What Is a Checking Account?

Checking accounts are designed for easy use and regular transactions. They're best for handling day-to-day finances like direct deposits and small expenses.

You can deposit money through direct deposit, mobile apps, ATMs, or by visiting a bank branch. Funds are readily accessible, allowing you to pay for everyday expenses using a debit card, write checks, or make electronic transfers.

» Best bank for checking account reviews ➜

How do Online Checking Accounts Work?

Most banks provide online banking services, allowing you to monitor your account balance and transactions in real-time. An online checking account works just like a standard one, but with an online account you manage funds directly from your phone or computer. These accounts often come with better deals, like no-fees or unlimited transfers, since digital service can lower a bank’s operating costs.

While some checking accounts may come with fees, such as overdraft charges or fees for using out-of-network ATMs, many of the best checking accounts offer options to minimize or eliminate these fees by maintaining certain balances or enrolling in direct deposit.

Checking Account Requirements

Opening a checking account typically requires a valid government-issued ID, such as a driver’s license or passport, your Social Security number or Taxpayer Identification Number (TIN), and other basic personal information. Generally, you must be at least 18 years old to open a checking account on your own, though minors may open an account with a parent or guardian.

An initial deposit may be required to activate the account, though banks may waive this. Fees vary by institution, so it's important to review any potential monthly maintenance fees, ATM charges, or overdraft fees before choosing the best bank to open a checking account.

How to Compare Checking Accounts

If you're looking for the top checking accounts, compare fees, features, and perks to find the right match for your lifestyle.

• Find banks with a solid reputation and consistent positive reviews from users
• Check for accounts with few fees, looking for terms including ‘no maintenance fees’ and ‘overdraft fees waived’
• Consider how easy it is to access your funds, whether that’s through free ATMs, mobile apps, or responsive customer support
• Look for bonus features that might align with your lifestyle, like overdraft protection and cashback on purchases
• Explore interest-earning accounts* to grow your day-to-day spending money

*Even the best online checking accounts will have much lower APY than a savings account. For growing a large savings fund, consider opening a high-yield savings account instead.

Checking Account vs. Savings Account

While both checking and savings accounts help you manage your money, they serve distinct purposes. Checking accounts are designed for frequent transactions, such as paying bills, making purchases, and withdrawing cash. These accounts typically offer unlimited access to your funds without restrictions on the number of withdrawals or transfers.

Savings accounts are intended for storing money over a longer period and often earn interest on the balance, but they may limit the number of withdrawals you can make each month. When deciding between these options, consider whether you need frequent access to your funds and what your savings goals are.

Types of Checking Accounts

Free Checking Accounts
Free checking accounts are standard checking accounts that don’t charge recurring fees, like monthly maintenance fees, and don't require minimum balances. To find the best free online checking account, look for banks offering no monthly fees (account/maintenance fees) and no minimum balance requirements.

No-Fee Checking Accounts

A bank account with no fees is ideal for those who prefer to manage their finances without incurring extra costs. Similar to free accounts, a no-fee accounts. Look for banks with no overdraft fees, no out-of-network ATM charges, check fees, foreign transaction charges.

In most cases, free or no-fee accounts come with limitations that allow for reduced fees, such as not earning interest because the earnings are being used to cover the fees instead.

High-Yield Checking Accounts

High-yield checking accounts offer interest on your balance and can be an attractive choice for those looking to earn more on their deposits compared to traditional checking accounts. These accounts typically come with specific requirements, such as a minimum number of transactions per month or maintaining a certain balance.

High-yield online checking accounts offer potentially higher returns due to lower overhead costs for online banks. The best high-yield checking accounts provide competitive interest rates, sometimes rivaling savings accounts, while still offering the easy access to funds that checking accounts are designed for.

Joint Bank Accounts

Joint bank accounts consolidate income and expenses into a single account and is a practical solution for anyone managing shared finances with a person they trust. The best joint bank accounts often offer tools like budgeting trackers and regular spending analyses.

You can open a joint checking account regardless of marital status, including married couples, unmarried partners, business associates, roommates, elderly clients with caregivers, and parents with adult children. Learn more about online checking account for kids under 18.

Accounts for Individuals with Poor Financial History

Second-chance bank accounts offer a way to rebuild credibility after a history of financial challenges. To find the best second-chance checking accounts, look for accounts advertising no overdraft fees, overdraft protection programs, and with positive customer reviews.

These accounts typically come with slightly higher fees or limited features and are commonly offered by credit unions, online banks, and no-ChexSystem* banks.
*ChexSystems is used by many banks to track negative account histories, such as unpaid overdrafts or closures, making it harder for individuals with a poor banking history to open a new account.

Disclaimers

_{Ratings Disclaimer: The star ratings of our teams are established by our editorial team, utilizing scoring formulas that consider various data points for each financial product and service.}

_{Chime Disclaimers: ¹ Fee-free ATMs Out-of-network ATM withdrawal and over the counter advance fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM. ² SpotMe/Fee-Free Overdraft SpotMe® for Credit Builder is an optional, no interest/no fee overdraft line of credit tied to the Secured Deposit Account. SpotMe on Debit is an optional, no fee service attached to your Chime Checking Account (individually or collectively, “SpotMe”). Eligibility for SpotMe requires $200 or more in qualifying direct deposits to your Chime Checking Account each month. Qualifying members will be allowed to overdraw their Chime Checking Account and/or their Secured Deposit Account up to $20 in total, but may be later eligible for a higher combined limit of up to $200 or more based on member’s Chime account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your SpotMe Limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your SpotMe Limit. Your SpotMe Limit may change at any time, at Chime or its banking partners’ discretion. Although there are no overdraft fees, there may be out-of-network or third party fees associated with ATM transactions or OTC cash withdrawal fees at retailers. SpotMe® won't cover non card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. SpotMe Terms and Conditions. ³ You must notify your financial institution immediately of any unauthorized use. For specific restrictions, limitations and other details, please consult your issuer.}

_{SoFi Disclaimer: Direct Deposit Promotion begins on 12/7/23 and will be available through 12/31/24.}