Did you hear about how Bank of America was going to start charging a monthly fee if an account didn't maintain a $1,500 minimum balance or have a monthly direct deposit of $250 or more?
It's not rare. They're a business. They're not a charity. (though they do pay bonuses for new accounts)
Either they charge a fee and the banking product is profitable or they stop offering it.
Which is better for the consumer? I think it's having a choice. If you don't like it, switch banks.
There are a lot of banks out there and a lot of them will not charge you any fees. They have large ATM footprints, powerful apps, and
The best free checking and savings accounts are going to be online banks. They have lower costs, in part because they don't have to maintain a massive network of physical locations, so they don't have to charge as much for banking services. A quick peek at interest rates will tell you a lot – most brick and mortar banks will give you nothing for your deposits.
Discover Cashback Debit
Discover Bank has a great checking account that offers cashback debit – you can get 1% cash back on up to $3,000 in purchases each and every month. Add that up and it's $360 in cash back per year just to use your debit card, a reward that is extremely rare on this type of account.
This is on top of Discover's history of being a very affordable, low fee bank. There is no monthly maintenance fee, 60,000+ no-fee ATMs, no fees for ATM use at other ATMs (though other banks may still charge a fee), free standard checks, free online bill pay, and free debit card replacement.
Why we like it: The debit card pays you 1% cashback. Debit cards rarely give you cashback and this account gives you 1% on up to $3,000 each month – an annual total of $360 – and it's automatically deposited into your Discover savings account. This account also often offers $150-$200 welcome promotions when you open it with a code (click for details).
Radius Bank is a Boston, MA-based bank founded in 1987 and offers fantastic rewards on their checking account. With the Radius Bank Rewards Checking account, you can earn unlimited 1% cashback on signature-based “credit” transactions on their debit card plus a high rate of interest. The interest rate is 1.00% APY on balances from $2500 to $99,999.99 and 1.20% APY on balances above $100,000. You can also pair this with their savings account, which yields $2.00% APY on balances of $25,000 and up and 1.25% on balances $2,500 to $24,999.99. It's a solid combination when you consider the rewards on the debit card have no limit.
You get free ATMs worldwide and just need $100 to open an account, but otherwise has no account minimums. There is no monthly maintenance fee and no minimum balance.
Why we like it: Unlimited 1% cash back rewards on an account that can bear interest (if your balance is over $2,500) is a good combination to have.
While not a household name, NBKC Bank is making a name for itself with a personal account that offers a 1.01% APY on all balances. It's an online-only bank, the interest rate is one of the best on this list (without strings), and it has no minimum or maintenance fee. There is also a fully-featured mobile app with mobile deposit, a must nowadays.
They leverage the 32,000+ MoneyPass ATMs so you can use them for free but they will also reimburse you $12 for ATM fees other banks charge you when you use their ATMs. All in all, it's a solid online bank with a decent interest rate.
Why we like it: It's a good interest rate. As of this writing, Ally Bank's checking account only offers 0.10% on balances under $15,000 and a mere 0.60% on balances that are above $15,000. 1.01% APY in interest plus all the other perks, it's a solid choice.
Ally Bank Checking
I use Ally Bank. I've been using them for years because they're one of the best online banks out there. Ally Bank has an entire suite of deposit products that are best in class, with high interest rates and low fees.
The checking account has no maintenance fees and no minimum balance. You get free ATM access via the Allpoint ATM network but if you find yourself using another bank's ATM, Ally will reimburse you $10 in ATM fees every statement cycle (this is the fee the other banks charge, Ally doesn't charge you). Finally, there is a fully-featured mobile app with mobile check deposit. If you prefer to deposit via mail, you can do that too.
Why we like it: It's everything you want in a checking account PLUS it pays you interest. The rate is far higher than any brick and mortar bank out of the water and almost every other online bank too. It's also part of Ally Bank's other deposit products, like certificates of deposit and savings accounts, which are also best in class as well.
Chase Total Checking
Chase Total Checking is the only checking product on this page that will pay you money to sign up for it. Chase will give you $200 if you open a new account and set up a direct deposit within 90 days. If you do all this, you'll get $200 in 10 business days.
There is a $12 monthly service fee that gets waived if you have a monthly direct deposit of at least $500 or keep a minimum daily balance of $1,500 OR have $5,000+ in any combination of Chase savings, checking, and other accounts. Whew!
Why we like it: $200. The account doesn't offer interest, which is common from a major bank, but it does give you $200 and a massive geographic footprint.
Available online nationwide except in Alaska, Hawaii, and Puerto Rico. For branch locations, visit locator.chase.com.
Chime Spending Account
Chime offers a lightweight mobile bank account with an automatic savings angle. (they also used to have a rewards program but that was discontinued)
With the Chime Spending Account, there are no monthly fees, no minimum balance or overdraft fees plus you can use any of the 30,000+ free MoneyPass ATMs. Another nice perk is their early direct deposit service that gives you access to your paycheck up to 2 days early – one of the first I've seen.
The only knock against them is the interest rate… it's negligible (rare for an online bank but considering the perks, it makes sense).
Why we like it: Getting access to your paycheck two days early is a nice perk. They have an Automatic Savings service that rounds up your purchases, which is a trend in microsaving apps, but the interest rate is a bummer.
Axos Bank, formerly Bank of Internet USA, is a rewards checking account that offers an interest rate as high as 1.25% APY if you meet some of the reward checking account requirements. If you can meet them, 1.25% APY is one of the highest in the nation for a checking account.
The rewards program is tiered, which means you get a higher interest rate when you meet more of these conditions:
- Receive monthly direct deposits totaling $1,000 or more: Earn +0.4166%
- Use your Bank of Internet USA Visa® Debit Card at least 10 times (minimum $3): Earn +0.4166%
- Use your Bank of Internet USA Visa® Debit Card 5 more times (minimum $3): Earn +0.4166%
If you use your debit card 10 times, you will earn 0.4166% APY on your account. If you use it 2 more times, you still only earn 0.4166%. If you used it 5 more times, for a total of 15, then you earn 0.8332% APY. Finally, receive monthly direct deposits of at least a thousand bucks and get the full 1.25% APY.
There is no minimum balance, no maintenance or service fees, as well as unlimited ATM reimbursements when you use another bank's ATM. There is a fully-featured mobile app with mobile deposit, bill pay, etc.
Why we like it: Rewards checking accounts, like those powered by Kasasa banking, are great because they offer higher interest rates often for things you're already doing. If you are making 15 transactions a month and get $1,000+ in direct deposits, why not take the higher interest? (unlimited ATM fee reimbursement is nice too!)