There is no single best bank for everyone

The bank that works best for you depends on how you actually use money: whether you need to deposit cash often, how many times a month you withdraw funds, whether you travel and need ATM access everywhere, if you want to borrow money later, and how much you have to keep in the account. A bank that is excellent for someone who uses direct deposit and never touches cash can be terrible for someone who needs to deposit checks and cash weekly.

The choice also depends on what you are willing to trade. Banks with no monthly fees usually charge you for things other banks include—overdraft fees, ATM fees outside their network, fees to talk to a person. Banks with the most ATMs in your area might charge higher fees on everything else. You are picking the bank whose tradeoffs hurt you least, not finding a perfect option.

Key Takeaways

  • The best bank for you depends on your actual money habits: how often you deposit cash, whether you need local ATM access, and what services you use most.
  • Free checking accounts exist but usually come with limits—either a minimum balance requirement, a cap on ATM withdrawals, or fees for overdrafts and out-of-network ATM use.
  • Large national banks offer the most ATM locations but often charge higher fees; credit unions and online banks usually charge less but have fewer physical locations.
  • You should compare the specific fees that matter to your life: overdraft fees, out-of-network ATM fees, monthly maintenance fees, and minimum balance requirements.
  • Opening an account takes 10 to 20 minutes online or in person, and you can move your direct deposit and automatic payments once the account is active.

What to compare when choosing a bank

Monthly maintenance fees are the first number to check. Some banks charge $10 to $15 per month just to keep the account open. Others waive the fee if you maintain a minimum balance (often $500 to $2,500), receive direct deposit, or use their debit card a certain number of times per month. If you cannot meet those conditions, a bank with no monthly fee at all will save you $120 to $180 per year.

Overdraft fees matter if you ever spend more than you have in the account. Most banks charge $25 to $35 per overdraft transaction. Some allow one or two free overdrafts per year; others charge every time. A few banks now offer overdraft protection, which links your checking account to savings or a credit line so the transfer happens automatically instead of triggering a fee. This costs nothing if you never overdraft, but saves you hundreds if you do.

ATM access is the third piece. If you need cash weekly, you want ATMs near your home, work, and places you shop. Large national banks (Chase, Bank of America, Wells Fargo) have thousands of ATMs but charge $2 to $3 per withdrawal at other banks' machines. Credit unions often belong to shared networks (Allpoint, MoneyPass, CO-OP) that let you use thousands of ATMs for free. Online banks usually reimburse out-of-network ATM fees, but you cannot deposit cash without visiting a partner bank.

Minimum balance requirements lock up your money. Some banks require you to keep $1,000 or more in the account at all times or face a monthly fee. If you live paycheck to paycheck, this is a deal-breaker. Look for banks with no minimum or a minimum under $100.

National banks versus credit unions versus online banks

National banks (Chase, Bank of America, Wells Fargo, Citibank) have physical branches and ATMs everywhere. You can walk in to deposit cash, talk to a person, or get a cashier's check same-day. The cost: monthly fees are common, overdraft fees are high, and out-of-network ATM fees add up fast. These banks make money partly from fees, so they are not trying to minimize them. Use a national bank if you need frequent in-person service or cannot live without a specific branch location.

Credit unions are member-owned nonprofits that usually charge lower fees than national banks. Many have no monthly maintenance fee, no minimum balance, and lower overdraft fees. The catch: they have fewer branches and ATMs in your area unless you join one with a large network. Credit unions also move slower on some transactions—a wire transfer might take an extra day. You must be a member to open an account, which usually means living or working in a specific area, belonging to a certain employer, or paying a small membership fee ($5 to $25). Find credit unions you are may be able to access to join at CO-OP.org or Allpoint.com.

Online banks (Ally, Charles Schwab, Discover, Marcus) have no physical branches but charge the lowest fees overall. Most offer no monthly fee, no minimum balance, and reimburse all out-of-network ATM fees. Deposits work through mobile check deposit (photograph the check with your phone) or ACH transfer from another bank. The downside: you cannot deposit cash without visiting a partner bank, and customer service is phone or chat only. Use an online bank if you rarely need cash, do not mind waiting a day for deposits, and want the lowest fees.

