Best Checking Accounts for 2024
Choosing the right checking account can significantly impact your financial life. Whether you’re looking for high interest rates, low fees, or attractive perks, we’ll help you find the best checking account for you.
Based on our extensive research, here are some of the best checking accounts available in 2024:
Top 5 Checking Accounts for 2024
- Best Overall: SoFi Checking and Savings – 0.50% APY, up to $300 bonus, no monthly fees
- Best for Cash Back: Discover Cashback Debit – 1% cash back on up to $3,000 monthly, no fees
- Best High-Yield Checking: Axos Bank Rewards Checking – Up to 3.30% APY, up to $500 bonus, no monthly fees
- Best for Students: Chase College Checking℠ – No monthly fee for up to 5 years, access to 16,000 ATMs
- Best Credit Union Option: Alliant Credit Union High-Rate Checking – 0.25% APY, up to $100 bonus, 80,000+ ATMs
Now that we’ve highlighted the top checking accounts for 2024, let’s discuss what checking accounts are, how to choose the best one for your needs, and everything else you need to know to make an informed decision.
What Are Checking Accounts?
Checking accounts are versatile deposit accounts designed for everyday financial transactions. They allow you to easily manage your money through various methods:
- Debit card purchases
- ATM withdrawals
- Online bill payments
- Electronic transfers
- Paper checks (though less common now)
Unlike savings accounts, checking accounts typically offer unlimited transactions, making them ideal for daily use.
Comparing The Best Checking Accounts
Reference the table below to help you easily compare the features and benefits of various checking accounts.
It includes our top picks along with a few other popular options to give you a broader perspective.
| Bank/Account | APY | Monthly Fee | Min. Balance | Sign-up Bonus | Notable Features |
|---|---|---|---|---|---|
| SoFi Checking and Savings | 0.50% | $0 | $0 | Up to $300 | Early direct deposit, 55,000+ free ATMs |
| Discover Cashback Debit | N/A | $0 | $0 | N/A | 1% cash back on up to $3,000 monthly purchases |
| Axos Bank Rewards Checking | Up to 3.30% | $0 | $0 | Up to $500 | Unlimited domestic ATM fee reimbursements |
| Chase College Checking℠ | 0.01% | $0 for up to 5 years | $0 | $100 | Access to 16,000 ATMs, mobile banking |
| Alliant Credit Union High-Rate Checking | 0.25% | $0 | $0 | Up to $100 | 80,000+ ATMs, early direct deposit |
| Capital One 360 Checking | 0.10% | $0 | $0 | N/A | 70,000+ fee-free ATMs, no foreign transaction fees |
| Chime Checking Account | N/A | $0 | $0 | N/A | No overdraft fees, early direct deposit |
| Schwab Bank High Yield Investor Checking | 0.45% | $0 | $0 | N/A | Unlimited ATM fee rebates worldwide |
Note: Rates and offers are accurate as of September 2024 but are subject to change. Check with the financial institutions directly for the most current information.
Key Takeaways from the Comparison Chart
- Highest APY: Axos Bank Rewards Checking offers the highest potential APY at 3.30%, but it may require meeting certain conditions.
- No Monthly Fees: Most modern checking accounts, including all in our comparison, have eliminated monthly maintenance fees.
- Sign-up Bonuses: SoFi, Axos, and Chase offer attractive sign-up bonuses, which can provide immediate value.
- Unique Features: Look for accounts with features that match your needs, such as cash back (Discover), extensive ATM access (Alliant, Capital One), or global ATM rebates (Schwab).
- Online-First Options: Online-focused banks like Chime offer modern features like early direct deposit and no overdraft fees.
How to Choose the Best Checking Account
When selecting a checking account, consider the following factors:
Fees: Look for accounts with minimal or no monthly maintenance fees, ATM fees, and overdraft fees.
APY (Annual Percentage Yield): Some checking accounts now offer competitive interest rates, especially online banks.
Minimum Balance Requirements: Choose an account with a minimum balance you can comfortably maintain.
ATM Network: Consider the size and accessibility of the bank’s ATM network.
Online and Mobile Banking Features: Look for robust, user-friendly digital banking options.
