Finding the Best Free Checking Accounts in 2019
“Checking accounts are a necessary part of most people’s financial lives. However, not all checking accounts are created equal. Having an option or two of checking accounts with no fees is beneficial in keeping more of your hard-earned money each month.”
Most consumers are aware of the benefits of having a checking account. They allow for easy deposit and withdrawal transactions, debit card purchases, and simple transfers to and from savings when needed. However, not all checking accounts are the same in terms of what they offer or their cost to the account holder. A free checking account is often a smart option when you want to keep more of your hard-earned money each month.
Saving on checking account fees can make a significant difference in cash flow for account holders. According to recent surveys, the average checking account fee charged by a financial institution is just over $5.50, but this cost can go up for a variety of reasons. Not meeting minimum account balance thresholds, over-drafting, or completing too many transfers each month can add up to far more than a $5 expense. That’s why it pays to consider your options for a free checking account with one of the financial institutions detailed below.
Best Free Checking Accounts
Chime
Established in 2013, Chime Bank is a digital financial institution that delivers on its promise of simplified banking for everyone. Individuals have the opportunity to establish a free checking account with Chime, either through the bank’s website or its mobile application. There are no fees on a Chime Bank checking account and its technology-driven banking experience allows account holders to have a truly transparent, streamlined way to manage their finances from month to month.
Chime operates similarly to other large banks and credit unions in that account holders with a checking account have a debit card at no additional cost, along with the ability to deposit and withdraw funds as often or as little as they want or need. Chime offers access to more than 38,000 ATMs through the MoneyPass network, again without fees. Establishing direct deposit, automatic transfers, and links to other bank accounts are all easy to navigate through the app or Chime’s online banking platform.
Minimum Deposit & Balance Requirements
There is no minimum deposit required to establish a Chime free checking account. Also, account holders do not have to meet average daily or monthly account balance minimums to maintain their Chime checking account.
Current Promotions
Chime Bank does not currently offer promotions or bonuses to new account holders.
Rewards & Features
One of the unique aspects of a Chime free checking account is the added features offered to account holders. Chime allows checking account holders to receive their direct deposit paycheck up to two days earlier than it would normally be available. This feature comes at no additional cost. Also, Chime checking account holders who also establish a savings account can take advantage of automatic savings through the platform. With this feature, Chime automatically rounds up to the nearest dollar for all debit card transactions and sets the amount aside in the Chime savings account.
The bank also delivers a fully digital experience, providing text and e-mail alerts when purchases are made that update the account holder of the current balance. Direct deposit alerts and other transactions alerts are also part of the platform, all at no cost.
Overdrafts & Possible Fees
Chime Bank does not charge overdraft fees for its free checking account. The only fee charged is $2.50 for out-of-network ATM transactions.
The Verdict
A Chime free checking account is a great fit for anyone who prefers a fully digital banking experience without fees. The bank makes it simple to set up, maintain, and use a free checking account without any hidden fees, and it offers a handful of benefits to account holders at no additional cost.
Ally
Officially founded in 2009, Ally Bank is a well-known digital financial institution serving millions of banking customers. Through its online platform, customers have the option to establish a free online checking account with Ally in a matter of minutes. The bank does not have any physical branch locations but it is known for its high marks in customer service and always-on help through phone and chat.
The free checking account from Ally differs from other no-frills checking accounts because account holders do earn interest on account balances. The financial institution also offers access to a large network of ATMs with no fees and options for no minimum account balances or initial deposits. The bank also provides a free mobile banking app and online platform that make it easy to deposit, transfer, and monitor funds any time, day or night.
Minimum Deposit & Balance Requirements
With the basic online checking account from Ally, there is no minimum deposit requirement or an average daily or monthly balance that must be met in order to maintain free status. However, to earn higher interest on the checking account, account holders must have at least a $15,000 minimum daily account balance.
Current Promotions
Ally Bank is not offering any current promotions or bonuses to new account holders.
Rewards & Features
Ally’s free online checking account comes with a slew of features, the most prominent being the interest earned on balances. Account holders with less than a $15,000 minimum daily balance earn 0.10%, while those with more than $15,000 earn 0.60%. Ally checking account holders also have access to deposit checks remotely for no fee, 24/7 customer service access, free ATMs through the Allpoint network, and a $10 per statement reimbursement for out-of-network ATMs. Account holders can also send or receive money through Zelle.
Overdrafts & Possible Fees
While Ally checking accounts have no maintenance fees, there are other charges account holders may encounter. Currency conversion, overdraft, stop payment, and same-day bill pay all come with a fee. Outside wires also incur a fee per transaction.
