BEST FREE CHECKING ACCOUNTS OF JULY 2024
11 Best Free Checking Accounts of 2024
Best for Cash Bonus
SoFi Checking
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Why We Chose It
Who doesn’t like free cash? When you open a SoFi Checking and Savings account, you can receive a cash bonus of up to $300. Read our review of SoFi Bank
Pros
- Earn up to a $300 cash bonus at sign-up
- Earn up to 4.60% APY on savings balances
- No account fees
Cons
- Overdraft coverage is limited to $50
- No out-of-network ATM reimbursement
- The cash bonus is limited to $50 for deposits of $4,999 or less
Best for Cool Tech
Quontic Bank
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Why We Chose It
This online bank offers two checking account types—a higher-interest checking account or a cash rewards account. Both provide easy access to a vast ATM network. The bank also offers a chip-enabled wearable ring you can tap to pay. Read our Quontic Bank Review.
Pros
- Highest APY offered among our free account round-up
- Up to $50 cash back per statement cycle via 1% cash back on up to $5,000 in debit card Point of Sale (POS) purchases
- Widest access to in-network, surcharge-free ATMs at 90,000 ATMs
Cons
- Minimum opening deposit required
- Ten qualifying debit card transactions required to earn the best APY
- No rebates for out-of-network ATMs
Best for Cash Back
Discover
Vault Verified
Why We Chose It
Like others on our list, Discover’s Cashback Debit account is free—but the bank truly charges no additional fees other than one $30 fee for outgoing wires. Discover sweetens the deal with 1% cash back on up to $3,000 in monthly debit card spending. Read our Discover Review
Pros
- 1% cash back for up to $3,000 in debit card purchases monthly or up to $30
- Doesn’t charge any fees
- Unlike many other online-only banks, Discover allows you to add cash via Walmart locations
Cons
- Discover debit cards may not be accepted in some international destinations, but you may still be able to get cash; check Discover’s map for more information.
- No interest is paid on checking accounts.
- No rebates for out-of-network ATM use
Best for ATM Access
Capital One 360® Checking
Vault Verified
Why We Chose It
Capital One’s 360 Checking Account allows you to withdraw cash at 70,000 ATMs nationwide or sit in one of Capital One’s cafes (primarily located in major cities) and chat about your checking. Read our Capital One Review.
Pros
- Accounts earn some interest
- Adult and tween-to-teen checking accounts available
- A broad network of ATMs includes Capital One, MoneyPass and Allpoint ATMs
Cons
- You must agree to electronic statements
- No rebates for out-of-network ATM use
- You can only deposit cash in Capital One ATMs, not partner ATMs
Best for Second-Chance Checking
Chime Checking Account
Vault Verified
Why We Chose It
Alongside not charging monthly service fees, the Chime Checking Account is also very forgiving to customers who may not qualify for a bank account elsewhere. Your banking history or credit score won’t be taken into account during your application. Read our Chime review.
Pros
- No minimum balance fees
- Fee-free overdraft up to $200
- Can receive paycheck up to two days early
Cons
- No physical branches to visit
- No physical checkbook
- No out-of-network ATM reimbursement
Best for No Overdraft Fees
Ally Bank
Vault Verified
Why We Chose It
Ally’s free checking offers numerous customer-friendly benefits, including no overdraft fees. Interest is paid in two tiers based on your minimum balance—earn 0.10% if less than $15,000 and 0.25% if you have a $15,000 minimum daily balance or more. Access cash via 43,000 Allpoint ATMs or take advantage of out-of-network ATM fee reimbursement. Read our Ally Bank Review.
Pros
- Overdraft protection option helps prevent small-dollar overdraws and bounced checks.
- Reimburses up to $10 per statement cycle for out-of-network ATM fees
- Ally’s spending buckets can help manage your monthly spend
Cons
- High balance requirement for top APY
- International transaction fees of up to 1%
- No cash deposit options
Best for Accessible Credit Union
Alliant Credit Union
Vault Verified
Why We Chose It
When you join Alliant, the credit union pays the $5 membership fee for you. Alliant offers two checking account options (High Rate Checking and Teen Checking) that pay interest. Read our Alliant Credit Union Review.