How to move your money to a new bank

Opening a new account takes 10 to 20 minutes online or in a branch. You will need a government ID, Social Security number, and proof of address (a recent utility bill or bank statement). The bank will run a background check through ChexSystems, a database that flags accounts closed for fraud or unpaid overdrafts at other banks. Most people pass this check instantly.

Once the account is open, move your direct deposit by giving your employer the new routing number and account number (both appear on your new checks or in the bank's app). Direct deposit usually starts within one or two pay periods. Move automatic payments—utilities, insurance, subscriptions—by logging into each company's website and updating your bank details. Do not close your old account until at least two pay periods have passed and you have confirmed all automatic payments moved successfully.

If you have pending checks or transfers, wait for them to clear before closing the old account. This usually takes three to five business days. Once everything has moved, call the old bank and ask them to close the account. Request written confirmation that the account is closed and that you owe nothing.

Banks that work well for specific situations

If you need to deposit cash often, use a bank with many branches and ATMs near you—usually a national bank or a large local bank. If you travel frequently, choose a bank with ATMs nationwide (Chase, Bank of America) or one that reimburses out-of-network fees (Ally, Charles Schwab). If you are building credit or have had banking problems, look for banks that do not use ChexSystems or that accept accounts flagged in ChexSystems—Second Chance Banking and Chime are two options, though they charge higher fees.

If you want to borrow money later (a personal loan, credit card, or mortgage), a bank where you have a checking account may offer you better rates because they already know your banking history. National banks and large credit unions are most likely to offer loans. Online banks usually do not lend.

Red flags to avoid

Do not open an account at a bank that charges fees for basic services without a clear reason. If a bank charges $15 per month but you cannot meet the waiver conditions, that is $180 per year you are throwing away. Do not assume a big name means better service—some of the largest banks have the highest fees and worst customer service ratings. Do not open multiple accounts at once hoping to find the best one; each account opening triggers a hard inquiry on your credit report, and too many inquiries in a short time can lower your credit score slightly.

Avoid banks that advertise "free checking" but bury overdraft fees, out-of-network ATM fees, or minimum balance requirements in the fine print. Read the fee schedule before you open the account. If a bank makes it hard to find the fee schedule online, that is a sign they do not want you to see it.

Frequently Asked Questions

Can I have accounts at multiple banks at the same time?

Yes. Many people keep a checking account at a national bank for ATM access and a savings account at an online bank for higher interest rates. Each account opening triggers a hard inquiry, so space them out by a few weeks if you are opening more than two. There is no limit to how many accounts you can hold.

What happens if I overdraft my account?

The bank covers the transaction and charges you an overdraft fee, usually $25 to $35. If you overdraft multiple times in one day, you may be charged multiple fees. Some banks cap overdraft fees per day; others do not. If your account stays negative for more than a few days, the bank may close it and report you to ChexSystems, making it harder to open accounts elsewhere.

How long does it take to switch banks?

Opening a new account takes 10 to 20 minutes. Moving direct deposit takes one to two pay periods. Moving automatic payments takes a few days to a week. You should wait at least two weeks before closing your old account to make sure everything has transferred. Total time: two to four weeks.

Do I need a minimum balance to avoid fees?

It depends on the bank. Many online banks and credit unions have no minimum balance. National banks often require $500 to $2,500 to waive monthly fees. If you cannot maintain a minimum, choose a bank with no minimum requirement or one that waives the fee through direct deposit or debit card use instead.

What if I have been denied a bank account before?

You were likely flagged in ChexSystems for unpaid overdrafts, fraud, or a closed account. Some banks accept ChexSystems records; others do not. Second Chance Banking, Chime, and some credit unions will open accounts for people with ChexSystems records, though fees are usually higher. You can also request your ChexSystems report for free at ChexSystems.com to see what is listed.