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Best Free Checking Accounts
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If you were to build your personal finances from the ground up, the checking account would be the first “product” you’d pick. If you’ve ever drawn your financial network map, you’ll remember that the checking account is the spoke in your primarily hub-and-spoke layout. Your paycheck is deposited into your checking account, your savings accounts are linked to your checking account, and when it’s time to pay credit cards or the mortgage, chances are the money comes from your checking account.
So if you were to rebuild your personal finances or build it from scratch, the first step is finding a checking account that fits your needs. For me, I need a checking account to be free, have plenty of ATMs, and no minimum balance. If your bank doesn’t offer that as a minimum, I’d find one that does.
So how do you find the best free checking account?
Online Checking Accounts
If you’re comfortable banking entirely online, I recommend going with an online checking account because they will offer far better yields and rewards than any brick and mortar bank. The tradeoff is that you won’t be able to visit a branch to deposit your checks but you are handsomely (relatively) rewarded for the added headache. Also, online checking accounts make it really easy to take advantage of online CD rates. The best CD rates are usually from online banks.
Reward Checking Accounts
If you aren’t or you don’t like the idea of mailing/scanning in checks, there are plenty of free checking accounts. Before you do anything, see if you can get access to a reward checking account. Reward checking accounts are those accounts that offer high yields as long as you make double digit debit card transactions each statement cycle.
Credit Union or Community Banks
If those aren’t available, check with a local credit union or community bank. There are far too many small community credit unions and community banks for me to name but they often will have the best free checking accounts. They will have low fee requirements, fair fee schedules, and the added benefit of a strong local presence.
Best Free Checking Accounts
If you don’t have that option, one of the following larger banks may be available (I looked at the ten largest US banks by deposits):
- Bank of America MyAccess Checking – No monthly maintenance fee if opened online, no minimum balance.
- BB&T Free Checking – No minimum balance requirements or a monthly maintenance fee.
- Capital One Rewards Checking – No monthly service fee or minimum balance requirements, unlimited check writing, reward miles for banking transactions (5000 for opening an account & setting up direct deposit, etc.).
- Chase Checking – No monthly service fee with direct deposit or 5+ debit card purchases within a statement period, otherwise $6.
- Citibank EZChecking – No monthly fee and unlimited check writing when you maintain a combined average balance of $1,500 across linked Citibank accounts. May also qualify for 5 free uses of non-Citibank ATMs, reimbursements of the first six ATM fees per statement period up to $5 per transaction, and fee rebates of up to $12 per year (there is a litany of explanation and fine print at the bottom, review that for state specific caveats).
- HSBC Choice Checking – Free with direct deposit, otherwise you must maintain $1,500 in deposit balances of $5,000 in combined balances in HSBC accounts or pay an $8/month fee.
- PNC Bank Free Checking – No monthly service charge or minimum balance, non-PNC ATM fees are reimbursed if you have a $2,000 average monthly balance.
- SunTrust Free Checking – No minimum balance requirement or monthly maintenance fee, free 1st order of small package of checks, NSF first item fee discount (one time discount).
- U.S. Bank Silver Package Checking – No monthly maintenance fee.
Most of the major banks offer a free checking account with no minimum balance and no monthly maintenance fees, which is ideal. Recently, banks have been adding minimum balance requirements (Citibank just settled with the NYS AG to extend, for a year, their free checking offer with no minimum balance to new EZChecking customers) so keep an eye out for any changes not reflected in the above list.
Finally, remember that free checking is only free in that you aren’t paying fees. None of the accounts listed offer any interest so you are really “paying” in the interest you aren’t earning. We try to keep our checking account as low as possible, putting any savings into an interest bearing savings account. Fortunately, at least right now, savings interest rates are abysmal (under 2%) so the cost is fairly low.
(Photo: heidielliott)
{ 44 comments, please add your thoughts now! }
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Great article, Jim. Unfortunately, checking accounts are designed to be boring. But that’s a good thing. They should be low/no maintenance, low/no fees, and act as a hub for all of your other accounts, as you’ve mentioned.
