There is no single "best" bank — the right choice depends on how you bank

The best checking account for you is the one that matches how you actually use money: where you withdraw cash, how often you move money between accounts, whether you need to talk to a person, and what fees matter most to you. A bank that works perfectly for someone who uses ATMs three times a week and never calls customer service might be terrible for someone who needs to deposit checks by mail and speak to a human regularly.

Start by listing what you actually do with your money each month, then look for a bank that makes those things free or cheap. This takes 15 minutes and saves you money for years.

Key Takeaways

  • The best bank for you depends on your specific habits — where you withdraw cash, how you deposit checks, whether you need phone support, and what fees you can afford.
  • Large national banks offer many ATMs and branches but often charge monthly fees; online-only banks usually have no monthly fees but limited in-person services.
  • Credit unions often have lower fees and better customer service than banks, but you must meet membership requirements and they have fewer ATMs.
  • Before opening an account, check the monthly maintenance fee, overdraft fees, minimum balance requirements, and whether ATM fees are waived.
  • You can open a checking account at multiple banks to use each one for what it does best — for example, a local bank for deposits and an online bank for savings on fees.

What to compare before you choose

Write down five things you do with your checking account each month. For example: "I get paid by direct deposit," "I withdraw cash at the grocery store twice a week," "I write checks to my landlord," "I need to talk to someone about my account." Then check whether each bank charges you for those things.

The fees that matter most are the monthly maintenance fee (charged just for having the account open), overdraft fees (charged when you spend more than you have), and ATM fees (charged when you withdraw cash at another bank's machine). A bank that charges $12 a month in maintenance fees costs you $144 a year, even if you never overdraw. A bank with no monthly fee but a $3 ATM fee costs you $78 a year if you withdraw cash twice a week — but costs you nothing if you never use ATMs outside the bank's network.

Also check the minimum balance requirement — some banks waive the monthly fee if you keep a certain amount in the account, usually $500 to $2,500. If you cannot keep that much, a bank with no minimum is worth more to you than one with a lower fee but a high minimum.

National banks: many locations, higher fees

Large national banks like Chase, Bank of America, Wells Fargo, and Citibank have thousands of branches and ATMs across the country. If you travel often, move between states, or like to handle things in person, this matters. You can walk into a branch almost anywhere and deposit a check or withdraw cash without paying a fee.

The trade-off is cost. Most national banks charge $12 to $15 per month in maintenance fees, though they waive the fee if you keep $1,500 to $2,500 in the account or set up direct deposit. They also charge $35 or more per overdraft. If you maintain the minimum balance or have direct deposit, the monthly fee disappears — but if you do not, you pay roughly $150 a year just to have the account open.

National banks make sense if you need branches and ATMs in multiple cities, or if you already have other accounts with them and want everything in one place. They do not make sense if you rarely visit a branch and can keep a minimum balance.

Online banks: no monthly fees, no physical location

Online-only banks like Ally, Charles Schwab, Discover, and Chime have no physical branches. You deposit checks by taking a photo with your phone, you withdraw cash at ATMs (usually without fees), and you handle everything through an app or website. Most charge no monthly maintenance fee and no minimum balance.

The advantage is cost: you pay nothing to have the account open, and many reimburse ATM fees charged by other banks. Some online banks also offer higher interest rates on savings accounts, though this changes frequently. The disadvantage is that you cannot walk into a location to deposit cash or speak to someone face-to-face, though most have phone support.

Online banks work well if you are comfortable with technology, rarely need to deposit cash, and want to avoid monthly fees. They do not work well if you need to deposit cash frequently or prefer to handle banking in person.

Credit unions: lower fees, membership requirement

A credit union is a member-owned bank that usually charges lower fees than national banks and offers better customer service. Credit unions often have no monthly maintenance fee, lower overdraft fees, and more flexible lending. Many also reimburse ATM fees.

The catch is that you must meet membership requirements to join. Some credit unions are open to anyone who lives or works in a certain area. Others require you to work for a specific employer, belong to a specific organization, or be related to an existing member. You can search for credit unions you are may be able to access to join at CO-OP.org or Alliant Credit Union's locator.

Credit unions also have fewer ATMs and branches than national banks — usually only in one region. If you need ATMs everywhere, a credit union alone may not work, but many credit unions participate in shared branching networks that let you use other credit unions' ATMs and branches for free.

Using multiple banks at the same time

You do not have to choose one bank and stay there. Many people use two or three banks for different purposes. For example, you might use a local credit union for deposits and withdrawals, an online bank for savings on fees, and a national bank for travel. As long as you keep track of which account is which, this works fine.

The only limit is practical: banks report accounts to credit bureaus, so opening many accounts in a short time can temporarily lower your credit score. But opening two or three accounts over a few months is normal and does not cause problems.

Questions to ask before you open an account

Call or visit the bank's website and ask these specific questions: "What is the monthly maintenance fee, and how do I waive it?" "What is the overdraft fee?" "Can I deposit checks by phone or mail?" "Are there ATM fees, and if so, which ATMs are free?" "What is the minimum balance requirement?" "How do I reach customer service — phone, email, chat?" Write down the answers and compare them side by side.

Many banks offer a trial period or a way to switch accounts without penalty. If you are not sure, open an account and use it for a month. If it does not work for you, you can close it and move to another bank. Switching takes about 15 minutes if you use your bank's transfer tool.

Frequently Asked Questions

Is it better to bank with a big national bank or a smaller local bank?

It depends on what you need. National banks offer more ATMs and branches but charge higher fees. Local banks and credit unions usually charge less but have fewer locations. If you move around or travel, national banks are more convenient. If you stay in one place and want lower fees, local banks and credit unions are usually better.

Can I switch banks if I do not like the one I chose?

Yes. You can close an account and open a new one at any time. To move your direct deposit and automatic payments, ask your new bank for help — most have a tool that does this for you in a few minutes. Closing an account does not hurt your credit.

What if I cannot keep the minimum balance?

Choose a bank with no minimum balance requirement. Online banks and many credit unions have no minimum. If you want to use a bank that does have a minimum, ask if they waive it for direct deposit or if they offer a different account type with no minimum.

Do I need to worry about my money being safe at an online bank?

Online banks are insured the same way as national banks. The Federal Deposit Insurance Corporation (FDIC) protects up to $250,000 in each account at any bank that displays the FDIC logo. Check the bank's website to confirm it is FDIC-insured before you open an account.

What should I do if I overdraw my account?

Contact your bank when ready and ask if they can reverse the overdraft fee. Many banks will reverse one fee per year if you ask. If you overdraw regularly, switch to a bank with overdraft protection (which links your checking account to a savings account and transfers money automatically) or a bank with no overdraft fees.