What makes a bank "good" depends on how you use it

There is no single best bank for everyone. A good bank for you is one that matches the way you actually move money—whether that's mostly online, mostly in person, mostly through your phone, or a mix. It also depends on what you're willing to pay in fees, how much money you keep there, and whether you need a human to talk to when something breaks.

The banks that advertise the most are not necessarily the ones that cost you the least or serve you the best. Some of the cheapest accounts come from banks you've never heard of. Some of the most convenient ones are credit unions that only serve people in your state or your industry. Start by listing what you actually do with a checking account—how many times a month you withdraw cash, whether you deposit checks by phone or in person, whether you send money to other people, whether you need overdraft protection—and then match that to a bank's real rules, not its marketing.

Key Takeaways

  • Monthly fees, overdraft fees, and minimum balance requirements vary wildly between banks, so comparing the actual numbers for your situation matters more than brand recognition.
  • Online-only banks typically charge no monthly fee and pay interest on checking accounts, but they have no physical branches if you need to deposit cash or talk to someone in person.
  • Credit unions often have lower fees and better customer service than large national banks, but membership is restricted to people who meet certain criteria—employment, location, or family connection.
  • Large national banks have the most branches and ATMs, but charge the highest fees and often require higher minimum balances to avoid monthly charges.
  • The best bank for you is the one whose actual fee structure and access methods match how you actually use money, not the one with the friendliest commercials.

Online banks versus brick-and-mortar banks

Online-only banks (also called direct banks) have no physical locations. You open an account on their website, deposit checks by taking a photo with your phone, and withdraw cash at ATMs that partner with the bank. Most online banks charge no monthly fee, no minimum balance, and pay interest on checking accounts—sometimes 4% to 5% annually, though that rate changes. The tradeoff is that you cannot walk into a branch, and if something goes wrong with your account, you solve it by phone, email, or chat, not face-to-face.

Banks with physical branches—called brick-and-mortar or traditional banks—let you deposit cash and checks in person, talk to a teller, and get a debit card replaced the same day if yours is lost. They also charge more. Most large national banks charge $10 to $15 per month if your balance drops below a certain threshold (often $500 to $1,500), charge $30 to $35 per overdraft, and pay little or no interest on checking accounts. Some branches are open only during business hours, which means you cannot deposit cash on weekends or after 5 p.m. unless you use an ATM.

A middle option is a bank with a small number of branches in your area plus online access. These banks often charge lower fees than the national chains but higher fees than online-only banks, and they may not have the same technology or customer service quality as either extreme.

Credit unions and membership requirements

A credit union is a nonprofit bank owned by its members. Credit unions typically charge lower fees than national banks, pay better interest rates on savings, and have lower minimum balances. Their customer service is often better because they are smaller and have less turnover. The catch is that you can only join if you meet their membership criteria—you work for a certain employer, you live in a certain county or state, you belong to a certain profession or organization, or you are related to someone who already belongs.

To find credit unions you might join, search for "credit unions near me" or use the CO-OP Network locator on the CO-OP website. Many credit unions are part of shared branching networks, which means you can do basic transactions (deposit, withdrawal, account inquiry) at other credit unions' branches even if you do not belong to them. If you may have access to for a credit union, it is usually worth opening an account there before you open one at a national bank, because the fees and service are typically better.

Fees that actually matter

Most banks advertise their monthly maintenance fee (or lack of one), but that is only one fee. The fees that cost you real money are overdraft fees, ATM fees, wire transfer fees, and minimum balance fees. A bank that charges no monthly fee but charges $35 every time you overdraft is more expensive than a bank that charges $12 a month but has no overdraft fee.

Before you open an account, look up the bank's fee schedule (usually called a "schedule of fees" or "pricing guide") and find the numbers for: monthly maintenance fee, overdraft fee, insufficient funds fee (if different from overdraft), ATM fee if you use an out-of-network ATM, wire transfer fee, and any minimum balance requirement. Then calculate what you would actually pay in a year based on your habits. If you overdraft twice a year and use out-of-network ATMs four times a month, that math is very different from someone who never overdrafts and has a branch on their block.

