The 7 best free checking accounts

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It can be frustrating when you have to spend money to keep your money safe. Having a checking account is useful but can be costly, with big banks often charging up to $15 per month just to keep your account open.

Some banks may waive these fees if you meet conditions like maintaining a minimum balance or setting up direct deposit. But there are several excellent fee-free alternatives available that don’t come with a bunch of rules. That way, more of your money actually stays in your bank account.

Here are the best checking accounts that boast no monthly maintenance fees or minimum balance fees.

The best no-fee checking accounts

• Axos Rewards Checking: Best for earning interest
• Current Checking Account: Best for building credit
• Chime Checking Account: Best for overdraft protection
• Capital One 360® Checking Account: Best for in-person banking
• Discover Cashback Debit Account: Best for cash back
• SoFi Checking and Savings: Best for higher insurance limits
• Varo Online Bank Account: Best for cash advances

Axos Rewards Checking: Best for earning interest

• APY: Up to 3.30%
• Monthly fee: None
• Minimum balance requirement: None
• ATM fee reimbursements: Yes
• Mobile cash deposit: Not specified
• Added perks: No overdraft or nonsufficient funds fees
   

Axos Rewards Checking offers an impressive high-interest checking account that allows you to earn interest. With the Axos Rewards checking, you can earn up to 3.30% Annual Percentage Yield (APY) on your checking account funds. It also offers one of the best checking account welcome bonuses on the market. 

Most checking accounts don’t offer interest; even those that do won’t typically offer such a high rate. Remember to unlock other interest-earning options; you’ll need to direct deposit $1,500 or more each month.

This account has no overdraft or nonsufficient funds fees and no monthly balance requirement. You can also easily access your money via ATM and get reimbursed for any ATM fees.

Current Checking Account: Best for building credit

• APY: Not specified
• Monthly fee: None
• Minimum balance requirement: None
• ATM fee reimbursements: No fees at in-network ATMs
• Mobile cash deposit: Not specified 
  Added perks: Debit card helps build credit score, early direct deposit, fee-free overdraft protection
   

If you’re looking to build your credit score and avoid bank fees, why not use an account that offers both?

Current’s checking account comes with a debit card that helps you build your credit score as you spend. There's no credit check to qualify, so you won’t harm your credit score with a hard inquiry when you apply.

This account comes with early direct deposit, fee-free overdraft protection, and no annual or minimum balance fees. You also won’t pay any fees at in-network ATMs.

Chime Checking Account: Best for overdraft protection

• APY: Not specified
• Monthly fee: None
• Minimum balance requirement: None
• ATM fee reimbursements: No fees at in-network ATMs
• Mobile cash deposit: Available at Walgreens locations
• Added perks: Up to $200 in overdraft protection, early direct deposit

If the thought of going into overdraft stresses you out, you’ll appreciate Chime’s robust overdraft protection. If you qualify for Chime’s SpotMe program, you can receive up to $200 in overdraft protection. If you reach that limit, your debit purchase will simply be declined.

There are also no monthly service fees or minimum balance fees. You can easily manage your money via the mobile app and access cash via one of Current’s 60,000 in-network ATMs.

This account also comes with early direct deposit and the ability to deposit cash at any Walgreens location.

Capital One 360® Checking Account: Best for in-person banking

• APY: 0.10% APY on balances over $50,000
• Monthly fee: None
• Minimum balance requirement: None
• ATM fee reimbursements: No fees at in-network ATMs
• Mobile cash deposit: Available at CVS, Walgreens, or Duane Reade
• Added perks: In-person banking, no overdraft fees

You’ll mostly find no-fee checking accounts at online banks, but if you want a more traditional banking experience, look to Capital One. Capital One 360 allows you to manage your banking online or at in-person branch locations.

You can deposit or withdraw cash at any local branch but have other options — access cash at over 70,000 in-network ATMs or any CVS, Walgreens, or Duane Reade.

Plus, you won’t pay any fees, including monthly maintenance, minimum balance, or overdraft fees.

Discover Cashback Debit Account: Best for cash back

• APY: Not specified
• Monthly fee: None
• Minimum balance requirement: None
• ATM fee reimbursements: No fees at in-network ATMs
• Mobile cash deposit: Not specified
• Added perks: 1% cash back on up to $3,000 in monthly debit card purchases

Most debit cards don’t offer cash back, but the Discover Cashback Debit account does. You can earn 1% cash back today on up to $3,000 in monthly debit card purchases.

Plus, you can apply for this checking account without hurting your credit score, as there’s no hard credit inquiry. You also won’t pay any fees, including overdraft, monthly maintenance, or minimum deposit fees.

