Compare the Best Checking Accounts of April 2024

What is a checking account?

A checking account is a deposit account used to pay bills and make other financial transactions.

When you deposit money in a checking account, you can use it to:

• pay bills online
• write checks
• withdraw cash at ATMs
• make purchases with your debit card

How much you keep in your checking account depends on your personal needs. For example, if you use your debit card frequently, or if you write several checks per month, you may need to maintain a balance of several thousand dollars.

To open your own account, you generally have to be 18 years old. However, many banks offer teen checking accounts to give teenagers experience managing money with the help of a parent or guardian.

Alternatively, you may be interested in a business checking account, such as the Bluevine Business checking account. These checking accounts help you keep your personal and professional finances separate and can be used to pay your vendors and receive payments from clients.

How much you keep in your checking account depends on your personal needs. For example, if you use your debit card frequently, or if you write several checks per month, you may need to maintain a balance of several thousand dollars.

Pros and cons of checking accounts

Types of checking accounts

You may encounter these types of accounts in your research:

• Traditional checking: A traditional checking account is the most basic type of account available. Once you deposit money, you can write checks, withdraw cash at ATMs or use your debit card to make purchases.
• Student checking: Many students don’t earn enough to meet the minimum balance or direct deposit requirements for other types of checking accounts. Student checking accounts typically have low or no fees, along with limited account requirements, making it easier for students to access banking services.
• Interest checking: An interest-bearing checking account allows you to earn interest on the money you deposit.
• Premium checking: If you have a large amount of money to deposit, you may qualify for a premium checking account, which typically comes with additional features.
• Rewards checking: A rewards checking account gives you extra perks when you meet certain criteria. For example, some accounts offer cash back when you use your debit card to make a qualifying purchase.

How to compare checking accounts

Before you open an account, make sure you compare several banks to determine if each one offers the services you need. 

As you review your checking account options, consider the following criteria.

Minimums 

Many banks have minimum balance requirements, which require you to keep a certain amount of money in your account to receive certain benefits. If you don’t, you may have to pay a monthly service fee, or you may lose the opportunity to earn interest. It’s also common for banks to have minimum deposit requirements.

Fees

A checking account should make it easier to manage your finances, not more difficult. Before you choose a bank, make sure you know how much it costs to maintain an account. 

Watch for these fees:

• Monthly service fee: The monthly service fee is how much it costs to keep your account open.
• ATM fee: If you use an ATM outside your bank’s network, you may have to pay two separate fees. One fee is charged by your bank, while the other fee is charged by the ATM owner.
• Overdraft fee: Many banks charge a fee any time you have an account overdraft. Also known as insufficient funds fees, overdraft fees can add up quickly, so it’s important to avoid them as much as possible.
• Foreign transaction fee: If you travel overseas, you may have to pay a foreign transaction fee every time you use your debit card.

APY

APY stands for annual percentage yield. It represents the interest rate on your checking account based on a one-year compounding period. The higher your APY, the easier it is to earn interest on your balance.

Digital experience

Before you choose an account, be sure to review the digital experience offered by each financial institution. You should be able to transfer funds, download statements and access other features online. Many banks also offer budgeting tools and other resources to help you better manage your finances.

Customer service

If you have a question, you shouldn’t have to go through three layers of AI chatbots to get an accurate answer. When you research a bank, make sure you find out what type of customer service it provides (e.g. phone, chat, etc.), when it’s available and how long it typically takes to get a response.

Security

Your bank should offer plenty of security features to protect your money. Before you open an account, make sure your preferred bank offers fraud alerts, industry-standard encryption and other features designed to stop thieves in their tracks.

What’s the best checking account for me?

The best checking account for you depends on your personal needs.

If you just need a place to receive direct deposits, you may not care too much about bill pay and other account features. If you want to be more involved in your finances, however, you may want access to a full-featured mobile application, credit monitoring and other tools to support you on your journey.

When comparing the best banks for checking accounts, look for the following:

• Convenience: If you’re looking for the best bank to open a checking account, you need to consider convenience. It’s not convenient to drive 20 minutes to a branch to make a simple transaction, so you may want to look for a bank with locations near your home or office.
• Digital features: The best banks offer plenty of digital features, eliminating the need to travel to a branch or stop at an ATM every time you want to check your balance or complete a transaction.
• Overdraft protection: We don’t recommend overdrawing your account, but if you make a mistake calculating your balance, it’s nice to have overdraft protection.
• Account security: Your bank should offer multiple security features, such as multifactor authentication or biometric access, to give you extra peace of mind.

Where to get a checking account

You can get a checking account at any of these places:

How to open a checking account

Although the application process varies slightly from one financial institution to another, you typically have to follow these steps:

1. Fill out an application. If you don’t mind visiting a branch, you can do this in person. Otherwise, the bank may allow you to complete an application online. If you decide to visit a branch, make sure you have proof of identity (e.g. driver’s license) and proof of residency (e.g. current utility bill, current lease) with you.
2. Pay your opening deposit, if your bank requires one.
3. Start using your account.

Should I have more than one checking account?

For some people, having two checking accounts is better than having just one.

One of the benefits of maintaining multiple accounts is that you can take advantage of special offers at different banks. Having more than one account is also helpful if there’s a problem with your main bank.

What’s the difference between a checking and a savings account?

Checking and savings accounts share some features, but they have different purposes.

A checking account is designed to give you quick access to your money. You may be able to withdraw cash at ATMs, write checks or use a debit card to make in-person and online purchases. The purpose of opening a savings account is to save money for the future.