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6 Best Checking Accounts
By Stephanie Colestock MONEY RESEARCH COLLECTIVE
1% cashback on qualified purchases, up to $3,000 per month
$0
0
Unlike most checking accounts, Axos' APY is comparable to many high-yield savings accounts.
$0
Up to 0.90%
PNC offers robust money management features and fairly extensive ATM network.
$7, waived with a $500 minimum balance or direct deposit
Varies by market
Reimburses all ATM and foreign transaction fees
$0
0
PenFed has an extensive ATM network, low fees and perks that rival traditional banks.
$10, waived with a $500 balance
0.15%-0.35% depending on balance
Today’s checking accounts look a bit different than they once did, with mobile app transfers and debit cards replacing actual paper checks, and e-statements taking the place of paper statements. However you use your checking account, though, it likely plays a crucial role in your everyday finances, allowing you to deposit funds, make withdrawals, transfer money, and more.
Most banks and financial institutions offer checking accounts. Finding the right one for you, though, depends on certain personal factors and even how you plan to manage your account. Here’s a look at our top picks for the best checking accounts, according to the features and services they offer. But be aware that although we make every effort to accurately describe what these banks offer, some features of checking accounts, such as the interest rates they pay on deposits, can change abruptly–so before you make a final decision, be sure to review your choice’s website for updates.
Our Top Picks for Best Checking Accounts
- PNC Bank — Best for All-Around Financial Management
- Axos Bank for Nationwide — Best for High-Yield Returns
- Ally Bank — Best for Low Fees (or No Fees)
- Discover — Best for Rewards
- Betterment — Best ATM Reimbursement
- PenFed — Best Credit Union Checking Account
Best Checking Accounts Reviews
Best for All-Around Financial Management: PNC Bank
- Monthly fee
- $7 to $25, can be waived with direct deposit
- Required opening deposit
- $0
- ATM network
- 19,000+
- APY (Annual Percentage Yield)
- 0.01% to 0.03%
A checking account from PNC earns our pick for the best all-around financial management tool, offering a combination of transactional and depository accounts, as well as budgeting and savings tools that other banks simply don’t include.
Banking with PNC Bank involves more than just opening a basic checking account. PNC customers are given what’s called a Virtual Wallet, where they can track and manage a Spend (checking) account as well as Reserve (separate checking account for future personal finance goals) and Growth (high-yield savings) accounts, all in one place.
This makes it easier for customers to plan (and save) for all of their money goals, whether it’s a short-term savings goal for the coming months or a long-term goal many years in the making. The PNC platform also offers budgeting tools, savings rules and goals, a payments calendar and real-time alerts to make it easier to track and plan your cash flow.
Your Spend account is your primary checking account, and is non-interest-bearing. Reserve and Growth accounts can pay interest, but as of this writing (March 16, 2022), rates only range from 0.01% to 0.03% APY… well below the national average of 0.06%.
Funds can be readily transferred among these three accounts to save for future goals, cover big expenses, or avoid overdraft fees. PNC also offers features like Extra Time — which gives you 24 hours to bring your account balance up from negative, before an NSF fee is charged — and Low Cash Mode — which helps you manage payments when your account balance is low, to avoid or limit the fees incurred.
PNC Virtual Wallet customers pay a monthly maintenance fee that ranges from $7 to $25, though this can be waived as long as direct deposit or average balance minimums are met; for a basic Virtual Wallet account, the $7 fee is waived with $500+ in monthly direct deposits, $500 in combined balances, or if you are over age 62.
There are over 19,000 ATMs in the PNC network. If you make an out-of-network ATM transaction and incur a surcharge from that ATM’s owner, however, PNC will reimburse your account for up to $5/mo.
Best for High-Yield Returns: Axos Bank for Nationwide
- Monthly fee
- $0
- Required opening deposit
- $50
- ATM network
- 91,000+
- APY
- up to 0.90%
Not all checking accounts offer interest on the balance held; of those that do, the national average on returns is 0.03% APY. With Axos Bank for Nationwide, though, Advantage Checking account holders can earn a very competitive APY — as high as 0.90% (as of this writing, March 16, 2022) — on the funds they keep in their everyday spending account, making it our choice for the best high-yield returns checking account.
The interest rate earned depends on how the account is managed:
- Get 0.45% APY for receiving $1,000+ in monthly direct deposits
- Get another 0.45% APY for making 10+ point-of-sale purchases ($3 or more) with your debit card
There are no monthly maintenance fees on this account, nor are there any minimum balance requirements. To open an account, you’ll need to make a deposit of at least $50 — a bit more than the average checking account requires.
The Axos ATM network includes more than 91,000 machines nationwide. If you need to make an out-of-network ATM withdrawal, Axos Bank will reimburse unlimited fees each month; the only exception to this is with Golden checking accounts, which only receive up to $8 per month in ATM fee reimbursement. Axos also has other checking accounts to choose from, some of which offer rewards and/or cashback on purchases.
Check deposits can be made instantly through the Axos mobile app. However, Axos only has three brick-and-mortar bank locations, so cash deposits need to be made at participating retail locations. These include CVS, Dollar General, Kmart, RiteAid and Walgreens stores. Be aware, though, that these retailers may choose to charge a fee for this service.
