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Checking accounts are a safe place to keep money you need for everyday spending, and these days, there's no reason you have to pay high fees. Most checking accounts today make it easy to access your money, offer flexible withdrawal options, and are FDIC insured. And the best checking accounts have low or no fees, a high APY (so your money is making money), and ATM reimbursement. You can open a checking account through both traditional brick-and-mortar banks and an increasing number of online financial institutions (like that new banking app your coworker won't stop raving about). We've checked out the banking industry to find our picks of the best checking accounts available for you. Keep reading to see our top recommendations. Best checking accountsRates as of Oct. 20, 2022
Rates as of Oct. 20, 2022 Axos Bank Rewards Checking  Member, FDIC Min. To Earn APY Monthly direct deposits totaling at least $1,500
A solid checking account with an APY that far outpaces the competition. The fact that it also has no maintenance fees and no overdraft or NSF fees are the cherries on top. Use the promo code RC100 when you apply for a Rewards Checking account by 12/31/22. Then have qualifying direct deposit(s) to earn up a $100 welcome bonus! Quontic High Interest Checking Member, FDIC
The Quontic High Interest Checking account is one of the few checking accounts that offers a high APY, free ATMs, and few account fees. Account holders can earn a nice APY on all account balances up to $150,000. Account balances between $150,000.01 and $1 million earn a smaller, but still competitive APY, and balances above $1 million don't earn anything. To qualify for interest, account holders need to make at least 10 qualifying debit card transactions of at least $10 per statement cycle. 10 debit card point of sale transactions of $10 or more per statement cycle required to earn the maximum APY. If the qualifying activity requirement is not fulfilled, the interest rate paid on the entire balance will be 0.01% APY.
The Chime Checking Account charges few fees. Users get access to over 60,000 fee-free ATMs nationwide through the Allpoint network. Another valuable feature is early direct deposit, which allows account holders to access funds up to two days earlier than otherwise scheduled. This account also comes with a savings account included, so it’s a good fit for those interested in both. Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank or Stride Bank, N.A.; Members FDIC. *Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date. Member, FDIC
Online-only bank Ally offers a high APY on its Interest Checking account for customers with a $15,000 minimum daily balance. Account holders with lower daily balances won't be left out since Ally Interest Checking also earns a nice return for daily balances less than $15,000. Ally skips common fees too, like monthly maintenance and check fees. Alliant High Rate Checking Member, FDIC
Alliant's marquee checking account kicks back at a decent rate. The bank's competitive APY is returned in what it calls its "monthly dividend," and the requirements are extremely modest -- a customer need only opt in to e-statements for their account and have one direct deposit made every month. There is no monthly service fee or minimum balance requirement. Plus, the bank will reimburse up to $20 per month in out-of-network ATM fees and customers can use a network of 80,000 surcharge-free ATMs. Schwab Bank High Yield Investor Checking Member, FDIC
The feature-packed Schwab Bank High Yield Investor Checking® account charges surprisingly few fees. There's also no minimum required balance. Customers using their Schwab Bank Visa® Platinum Debit Card have their ATM fees refunded, even those incurred abroad. Speaking of that, Schwab Bank High Yield Investor Checking® incurs no foreign transaction fees on debit card purchases. Member, FDIC
It's common for credit cards to offer a cash back feature, not so much for traditional checking accounts. Discover Cashback Debit earns 1% for debit card transactions, for up to $3,000 in spending every month. This account also has a long list of fee-free services. For example, Discover won't charge for monthly maintenance, online bill pay, a replacement debit card, outbound ACH fees, and a lot of other activities. Account owners also have access to their cash at more than 60,000 ATMs throughout the U.S. ATM transactions, the purchase of money orders or other cash equivalents, cash over portions of point-of-sale transactions, Peer-to-Peer (P2P) payments (such as Apple Pay Cash), and loan payments or account funding made with your debit card are not eligible for cash back rewards. In addition, purchases made using third-party payment accounts (services such as Venmo® and PayPal™, who also provide P2P payments) may not be eligible for cash back rewards. Apple, the Apple logo and Apple Pay are trademarks of Apple Inc., registered in the U.S. and other countries. Member, FDIC
Capital One emphasizes the words "fee-free" in its literature for good reason. Few activities with this account incur a fee. Some exceptions are overdraft on credit, overnight check or replacement card delivery, stop payments, and bounced checks. The goose eggs also include $0 minimums to open or maintain the account, and this continued fee-free theme makes up for the competitively lower APY. TIAA Bank Yield Pledge® Checking Member, FDIC
TIAA Bank's rate isn't as high as some of its competitors, but it does come with a guarantee that most other checking accounts don't offer. The bank promises to keep its APY in the top 5% of what it terms "Competitive Accounts." There are also unlimited ATM fee reimbursements as long as the customer keeps at least $5,000 in the account. LendingClub Rewards Checking Member, FDIC
