How to Choose a Checking Account

The best checking account for most people charges no monthly fee, doesn't charge you to use ATMs and is insured by the FDIC or NCUA. It should also have a good app and make it easy to move money to your savings. Pick on fees and features first, because checking accounts pay little or no interest anyway.

1. What a checking account is for

A checking account is your money's home base for everyday life. Your paycheck lands there. You pay bills, use your debit card and send money to friends from it.

Checking is built for money moving in and out, not for growing your money.

Here's how checking fits with your other accounts:

Account	Job	Interest
Checking	Bills, debit card, everyday spending	Little or none
Regular savings	Money you set aside	Often very low
High-yield savings account (HYSA)	Emergency fund and short-term goals	Much higher, and variable

A high-yield savings account (HYSA) is a savings account, usually at an online bank, that pays far more interest than regular savings. Keep your spending money in checking and your saved money in an HYSA. Our HYSA guide explains how they work.

2. Checking account fees and how to avoid them

Fees are the biggest cost of checking, and you can avoid most of them. Here are the main ones, with average amounts from Bankrate's 2025 survey of banks.

Monthly maintenance fees

A monthly maintenance fee is a charge just for having the account. Nearly half of basic checking accounts charge none. Among those that do, the average was about $5.47 a month in 2025.

Many banks waive the fee if you meet a condition. Common ones are a minimum balance, like $1,500, or a set amount of direct deposit each month. If you can't meet the condition every month, look for an account with no fee at all.

Overdraft and NSF fees

An overdraft happens when you spend more than you have and the bank pays it anyway. The bank then charges an overdraft fee. The average was about $26.77 in 2025.

An NSF (non-sufficient funds) fee is charged when the bank declines a payment because you don't have enough money. The average NSF fee was about $16.82.

Here's how fast these add up. Marcus signed up for overdraft coverage on his debit card, and he has $5 in checking. He buys a $6 coffee, a $9 lunch and a $12 cab ride. Each purchase takes him further below zero, and each one can bring a fee. At $26.77 each, three fees could cost him about $80 for $27 of small purchases.

Ways to avoid overdraft fees:

Choose an account with no overdraft fees. Many online banks and some big banks don't charge them.
Stay opted out for debit cards. Under a federal rule called Regulation E, a bank can't charge an overdraft fee on ATM withdrawals or one-time debit card purchases unless you agreed to it, or "opted in." If you stay out, a purchase you can't cover is usually just declined. You can opt out at any time.
Link your savings. Overdraft protection pulls money from a linked savings account to cover a shortfall. Ask whether there's a transfer fee.
Set a low-balance alert. Your app can text you when you drop below, say, $100.

Out-of-network ATM fees

An out-of-network ATM is one your bank doesn't own or partner with. You can get charged twice there. The ATM owner adds a surcharge, and your own bank may add a fee too. The two fees together averaged about $4.86 per withdrawal in 2025.

Say Aisha uses an out-of-network ATM four times a month. That's about $19 a month, or about $233 a year, just to get her own cash.

To avoid this, use your bank's ATMs or its partner network. You can also get cash back with a debit purchase at many stores.

3. ATM fee refunds

Some banks pay back the fees other ATMs charge you. This is called an ATM fee refund or rebate. It's a great feature if you travel or don't live near your bank's ATMs.

Check the fine print first. Some banks refund only a few fees a month, cap the total or refund only U.S. withdrawals. Others require direct deposit. Refunds often post at the end of your statement cycle.

4. Is my money insured?

Make sure your money is protected if the bank fails. The FDIC (Federal Deposit Insurance Corporation) is a federal agency that insures bank deposits. The NCUA (National Credit Union Administration) does the same for credit unions.

Both cover up to $250,000 per person, per institution, per ownership category. An ownership category is how an account is titled, like in your name alone or jointly with someone else. Your checking, savings and CDs in your name at one bank share one $250,000 limit.

Many money apps aren't banks. They partner with a bank that holds your money. Find out which bank that is, then look it up on FDIC BankFind, a free tool from the FDIC.

5. Big banks, online banks and credit unions

Where you bank changes what you pay and what you get.

Type	Pros	Cons
Big brick-and-mortar bank	Branches, in-person help, cash deposits	More fees, harder-to-waive monthly fees
Online bank	Few or no fees, often ATM refunds, good apps	No branches, depositing cash can be hard
Credit union	Lower fees, friendly service, member-owned	You must qualify to join, fewer branches

A credit union is a nonprofit owned by its members. You join based on where you live, work or study, or through a group you belong to. Credit unions often charge lower fees than big banks.

