The 6 Best Free Checking Accounts

The 6 Best Free Checking Accounts you should know. Because opening a checking account is so common, you may not have given much thought to how much that bank account will cost you in the long run.

How Much Can Checking Accounts Cost?

While free checking accounts are available, there are plenty of services on the other side of the spectrum. Considering the casual nature of opening a checking account, you might not think much about how much that bank account could cost you in the long run.

The truth is that it can cost you quite a bit. Take for example maintenance fees. Many banks charge a monthly fee to cover the costs of managing and maintaining your account, says Sarah Blanchfield, financial therapist and founder of My Bulletproof Budget. Maintenance fees can be up to $15.

Some of these accounts are free if you maintain a certain minimum balance or monthly direct deposit amount, but these thresholds can be quite high and impractical.

For example, a Chase Total Check account charges $12 monthly unless the account holder crypto deposits at least $500 per month or maintains a daily balance of at least $1,500. Plus, “it always has to stay around that amount – any drop below that and you’ll be charged,” says Blanchfield.

Overdraft fees are another way to check an account that can cost you money. “This is what the bank charges if you spend more than you have in your account, and they will transfer the money to you to cover the fee,” says Blanchfield.

Withdrawing your checking account results in a fee of about $34, according to Consumer Financial Protection Bureau. Still, it’s one of the easiest fees to avoid, Blanchfield added. “You have the option to turn off your overdraft protection.”

Then the fees for receiving paper statements, checking orders, using off-network ATMs, making transactions abroad, and even closing your account, all add up.

On average, checking account holders incur fees of $9.87 per month, or $118 annually, according to the CFPB. That amount increases to $349 annually for customers who opt-in for certain penalty fees, such as overdraft insurance.

The 6 best no-fee checking accounts

You know what to look for, but where do you actually find these low-cost checking accounts? Of the thousands of financial institutions that offer checking accounts, these six stand out as the top free checking options.

Best for ATM fee refund

Alliant Credit Union high-interest checking account

• No monthly service fee
• No minimum balance
• ATM fee reimbursement up to $20 per month
• More than 80,000 on-net ATMs

Although the credit union is headquartered in Chicago, anyone can qualify for an Alliant Credit Union member. Its checking account is one of the best on the market. $0 is required to open an account and competitive 0.25% percent annual return when you sign up for e-reports and monthly crypto deposits.

Best to have no overdraft fees

Ally Bank Interest Checking Account

• No monthly service fee
• No minimum balance
• ATM fee reimbursement up to $10 per month

In 2021, Ally decided to eliminate all overdraft fees. This online bank will likely still pay out small overdrafts but decline larger ones. Account holders with less than $15,000 earn an impressive 0.1% APY, but higher balances are eligible for 0.25% APY.

Best for mobile apps

Capital One 360 Checking Account

• No monthly service fee
• No minimum balance
• More than 70,000 free ATMs

Another online option, Capital One’s 360 Checking Account has a top-rated mobile app. Capital One also offers early direct deposit, through which some customers can receive a payment slip up to two days early.

Best for college students

Chase College Checking Account

• No monthly service fees for up to 5 years
• Resources for learning financial management

College students aged 17 to 24 have access to a free testing service through Chase. New Chase customers can also earn $100 in cash when they open a college checking account and perform qualifying activities that are easy to complete.

Best for Refunds

Discover Cashback Debit Account

• No monthly service fee
• No minimum balance
• ATM network 60,000 VND
• Free check

Discover online banking offers a rarity: 1% cashback on debit purchases up to $3,000 per month. Discover also does not charge an overdraft fee.

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