Right now, I use a credit union for multiple reasons:
1. Rewards checking that offers better ROI than even the current best online savings or long-term CDs.
2. Because I have a checking account with a CU, (there’s a possibility that) I get better rates for auto or home loans.
3. My CU is a CU service center, and I am able to use any CU service center around the world. This makes my lowly singular CU became bigger than the largest bank chains.
4. Ditto on ATMs. Also, if I use an outsider ATM, I get reimbursed for their fees.
5. My CU offers online services.
I keep multiple accounts, because there is no catch-all.
I keep a rewards checking account with my CU for the higher interest and their ATM network. I would have opened up a separate account with the CU if they didn’t have rewards checking just to have access to their ATM network.
I keep an account with the bank just across the street for access to money quick, in case I max out my ATM withdrawals from my CU account, or if my funds get frozen.
I could keep an online account, but the CU and B&M backup banks provide me with all the access I need. Although, I have been eying an ING account for a while to make it easier to transfer money to my brother.
Hi, I found your comments very interesting but I can’t figure out what a CU is. Could you please put the entire phrase? Thank you.
CU MEANS CREDIT UNION
I currently use Suntrust’s free checking, but there isn’t anything great or bad about it. I have to check out some credit unions to see what they offer.
Why didn’t you mention Wachovia? I think they have a pretty good free checking system, plus the added “bonus” of Way2Save. My only complaint is they seem to have less drive-up ATMs then other banks. I’m lazy, you see.
Wachovia? you mean soon to be Wells Fargo.
Despite the WF takeover, I’ve noticed no changes.
ING.
So easy to link my savings, checking and sharebuilder. And I can P2P money between my account and my girlfriend.
saladdin
Yes, I love how easy and quick it is to transfer money with ING accounts. They’ve even eliminated the waiting period if you’re transferring between your ING accounts – it’s totally instant to transfer between Checking and Savings. And other transfers take about 3 days, which isn’t instant but really not bad.
i’m still too nervous to do the online checking account thing. just too dependent on needing a quick atm fix and with chase literally no joke on every street corner i can’t bring myself to do it. maybe once interest rates go up but for now I think I’ll just stick with what i have.
Although I have been intrigued aith newer checking accounts and all their online features that banks are offering now like the mywallet and i believe BoA has something too. It kind of combinessome of the tools form mint directly with your checking account if im not mistaken. interesting to say the least
I use Schwab investor checking. No minimums or fees. 0.75% interest rate. Unlimited refunds on ATM fees. Use it internationally with no fees (used it in Tanzania without any problems). Unlimited free checks.
I’ve used this account for about a year now and have recommended it to everyone.
Update to this post: Rate is currently 0.60% for this account.
Schwab’s ATM refunds are NOT unlimited. Their limit is $9/month (which is quite reasonable, I only make max 2 withdrawals/month).
USAA also has refunds, up to $15/month.
Ally’s checking is actually unlimited.
A typical Schwab Bank Checking account (Interest, Regular, Basic) is limited to $9/M, however a Schwab Bank Investor Checking is NOT subject to that limit. The Investor Checking is offered alongside Schwab Brokerage services.
I use ING Electric Orange as my main checking account. I have a B&M bank checking account that I keep open from before opening the ING one. My paycheck is direct deposit, and I get other checks so rarely that it’s hardly any trouble once in a blue moon to head to the ATM, deposit my check and then transfer the money to my ING.
I have a rewards checking account at a local credit union, and ING Electric Orange as as secondary account.
I’m curious as to why some folks have more than one personal checking account. To me it’s seems like twice the work trying to keep track of outgoing & incoming. I have a few different savings accounts (primary, Christmas account, ING EF, vacation account, etc.) that are funded automatically from the checking, but only one personal checking account that I pay our bills from. What are some of the reasons/benefits of having more than one checking account?
I have multiple checking accounts, but I use them basically like savings accounts. e.g., I have a rewards checking account to get a higher interest rate, but it’s just a place to store money; I don’t do a bunch of transactions in that account.
I have an ING Electric Orange checking account and an “brick-and-mortar” bank checking account. The 2nd bank is there in case I want easy access (via ATM) to cash as the network that ING uses isn’t convenient to where I work. I also use it for the rare occasions I want to hand someone a paper check. I skirt the 2-3 day transfer issue by having a nominal amount direct deposited from my paycheck to that 2nd bank. The balance goes to ING for all my “normal” checking activities.
