The Capital One 360 Checking account is one of the best free checking accounts because there are no minimum balances to worry about; they don’t charge fees for any balance, even $0.
The account includes mobile deposit, the ability to lock/unlock your debit card from the app, and real-time alerts about your account.
The Ally Spending Account is an FDIC-insured checking account with no monthly fees or minimum balance requirements. You can access your funds at 43,000+ fee-free ATMs, and Ally reimburses up to $10 per month in non-network ATM fees.
A unique feature Ally Spending offers is spending buckets. Much like savings buckets, they are spots to save money for your monthly spending. You can set an amount for each category and Ally will keep track of your spending in each category so you know how much you have left to spend.
Quontic High Interest Checking makes earning category-leading interest on eligible checking account balances easy. It also has a low minimum opening deposit: just $100. That makes it easy to get off the ground and start earning right away.
To earn 1.10% APY on balances up to $150,000 and 1.10% APY on balances between $150,000.01 and $1,000,000, simply open your account with at least $100 to start.
Then, meet the easy transaction requirement: at least 10 qualifying debit card point-of-sale transactions of $10 or more per statement cycle.
In statement cycles where you don’t meet the transaction requirement, you’ll earn a token APY only.
Common Checking Account Fees
Even free checking accounts can have fees if you aren’t careful. Here are the most common fees to consider when opening a checking account:
- Maintenance fee: Most banks offer a way to waive a monthly maintenance fee, but you could pay a fee if you don’t meet the minimum balance or monthly transaction requirements.
- Overdraft fee: Most banks have done away with overdraft fees, but always read the fine print before assuming you can go over without any consequences.
- ATM fees: Most banks on our list have a network of fee-free ATMs. However, if you go outside that network, you may pay a fee either to your bank, the third-party bank, or both.
- Statement fees: Many banks charge a fee for a paper statement. It’s easiest and cheapest to sign up for e-statements and print them yourself.
Pros and Cons Free Checking Accounts
Consider these pros and cons before assuming a free checking account is the right choice.
Pros
- Most free checking accounts don’t have a minimum balance requirement
- Many free checking accounts include other perks like budgeting tools or high APYs on linked savings accounts
- Many banks have large ATM networks to help you avoid ATM fees
Cons
- You may have to jump through hoops to avoid the fee, such as making a certain number of transactions or having a certain amount of direct deposits
- You may miss out on high APYs because the bank doesn’t charge any fees
Methodology
We use several important factors to choose the best free checking accounts on the market. Each relates in some way to the overall cost of the account — lower is better — or to its features or overall usability.
Minimum Deposit and Balance Requirements
It’s less and less common for free checking accounts to require significant opening deposits or ongoing balances.
Minimums are more common in accounts that charge maintenance fees because it’s easier to tie a fee waiver to a particular balance threshold. “Maintain a minimum daily balance of at least $1,500 to waive the $12 monthly maintenance fee” — you get the gist.
Still, you’ll find a few behind-the-times accounts that still require hefty minimum balances. So, all else being equal, we prefer free checking accounts with low or no minimums.
Account Yield
Even as high-minimum checking accounts become less common, rewards checking accounts grow more plentiful. That’s great news for folks seeking a return on their balances, however modest.
We always prioritize high-yield checking accounts over checking accounts with no yields. The best in the business boast yields north of 1%.
Debit Card Rewards
Purchase rewards programs aren’t as common in the free checking space as in the credit card world, where cash-back credit cards and travel credit cards seem to grow on trees.
Fortunately, rewards debit cards aren’t absent from the scene. We put a lot of effort into finding free checking accounts that pay users back for everyday purchases — sometimes as much as 5%, 10%, or more on select purchases.
Budgeting Capabilities
Budgeting with spreadsheets is so 2000s. If you’re comfortable using a mobile banking app, you have an astounding array of choices for budgeting help too.
That’s because some of the best mobile budgeting apps double as banking apps that automatically allocate your income to emergency savings, longer-term goals, and day-to-day expenses. We’re big fans of these two-for-one deals.
Mobile Features
At this point, any checking account that’s not mobile-friendly is behind the times. But the best accounts go the extra mile and make it easy — even preferable — to bank on the go. All else being equal, we prefer these accounts and the financial institutions behind them.
Other Products and Services
When is an online bank more than a bank? When it’s also your brokerage account, home equity lender, education financier, and so on.
We don’t automatically rule out banks that stick to plain-vanilla deposit accounts. We do prefer comprehensive options, though — institutions that make it easy to spend, save, invest, and plan from the same app.
Other Account Fees
Make no mistake, “free checking” doesn’t mean “100% without fees.” Most of the accounts on this list charge fees for certain types of transactions or activities, such as ATM withdrawals and wire transfers. Fortunately, it’s usually possible to avoid these fees under normal circumstances.
Then again, because “normal” isn’t always a given, the size and type of these fees matter. We look for banks and accounts that keep them to a minimum or waive them entirely.
FAQs
Still have questions about free checking accounts? Never fear. We have answers.
Do Free Checking Accounts Have Any Fees?
Not all free checking accounts are totally, 100% free. Depending on which bank you choose, you could encounter some or all of the following free checking account fees:
- ATM withdrawal fees (in-network and/or out-of-network)
- Wire transfer fees
- Overdraft fees
- Insufficient funds fees and stop payment fees
- Paper check fees
- Less common fees like account research charges
At many banks, you must pay a monthly maintenance fee to keep your checking account open. Monthly maintenance fees at traditional brick-and-mortar banks can range from a few dollars to $20 or more, depending on the bank and the account’s perks.
To avoid these fees, you may need to maintain a high minimum daily balance, make regular deposits of a certain size or frequency, or execute a minimum number of transactions in a statement period. That’s not always possible if you’re living paycheck to paycheck.
Are Free Checking Accounts Safe?
Yes, as long as they have FDIC insurance up to the statutory maximum of $250,000 per account. FDIC insurance protects your checking account balances against bank failures and certain other events that would otherwise wipe them out.
Be aware that FDIC insurance doesn’t protect investment account balances or value stored in alternative assets like cryptocurrencies. If you invest in stocks or crypto with the same app you use for day-to-day money management, those investment balances are subject to more risk.
How Do You Open a Free Checking Account?
These days, even “traditional” banks make it easy to open free checking accounts online. In fact, some of the top free checking accounts are “online-only” accounts backed by brick-and-mortar financial institutions.
Use the links on the list above to find your preferred bank’s application page, or visit the website directly and start the online application process. You’ll need to provide basic personal information and funding account information, but the actual application process shouldn’t take more than 10 or 15 minutes.
How to Choose the Best Free Checking Account
Ready to open a free checking account but unsure how to choose the best? Consider these tips:
- Ensure there are no monthly fees or minimum balance requirements
- Consider the APY and if that matters to you (it should if you keep a balance)
- Determine if you want cashback rewards on purchases
- Look for investment benefits if you want all your accounts together
- Check out customer service reviews
- Read the fine print on yields to determine if it’s an introductory offer
- Look for bonuses for opening a new account and understand the terms
- Evaluate the mobile app to ensure it’s up-to-date and user-friendly
When choosing from the best free bank accounts, it’s important to take your time and choose wisely. Consider what you need to reach your financial goals and chances are there is an account out there to help.