Additional Perks: Some accounts offer cash back, sign-up bonuses, or other rewards.
Customer Service: Consider the availability and quality of customer support.
Key Factors in Choosing a Checking Account
Types of Checking Accounts
Understanding different types of checking accounts can help you choose the one that best fits your needs:
1. Traditional Checking Accounts
Basic accounts for everyday transactions. They may have monthly fees, but these are often waivable if you meet certain conditions.
2. High-Yield Checking Accounts
Offer higher interest rates, often from online banks. Examples include Axos Bank Rewards Checking and SoFi Checking and Savings.
3. Rewards Checking Accounts
Provide perks like cash back on debit card purchases. Discover Cashback Debit is a prime example.
4. Student Checking Accounts
Designed for college students, often with lower fees and educational resources.
5. Senior Checking Accounts
Cater to older adults, sometimes offering higher interest rates or waived fees.
How to Open a Checking Account
Opening a checking account is typically a straightforward process. Whether you choose to open an account online or in-person at a branch, here are the key steps you’ll need to follow:
1. Choose Your Bank
Select a bank or credit union based on your research and needs. Consider factors like fees, interest rates, ATM access, and online banking features.
2. Gather Required Documents
Typically, you’ll need to provide the following:
- A government-issued photo ID (such as a driver’s license or passport)
- Your Social Security number or Individual Taxpayer Identification Number
- Proof of address (like a utility bill or lease agreement)
- Initial deposit (the amount varies by bank)
3. Apply Online or In-Person
Many banks allow you to apply online, which can be more convenient. However, if you prefer personalized assistance, you can visit a branch to open your account.
Online vs. In-Person Application
| Online | In-Person |
|---|---|
| Convenient, can be done anytime | Personal assistance available |
| May offer online-only bonuses | Can resolve questions immediately |
| Might need to verify identity later | Account often active immediately |
4. Fund Your Account
Make an initial deposit to activate your account. This can usually be done via:
- Cash deposit (if opening in-person)
- Check deposit
- Electronic transfer from another account
- Direct deposit setup
5. Set Up Online Banking
Once your account is open:
- Download the bank’s mobile app
- Set up your online banking credentials
- Configure account alerts and notifications
- Explore features like bill pay and mobile check deposit
Pro Tip:
When setting up your online banking, choose a strong, unique password and enable two-factor authentication if available for enhanced security.
Remember, the exact process may vary slightly depending on the bank and whether you’re opening the account online or in-person.
Some banks may have additional requirements or steps, especially for specialized accounts. Always check with your chosen bank for their specific account opening procedures.
Checking Account Fees to Watch Out For
While many modern checking accounts offer low or no fees, it’s important to be aware of potential charges:
Monthly Maintenance Fees: Some accounts charge a monthly fee, often waivable if you meet certain criteria.
Overdraft Fees: Charged when you spend more than your account balance. Many banks now offer overdraft protection or have eliminated these fees.
ATM Fees: Using out-of-network ATMs can incur fees from both your bank and the ATM owner.
Wire Transfer Fees: Sending or receiving wire transfers, especially internationally, often incurs a fee.
Foreign Transaction Fees: Using your debit card abroad may result in additional charges.
Common Checking Account Fees
Pro Tip:
Carefully review the fee schedule of any account you’re considering. Many of the best checking accounts in 2024 have eliminated or reduced common fees, so shop around for an account that aligns with your financial habits to minimize costs.
Checking vs. Savings Accounts: Understanding the Differences
While both are deposit accounts, checking and savings accounts serve different purposes:
Checking Accounts
- Designed for frequent transactions
- Typically offer unlimited withdrawals
- Come with a debit card and checks
- Usually have lower interest rates (if any)
- Ideal for day-to-day expenses
Savings Accounts
- Designed for storing money and earning interest
- Limited to 6 withdrawals per month (federal regulation)
- Typically don’t come with a debit card or checks
- Usually offer higher interest rates
- Ideal for emergency funds and saving towards goals
Many people find it beneficial to have both types of accounts to manage their finances effectively.
Essential Mobile Banking Features
In today’s digital age, a robust mobile banking app is crucial. Here are key features to look for:
Mobile Check Deposit: Deposit checks by simply taking a photo.