Pros
- Easy membership qualification
- Extensive network of 80,000 fee-free ATMs
- Generous out-of-network ATM fee rebates of up to $20 per month
- First box of checks free
Cons
- To earn interest, you must receive eStatements and one electronic deposit monthly.
- Some surprising fees, including $10 for closing your account within 90 days
- Debit card foreign transaction fees charged
Best for Service members
Navy Federal Credit Union
Vault Verified
Why We Chose It
Navy FCU is the nation’s largest credit union, and it offers four different free checking accounts. These accounts are a great fit for eligible military service members or their families looking for online and in-person banking. Read our Navy Federal Credit Union review.
Pros
- Most accounts come with significant ATM fee rebates ranging from $120 to $240 per year
- In-person banking available at 350 branch locations worldwide
- Accounts earn interest, although rates are low
Cons
- More limited ATM access at 30,000 fee-free credit union ATMs in the U.S. and Canada
- To join, you must have ties to the armed forces, Department of Defense, or National Guard—or share a household with someone who does
- Direct deposits or debit card transactions possibly required
Best for Rewards
Upgrade Rewards Checking
Vault Verified
Why We Chose It
Upgrade Rewards Checking makes it possible to earn up to 2% cash back on everyday expenses. Plus you can earn up to 5.21% APY if you’re willing to open a Performance Savings account.
Pros
- Up to 2% cash back on purchases
- Offers chance to earn ATM fee reimbursements
- Can receive paycheck up to two days early
Cons
- ATM fee reimbursement is only available if you make monthly direct deposits of $1,000
- No physical branch access
- 2% cash back is limited to $500 in rewards per calendar year
Best Traditional Bank
First Citizens Bank Free Checking Account
Vault Verified
Why We Chose It
If you’re not ready to bank with an online-only bank, a traditional brick-and-mortar bank First Citizens Bank will be a better fit. With hundreds of branch locations spread across 23 states, this bank is very accessible to many consumers.
Pros
- 24/7 mobile deposits
- No minimum balance requirements
- Overdraft protection
Cons
- Must enroll in paperless statements to avoid monthly fee
- Branch locations are not available in all states
- Must make a minimum opening deposit of $50
Best for Teens
Capital One MONEY Teen Checking Account
Vault Verified
Why We Chose It
If you’re looking for a free student checking account, the Capital One MONEY Teen Checking Account may be the right fit for you. With no account service fees or minimum balance requirements, this is a safe place for teens to learn how to manage their money. Read our review of Capital One Bank
Pros
- Debit cards for minors are available
- Parents have their own login
- No fees or minimums
Cons
- No out-of-network ATM reimbursement
- No physical checkbook
- Low APY
What is a Free Checking Account?
Many checking accounts come with recurring monthly maintenance fees or minimum balance requirements. Understandably, many consumers want to avoid as many banking fees as possible. Free checking accounts let you skip the fees and make these checking accounts more accessible for everyone.
Watch out for penalty fees for certain account activity like using an out-of-network ATM or making a foreign transaction. However, your everyday banking needs are free, and many of these fees are easy to avoid. You may even be able to make some money off your free checking account, as some of these accounts pay a small amount of interest on deposits.
Average Bank Interest Rates
While it’s rare to find a checking account that earns interest, it’s still a nice feature to consider. The average checking account interest rate is 0.08% according to the FDIC. Here’s a look at how that compares to other bank accounts. If you shop around, you should be able to beat these averages with the best higher-interest savings accounts.
What is the Best Free Checking Account for Me?
When looking for a new checking account, there are a few factors to consider when comparing your options to ensure you find the best fit for your banking needs. At the end of the day, you want to find a checking account that balances affordability with the features and perks you are likely to get the most use out of.