I have never understood why people use banks rather than credit unions. it’s insane.
I have been in a credit union for over 20 years. I have never paid a fee. Never. No fee for checking, ever. I don’t have to worry if I have $5 or $50000 in the account. There is never a fee. Most credit unions are the same.
My credit union, Southland Credit Union, currently pays 1.5% on checking. Again, there is no minimum account balance. Also they give you a free book of checks every year if you ask. Not that anyone uses paper checks much anymore. Also, credit unions have extensive networks of ATMs that are free.
I agree. We have had our checking account at a CU for over 20 years also. No fees. It doesn’t pay any interest, but I don’t keep any substantial money in there, just what is needed for that weeks expenses plus $100 +/-. Free checks also whenever we needed to reorder (not that we use them that much now). Our CU is also part of the SUM network for ATM use.
I like just having one checking account. For me it is easier to keep track of money coming and going.
Sometimes, there may not be a lot of choices. I used to live in a small town, which had 1 credit union, but you had to be an oilworker to qualify for an account with them. And for smaller credit unions like this particular one, they just don’t have the same capabilities as some of the larger banks (for example, online account access, etc.). I do prefer credit unions to big banks too, but that’s just one reason some people probably stick to the larger banks.
I haven’t found a credit union that will let me deposit checks into their ATM. Maybe this is a regional issue but it’s a deal breaker for me. I do keep a token amount at the CU for access to their usually great loan rates.
I just have one checking account with a CU that acts as my hub for transferring money into other accounts. I wonder why people have more than one checking account? I have been trying to consolidate accounts so I can simplify my life.
I agree, I don’t know why you would need more than one.
I wonder how many accounts are by-products of promo’s.
saladdin
I’m a big fan of ING Direct, especially since they gave me $121 bonus for signing up for an account on Black Friday.
Another vote for your local credit union here. Cheap, nice and easy. Just as a side note: how many physical checks do you write a month, now? I write between 1-2 checks (mostly for my kids’ lunch–school won’t take cash)
My CU knows me as a person, not just a number.
I guess that’s where we differ. I don’t care if they know me or not. I just want them to do as they advertise. I don’t care if they refer to me as “Mr. Saladdin” or “Account 1236763″ just do what your brochure and terms say you will do.
saladdin
I have two checking accounts – one is a brick and mortar that I can deposit and get cash, the other one is online and gives me 4.3% interest – I treat it as my savings account, but I can also write checks and use my debit card.
What online account gives you a 4.3% interest rate?
That’s some serious BS. I think someone doesn’t understand the difference between Checking and other Savings products. 4.3%. Thanks for the laugh.
Ryan, where are you getting 4.3% interest?! That’s unheard of right now!
I think the more important question now is What bank is giving you 4.3%?
Neither bank mentioned in the article is best free checking.
Schwab – hands down. I am currently moving from Bofa to Schwab and couldn’t be happier. Interest checking, no fees, free checks/deposit mailers/address labels, use of any ATM with any fees refunded, etc. It’s fantastic.
Yeah for most people a national checking should work fine. I opted for rewards checking after realizing it wasn’t that much work for me (i.e. hit online pay internet bill button 10 times for $2-3 each)
Do you know it’s really hard to determine good checking accounts? That’s because while one person wants an account that does notary signatures, official bank checks, incoming domestic wires to be free, another person could care less. Some people think having $10,000 or more in combined checking, savings, CD, and investment accounts at Bank of America to have the free Advantage with Tiered Interest Checking account is good. So, everything is relative and not the full story.
I use ING for my main checking account, and Bank of America for the convenience of paper checks and teller access. I believe my B of A account requires direct deposit, but a monthly $1 ACH push from ING seems to work just fine.
Charles Schwab is by far the best!
I’ve heard good things about Schwab as well. I do have a brokerage account with them, and I think I can request a debit card with checks, so I’m not sure what the benefit would be of also opening a checking out with them (which requires a hard pull). Maybe the only difference is FDIC protection? Not sure.
Not sure when this was written, but just an update: Citibank EZ & regular Checking Account now charges a $7.50 monthly service charge for accounts under $1500.