You can access your account via the mobile app and withdraw cash for free from over 60,000 in-network ATMs.

SoFi Checking and Savings: Best for higher insurance limits

• APY: 0.50% on checking, up to 4.60% on savings
• Monthly fee: None
• Minimum balance requirement: None 
• ATM fee reimbursements: No fees at in-network ATMs
• Mobile cash deposit: At participating retailers 
• Added perks: Overdraft coverage up to $50, higher FDIC insurance limits (up to $2 million)
   

When you open a SoFi checking account, you’ll earn interest on your funds (0.50%) and get access to a savings account that earns up to 4.60% APY. Remember, you’ll need to set up direct deposit to earn the highest interest rates. You won’t pay any account fees, including overdraft coverage up to $50.

SoFi also partners with a network of banks to offer more than the standard amount of FDIC insurance (up to $2 million instead of $250,000). If you have a lot of money to deposit, you can rest easy knowing your money is safe.

Varo Online Bank Account: Best for cash advance

• APY: Not specified
• Monthly fee: None
• Minimum balance requirement: None
• ATM fee reimbursements: No fees at in-network ATMs
• Mobile cash deposit: Not specified
• Added perks: Early direct deposit, cash advance up to $500 with Varo Advance

Life happens, and sometimes you need some help managing unexpected expenses. With Varo Advance, you can borrow up to $500 and immediately receive the cash in your account. Keep in mind there is a small fee, ranging from $1.60 to $20, depending on how much you borrow. But this is typically much lower than the interest and fees you usually pay when taking out a cash advance.

Varo’s checking account includes early direct deposit, no fees, and access to 40,000 in-network ATMs.

What to look for in a no-fee checking account 

When searching for a free checking account, it's important to consider several key factors beyond just the absence of monthly maintenance fees. 

“As with any bank account, you need to know what the add-ons or hidden fees are,” Jay Zigmont, certified financial planner and founder of Childfree Wealth, says. “Most banks will have additional fees for overdrafts, wire transfers, or other account services.”

Here are some other features to look for.

No minimum balance requirements 

Some free checking accounts may still require you to maintain a minimum balance in order to avoid fees or account closure. Look for accounts that truly have no minimum balance requirements, so you can maintain flexibility with your cash flow.

ATM access 

Even if a checking account doesn't charge monthly fees, you may still incur ATM fees for using out-of-network ATMs. Look for accounts that offer free access to a wide network of ATMs or reimburse ATM fees charged by other banks.

Overdraft protection

Overdraft fees can be a significant cost for checking account holders. Some free checking accounts offer overdraft protection services, such as linking to a savings account or line of credit, to help you avoid these fees.

Digital banking tools 

Convenient online and mobile banking features can make it easier to manage your money on the go. Look for free checking accounts that offer tools like mobile check deposit, online bill pay, and account alerts.

Ability to earn interest 

While less common, some free checking accounts may offer a small amount of interest on your money. This can be a nice perk, but be sure to compare the interest rate to other high-yield checking or savings accounts to ensure you're getting a competitive rate.

Additional perks

Some free checking accounts may offer additional benefits like cash back rewards on debit card purchases, sign-up bonuses, or discounts on other banking services. Consider which perks might be most valuable to you when comparing accounts.

How to switch to a free checking account 

If you're currently paying monthly maintenance fees for your checking account, switching to a free account can be a smart way to save money. 

“Any time you can save on fees is great,” Zigmont says. “While banks may offer fancier checking accounts for a fee, most people can do everything they need with a no-fee account.”

Here are the steps to make the switch:

1. Research your options 

Start by comparing the best checking account options from different banks and credit unions. Consider factors like minimum balance requirements, ATM access, digital banking tools, and any additional perks or benefits.

2. Open your new account  

Once you've chosen a new free checking account, you'll need to complete an application either online or in person at a branch. You'll typically need to provide personal information, a government-issued ID, and proof of address.

3. Fund your new account 

To get your new account up and running, you'll need to make an initial deposit. This can often be done electronically by transferring funds from your existing checking account, or you may need to write a check or make a cash deposit.

4. Update automatic payments and direct deposits 

If you have any automatic payments or direct deposits set up with your old checking account, you'll need to update them with your new account information. This may involve contacting your employer, utility providers, or other bill payors directly.

5. Close your old account 

Once you've confirmed that all automatic payments and deposits have been updated and any outstanding checks have cleared, you can close your old checking account. Be sure to get written confirmation of the account closure for your records.

How to manage your free checking account 

While a free checking account can help you save money on monthly fees, it's still important to practice good financial habits to avoid other costs. Here are some tips for managing your free checking account effectively.