Peer-to-Peer Payments: Easily send money to friends and family.
Bill Pay: Set up and manage recurring payments.
Budgeting Tools: Track spending and set financial goals.
Card Controls: Freeze your debit card instantly if lost or stolen.
Custom Alerts: Get notified about account activity and low balances.
ATM Locator: Find nearby in-network ATMs.
Top Mobile Banking Features
A user-friendly mobile app with these features can significantly enhance your banking experience and help you manage your finances on the go.
Security Measures for Checking Accounts
In an era of increasing digital threats, robust security measures are crucial for protecting your checking account. Here are key security features to look for:
Essential Security Features
- Two-Factor Authentication (2FA): Adds an extra layer of security beyond just a password.
- Biometric Login: Use fingerprint or facial recognition for secure mobile app access.
- Encryption: Ensures your data is scrambled and protected during transmission.
- Fraud Monitoring: Automatic systems that detect unusual account activity.
- Zero Liability Protection: You’re not held responsible for unauthorized transactions.
- Secure Message Center: Communicate safely with your bank within the app or online banking platform.
Security Best Practices
- Use strong, unique passwords for your banking login.
- Avoid accessing your account on public Wi-Fi networks.
- Regularly monitor your account for any suspicious activity.
- Keep your mobile device and banking app updated.
- Never share your login credentials or account information.
Remember, while banks implement robust security measures, your personal vigilance is crucial in protecting your financial information.
Switching Checking Accounts: A Step-by-Step Guide
If you’ve found a better checking account and decided to make the switch, follow these steps to ensure a smooth transition:
How to Switch Checking Accounts
Follow these steps to smoothly transition to your new checking account:
Open Your New Account
Open your new checking account while keeping your old one active.
Update Direct Deposits
Provide your new account information to your employer and any other sources of direct deposits.
List Automatic Payments
Make a list of all automatic payments and subscriptions linked to your old account.
Transfer Automatic Payments
Update your payment information for each automatic payment with your new account details.
Leave a Small Buffer
Keep a small amount in your old account for a few months to catch any forgotten automatic payments.
Transfer Your Balance
Once you’re sure all payments and deposits are coming from your new account, transfer the remaining balance.
Close Your Old Account
Contact your old bank to officially close the account and request written confirmation.
Pro Tip:
Some banks offer “switch kits” that can help streamline this process. Ask your new bank if they provide such a service.
Switching checking accounts may seem daunting, but with careful planning, it can be a smooth process. The potential benefits of a better-suited account are often worth the effort.
Frequently Asked Questions
FAQs About Checking Accounts
What’s the difference between a bank and a credit union?
Banks are for-profit institutions, while credit unions are non-profit and member-owned. Credit unions often offer higher interest rates and lower fees, but may have limited locations and services compared to banks.
Can I have multiple checking accounts?
Yes, you can have multiple checking accounts, even at different banks. This can be useful for budgeting or separating personal and business finances.
What’s the average interest rate for a checking account?
Traditional checking accounts often offer little to no interest. However, high-yield checking accounts can offer rates up to 3-5% APY, especially from online banks.
Are online-only banks safe?
Yes, reputable online banks are just as safe as traditional banks. Ensure the bank is FDIC-insured, which protects your deposits up to $250,000.
How often should I review my checking account options?
It’s a good idea to review your checking account annually or whenever your financial situation changes significantly. This ensures you’re still getting the best deal and features for your needs.
By taking the time to compare options and understand your own banking habits, you can select an account that not only meets your needs but also helps you make the most of your money.
Key Takeaways
- Many of the best checking accounts in 2024 offer high APYs, low fees, and valuable perks.
- Consider factors like fees, interest rates, ATM access, and digital banking features when choosing an account.
- Online banks often offer higher interest rates and lower fees compared to traditional banks.
- Review your checking account options regularly to ensure you’re getting the best deal for your needs.
- Consider having both a checking and savings account for optimal money management.
Remember, the best checking account for you is one that aligns with your financial habits and goals. Take the time to compare options and don’t hesitate to switch if you find a better fit. Your financial health is worth the effort!
