Top Free Checking Accounts
The MarketWatch Guides research team compared free checking account options from 65 banks and credit unions to create our list of the best checking accounts. We reviewed over a dozen features for each account, including these:
- Rewards and cash-back programs
- The ability to earn interest
- Access to Zelle
- Access to a free ATM network
- Early direct deposit
Our five picks for the best free checking accounts are from online banks. While many traditional financial institutions offer checking accounts with low monthly maintenance fees or steps depositors can take to avoid maintenance fees, the accounts on our list waive monthly fees altogether.
Below, we’ll go into detail about any fees these accounts do charge and highlight why you might consider each option. We’ve also included the score each company earned in the Checking category of our bank reviews. Read more about our methodology
Discover
Best for Large ATM Network
Varo
Best for Mobile App Experience
SoFi
Best for Cash-Back Incentives
Ally
Best for Customer Experience
Axos
Best Sign-Up Bonus
Summary: The Best Free Checking Accounts of 2024
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Best For
Best for Large ATM Network
APY*
0%
In-Network ATMs
60,000
Sign Up Bonus
None
Debit Card Rewards
1% cash-back rewards up to $3K
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Best For
Best for Mobile App Experience
APY*
0%
In-Network ATMs
40,000
Sign Up Bonus
$30 referral bonus
Debit Card Rewards
6% cash back up to $50 per month
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Best For
Best for Cash-Back Incentives
APY*
0.50%
In-Network ATMs
55,000
Sign Up Bonus
$50-$300 direct deposit bonus
Debit Card Rewards
Up to 15% cash back rewards from local retailers
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Best For
Best for Customer Experience
APY*
0.10% or 0.25%**
In-Network ATMs
43,000
Sign Up Bonus
None
Debit Card Rewards
None
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|
Best For
Best Sign-Up Bonus
APY*
0.10% to 3.30% with qualifying investment accounts
In-Network ATMs
91,000
Sign Up Bonus
Up to $300 with qualifying direct deposits
Debit Card Rewards
Up to 1.00% cash back on all transactions that require a signature.
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*Annual Percentage Yield (APY) accurate as of April 24, 2024.
**0.10% for balances below $15,000 or 0.25% for balances of $15,000 or more
Common Checking Account Fees
Along with having no monthly service fee to maintain the account, which in normal checking accounts can range from $10 for basic accounts to $25 for premium checking, a free checking account shouldn’t restrict everyday transactions or charge money for them. However, your account may not be completely free due to these potential charges:
- Dormant-account fees: Some banks charge between $5 and $20 if you don’t use your account within a certain amount of time.
- Stop-payment fees: These charges are typically around $30.
- Overdraft and non-sufficient funds fees: While federal regulations are potentially changing regarding overdraft fees, currently, banks charge between $30 and $35.
- Check-printing fees: Checks have a cost to print, so many banks charge you for them. Costs vary depending on what type of checks you order.
- Foreign-transaction fees: If you’re outside of the country, some banks charge up to 3% of the transaction if you use your debit card.
- Out-of-network ATM fees: Many banks charge around $2 if you use an out-of-network ATM, in addition to what the ATM owner charges.
- Outgoing wire transfer fees: Can range from $0 to $50, depending on where you’re wiring money
- Expedited delivery: If you lose your debit card or need checks fast, banks can charge between $5 and $25 for rush delivery.
- Paper-statement fees: Some banks charge you to receive a paper statement each month, instead of an online one. These fees can range from $1 to $5.
Consumer Insights: Our Checking Survey
In December 2023, we surveyed 1,000 American consumers to learn about their banking habits and preferences. We found that when selecting checking accounts, customers care the most about monthly fees (74%), access to free ATMs (58%) and overdraft fees (45%).
Since consumers’ biggest concerns when choosing checking accounts were monthly fees, it tracks that 46% of them pay no monthly maintenance fees and 27% meet account requirements for having these charges waived. Only 15% of survey respondents pay $5 or more per month for their checking accounts.
Our survey methodology: MarketWatch Guides surveyed 1,000 American adults via Pollfish. Results were weighted to generate nationally representative data based on age, gender, marital status and household income. Pollfish employs organic random device engagement sampling. The margin of error is +/- 3 points with 95% confidence.
How To Choose the Best Free Checking Account
To find the best free checking account option for you, assess your personal situation.
“If you’re in need of a checking account, don’t be too quick to open the first one you find,” said Anand Talwar, head of deposits and president of Ally Invest Group at Ally Financial. “Think about what’s most important to you, like how you deposit and spend money, ATM access, and no fees.”
Talwar also recommended looking for accounts with no minimum opening deposits and no monthly maintenance fees, as well as FDIC insurance protection.
Also consider costs, requirements and banking accessibility, features and security.
Costs
Look for free checking accounts that charge the fewest fees possible for the types of transactions you expect to do. For example, if you travel internationally, look for an account that doesn’t charge foreign transaction fees. And if you expect to use out-of-network ATMs, try to find a checking account that provides reimbursement for ATM operators’ fees.
Another thing to keep in mind is that with online checking accounts from an online bank, you’ll likely have limited options for depositing cash for free. The cost for this service can vary depending on which third-party company (such as a retailer) is providing it.
Account Requirements
Make sure you’re eligible for the free checking account you want. This includes meeting any age, residency and identification requirements. And if you have limited funds to initially deposit, find an account without a minimum opening deposit.