LendingClub Rewards Checking includes the table-stakes perks we covet, including no monthly maintenance fees. It also packs in an array of other benefits that make it a solid contender. Notably, account holders can earn up to 1% cash back and get paid up to two days early when direct depositing their paychecks. The cherry on top is unlimited ATM fee rebates worldwide. What is a checking account?A checking account is a bank account designed for spending. Most checking accounts come with a debit card. Account holders can also take advantage of online bill pay services. It contrasts with a savings account, which is intended for -- yes -- saving. Savings accounts usually don't have debit cards, because banks don't expect you to spend the money in your savings account. Types of checking accountsHere’s a look at some of the most common types of checking accounts. Traditional checking accountTraditional checking accounts are available through most banks and credit unions. They usually don’t earn interest, and some charge monthly maintenance fees if your balance is too low. But it's usually pretty easy to access your funds. Most give you check-writing capabilities and a debit card so you can directly withdraw your funds when you need them. And if you choose a brick-and-mortar bank, you'll be able to get money at any bank branch as well. Premium checking accountPremium checking accounts offer special perks, like lower fees or monthly out-of-network ATM fee reimbursements. But these are usually only available to customers who open multiple accounts with the same bank. Brick-and-mortar banks offer these as a way of competing with the fee-free checking accounts offered by online banks. Student checking accountStudent checking accounts are geared at college students, usually up to age 25. Most of the time, these accounts don't have monthly maintenance fees and they allow for online and mobile banking just like traditional checking accounts. RELATED: Best Student Checking Accounts Senior checking accountSenior checking accounts are targeted to adults who are 62 or older in most cases. These accounts may have lower monthly maintenance fees or they may not charge a monthly fee at all for account ownership. Their features are usually pretty similar to traditional checking accounts. Interest-bearing checking accountInterest-bearing checking accounts enable you to earn a modest annual percentage yield (APY) on your checking account funds. Rates are usually lower than what you typically see with high-yield savings accounts, and you may need to maintain a high minimum balance to qualify for interest. Business checking accountBusiness checking accounts are designed for companies rather than individuals. There are often several options business owners can choose from, depending on the features they need and the number of monthly transactions they make. Checkless checking accountCheckless checking accounts are traditional checking accounts that don’t offer check-writing capabilities. Banks sometimes offer these as a fee-free or low-cost alternative to traditional checking accounts. One of these might suit you as long as you're comfortable paying for items a different way. Rewards checking accountRewards checking accounts offer special perks, like cash back on debit card purchases. This is more common with online banks. It may not appeal to everyone, but if you use your debit card often, you might earn more money this way than you would with a traditional interest-bearing checking account. Private bank checkingPrivate bank checking accounts are reserved for the ultra-wealthy. These customers usually have large balances, and banks give them dedicated representatives to assist them with their needs. Second chance checkingSecond chance checking accounts are for individuals who have previously had their bank accounts closed, usually due to a failure to pay fees or because they were using their accounts to commit fraud. This makes banks reluctant to work with them again. These second chance accounts usually have more stringent application requirements and there's often a monthly fee you can't waive. How to choose the best checking accountYou'll probably use your checking account a lot, so choosing the right one is important. Here are the basic steps you should follow:
What to look for in a checking accountThe best checking accounts typically have:
Why should you have a checking account?Most American adults have checking accounts, and there's a good reason why it's such a popular place to keep money. Here are a few reasons to open a checking account, whether it be a high-interest online checking account or one from a traditional brick-and-mortar bank:
Are checking accounts free?The short answer to this is maybe. Checking accounts are wonderfully convenient. You pay for this, though, and not only with razor-thin or nonexistent interest rates. Checking accounts, particularly those offered by brick-and-mortar institutions, are known for the numerous fees banks impose for maintaining them. There are a host of these charges. Here are three of the more common ones:
To be clear, not all checking accounts (especially online checking accounts) charge all of these fees. For example, many of our best high-interest checking account picks don't have any monthly maintenance fees or overdraft fees, and some even go so far as to reimburse customers for ATM fees charged by other banks. RELATED: Best Free Checking Accounts Do checking accounts earn interest?What you gain in flexibility with a checking account, you lose in earnings potential. In contrast to fellow banking products like money market accounts and CDs, checking accounts often don't earn interest -- or, at best, they earn at extremely thin interest rates. This is particularly true of banks with brick-and-mortar operations. Keeping branches open is expensive and resource-draining, and the prevalence of checking accounts make them a prime target for cost cutting. There are, however, exceptions to this no-interest standard. Interest-bearing checking accounts exist, but they often have relatively high opening and/or minimum ongoing balance requirements. The effort it takes to hit those marks, plus the funds they tie down, are not worthwhile for many customers, especially because many of the best interest-bearing checking accounts only offer about a low APY. Online-only banks have more wiggle room to pay interest since they don't bear those brick-and-mortar costs. It's not unusual to see interest-bearing