What Is a Free Checking Account?

A free checking account is a checking account that doesn’t charge monthly maintenance or service fee𓆉s, regardless of your balance. 

According to the Consumer Financial Protection Bureau, a checking account that calls itself “free” or “no-fee” also can’t charge fees for exceeding a certain number of transactions or for depositing, withdrawing, or transferring money. However, a no-fee checking account may still charge other fees in certain circumstances, like ATM fees, overdraft fees, or bounced check fees.

How Free Checking Accounts Work

Many checking accounts come with monthly accou🥀nt maintenance or service fees, which can range from around $5 up to $35. Charging monthly fees is one way banks increase their revenue, particularly if they make less on🍸 loan products due to low interest rates. 

Some financial institutions waive the monthly service fee if you keep a 澳洲幸运5官方开奖结果体彩网:minimum balance in your account or receive a certain amount in monthly deposits. Incentivizing customers to keep more money in their accౠounts helps banks boost their overall deposits.

In contrast, no-fee checking accounts don’t charge a monthly account maintenance or service fee, no matter what your balance is. These types of checking accounts are also often called free checking accounts. 

How to Find a Free Checking Account

It’s easy to find no-fee checking aღccounts from various instituti💃ons, but it might take some searching around to find the right account for your needs. Here are some steps to find a free checking account that works for you.

1. Shop around: Check out no-fee accounts from traditional banks, online banks, and credit unions. Consider whether you prefer an online-only institution with user-friendly online and mobile banking or one that lets you bank in person at a brick-and-mortar location. 
2. Review fees, terms, and conditions: Although the account won’t charge monthly service fees, find out what other fees it charges and how they might impact you. For instance, if you’re a frequent traveler, you may want to look for a bank that doesn’t charge fees for international ATM withdrawals (or reimburses you for them). 
3. Compare account features and benefits: Some other features to consider include the bank’s online banking options, mobile app (even brick-and-mortar banks usually have online functionality), branch network, and customer service avenues. Some banks also offer 澳洲幸运5官方开奖结果体彩网:welcome bonuses to new customers. 
4. Consider whether the account earns interest: The interest you can earn on most checking accounts is fairly low, with an average APY of 0.08%. Some banks offer 澳洲幸运5官方开奖结果体彩网:high-yield checking accounts with better rates, though you’ll typically need to meet certain criteria to earn them. 
5. Check out the ATM network: Consider whether the bank has ATMs nearby so you can withdraw cash without racking up fees. Find out if the bank will reimburse any ATM fees if you use an out-of-network machine.
6. Look for FDIC or NCUA insurance: Verify that any bank you’re interested in is insured by the 澳洲幸运5官方开奖结果体彩网:F♍ederal Deposit Insurance Corporation (FDIC) before opening an account. The FDIC insures checking accounts up to $250,000. If you’re exploring accounts at credit unions, check for coverage by the 澳洲幸运5官方开奖结果体彩网:National Credit Union Adminiꦡstration (NCUA𓄧).
7. Read online reviews: Finally, check out reviews on sites like Trustpilot and the Better Business Bureau to see what other customers have to say about their experience with a bank before opening an account.

Best Free Checking Accounts

We’ve ranked and reviewed the best free checking accounts to help narrow down your options. Here are our top picks. They all offer overdraft protection, and although some have minimum deposit requirements, none have minimum balance requiremen🏅ts (meaning you can move the money out if you wish). 

Common Fees Imposed by Banks

Although no-fee checking accounts don’t charge monthly maintenance fees, you may still encounter other 澳洲幸运5官方开奖结果体彩网:banking fees. Heꦐre are some of the most common fees imposed by bank✤s.

• ATM transaction fee: You might be charged a fee if you withdraw cash at an out-of-network ATM. Some banks offer unlimited reimbursement for ATM fees, or reimbursement up to a certain amount each month.
• Overdraft fee: An 澳洲幸运5官方开奖结果体彩网:overdraft fee is imposed if you spend more money than you actually have in your account and the bank has to cover the transaction. This fee depends on the bank, but may be about $35 per transaction. 
• Non-sufficient funds (NSF) fee: Similar to an overdraft fee, a bank may charge an NSF fee if it has to decline a payment or the cashing of a check due to insufficient funds in your account. 
• Debit card replacement fee: If you lose your debit card, you may have to pay a fee for rush delivery of a new one (though standard shipping may be free). 
• Foreign transaction fee: Many banks charge a fee when you make a purchase or withdraw cash from an ATM in another country.
• Stop-payment fee: Banks charge this fee if you ask to stop a check or debit payment. It may cost around $30. 
• Wire transfer fee: Banks may charge a fee for incoming and outgoing 澳洲幸运5官方开奖结果体彩网:wire transfers. Fees tend to be lower for domestic transfers and higher for international ones. 
• Inactivity fee: A bank may charge an inactivity fee if you haven’t used your account for several months. 

Ways to Avoid Checking Account Fees

Even if your bank account charges certain fees, you may be able to av𝔉oid them. Here are some ways to prevent fees from being charged on your account.

• Set up direct deposit: Setting up 澳洲幸运5官方开奖结果体彩网:direct deposit into your account can help you meet minimum balance or activity requirements. You can typically set up direct deposits from your employer and for government benefits or payments, such as tax refunds.
• Check your account regularly: Use your bank’s online banking service or mobile app to review your balance and 澳洲幸运5官方开奖结果体彩网:monitor your bank account. Keeping an eye on your income and spending can help you keep your balance above any required minimums and avoid triggering overdraft or NSF fees. 
• Use in-network ATMs: Only withdraw cash at ATMs within your bank’s network so you can avoid out-of-network ATM fees.
• Avoid paper checks: Some banks charge a fee for ordering extra checks. Plus, you might not know exactly when the recipient will cash the check, which could leave you vulnerable to a non-sufficient funds fee if they happen to do so when your balance is low. 
• Use your account regularly: A checking account is meant to be a high-activity account that’s used for withdrawals and deposits. If you let your account sit dormant for several months, you risk inactivity fees. 

Frequently Asked Questions (FAQs)

The Bottom Line

Free checking accounts donﷺ’t charge monthly maintenance fees, no matter what balance you keep in the account. However, you may still encounter other fees, so read over all the terms and conditions before you open an account. Even if your checking account isn’t free, you may be able to get the monthly fee waived by maintaining a certain balance. Consider all of a checking account’s features, including its fees, APY, and ATM availability, to determine the best ༺account for your banking needs.