Keep track of your balance 

Even without minimum balance requirements, it's important to monitor your account balance regularly to avoid overdrafts. Consider setting up account alerts to notify you when your balance falls below a certain threshold.

Be mindful of ATM fees 

If your free checking account doesn't offer ATM fee reimbursements, be sure to plan ahead and use in-network ATMs whenever possible to avoid fees. If you do need to use an out-of-network ATM, consider taking out larger amounts less frequently to minimize fees.

Avoid overdrafts

Overdrawing your account can result in hefty fees, even with a free checking account. To avoid overdrafts, keep a close eye on your balance, consider setting up overdraft protection, and opt out of overdraft coverage for debit card transactions if possible.

Take advantage of digital tools

Many free checking accounts offer robust online and mobile banking platforms that can help you manage your money more efficiently. Take advantage of features like mobile check deposit, online bill pay, and budgeting tools to stay on top of your finances.

Review your account regularly 

Even with a free checking account, it's a good idea to review your statements and transaction history regularly to catch any errors or unauthorized charges. If you notice any discrepancies, report them to your bank immediately.

Limitations of free checking accounts 

While free checking accounts can be a great way to save money on monthly fees, they may come with some limitations compared to other types of accounts, including: 

Lower interest rates 

Free checking accounts often offer little to no interest on deposited funds. If you tend to keep a high balance in your checking account, you may be missing out on potential earnings compared to a high-yield checking or savings account.

Limited perks

While some free checking accounts offer additional benefits like cash back rewards or ATM fee reimbursements, they may not come with the same level of perks as premium checking accounts that charge fees.

Fewer branch locations 

Some banks that offer free checking accounts may have more limited physical branch locations compared to larger national banks. If you prefer in-person banking services, this could be a drawback.

Fewer account options 

Banks that specialize in free checking accounts may have more limited account options overall, such as fewer savings accounts or CD options. If you're looking for a comprehensive banking experience, you may need to look elsewhere.

How we rated the best free checking accounts 

To determine the best free checking accounts, we carefully evaluated a wide range of factors, including interest rates, fees, minimum deposit and balance requirements, and product mix.

Our team analyzed numerous bank offers and selected the top contenders based on these key criteria. The options on this list represent the best value benefits available.

Here are some of the key factors we considered:

• Interest rate: The interest rate is the primary reason someone would choose a savings, CD, or money market account over another, so this is our most heavily weighted factor. 
• Fees: Low fees can help minimize the cost of managing your money and accessing essential financial services, allowing you to keep more of your hard-earned cash.
• Minimum deposit & balance requirements: High minimum deposits can be a barrier, and high balance requirements to avoid fees or earn the best rate limit the account's usefulness.
• Product mix: A diverse product mix allows customers to find the right financial solutions for their unique needs and goals. 
• Customer service: Reliable customer service is essential for a positive banking experience. 
• Digital experience: With more banking done online, the quality of an account's digital offerings is increasingly important.
• ATM & branch access: Access to ATMs and branches gives bank customers the flexibility to handle their banking needs in person when necessary while also providing easy access to cash when they need it.

Frequently asked questions

Are there any actually free checking accounts?

Yes, there are many banks and credit unions that offer checking accounts with no monthly maintenance fees, no minimum balance requirements, and no other hidden fees. However, it's important to read the fine print and understand any potential costs that come with the account, such as out-of-network ATM fees.

Can I earn interest on a free checking account?

Some free checking accounts do offer interest, but the rates are often lower than those offered by high-yield checking or savings accounts. If earning interest is a priority for you, it may be worth considering a different type of account.

What happens if I overdraw my free checking account?

Even with a free checking account, overdrawing your account can result in hefty fees. Some banks charge overdraft fees of $35 or more per transaction, which can quickly add up. To avoid these costs, keep a close eye on your balance and set up alerts or overdraft protection services.

Do I need a minimum balance to open a free checking account?

Most free checking accounts do not require a minimum balance to open the account or maintain it over time. However, some accounts may require a small initial deposit, such as $25 or $50, to get started.

Can I use any ATM with a free checking account?

This depends on the specific account and bank. Some free checking accounts offer access to a wide network of ATMs or reimburse fees charged by out-of-network ATMs, while others may not. Be sure to check the ATM policies for any account you're considering. 

The bottom line

Using a no-fee checking account means you can save a lot of money over the years.

“You should get a checking account that provides only what you need, no more,” Zigmont says. “Do not pay for features that have little or no value to you. Accessibility and ease of use are priorities, but beyond that, you just need a basic checking account.”

But be careful when it comes to some other checking account fees. Even if a checking account claims to be fee-free, you can still face charges for banking services like printing checks or using an out-of-network ATM.

Editorial disclaimer: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.