The choice depends on what you use your account for and what fees matter most to you

There is no single best bank for everyone. A checking account at a large national bank works well if you travel and need ATM access everywhere. A credit union works well if you want lower fees and don't mind a smaller network. An online-only bank works well if you rarely deposit cash and want no monthly fees. The right choice is the one that matches how you actually use money — not the one with the most branches or the flashiest app.

Start by listing what you need: Do you deposit cash regularly? Do you need a physical branch nearby? Do you want to avoid monthly fees? Do you need overdraft protection? Once you know what matters, you can compare the actual banks and credit unions in your area instead of guessing.

Key Takeaways

  • National banks offer the most ATM locations and branches, but often charge monthly maintenance fees unless you meet balance or deposit requirements.
  • Credit unions typically charge lower fees and offer better interest rates on savings, but you must be a member and their ATM networks are smaller.
  • Online banks have no monthly fees and higher savings rates, but you cannot deposit cash in person and customer service is phone or chat only.
  • Local and regional banks fall between national banks and online banks — fewer branches than the big chains, but more than credit unions, and fees vary widely.
  • The cheapest account for you depends on your balance, how often you overdraft, and whether you deposit cash — not on which bank is most famous.

National banks: most locations, highest fees

National banks like Chase, Bank of America, Wells Fargo, and Citibank operate thousands of branches and ATMs across the country. If you travel frequently or move often, this network is valuable — you can deposit checks and withdraw cash almost anywhere without paying out-of-network fees.

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. Overdraft fees run $30 to $35 per incident. If you fall below the minimum balance, you pay the monthly fee even if you never overdraft. If you use the account lightly — depositing a paycheck and withdrawing cash — you will pay more in fees than you would at a credit union or online bank.

National banks make sense if you need physical branch access for deposits, withdrawals, or account problems, and if you can keep the minimum balance without effort. They do not make sense if you are trying to avoid fees.

Credit unions: lower fees, membership requirement

Credit unions are member-owned, not-for-profit institutions. They typically charge no monthly maintenance fee, no overdraft fee (or a lower one), and offer better interest rates on savings accounts. If you have a checking account at a credit union, you usually also have access to a savings account with a rate that beats what national banks offer.

The catch is membership. You can only open an account at a credit union if you meet their membership rules — usually based on where you work, where you live, what school you attended, or what organization you belong to. If you do not meet the rules for any credit union in your area, you cannot join. Some credit unions have opened membership to anyone, but this is not the standard.

Credit unions also have smaller ATM networks. Many participate in shared branching networks (like CO-OP or Allpoint) that expand access, but you will not have the same convenience as a national bank. If you rarely withdraw cash and do most banking online, this is not a problem. If you withdraw cash multiple times a week, you may pay out-of-network fees.

Credit unions make sense if you meet their membership rules, want to avoid fees, and do not need constant physical branch access. Check whether your employer, school, neighborhood, or professional association has a credit union you can join.

Online banks: no fees, no cash deposits

Online banks like Ally, Charles Schwab, Discover, and Chime operate only through websites and apps. They have no physical branches and no ATM networks of their own. In exchange, they charge no monthly maintenance fee, no overdraft fee (or charge it only once per month), and offer higher interest rates on savings.

The main limitation is cash. If you receive cash as payment and need to deposit it, an online bank is difficult. Some online banks partner with retailers like Walmart or CVS to let you deposit cash at the register, but this is not available everywhere and takes time to process. If you never handle cash, this is not a problem. If you are paid in cash or receive cash gifts regularly, an online bank will frustrate you.

Online banks also have no one to talk to in person. If something goes wrong with your account, you call or use chat. Most online banks have good customer service, but some do not. Read recent reviews before opening an account.

Online banks make sense if you are paid by direct deposit or transfer, rarely handle cash, and want to avoid all monthly fees. They do not make sense if you need to deposit cash regularly or prefer to solve problems face-to-face.

Local and regional banks: middle ground

Local and regional banks — like a bank that operates in three states or a community bank in your city — sit between national banks and online banks. They have fewer branches and ATMs than Chase or Bank of America, but more than a credit union. Their fees vary widely: some charge monthly maintenance fees similar to national banks, while others charge nothing.

The advantage is that they often know their customers. If you have a problem, you can walk into a branch and talk to someone who can help. They may also offer better rates on savings than national banks. The disadvantage is that their ATM network is limited, so you may pay out-of-network fees if you travel.

Local and regional banks make sense if you want a physical branch nearby, do not travel much, and want to support a bank that is rooted in your community. Call or visit a few in your area to compare their fees and services.

How to compare accounts side by side

Once you have narrowed down to a few banks or credit unions, compare these specific costs and features:

  • Monthly maintenance fee: What is it, and what do you have to do to waive it?
  • Minimum balance: Do you have to keep a certain amount in the account at all times?
  • Overdraft fee: How much does the bank charge if you spend more than you have?
  • Out-of-network ATM fee: How much do you pay to use an ATM that is not the bank's?
  • Direct deposit: Does the bank offer a higher interest rate or waive fees if you set up direct deposit?
  • Debit card: Is there a fee to get a debit card, and how long does it take to arrive?
  • Online and mobile banking: Can you transfer money, pay bills, and deposit checks from your phone?
  • Customer service hours: Can you reach someone by phone during the hours you are awake?

Write down the fees for each bank and add them up based on how you actually use your account. If you keep a $500 balance and overdraft twice a year, calculate what you will pay in fees at each bank. The cheapest option will be clear.

Red flags to watch for

Some banks make money by charging fees on top of fees. Before you open an account, check whether the bank charges for things that should be free: transferring money between your own accounts, paying bills online, or getting a replacement debit card. If a bank charges for these basics, move on.

Also check the overdraft policy. Some banks charge an overdraft fee every single time you go negative, even by a dollar. Others charge once per day or once per month. A few do not charge overdraft fees at all. If you sometimes run low on money, this matters.

Read recent customer reviews on sites like Trustpilot or the Better Business Bureau. Look for complaints about fees being charged incorrectly, customer service being unavailable, or money being held for days. One or two complaints are normal; dozens of similar complaints are a warning sign.

Frequently Asked Questions

Can I have checking accounts at more than one bank?

Yes. Many people keep an account at a national bank for travel and an account at a credit union or online bank to avoid fees. You can have as many accounts as you want, though each one requires a separate application and takes up space in your credit report.

What if I do not have an ID or Social Security number?

Most banks require a government-issued ID and a Social Security number or ITIN to open an account. Some banks and credit unions have accounts for people without a Social Security number, but they are rare. Call your local credit union or a community bank to ask whether they offer this option.

Do I need a minimum amount of money to open an account?

Most banks do not require a minimum deposit to open an account, though some ask for $25 or $100. Online banks almost never require an opening deposit. Call the bank before you visit to confirm, so you do not waste a trip.

How long does it take to open a checking account?

At a physical branch, it takes 15 to 30 minutes. Online, it takes 5 to 10 minutes, though you may have to wait a few business days for the account to be fully active. You can usually start using the account the same day you open it, even if the debit card has not arrived yet.

What happens to my money if the bank fails?

The Federal Deposit Insurance Corporation (FDIC) insures checking and savings accounts up to $250,000 per account holder per bank. If the bank fails, you get your money back. Credit unions are insured by the National Credit Union Administration (NCUA) up to the same limit. This protection is automatic — you do not have to do anything.