Online vs. In-Person Banking
Many free checking accounts are offered by online banks. That’s because online banks don’t have the overhead of running brick-and-mortar bank locations and can pass these savings off to customers in the form of lower fees. That being said, you can still find free checking accounts with banks that offer in-person banking services.
Think about which banking format works best for you. If you prefer managing all banking online, online-only banks usually have more robust digital tools you can turn to. If you prefer to bank in person, though, you may want to stick with a more traditional bank. Many offer online banking services, but they may not be as extensive as those offered by online banks.
Fees and Minimum Balance Requirements
While many banks that offer free checking accounts don’t have minimum balance requirements, some will charge a fee if you don’t maintain a certain balance at any given time. Confirm each bank’s minimum balance requirements to ensure it’s a balance you can comfortably meet and see which bank charges the lowest fees if you do fail to meet that requirement.
Speaking of fees—you also need to take note of what types of fees each bank charges and what amount they charge for them. Even if a checking account doesn’t come with monthly service fees, making it free to use, you can still run into a variety of different fees that can really add up if you aren’t careful.
ATM Access
One fee to watch out for is out-of-network ATM fees. If you frequently turn to ATMs to get cash, you should get an idea of how accessible a bank’s in-network ATMs are and how much you pay if you end up using one that isn’t in the network. Many online banks waive or reimburse ATM fees at any ATM, so you can also look for banks that offer that perk. This is especially important if you choose an online bank since you won’t be able to visit a physical bank branch to make cash withdrawals or deposits.
Overdraft Protection
Even with careful planning, overdrafts can happen. Most banks—even those that offer free checking accounts—charge overdraft fees. To help avoid paying these fees when you accidentally overdraft, it can be helpful to set up overdraft protection. Typically, overdraft protection programs link your checking account to your savings account. That way, if you overdraft, the bank can pull money from your savings account to complete the transaction and you can avoid paying a pesky overdraft fee. When you sit down to compare your bank options, see which banks offer this feature.
Pros and Cons of Free Checking Accounts
At first glance, free checking accounts seem like the best banking option, but that may not always be the case. These are some advantages and disadvantages associated with free checking accounts that are worth keeping in mind.
Pros
- No monthly maintenance fees
- Can be more accessible to consumers with small account balances
- No transaction limits
Cons
- Fees can still apply
- Small—if any—interest earnings on deposits
- Mostly found at online banks or credit unions
Free Checking Accounts vs. Regular Checking Accounts
A free checking account doesn’t charge a monthly maintenance fee, and many don’t have minimum opening amounts or balance requirements. A regular checking account provides the same features as a free checking account, like a debit card, ATM access and check writing privileges.
The difference is the regular checking accounts usually require a minimum opening balance and an average monthly balance. If you can’t meet the monthly balance requirements, you’ll get hit with a fee.
And a regular checking account often doesn’t pay any interest on your balance. Whereas some free checking accounts pay more in interest or offer additional perks you wouldn’t normally find.
Newsweek writer Jamie Johnson contributed to this post.
Frequently Asked Questions
Can You Have a Checking Account With No Money?
That depends on the bank or credit union’s minimum balance requirements. Many free checking accounts allow you to open a bank account without having to meet a minimum balance requirement. You can typically find these types of checking accounts at credit unions or online banks.
What Bank Has Totally Free Checking?
Some banks, like SoFi, go out of their way and charge as few fees as possible. But no bank offers a totally free checking account product. Even if a bank or credit union doesn’t charge an account maintenance fee to keep the account open, they likely still charge fees for activities like foreign transactions or overdrafts.
Can a Bank Turn You Down for a Checking Account?
Yes, banks can turn down potential customers for checking accounts. This usually happens if the applicant has a history of overdrawn accounts, unpaid banking fees, closed accounts or other negative marks on their banking history.
Newsweek writer Lora Shinn contributed to this post.
The post Best Free Checking Accounts of July 2024 first appeared on Newsweek Vault.
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