There is no single "best" bank for everyone
The bank that works best for you depends on how you use money: whether you need a checking account, savings account, or both; how often you visit a branch; whether you pay fees or want to avoid them; and what interest rate matters to you. A bank that is best for someone who deposits checks weekly and needs a teller is not the best for someone who does everything on a phone and never visits a branch. Start by listing what you actually do with your money, then compare banks on those specific things.
The largest banks in the United States—Chase, Bank of America, Wells Fargo, Citibank, and US Bank—offer the widest branch networks and the most ATMs. They also tend to charge monthly fees unless you meet balance or deposit requirements. Smaller regional banks and credit unions often charge no monthly fee but may have fewer locations. Online-only banks (like Ally, Charles Schwab, and Discover) typically charge no fees and pay higher interest on savings, but you cannot deposit cash or speak to someone in person.
Key Takeaways
- Monthly fees, minimum balances, and ATM access vary widely between banks, so compare the specific accounts you need rather than choosing based on bank size alone.
- Large national banks offer more branches and ATMs but usually charge monthly fees; online banks charge no fees but have no physical locations.
- Credit unions often charge no monthly fees and may offer better rates on savings and loans, but membership is limited to certain groups or employers.
- Interest rates on savings accounts change frequently and vary by bank, so check the current rate before opening an account.
- The FDIC insures deposits up to $250,000 per account type at each bank, so your money is protected regardless of which bank you choose.
What to compare when choosing a checking account
Monthly maintenance fees range from $0 to $15 or more, depending on the bank and account type. Some banks waive the fee if you keep a minimum balance (often $500 to $2,500), set up direct deposit, or maintain a certain number of debit card transactions per month. Others charge no fee regardless of balance. Read the account disclosure document—usually called a "Schedule of Fees" or "Account Terms"—to see exactly what triggers a fee and how much it costs.
Overdraft fees apply when you spend more than you have in the account. Most banks charge $30 to $35 per overdraft, and some charge multiple fees if you overdraft multiple times in one day. Some banks offer overdraft protection, which links your checking account to a savings account or credit line and transfers money automatically if you go negative. Others let you opt out of overdraft coverage entirely, which means transactions will be declined rather than charged a fee.
ATM access matters if you withdraw cash regularly. Large national banks have thousands of ATMs nationwide. Online banks often reimburse ATM fees charged by other banks, or partner with networks like Allpoint or MoneyPass to offer free withdrawals at convenience stores and pharmacies. If you rarely use ATMs, this may not matter; if you withdraw cash weekly, it matters a lot.
What to compare when choosing a savings account
Interest rates on savings accounts are measured as APY (annual percentage yield) and change frequently—sometimes weekly. A bank offering 4.5% APY today may offer 4.0% next month. Online banks and some credit unions currently offer higher rates than large national banks, but rates move together as the Federal Reserve raises or lowers its benchmark rate. Check the current rate on the bank's website before opening an account, not the rate advertised in an old article.
Minimum balance requirements vary. Some savings accounts require $0 to open and maintain; others require $500, $1,000, or more. If you fall below the minimum, the bank may charge a monthly fee or close the account. Read the account terms to see what the minimum is and whether it applies to the opening balance only or the balance every day.
Withdrawal limits are less common now than they were before 2020, but some banks still limit how many times per month you can withdraw money from a savings account without paying a fee. Most banks now allow unlimited withdrawals, so this is worth checking only if you plan to move money in and out frequently.
Large national banks versus smaller banks and credit unions
| Type | Monthly Fee | Branch Access | Savings Rate | Best For |
|---|---|---|---|---|
| Large national bank (Chase, Bank of America, Wells Fargo) | $10–$15, waived with minimum balance or direct deposit | Thousands of branches and ATMs nationwide | 0.01%–0.05% APY | People who need to visit a branch regularly or deposit cash frequently |
| Regional bank | $0–$10, varies by location and account type | 50–500 branches in specific regions | 0.05%–2.0% APY | People who live in the bank's region and want lower fees than national banks |
| Credit union | $0–$5, often waived entirely | Varies; many participate in shared branching networks | 0.5%–3.0% APY | People who are members (through employer, union, or community) and want no fees |
| Online-only bank | $0 | None; all transactions online or by phone | 4.0%–5.5% APY | People who never need to visit a branch and want the highest savings rate |
How to check if a bank is safe
All banks and credit unions mentioned in this article are insured by the FDIC (Federal Deposit Insurance Corporation) or NCUA (National Credit Union Administration). This means your deposits are protected up to $250,000 per account type at each institution. If the bank fails, the FDIC or NCUA will return your money. You can verify a bank's insurance status on the FDIC website (fdic.gov) by searching for the bank's name.
The size of the bank does not determine safety. A small regional bank with FDIC insurance is just as safe as Chase. What matters is the insurance, not the bank's size or how many branches it has.
How to decide: a practical checklist
Write down the answers to these questions, then search for banks that match your needs:
- Do you need to visit a branch or deposit cash? If yes, you need a bank with physical locations in your area. If no, an online bank may work.
- How much money do you typically keep in checking versus savings? If you keep most of your money in savings, a high interest rate matters. If you keep most in checking, fees matter more.
- Do you have direct deposit from an employer? If yes, many banks waive checking fees for direct deposit customers.
- Are you a member of a credit union through your employer or a community organization? If yes, compare the credit union's rates and fees to national banks.
- How often do you withdraw cash? If rarely, ATM access does not matter. If weekly, choose a bank with many ATMs or one that reimburses fees.
Once you have answered these questions, open an account with one or two banks and use them for a month. If the bank does not work for you—the app is confusing, fees are higher than expected, or customer service is slow—you can close the account and switch. There is no penalty for closing a checking or savings account.
Frequently Asked Questions
Can I have accounts at multiple banks?
Yes. Many people keep a checking account at one bank and a savings account at another, or maintain accounts at both a national bank and an online bank. There is no limit on the number of accounts you can open. The FDIC insures each account separately up to $250,000, so spreading money across banks can protect deposits larger than that amount.
What happens if I close my account?
You withdraw your money, the bank closes the account, and you receive a final statement. There is no fee for closing. If you have automatic payments or direct deposit set up, you must change those to your new bank before closing the old account, or payments will fail.
How long does it take to open an account?
Online banks usually open an account in minutes; you provide your Social Security number, address, and initial deposit information, and the account is active immediately. Large national banks may take a few days to verify your identity. Credit unions may require membership paperwork before you can open an account.
Do I need a minimum deposit to open an account?
Most banks require $0 to open a checking or savings account. Some require $25 or $100. Check the bank's website or call to confirm before you start the process.
What if I have bad credit or a history with ChexSystems?
ChexSystems is a checking account history database that some banks use to decide whether to open an account for you. If you have unpaid overdrafts or closed accounts due to fraud, you may be denied. Some banks do not use ChexSystems, and some specialize in accounts for people with banking history issues. Search for "second chance checking" or call local credit unions to find options.