If you get paid in cash or tips, a bank with branches may matter most. If you rarely touch cash, an online bank is often the cheapest choice.

6. Features worth having

Once fees are under control, look at features:

Early direct deposit. Some banks post your paycheck up to two days early.
Mobile check deposit. You snap a photo of a check in the app. Ask how long the money takes to become available.
Zelle or other instant payments. Zelle sends money between U.S. bank accounts in minutes. Use it only with people you know and trust. Once you send a payment, it usually can't be canceled.
Alerts and card controls. Get texts for big purchases and lock your card from the app.
Good support. You should be able to reach a real person when something goes wrong.

7. How to pair checking with a high-yield savings account

A common rule of thumb is to keep about one month of expenses in checking, plus a small cushion. Everything else goes to savings.

Take Dee. Her monthly bills and spending come to $3,200. She keeps about $3,700 in checking, which covers a month plus a $500 cushion. Her $12,000 emergency fund sits in an HYSA. She sets up an automatic transfer of $200 to savings each payday.

Transfers between banks usually take one to three business days, so don't cut checking too close.

8. How to switch banks, step by step

Switching takes a few weeks, but it's simple if you go in order:

Open the new account first. Don't close the old one yet.
Move your direct deposit. Give your employer the new routing and account numbers.
Make a list of automatic payments. Look at two or three months of old statements. Find every bill, subscription and transfer that comes out on its own.
Move each payment to the new account. Update your rent, utilities, phone, insurance and streaming services.
Leave money in the old account for a month or two. This covers any payment you missed.
Watch the old account. When nothing new hits it for a full month, move the last of the money.
Close the old account in writing. Ask for confirmation that it's closed with a $0 balance.

Don't let an old account sit at zero without closing it. Some banks charge fees on inactive accounts, and a fee can push it below zero.

9. ChexSystems and second-chance accounts

ChexSystems is a company that tracks how people have handled bank accounts. Banks check it when you apply. If a past account was closed with unpaid overdrafts or fees, that can show up and get you turned down. Negative records generally stay for up to five years.

You can get a free ChexSystems report every 12 months by asking for it. If something is wrong, dispute it with ChexSystems and the bank that reported it. They must look into it for free. If you owe an old bank money, paying it off can help.

If you're turned down, look for a second-chance checking account. These accounts are for people with past bank account trouble. They may have a monthly fee or fewer features. After a year or so of good use, many banks let you upgrade to a regular account.

10. If you live in New York

New York requires every state-regulated bank, savings bank and credit union to offer a Basic Banking account, or a similar low-fee account the state has approved. It's a low-cost account for anyone who wants one. Under rules from the New York Department of Financial Services (DFS):

The monthly fee can't be more than $3.
The opening deposit can't be more than $25.
The minimum balance can't be more than one cent.
You get at least eight withdrawals a month at no extra charge. If you're 65 or older, you get at least 12. Checks, ATM withdrawals and debit purchases all count as withdrawals.
There's no limit on deposits.

Banks with a federal charter, like many big national banks, don't have to follow these rules, so ask first.

If you've been turned down elsewhere or can't afford fees, ask for this account by name.

Common mistakes with checking accounts

Paying a monthly fee you could avoid. Switch if you can't meet the waiver rules.
Opting in to debit card overdraft coverage. A declined card costs nothing. An overdraft fee costs about $27.
Keeping all your savings in checking. It earns little and is easier to spend.
Using any ATM you see. Out-of-network fees add up fast.
Closing the old account too soon. A missed autopay can bounce.

Frequently asked questions

How many checking accounts should I have?

One is enough for most people. Couples often keep one joint account for shared bills plus their own accounts.

Does opening a checking account hurt my credit score?

Usually not. Most banks check ChexSystems, not your credit report. Some do a credit check, so ask before you apply.

Is an online bank safe?

Yes, if it's FDIC-insured. Your money is protected the same way it is at a bank with branches.

What do I need to open an account?

You'll usually need a photo ID, your Social Security number or taxpayer ID number, your address and a first deposit.

The bottom line

Choose a checking account that's insured, has no monthly fee and won't charge you for overdrafts or ATMs. Keep about a month of spending there, and send the rest to a high-yield savings account. If you've been turned down before, a second-chance account, or in New York a Basic Banking account, can get you back on track.

Sources and further learning

Convivial Wealth education guide · General education for U.S. readers, not personalized financial advice. Figures are for 2026 and are reviewed each year.

Read our full educational disclaimer.