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Many banks and credit unions offer free checking accounts, but finding the best one for your needs requires a little research. Comparing features like ATM access, online and mobile banking, customer service availability and overdraft protection can help you identify accounts that offer the most benefit based on how you bank.
Here's what you need to know about finding checking accounts with no fees, what banks and credit unions really mean when they say an account is "free" and ways to avoid common fees.
What Is a Free Checking Account?
Free checking accounts—sometimes called no-fee checking accounts—can't have monthly maintenance fees, regardless of your account balance. Plus, there can be no fees for exceeding a certain number of transactions or depositing, withdrawing or transferring money.
That said, you may still need to pay fees for ATMs, overdrafts, bounced checks, balance inquiries, stop payments, dormant accounts or check-printing even if an account qualifies for no-fee status.
How to Find a No-Fee Checking Account
A quick internet search can help you find a list of banks and credit unions offering free checking accounts. Follow the steps below to narrow down your options and find a free checking account that's right for you.
Do Your Research
Start with your current financial institution, but don't stop there. Compare multiple options instead of assuming your current bank is the best choice. To identify candidates that may be a good fit, think about how you actually bank, including whether you visit branches, bank mostly from your phone or computer, frequently deposit or withdraw cash or send wire transfers.
Traditional banks with a robust branch network may be important if you regularly need branch services. But online banks may be an attractive option if you handle most of your banking by phone or computer. Plus, they may have fewer fees than brick-and-mortar institutions.
Credit unions are also worth exploring, especially if you're looking for a community-based option. They may have lower fees than traditional banks, but you generally have to meet eligibility requirements to join a credit union.
Find Digital Checking Accounts
Review Fee Structures
After confirming the account doesn't charge a monthly maintenance or service fee, review the complete fee schedule for charges you may incur, such as out-of-network ATM, overdraft-related, foreign transaction, wire transfer and stop-payment fees. Determine whether they would apply based on how you plan to use the account.
For example, you can avoid overdraft fees by keeping a financial cushion in your checking account and closely tracking every transaction to avoid overdrawing your account. However, wire transfer fees could add up if you use wire transfers to send or receive money to and from friends and family.
Compare Features and Benefits
Fees aren't the only thing to review when choosing an account. Consider other features to determine whether the account you're researching aligns with the way you bank, such as:
- ATM network and fees: Network size can affect your ability to deposit or access cash on the go, and out-of-network ATM fees can add up quickly. Some institutions offer out-of-network fee reimbursements to keep costs down.
- Branch availability: Check branch locations and operating hours if in-person banking is a priority for you.
- Online and mobile banking: Look for features such as mobile check deposit, online bill pay and online money transfers if you want the flexibility of banking online.
- Account alerts: Purchase, low-balance, deposit and other account alerts can help you identify unauthorized activity and avoid overdrafts.
- Customer service availability: Banks and credit unions usually provide multiple ways to get in touch, including phone, email and online chat. However, availability may vary by institution and contact method.
- Direct deposit: Some financial institutions give customers early access to funds received via direct deposit because they don't have to wait for a check to clear. You might also qualify for a bonus, higher interest rates on savings accounts or access to premium services when you open a new account and set up direct deposit.
- Overdraft: Overdraft protection covers transactions even when you don't have enough money in your account. Some banks charge for this service, while others don't.
- Interest: Checking accounts don't usually earn interest, but some institutions offer interest-bearing accounts. These accounts often come with higher fees, including monthly maintenance charges. You might need to meet minimum balance requirements, set up direct deposit or have a certain number of debit card transactions each month to qualify.
- Rewards and other perks: Some checking accounts offer rewards, but you usually have to make a certain number of monthly debit card transactions or maintain a minimum balance. You might find accounts with other perks. For example, the Experian Smart Money™ Digital Checking Account & Debit Card can help you build credit without debt by linking to Experian Boost®ø®ø, which gives you credit for eligible bill payments after three months of payments. You'll also pay no monthly fees¶ and have access to more than 55,000 fee-free ATMs worldwide**. See terms at experian.com/legal.
Verify Their Insurance
Before opening an account, make sure the bank or credit union is insured by the Federal Deposit Insurance Corp. (FDIC) or National Credit Union Administration (NCUA), respectively. The FDIC and NCUA both insure checking, savings and money market accounts, as well as certificates of deposit (CDs), up to $250,000 per person, per account type and per financial institution. That means your money is safe, even if the institution has financial difficulty.
Read Reviews
Checking out online reviews of different banks and credit unions and their products can help you gauge customer satisfaction. Just remember, you may have a different experience, so don't put too much weight into a few negative reviews.
More Ways to Avoid Checking Account Fees
Opening a no-fee checking account isn't the only way to prevent fees. How you manage your account can affect the charges you incur. Here are some tips for avoiding common fees.
- Build a financial cushion or set up direct deposit. Banks and credit unions often waive monthly maintenance fees when you meet a minimum balance requirement or direct deposit your paychecks. If you can get the fee waived, you may not need a no-fee account.
- Don't overdraw your account. You can avoid overdraft and nonsufficient funds fees by keeping enough money in your account to cover your expenses. Tracking each deposit and withdrawal will help you avoid making a payment when your balance is low. If overdrafts are a concern for you, look for an account that doesn't charge overdraft fees, or one that lets you link a backup account to reduce the fee the bank charges.
- Use in-network ATMs. Some financial institutions charge a fee when you get cash from an out-of-network machine. You can avoid these fees by using in-network ATMs or choosing a provider that reimburses you for out-of-network fees.
- Use a debit card. Some banks and credit unions charge customers and members for paper checks. You can avoid check fees by paying with your debit or credit card or setting up automated clearing house (ACH) payments.
- Use your account consistently. Banks and credit unions may charge an inactivity fee if you don't use your account for a certain number of months. Make sure you use your account for at least a small transaction on a regular basis to avoid this fee.
- Sign up for e-statements. You may have to pay a fee to receive paper statements. To avoid it, sign up to receive your statements electronically.
- Think twice before scheduling a payment. Many banks and credit unions charge a stop-payment fee for canceling a check you've already written, a scheduled ACH transfer or an online bill payment.
Is a No-Fee Checking Account Right for You?
No-fee accounts are worth a look if you don't want to rack up monthly service charges and don't have direct deposit or can't maintain a balance that's high enough to get the fee waived. But free checking accounts aren't the only way to avoid fees, and an account's fee structure isn't the only factor to consider. Evaluate your options holistically and choose an account that aligns with your saving and spending habits—whether it qualifies as fee-free or not.