions like keeping a minimum balance (often $1,500 to $2,500), setting up direct deposit, or maintaining a linked savings account. Some waive the fee if you are under 18 or over 65. If you cannot meet these conditions, the fees add up to $120 to $180 per year.

Regional banks — smaller chains that operate in specific states or regions — often charge lower fees than national banks and still offer physical branches. Examples include PNC, U.S. Bank, and Truist. They are a middle ground: more locations than a credit union, lower fees than a national bank.

Credit unions: lower fees and better rates, but membership required

A credit union is a member-owned financial institution, not a for-profit bank. Because they do not answer to shareholders, they typically charge lower fees and pay higher interest on savings. Many credit unions have no monthly maintenance fee at all, or charge only $3 to $5.

The catch is membership. You can only open an account at a credit union if you meet their membership requirements — usually based on where you work, where you live, what school you attend, or what organization you belong to. For example, some credit unions are open only to employees of a specific company, members of a union, or residents of a particular county. You will need to check whether you are may be able to access before you can open an account.

Credit unions also have fewer ATM locations than national banks, though many participate in shared branching networks that let you use other credit unions' ATMs and branches. If you do most of your banking online and only occasionally need cash, this is not a problem. If you travel frequently or need cash access everywhere, a national bank may be more practical.

Online banks: no fees, higher interest, no physical branch

Online banks like Ally, Charles Schwab, Discover, and Chime operate only on the internet and by phone. They have no physical branches, which means you cannot walk in to deposit cash or speak to a teller face-to-face. In exchange, they have no monthly maintenance fees, no minimum balance requirements, and they pay higher interest on checking balances than traditional banks.

Online banks work well if you deposit checks by phone or mail, use ATMs to withdraw cash, and handle most banking through a mobile app or website. Many online banks reimburse ATM fees charged by other banks, so you can use any ATM without paying extra. Some, like Chime, offer early direct deposit, meaning you can access your paycheck one or two days before payday.

Online banks are not a good fit if you need to deposit cash regularly or prefer to handle banking in person. Some online banks partner with retailers like Walmart or CVS to let you deposit cash at the register, but this is not as convenient as a branch.

How to compare checking accounts side by side

Before you open an account, write down what matters most to you and check each bank's website for the details. Here are the things to compare:

  • Monthly fee: What is the fee, and what do you have to do to avoid it?
  • Minimum balance: Do you have to keep a certain amount in the account?
  • ATM access: How many ATMs can you use without paying a fee?
  • Overdraft fees: What does the bank charge if you spend more than you have?
  • Interest rate: How much does the bank pay you on your balance?
  • Deposit methods: Can you deposit checks by phone or mail, or do you need a branch?
  • Customer service: Can you reach someone by phone, chat, or email if you have a problem?

Most banks publish this information on their website under "Checking Account Details" or "Account Terms." If you cannot find it, call or email and ask. Do not open an account until you understand the fees.

What you need to open an account

Opening a checking account takes 10 to 20 minutes and requires the same documents whether you go to a branch or open online. You will need:

  • A government-issued photo ID (driver's license, passport, or state ID)
  • Your Social Security number
  • Your current address
  • An initial deposit (some banks require a minimum, usually $25 to $100; others have no minimum)

If you open online, you can upload photos of your ID or verify your identity through your phone camera. If you open at a branch, bring the original documents. The bank will verify your information, run a background check through ChexSystems (a database of banking history), and set up your account on the spot. You will receive a debit card in the mail within 5 to 10 business days.

Red flags to watch for when choosing a bank

Avoid banks that charge high overdraft fees (more than $35 per transaction), require very high minimum balances you cannot maintain, or charge fees for common actions like speaking to a teller or transferring money. Some banks also charge a fee to close your account if you leave within a certain time period — usually 90 to 180 days. Read the terms before you sign up.

Also check whether the bank is insured by the FDIC (Federal Deposit Insurance Corporation) if it is a traditional bank, or by the NCUA (National Credit Union Administration) if it is a credit union. This insurance protects your money up to $250,000 if the bank fails. Nearly all banks and credit unions carry this insurance, but it is worth confirming.

Frequently Asked Questions

Can I open a checking account online if I do not have a government ID?

Most banks require a government ID to open an account online. If you do not have one, you can open an account in person at a branch with alternative documents like a passport, tribal ID, or military ID. Some banks accept a combination of documents like a utility bill plus a Social Security card, but policies vary.

What is the difference between a checking account and a savings account?

A checking account is for money you use regularly — you can write checks, use a debit card, and make unlimited transfers. A savings account is for money you want to keep and earn interest on, with limits on how often you can withdraw. Most people open both at the same bank.

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

It depends on the bank. Some banks waive monthly fees if you keep a certain balance (often $1,500 to $2,500). Others waive fees if you set up direct deposit or maintain a linked savings account. Online banks and many credit unions have no minimum balance at all. Check the bank's fee schedule before you open.

How long does it take to open a checking account?

Opening online takes 10 to 20 minutes. Opening at a branch takes 15 to 30 minutes. Your debit card arrives in the mail within 5 to 10 business days. You can usually start using your account and making transfers the same day you open it.

What happens if I close my checking account soon after opening it?

Most banks allow you to close an account anytime without penalty. A few charge a fee if you close within 90 to 180 days, so check the terms. If you have a negative balance when you close, you will owe the bank that amount.