The Verdict
Ally online checking accounts are a strong option for those who want a simple checking account with no frills and no minimum initial or daily average balance requirements. However, there are additional charges that make this checking account less ideal for certain account holders, including those who use bill pay services, request outgoing wires, or who have an issue with
Capital One
Capital One is a global financial institution offering a variety of products and services to its customers. In recent years, the bank has entered the world of digital banking to stay competitive, offering
One of the ways Capital One stands apart as a free checking account option is the access account holders have to physical branch locations. While the 360 checking account is marketed as an online account, visiting a branch in person can be helpful if account holders need help with their account. The online checking account also earns interest, albeit on a tiered balance system.
Minimum Deposit & Balance Requirements
Capital One 360 checking account holders do not have initial deposit requirements, nor are there average daily or monthly account balance minimums. However, higher interest is available for account balances that exceed certain thresholds.
Current Promotions
Capital One is not currently offering any promotions or bonuses to new account holders.
Rewards and Features
Account holders with a Capital One 360 account earn interest on their money. Those with $0 to $49,999.99 earn 0.20%; accounts with $50,000 to $99,999.99 earn 0.75%; and accounts with $100,000 and up earn 1.00%. This is far higher than most other online free checking account options. In addition, Capital One offers mobile deposit at no cost, online bill pay, overdraft protection options, and online and mobile app banking for free.
Overdrafts & Possible Fees
While there is no monthly maintenance fee for a Capital One 360 checking account, there may be other charges. Account holders may pay an overdraft fee, a stop payment fee, an overnight check delivery fee, and an overnight delivery fee for debit cards.
The Verdict
Capital One 360 checking accounts are a good option for those who want access to a robust online banking platform with no fees, but who may also need or want access to a physical branch location from time to time. The Capital One free checking option is also good for account holders who have a high balance in their account over time, as the financial institution pays higher interest than most other checking account options available.
Simple
As a division of BBVA Compass, Simple is an online financial services company that provides a free checking account to its customers. Simple differs from other free checking account options because it is not just a checking account; instead, Simple combines the convenience of digital banking with a budgeting platform to help customers understand their financial lives more holistically.
The Simple free checking account offers several of the same features as other options, including a fully digital experience, a Visa debit card, and access to a large network of fee-free ATMs. Account holders with Simple can sign up for direct deposit, link their checking account to other financial institutions, and save with a connected Simple savings account, all at no cost.
Minimum Deposit & Balance Requirements
There are no minimum deposit requirements or average daily or monthly balance minimums for Simple free checking accounts.
Current Promotions
Simple does not currently offer a promotion or bonus for new account holders.
Rewards & Features
Unlike similar online free checking accounts, Simple does not pay much interest on its checking account options. All account holders earn 0.01% on balances in the account. However, account holders also have access to a free budgeting and saving mobile application that can help them manage their spending and goal progression over time. The bank also offers customer service via phone and e-mail 24/7.
Overdrafts & Possible Fees
What makes Simple stand apart from other free checking accounts is the fact that there are no additional fees for other services. Overdraft fees do not exist with Simple since transactions that are more than the available balance
The Verdict
Simple free checking accounts are a strong option for those who want some help managing their financial life as it pertains to reaching savings goals and monitoring spending. The account does not pay much interest, so it may not be the best choice for individuals who want their money to earn while it sits idle in checking.
USAA
As one of the largest financial institutions serving active and retired military personnel, USAA is a well-known bank that also offers a free checking account option. Individuals must first join USAA to have access to the checking account, but once a member, the checking account comes with no monthly maintenance fee. USAA offers a mostly digital banking experience for its account holders, with access to free ATMs throughout the United States.
USAA free checking comes with a handful of features and benefits not available through other online or free checking account options. The account does earn interest, but only when average balance minimums are met, and there are some current promotions available for military personnel opening a new account.
Minimum Deposit & Balance Requirements
There is a minimum initial deposit of $25 due when opening a free checking account with USAA. There is no minimum balance requirement once the account is established.
Current Promotions
USAA allows new recruits to establish a free checking account with the minimum initial deposit requirement. Also, new recruits have access to their direct deposit pay one day earlier than average.
Rewards & Features
USAA provides a variety of features with its free online checking account, including mobile check deposit, free transfers and withdrawals, and overdraft protection options. Additionally, a USAA free checking account earns interest so long as the account balance remains, on average, over $1,000. The current interest rate is 0.01%.