Best for Low Fees (or No Fees): Ally Bank
- Monthly fee
- $0
- Required opening deposit
- $0
- ATM network
- 43,000+
- APY
- 0.10% to 0.25%
Ally Bank is an online financial institution that offers free checking and savings accounts to banking customers, earning our pick for the best no-fee bank. While there are no brick-and-mortar Ally branch locations (making cash deposits impossible), Ally does offer a number of competitive account perks that make it worth considering.
With Ally’s interest checking account, you can earn up to 0.25% APY (with a minimum daily balance of $15,000 or more), or 0.10% APY for all other balances. There is no minimum monthly balance requirement, however, nor is there a minimum deposit to open an account. There are also no monthly maintenance fees or NSF fees. What’s more, Ally offers multiple overdraft protection features to help you manage your money and avoid overdrawing your account in the first place.
Account holders can make mobile check deposits through the Ally mobile app or by mailing them in with prepaid envelopes. They also have a robust ATM network with more than 43,000 options nationwide.
Best for Rewards: Discover
Best ATM Reimbursement: Betterment
- Monthly fee
- $0
- Required opening deposit
- $0
- ATM network
- All ATM fees are reimbursed
- APY
- None
Another online institution, Betterment, gets our nod for the best bank in terms of ATM reimbursement fees. Unlike most banks, which may offer limited ATM fee reimbursement (if any at all), Betterment places no limit on the fees it refunds.
Betterment offers mobile-first checking accounts to on-the-go users. These accounts have no monthly maintenance fees, no overdraft fees, and any foreign transaction fees you may incur are reimbursed. There is no minimum deposit required to open an account and no monthly minimum balance to maintain.
The Betterment checking account offers cash back rewards on debit card transactions made with participating retailers; these brands and cash back percentages may change over time. However, Betterment does not offer interest on the balance you hold in your checking account.
Account holders can also enjoy free cell phone insurance, as long as they pay their cell phone bill with their Betterment debit card each month. This insurance covers up to $600 per claim and allows up to two claims in a 12-month period. There is a deductible of $50 per claim filed.
Best Credit Union Checking Account: PenFed
- Monthly fee
- $0 to $10
- Required opening deposit
- $25
- ATM network
- 85,000+
- APY
- None to 35%
Membership-based Pentagon Federal Credit Union, also known as PenFed, is our top pick for the best credit union checking account, offering more account options, more branches, higher interest rates, and better features (like free checking) than many other credit unions.
There are two checking accounts offered by PenFed: Free Checking and Access America. As the name implies, Free Checking has no monthly maintenance fees, and an opening deposit requirement of just $25. While there are only 50 PenFed branch locations across the US, there is a robust online platform and app that allows for 24/7 mobile banking and online check deposit.
The Access America checking account has a monthly maintenance fee of $10, though this can be waived if you receive $500+ in monthly direct deposits or maintain a daily balance of $500 or more. For balances below $20,000, this checking account offers an APY of 0.25% on your balance; with a balance of $20,000 to $50,000, the APY jumps to 0.35%. If you also have the PenFed Power Cash Rewards Visa Signature Card, being an Access American account holder means you can earn 2% cash back on your purchases.
PenFed has a network of more than 85,000 ATMs from which to choose. However, they do not offer ATM fee reimbursement if you choose to use an out-of-network ATM. They also do not waive NSF fees. In addition, if you want to write paper checks, you’ll need to pay for them to be printed and sent to you. Overdrafts require prior approval for an overdraft line of credit.
Other companies we considered
We also looked at a number of other banks and credit unions when compiling this list. While they didn’t make the cut, many of them still offered great checking account options and features.
For example, we looked at Chime, an online banking service that offers free checking and savings accounts with a 0.50% APY. We also considered free checking accounts from both Chase Bank and Capital One 360, in addition to the 0.25% APY checking account from CIT Bank.
How We Found the Best Checking Accounts
In order to find the best checking accounts, we considered a number of different features and benefits.
We compared each bank’s accessibility, including local branches (if applicable) and their ATM access. We looked at the fees for these checking accounts, whether or not they can be waived and how difficult it is to waive them. Additionally, we considered how easy it is to open one of these accounts, including both the process itself as well as any initial deposit requirements.
We also looked at how much the account would cost an holder — through monthly maintenance fees, minimum balance requirements, ATM reimbursements, and other potential account fees — and how much someone could earn through one of these accounts (APY and rewards, if offered). We only looked at accounts that were NCUA or FDIC insured, so that your funds are best protected. Lastly, we considered how simple it was to manage said account, either through an online platform or mobile app, and whether it offered any account bonus features.
Summary of the Best Checking Accounts of 2022
- PNC Bank — Best for All-Around Financial Management
- Axos Bank for Nationwide — Best for High-Yield Returns
- Ally Bank — Best for Low Fees (or No Fees)
- Discover — Best for Rewards
- Betterment — Best ATM Reimbursement
- PenFed — Best Credit Union Checking Account
Stephanie Colestock is a DC-based personal finance writer with nearly 11 years of freelance writing experience. She covers a wide range of finance-related topics and is currently working toward her CFP®️ certification. Her work appears on sites such as Business Insider, MSN, Fox Business, CNET, Investopedia, and more.