The best bank for you depends on what you actually do with your money, not which bank has the most branches
There is no single best bank. A bank that works for someone who deposits a paycheck twice a month and never touches it again will frustrate someone who moves money between accounts daily or needs to withdraw cash at odd hours. The right choice depends on whether you need a physical branch, how often you use ATMs, whether you keep a minimum balance, and what you pay in fees.
Start by listing what you actually need: Do you deposit checks by phone or mail, or do you need to hand them to a teller? Do you travel and need ATM access in other states or countries? Do you have a small balance or a large one? Do you want a savings account that earns interest, or are you mainly looking for a safe place to keep money? Once you know what matters to you, you can compare banks on those specific things instead of on marketing claims.
Key Takeaways
- National banks with thousands of branches are convenient for in-person deposits but often charge monthly fees and require high minimum balances.
- Online-only banks typically have no monthly fees and higher interest rates on savings, but you cannot deposit cash or speak to someone in person.
- Credit unions often charge lower fees and offer better rates than banks, but membership is limited to people who work for certain employers or live in certain areas.
- The cheapest account for you is the one where you will not accidentally trigger overdraft fees, monthly maintenance charges, or minimum balance penalties.
- Most banks let you open an account online in minutes, so you can test a bank with a small deposit before moving your main account.
National banks versus online banks: the main trade-off
National banks like Bank of America, Chase, and Wells Fargo have branches and ATMs everywhere. You can walk in to deposit a check, withdraw cash, or talk to someone about a problem. The cost is that they charge monthly fees (usually $10 to $15) unless you keep a minimum balance (often $1,500 to $2,500) or set up direct deposit. Their savings accounts earn very little interest — often less than 0.01% per year.
Online-only banks like Ally, Marcus, and Discover have no physical locations. You deposit checks by taking a photo on your phone, and you withdraw cash only at ATMs or by transferring money to another bank. There are no monthly fees, no minimum balance requirements, and savings accounts earn much higher interest — currently between 4% and 5% per year, though this changes with the Federal Reserve. The trade-off is that you cannot hand cash to a teller or sit down with someone to solve a problem.
A middle option is a hybrid account: keep a small checking account at a national bank for deposits and cash withdrawals, and keep your savings at an online bank where your money earns real interest. This costs you nothing if you use the national bank's free checking tier, and it gives you the convenience of both.
Credit unions: lower fees, but membership matters
Credit unions are member-owned financial cooperatives. They typically charge lower fees than banks, offer better interest rates on savings, and charge less interest on loans. Many have no monthly maintenance fees at all, even with a zero balance.
The catch is that you can only join a credit union if you meet their membership requirement. Some are open to anyone who lives or works in a certain county. Others are limited to employees of a specific company, members of a specific profession, or people who belong to a specific organization. You cannot simply walk in and open an account the way you can at a bank.
To find a credit union you can join, search the CO-OP Network or Shared Branch locator on the Credit Union Association website. If you are a member of a union, work for a large employer, or belong to a professional association, you may already be may be able to access for a credit union account.
What to compare when you are looking at specific banks
| Feature | What to Look For | Why It Matters |
|---|---|---|
| Monthly maintenance fee | $0, or waived if you meet one condition (direct deposit, minimum balance, or debit card use) | A $12 monthly fee costs you $144 per year even if you never use the account. |
| Minimum balance requirement | $0 to $500 is common; $1,500+ is high | If you fall below the minimum, you pay a fee or lose interest. Know whether the minimum applies to checking, savings, or both. |
| Overdraft fees | $25 to $35 per overdraft; some banks charge multiple times per day | One mistake can cost $100+ if the bank charges for each transaction that overdrafts your account. |
| ATM network | National banks have their own ATMs; online banks partner with networks like Allpoint or MoneyPass | If you withdraw cash often, a small ATM network means you pay out-of-network fees ($2 to $3 per withdrawal). |
| Savings account interest rate (APY) | Currently 4% to 5% at online banks; under 0.5% at most national banks | On $10,000, the difference between 0.01% and 4.5% is roughly $450 per year. |
| Check deposit by phone | Most banks now offer mobile check deposit; confirm the limit (usually $2,000 to $10,000 per deposit) | If you deposit checks often, a low limit means multiple trips to the bank or waiting for funds to clear. |
How to test a bank before you move your main account
You do not have to commit to a bank all at once. Open a new account with a small deposit — $25 to $100 — and use it for a month. Deposit a check by phone if that is how you plan to deposit. Withdraw cash from an ATM to see if the network is convenient. Pay a bill online to make sure the interface makes sense to you. If something feels wrong, close the account and try another bank. Most banks let you close an account online with no penalty.
Pay attention to small things that will annoy you later: Is the mobile app slow? Does the website make it hard to find your account number? Does customer service answer the phone quickly, or do you wait on hold for 20 minutes? These details matter more than the bank's name or size.
Red flags that a bank is not right for you
Avoid a bank if it charges a monthly fee and you cannot easily meet the waiver condition. For example, if a bank waives its $12 monthly fee only if you keep a $2,500 minimum balance, and you have $800, that bank will cost you $144 per year. Find one with no fee or a lower minimum.
Avoid a bank with high overdraft fees if you sometimes run low on money. Some banks charge $35 per overdraft and allow multiple charges per day — meaning a single mistake can cost $100 or more. Online banks and credit unions typically charge less or none at all.
Avoid a bank with a small ATM network if you withdraw cash often. Out-of-network ATM fees add up quickly. If you rarely touch cash, this does not matter.
Moving your account to a new bank
Most banks offer a service called account transfer or direct transfer. You give the new bank your old account number, and they pull your recent transactions and set up automatic bill payments. This takes a few days to a week. You do not have to close your old account immediately — keep it open for a month or two in case a payment bounces back to the old account.
Update your direct deposit with your employer or benefits provider to point to your new account. This usually takes one pay period to take effect. If you receive regular payments (paycheck, Social Security, pension), update those first so money goes to the right place.
After a month, close the old account. Make sure no automatic payments are still pulling from it, and that you have received all the statements you need for tax or record-keeping purposes.
Frequently Asked Questions
Is it safe to bank online?
Yes. Online banks are insured by the FDIC the same way brick-and-mortar banks are, meaning your money is protected up to $250,000 per account. Online banks use encryption and security measures identical to those of national banks. The main risk is user error — using a weak password or falling for a phishing email — not the bank itself.
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. Each account is insured separately up to $250,000 by the FDIC, so there is no downside to spreading your money across banks if it serves your needs.
What if I need to deposit cash?
National banks and credit unions accept cash deposits at the teller window. Online banks do not. If you receive cash regularly, you need either a national bank account, a credit union account, or a hybrid setup where you keep a small checking account at a bank for cash deposits and a savings account at an online bank for interest.
How do I know if a bank is FDIC-insured?
Search the FDIC's Bank Find tool on their website and enter the bank's name. If it appears in the results, it is insured. All major national banks, most regional banks, and many online banks are FDIC-insured. Credit unions are insured by the NCUA, which offers the same $250,000 protection.
Should I choose a bank based on interest rates alone?
No. Interest rates change frequently and are often similar across online banks. A bank with a 4.5% savings rate is not worth it if it charges $15 per month in fees or makes it impossible to withdraw cash when you need it. Compare the total cost and convenience, not just the rate.