Overdrafts & Possible Fees
So long as an account holder opts in, there are no overdraft fees associated with the checking account. There may be other fees, including a returned deposit fee, a stop payment fee, and an ATM withdrawal fee if more than ten withdrawals are made within a single month.
The Verdict
USAA is a good option for new recruits to the military, as there a small minimum deposit and no charges for account maintenance. However, the USAA free checking account may not be a sound choice for those who want to earn interest on their checking account balance, those who use ATMs frequently, or those who want a truly fee-free checking account.
TIAA Bank (Previously EverBank)
Previously known as EverBank, TIAA Bank offers a free checking account through its online platform. With a free checking account from TIAA Bank, account holders have access to a simplified checking account for direct deposit, transfers, withdrawals, and bill pay services. The free checking account from TIAA Bank does earn interest, although the amount depends on how much remains in the account.
TIAA Bank free checking account holders have access to a large network of fee-free ATMs, along with many features and benefits without fees.
Minimum Deposit & Balance Requirements
Unlike most other free checking accounts, TIAA Bank requires an initial deposit of $5,000. However, a minimum account balance is not required to maintain the fee-free status. Interest is earned on the account only when certain account minimums are met.
Current Promotions
There are no current promotions or bonuses offered from TIAA Bank for new account holders.
Rewards & Features
Free checking accounts from TIAA Bank come with a handful of features, including mobile and online banking access, bill pay services, and interest-bearing options, all at no cost. Interest on a TIAA checking account with a balance between $0 and $9,999 is 0.25%; between $10,000 and $24,000 earns 0.46%; accounts between $25,000 and $99,999 earn 0.61%; and accounts over $100,000 earn 0.71%.
Overdrafts & Possible Fees
While there is no monthly account maintenance fee, TIAA Bank does charge fees for certain account services. Requesting a cashier’s check or a stop payment both incur an expense. However, a replacement debit card and overdraft protection are offered at no cost.
The Verdict
TIAA Bank’s free checking account is a good option for account holders who have a higher account balance that normally sits idle in checking. However, the high initial deposit may make this a less attractive choice for most free checking account holders.
GoBank
Another option for a free checking account is through GoBank, an online financial services company. With GoBank free checking, account holders can establish and fund an account in just a few minutes either online or via a mobile app. There are no fees for signing up or monthly maintenance so long as certain requirements are met.
The unique thing about GoBank free checking is that account holders have options to visit participating merchants to withdraw or add money to their account. They may also sign up for direct deposit.
Minimum Deposit & Balance Requirements
There is no minimum deposit required for a GoBank online checking account. There is also no average daily or monthly balance requirement so long as a direct deposit of at least $500 is established with the account.
Current Promotions
There are no current promotions or bonuses with a new GoBank free checking account.
Rewards & Features
GoBank offers a large network of fee-free ATMs throughout the United States, along with mobile check deposit and the ability to add cash or withdraw funds at participating retailers. The GoBank free checking account does not earn interest.
Overdrafts & Possible Fees
There is no monthly maintenance fee with GoBank checking accounts so long as a direct deposit is established. If there is no direct deposit going into the account, a service fee of $8.95 per month applies. Adding cash to an account at a participating retailer costs up to $4.95 per transaction and a foreign transaction fee of 3% applies. Out-of-network ATM transactions cost $2.
The Verdict
While GoBank offers some unique features for digital bankers, the fees that could potentially impact an account holder may add up to much higher than other free checking account options. This checking account may be best for those who have a direct deposit of at least $500 or who do not use the checking account for numerous transactions or ATM withdrawals each month.
Common Checking Account Fees
There are several common checking account fees that free checking accounts allow you to avoid with ease, including:
- Maintenance fees – This is a fee simply for having an account, which most free checking accounts do not charge or waive when requirements are met.
- Overdraft fees – When you spend more than what is available in your account, an overdraft fee is charged. Some free checking account options waive this fee or decline transactions if they would incur an overdraft fee to help save you money.
- ATM fees – Transactions through ATMs are mostly free when they are in-network, however, many banks charge fees for using an ATM that is outside of their network.
- Minimum balance fees – If you are unable to maintain a minimum balance in your checking account, many financial institutions charge a monthly fee. However, most free checking account options waive this charge or have no minimum account balance requirement.
In addition to these common fees, some banks and credit unions also charge returned item fees, foreign transaction fees, and stop payment fees. It is important to look at each of these charges when establishing a new checking account, whether it is described as free or not.
Melissa Horton has worked in financial services for the past 13 years, helping clients understand the often complex vehicles available for both lending and investment needs. She is passionate about financial literacy and strives to educate clients and the general public to empower them in making smart financial decisions. www.lendedu.com