online checking accounts. Even then, we're still in a low-rate environment. These rates might be higher than 0%, but they're still much lower than what you'll find with online savings accounts. TIP How many checking accounts should I have?Most people have just one or two checking accounts, but like many personal finance categories, it depends on you. In addition to a standard individual checking account, many couples have joint checking accounts, and many business owners also have business checking accounts. Checking vs savings account: What's the difference?A checking account is primarily designed for making day-to-day payments, while a savings accounts is best suited for money intended for longer-term goals. Savings accounts typically have higher APYs, which makes them a better choice for an emergency fund or other cash you don't anticipate using anytime soon but don't feel comfortable investing. But savings accounts also have restrictions that limit the number of withdrawals you can make per month and the ease of access you have to your money. Checking accounts are intended to be spending accounts used for everyday purchases. They have fewer limitations on the number of payments or withdrawals you can make each month. But they usually don't have a high APY like savings accounts do, even if they are high interest. For more on the difference, be sure to check out our beginner's guide to banking. RELATED: How to Open a Checking Account Key checking account terms to knowHere's some important checking account terminology you should be familiar with: Debit card: A debit card is a payment card that's linked to a checking or savings account. It's usually (but not always) Visa- or Mastercard-branded. Unlike a credit card, which allows you to borrow money and pay it back later, debit card transactions are approved based on the current balance of your account, and the money is immediately deducted. PIN: Short for "personal identification number," a PIN is a number that's typically four to six digits. It's used to identify you when using your debit card for ATM withdrawals or in-store purchases. Insufficient funds: If you write a check or attempt to spend more money than you have in your checking account, the transaction may be rejected for insufficient funds. Overdraft: An overdraft is the result of a transaction that causes your account to have a negative balance. The key difference between an overdraft and insufficient funds is that a transaction that results in an overdraft is approved, and a transaction resulting in insufficient funds is rejected. Overdrafts usually carry fees. Mobile or remote deposit: Most checking accounts allow customers to make check deposits from their smartphone or other mobile device by uploading a photo of the check, thereby saving a trip to the bank. Endorsement: To endorse a check means to sign the back of a check in the specified area, indicating that the person being paid is accepting the money. Routing number: There are three important numbers on every check, and the first is the routing number. This is a nine-digit code that corresponds with the bank that holds the checking account. Some major banks have several different routing numbers, depending on the geographical location where the account was opened. Account number: The account number identifies the specific deposit account within the bank indicated by the routing number. In order to send money to a checking account, you'll need both the routing and account number. In short, the routing number tells the sending institution which bank to send the money to, and the account number tells that bank where to put it. Check number: Although it's not particularly important when it comes to most transactions, every check has a unique number (usually three or four digits). Check numbers are useful for helping the account holder keep track of payments they make by check and can also help identify fraud in many cases. Best Checking Account Interest RatesRates as of Oct. 20, 2022
FAQs
What are the best checking accounts to have?1 Radius Rewards Checking 2 NBKC Bank Everything Account 3 Chase Total Checking 4 Consumers Credit Union Rewards Checking 5 Alliant Credit Union High-Rate Checking 6 Chime Spending Account 7 Axos Essential Checking 8 Connexus Credit Union Xtraordinary Checking 9 Simple Simple Account 10 CIT Bank eChecking More items...
What type of bank account should I open?For your first bank account or accounts, you’ll likely want to open a checking account and, in some cases, a savings account.
What type of bank should you choose?A brick-and-mortar bank could be an excellent choice for someone who values visiting a branch in person and having a wide network of fee-free ATMs at other bank branches in their community. These banks will offer the most basic services, like checking and savings accounts.
What should I look for when opening a checking account?Before you open an account, make sure you can meet the bank or credit union’s requirements. Or, look for an account with no minimum requirements whatsoever. APY. Not all checking accounts pay interest.
Which bank is best for first time?The HDFC Bank offers its customers fixed deposits with different tenures ranging from 7 days to 10 years. The interest rate of HDFC FD is higher than a savings account. The HDFC Bank FD interest rates range from 2.50% to 5.50%. Also, the minimum investment for opening an HDFC FD account is Rs.
Is Wells Fargo or Chase better?With 4,000 more ATM locations than Wells Fargo, reduced fees and a wider variety of welcome bonuses, Chase is a better option for most customers. Chase is also the clear winner for military personnel, offering waived fees on checking accounts and ATM withdrawals for active-duty service members and veterans.
What banks will let you open an account for free?Here's a look at a few banks that offer free checking accounts.. Ally: Interest Checking Account. ... . Capital One: 360 Checking Account. ... . Discover Bank: Cashback Debit account. ... . Heritage Bank: eCentive Account. ... . NBKC: Everything Account.. |
Best bank for first time checking account
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