How to check a bank's ATM network and branch locations

If you need to withdraw cash regularly, the size of the bank's ATM network matters. National banks like Chase, Bank of America, and Wells Fargo have thousands of ATMs. Online banks partner with networks like Allpoint or MoneyPass, which have fewer ATMs but still cover most cities. Credit unions use shared branching and shared ATM networks, which means you can use ATMs at other credit unions for free.

Before you open an account, use the bank's ATM locator tool (usually on their website) to see how many ATMs are near your home, your workplace, and places you go regularly. If there are none, you will pay out-of-network ATM fees ($2 to $3 per withdrawal) or you will have to go to a branch to withdraw cash. Some banks reimburse out-of-network ATM fees if your balance is high enough, so check that too.

Interest rates on checking and savings accounts

Most traditional banks pay almost no interest on checking accounts—0.01% or less. Online banks and some credit unions pay 4% to 5% on checking accounts, though usually only on balances up to $25,000 or $35,000. After that, the rate drops to 0.5% or less. If you keep $10,000 in a checking account, the difference between 0.01% and 4% is about $400 a year. If you keep $100,000, it is $4,000 a year.

Interest rates change, sometimes weekly. A bank offering 4.5% today might offer 3% next month if the Federal Reserve cuts rates. Check the current rate on the bank's website before you open an account, but also understand that the rate you see today is not locked in for life. If rates drop and you want a better rate, you can move your money to a different bank—it takes a few days, and there is no penalty.

Customer service and how to reach it

Large national banks have customer service available 24/7 by phone, but you often wait on hold for 20 to 45 minutes. Online banks have customer service by phone, email, and chat, usually 24/7, and wait times are often shorter because they have fewer customers per representative. Credit unions have customer service during business hours and sometimes on weekends, and wait times are usually short.

If something goes wrong—your card is stolen, a fraudulent charge appears, you need to dispute a transaction—you want to reach someone quickly. Read recent reviews on Trustpilot or the Better Business Bureau to see how long people actually wait and whether the bank solves problems or passes you between departments. A bank with a 2-hour phone wait is worse than a bank with a 10-minute chat response, even if the first bank has more branches.

Frequently Asked Questions

Is it safe to bank online?

Yes. Online banks are insured by the FDIC (Federal Deposit Insurance Corporation) just like brick-and-mortar banks, which means your money is protected up to $250,000 per account type. Online banks use encryption and security protocols that are often better than those of traditional banks because security is their only defense. The risk is not the bank—it is your own password and device. Use a strong password, enable two-factor authentication, and do not access your account on public WiFi.

What if I need to deposit cash?

Online banks cannot accept cash deposits because they have no branches. Some online banks partner with retailers like Walmart or CVS to let you deposit cash for a small fee (usually $1 to $3). Others let you deposit cash at a partner bank's branch. If you deposit cash regularly, you need either a brick-and-mortar bank, a credit union with branches, or an online bank with a cash deposit partnership. Check the bank's website before you open an account.

Do I need a minimum balance?

Most online banks require no minimum balance. Many brick-and-mortar banks require $500 to $2,500 to avoid a monthly fee. Credit unions often require a small minimum (sometimes $25) to open an account but no minimum to keep it open. If you cannot maintain a minimum balance, an online bank or credit union is cheaper than a traditional bank.

Can I switch banks if I change my mind?

Yes. You can close an account at any time with no penalty. Moving your direct deposits and automatic payments takes a few days. The bank you are leaving does not charge you to leave, and the bank you are joining does not charge you to arrive. If you realize a bank is not right for you after a month or two, switch.

Which bank is best for someone who travels a lot?

Online banks are best for travelers because you can access your account from anywhere and deposit checks by phone. Large national banks are second-best because they have ATMs in most cities. Credit unions are hardest for travelers because their ATM networks are smaller, though shared branching helps. Avoid banks with limited ATM networks if you travel frequently or live in a rural area.