Best Checking Accounts of July 2025

What is a checking account?

A checking account makes it easy to access your money for day-to-day transactions. Withdraw funds by using a debit card or ATM card, writing a check, or authorizing electronic transfers. Deposit funds via paycheck, cash or account transfer.

Standard features include direct deposit and automatic bill payment. Many banks also integrate digital services to help you manage your money from your web browser or smartphone.

You can even find checking accounts with welcome bonuses, rewards programs and lucrative interest rates.

If you’re ready to open a checking account, you can apply for one at your local bank or credit union either in person or online. But read the fine print before you do, as your account may have minimum balance requirements and fees. Banks also enforce an age limit and request specific identification documents.

What are some common types of checking accounts?

Checking accounts come in many shapes and sizes. While a traditional checking account does the trick for most people, you may want one with specific offerings to fit your needs and goals. These are the types of checking accounts and their typical features:

• Traditional checking: It offers the basics, and depending on the account, you may get access to a debit card as well as checks and ATMs. You can open these accounts at brick-and-mortar banks, which typically have branch and ATM networks and provide many financial services. (Think Chase or Bank of America.) But you may want to look elsewhere for accounts with competitive interest rates or rewards programs.
• Premium checking: Consider a premium checking account to take your banking to the next level. This type of account includes exclusive benefits, such as interest earnings, reduced fees, discounts on other financial products, and streamlined customer service options. However, a premium account often means higher initial deposit or minimum balance requirements compared with a standard account.
• Rewards checking: A rewards checking account can help you get more from your purchases, such as airline miles, cash back earnings and other perks. You may have to meet criteria for earning rewards. For example, your bank may require that you make a minimum number of monthly transactions or enroll in services such as online bill pay.
• Business checking: Business owners know that managing finances can be challenging. Fortunately, you can get accounts that integrate checking and business solutions. Common features include accounting and payroll tools as well as the ability to accept debit or credit card payments.
• Second-chance checking: Those with limited or poor banking records may struggle to open an account. Second-chance checking makes this process easier by waiving typical approval requirements, setting low minimum balance requirements and reducing fees. This type of account can also help you build a positive banking history with ChexSystems, a service used by financial institutions to evaluate account applicants.
• Student checking: If you’re a young adult seeking a simple account to manage your money, you may like this type of checking account. These often come with low fees and no account balance requirements. Some providers also reimburse you for out-of-network ATM charges.

What to look for in a checking account

The best checking account is like a good car — it has all of the features you need. Generally, you want to find an account based on accessibility as well as your budget and financial goals. Think about the following factors:

• Cost: Standard checking accounts often have minimal fees, such as monthly service, ATM and overdraft fees, plus ways to waive those charges. An account with premium features will likely have higher fees.
• Account type: Assess your financial needs to select the right type of account. Do you want an account that delivers business benefits, rewards on purchases or premium checking features? Compare accounts that align with your goals.
• Annual percentage yield (APY): Standard checking accounts often earn little to no interest. The average checking account pays 0.07%, according to the Federal Deposit Insurance Corp. (FDIC). Example: Chase Bank’s Premier Plus, Sapphire and Private Client checking accounts all earn APYs of 0.01%, regardless of account balance. Some checking accounts have higher returns; Axos Bank offers up to 3.30% APY on a Rewards Checking account when you meet requirements.
• Insurance: The FDIC covers accounts at federally insured banks, and the National Credit Union Administration (NCUA) backs accounts at federally insured credit unions. Each provide up to $250,000 in coverage per account type, per institution and per account holder. The FDIC and the NCUA protect against the loss of deposits if your federally insured institution fails.
• ATM access: When researching banks, consider ATM availability. Large national banks often have extensive ATM networks, while many online banks have more limited systems. In that case, see if the provider offers fee reimbursements for out-of-network ATM use.
• Branch network: If you prefer to do your banking in person, research banks with branches near you.
• Digital experience: Traditional bank accounts often include online and mobile banking as part of their basic packages. Your online banking dashboard allows you to monitor transactions, automate payments, receive direct paycheck deposits and make transfers.
• Customer service: When you have questions about your account, you’ll want a reliable team of agents by your side. The best checking accounts provide 24/7 customer service and various ways to reach out.

As you conduct your search, pay attention to bank account requirements. Banks in most states require signers to be at least 18 years old to apply. Minors can also open an account but must bring a parent or legal guardian to cosign their application.

Pros and cons of checking accounts

How to open a checking account

Opening a checking account is relatively straightforward. Make sure the process goes smoothly by following these steps:

1. Research checking accounts. Before choosing an account, compare fees and features to ensure they fit your situation. You may also want to examine different types of checking accounts.
2. Confirm eligibility requirements. Understand account requirements by calling the bank’s customer service line or reviewing its website. Most banks require applicants to be 18 or older to open an account. Minors can apply with a parent or legal guardian cosigner.
3. Verify account requirements. Read the fine print for initial and ongoing charges, such as fees and minimum account balances.
4. Gather documentation. During the application process, banks may require verification documents. You’ll typically need your Social Security number and proof of address, plus cash or check for the initial deposit. Your financial institution may request additional documentation.
5. Complete an application. Many banks allow you to apply online or at a branch location. The process for opening an account online and at a branch are generally the same, except you’ll upload documents online instead of handing them to a banker in person. The process can take several minutes or longer. Depending on your financial institution, the approval waiting period could take minutes or a couple of days.
6. Set up digital banking. After you’re approved, download the bank’s mobile app or log in to your online portal to manage your account. You can set up alerts for notifications, bill payments and automatic transfers.

Alternatives to checking accounts

If you can’t or don’t want to use a checking account, consider the following alternatives:

• Money market accounts: Money market accounts have debit card and check-writing features but higher interest rates than checking accounts. The downside is that these accounts typically have higher opening deposits and ongoing balance requirements.
• Savings accounts: Savings accounts tend to yield higher returns than checking accounts, but they typically lack check-writing capabilities and debit cards. You may want to pair a savings account for interest earnings on money you don’t need now with a checking account for everyday money needs.
• Prepaid debit cards: If you don’t want to carry cash, then you may want to load your money onto a prepaid card. But prepaid debit cards aren’t linked to a bank account, which means you won’t be able to write checks or pay bills.
• CDs: A CD earns interest for a set period of time at rates much higher than checking accounts. But an early withdrawal penalty typically applies if you want to cash out before the end of your CD’s term.
• Cash management accounts (CMAs): Brokerages and investment firms offer CMAs, which combine the higher interest rates of a savings account with checking account features. You may even get higher limits on FDIC coverage. These accounts are primarily online.

Frequently asked questions

What is overdraft protection?

Overdraft protection prevents the rejection of charges that exceed your available account balance. You connect a backup account, such as a savings or secondary checking account, to cover purchases when your primary account lacks funds. Make sure you understand the various fees and terms that can come with this service before you opt in.

How do I close a checking account?

Your bank may require that you call or visit a local branch to close your account. Make sure you move all automatic transactions to the new checking account.

How many checking accounts can I have?

You can have multiple checking accounts, even with the same bank, but keep in mind that having several accounts can complicate managing your money. If your finances are complex, you may need more than one account. For example, you may need separate checking accounts for business and personal finances if you run a company, or you may want personal and joint accounts if you have a spouse.