You should also check for minimum balance or direct deposit requirements. Not meeting these can affect whether the bank keeps the account open or whether you can access certain account features, including higher interest rates and higher rates for cash back on your debit card. Some banks even restrict mobile check deposits if you don’t meet thresholds for monthly direct deposits.
Banking Accessibility
Both the type of checking account and financial institution matter for accessibility. With a brick-and-mortar bank, you’ll have ATMs plus the flexibility for in-branch transactions during operating hours. If you choose an online bank, convenient ATM access is even more crucial, along with nearby options for making cash deposits.
Checking Account Features
Since there are many free checking options, think about whether you need certain services or rewards options to narrow your choices down. For example, you might prefer a solid mobile banking experience with budgeting tools, Zelle and mobile check deposits.
If you prefer incentives, look for a checking account with a competitive interest rate, a sign-up bonus and a cash-back debit card. Also consider basic features such as overdraft protection, online bill pay and a physical checkbook.
You can also look to bundle your checking and savings accounts. If you’re interested, read our picks for the best savings accounts.
Safety and Online Security
Finding accounts through insured financial institutions is important for safeguarding your money in case your institution fails. Check for Federal Deposit Insurance Corp. (FDIC) coverage for banks and National Credit Union Administration (NCUA) coverage for credit unions.
Find out if the financial institutions you’re considering take steps to protect accounts online. This means they encrypt your information, require multiple steps to log in and alert you to any suspicious transactions or login attempts.
Benefits of a Free Checking Account
The main benefit of a free checking account is saving money on common account fees. You shouldn’t pay anything to simply have an account or perform everyday transactions, and you often won’t have to pay for overdrafts or in-network ATM withdrawals. You can also usually avoid charges for things such as sending wire transfers and using out-of-network ATMs.
Free checking accounts can be highly accessible even if you don’t have a lot of cash. Many options don’t require a deposit to open the account or a minimum balance to keep it open. There may be a minimum balance requirement for certain benefits, such as earning interest rate.
While you might think of a free checking account as something basic, you can often benefit from perks that increase your balance. You might earn interest or be eligible for programs that reward you for debit card purchases. Sign-up bonuses may also be available. Note that traditional banks often offer fewer perks than online banks.
Finally, free checking accounts generally provide convenient access to your money. Both traditional and online banks typically let you deposit checks, transfer funds between accounts and receive direct deposits. Paper checks and money transfers through Zelle are also common. While an online-only bank doesn’t provide branch access, you can still use ATMs and often make cash deposits locally, sometimes for a fee.
Managing Your Free Checking Account
After you open your free account, set up direct deposit to conveniently get your pay and access any features that require you to be enrolled in direct deposit. You can usually get a form from your employer or bank or set it up online. And if you’ve switched deposit accounts, give your updated banking details to those who pay you or receive money from you.
Monitoring your new free checking account is crucial. Check your transactions online and view your monthly statements for any fees you’re charged or purchases that could be fraudulent. It also helps to set up mobile alerts. That way, you can call or message your bank right when you’re notified that something could be wrong.
Use your account wisely to avoid overspending and paying fees. To prevent overdrafts, stay within your budget and use budgeting and savings tools your bank may offer. You should also limit possible fee-based transactions, including cash deposits (for online banks), out-of-network ATM withdrawals and wire transfers.
Lastly, protect your debit card and checking account. If you lose your card, get the bank to freeze or cancel it so you can get a replacement. Avoid sharing your debit card PIN and online banking details, and only give your checking account number for legitimate transactions. Choose the most secure option for logging into your account online, and be careful where and how you log in.
The Bottom Line: Is a Free Checking Account Right for You?
A free checking account can be a good choice when it saves you money and still offers the key features you need. Since the top choices are often online checking accounts, carefully consider features such as ATM access and cash deposit options, and make sure you’re comfortable with not having physical branches. By picking the right account, you’ll have several ways to conveniently manage your money.
Read our list of the best bank account bonuses of 2024.
FAQ: Free Checking Accounts
Discover, Varo, Ally, Axos and SoFi are some of the many banks that have totally free checking accounts, meaning they don’t charge a monthly fee or require a minimum balance.
Despite not having monthly service charges, free checking accounts often aren’t entirely free, so check the terms carefully. For example, you might have to pay for overdrafts and wire transfers, or you could get charged for using out-of-network ATMs or depositing cash through a third party, such as a convenience store.
Most banks let you apply to open a free checking account online. You can also visit a local bank or credit union branch (if available) and apply in person. You’ll give your personal information, such as your Social Security number and photo ID, and make any required opening deposit.
Our Methodology
Our team researched more than 100 of the country’s largest and most prominent financial institutions, collecting information on each provider’s account options, fees, rates, terms and customer experience. We then scored each firm based on the data points and metrics that matter most to potential customers. Read our full methodology.
For our list of the best free checking accounts, we chose financial institutions that not only earned our highest scores in the Checking category but also don’t charge monthly fees. The banks that received top ratings for checking accounts tend to have no minimum opening deposit and no or low overdraft fees, making them accessible to more customers. They often provide perks such as ATM fee reimbursements and cash back on debit card purchases.
*Data accurate at time of publication
**Rates and promotions accurate as of April 24, 2024
Editor’s Note: Before making significant financial decisions, consider reviewing your options with someone you trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.
If you have questions about this page, please reach out to our editors at editors@marketwatchguides.com.
