The 10 Best Checking Accounts for February 2023

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Do you remember why you chose your current checking account?

If you got started early, your parents might have helped you open a kids’ checking or savings account at their bank’s branch. Or maybe you went with the credit union down the street from your work after getting your first W2 job.

Whatever the reason, location likely played a big part. Thankfully, you’re no longer confined to a financial institution for a checking account because of its proximity to you — or a brick-and-mortar site altogether, for that matter.

From higher interest rates to better benefits, it pays to expand your search beyond your local bank or credit union these days. Here’s how to choose the right checking account for you.

10 Best Checking Accounts for February 2023

What Is a Checking Account?

A checking account is a place to store money at a bank, credit union or other financial institution. The money in a checking account is typically reserved for regular, everyday expenses, as opposed to a savings account. Checking accounts usually distribute paper checks and a debit card to members as well.

How to Choose a Checking Account

You probably already know that you need a checking account and if it comes with a free debit card, that’s even better. A checking plan serves as the primary hub for your money. It’s where your paychecks and direct deposits land, and, from there, you use the money to pay bills, buy the stuff you need and hopefully slide some of it into a savings account. Maintaining a savings account is a smart personal finance decision.

Picking a bank account is a personal choice. What makes checking accounts “good” depends largely on your financial situation and goals. Checking accounts come in a lot of varieties these days, each with different features and benefits. You can pick from online-only banks to those with physical branches, and from those that pay interest to those that offer free checking accounts and no fees for out-of-network ATM use. It’s up to you to do the research and find the one that will benefit you and your lifestyle the most.

But we can tell you a few things that make certain checking accounts worth opening. Here are a few important features to keep in mind when looking for the best checking accounts:

• Fees: How much will it cost you to manage your money with this account? Make sure you know the monthly fee — or fees — to maintain the account. Also, understand the account’s overdraft fee protection.
• Safety: If something happens to the institution where you hold your account, will your money be protected? Make sure your checking account is NCUA- or FDIC-insured.
• Interest rates and APY: Does a particular checking account offer interest on your money to keep it in an account? (These types of accounts tend to offer no or low interest rates and APY, but there are high-interest checking accounts out there.)
• Rewards: What do you earn in return for using the account? Are you rewarded for making regular direct deposits or keeping a high balance, for example?
• Minimum balance:: Is there a minimum or average daily balance needed to maintain the account? Or to open the account? Minimum balance requirements can range for $1 to thousands of dollars (to earn a particular rate) and you’ll want to know this before you open an account, be it at a branch or through online banking.
• Accessibility: What are the requirements to open this account (again, minimum balance requirements, and earn the rewards?
• Mobility: Can this account travel and move with you? How are the online banking features? Do direct deposits make your banking life easier? How good is the financial institution’s app in making mobile check deposits easier? Are you considering online banks or only those with physical branches?

Types of Checking Accounts

There are a few varieties of checking accounts out there that offer different benefits. You just need to figure out which kind will work best for you. Some of your options for traditional and online checking accounts are:

• Student Checking: These accounts usually feature minimal fees and no minimum balance. They also don’t offer a lot of perks. They’re bare-bones accounts designed for cash-strapped students who just need the basics.
• Express Checking: This is the checking account for today’s digital person. If you don’t like going to the bank, this could be for you. These accounts are designed for use on computers, phone apps, ATMs or by telephone. You may actually get a fee for going to a live teller. The upside is fees are minimal as long as you keep banking digitally.
• Joint Checking: Need to share a checking account with a spouse or another person? A joint account lets you both put money in and take money out as needed.
• Fresh Start or Second Chance Checking: If you’ve run into financial trouble and have had your accounts closed, it can be tough to get a new account. These accounts are designed to minimize the bank’s risk, but they allow you to open a new account. If you maintain it well for an extended period of time, it may open opportunities for you to upgrade.
• Rewards Checking: Rewards checking offers the highest perks, such as annual percentage yield (APY) interest on the account balance. Debit card purchases could also receive cashback bonuses or earn points for things like airline travel or gift cards. Some, however, will come with an annual fee.

Checking Account vs. Savings Account

financial setup. You want to have one location for more regular, everyday expenses (checking) and one for longer-term savings and goals (savings).

Checking Account Pros and Cons

There are advantages and disadvantages to checking accounts and below are the most common.

Savings Account Pros and Cons

The following pros and cons of savings accounts can help you decide how to use them.

When it comes to checking and savings accounts, don’t think of it as an either-or situation — it’s a good idea to have both. You can also mix and match. For instance, you might go for an online checking account and a local credit union for a savings account.

You can have multiple checking accounts, too; perhaps one offers a new-member bonus for an influx of free cash, while another offers free overdraft protection for regular spending. Alternatively, when it comes to savings accounts, one might offer a higher annual percentage yield, while another offers other saving products like a money market account.

Regardless of the checking account or savings account you choose, it’s a good move to keep your money in a secure place

Choosing a Bank vs. a Credit Union vs. a FinTech Company for Your Checking Account

Similarly, opening a checking account, period, is generally a good move, regardless of where you do it.

Keep your own habits and preferences in mind, especially when it comes to choosing between a brick-and-mortar (bank or credit union) and online-only setup. Consider fees, from initial to ongoing, as well to make sure the account doesn’t end up costing you.

Ultimately, though, don’t get hung up on too many details: When it comes to personal finance, it ultimately comes down to what works for you and your situation.

Methodology

We graded 10 of our favorite bank and credit union accounts on the factors that we like to see in any checking account — no fees, free ATMs, good rewards, easy setup and accessibility.

If an account has a monthly fee or out-of-network ATM charges, we highlighted some more positive qualities (think: a low minimum balance requirement, interest checking account offering or a free debit card). With that said, we prioritized those checking accounts that nixed monthly maintenance fees, featured savings accounts and had no-charge or reimbursed out-of-network network ATM fees.

Here are the best checking accounts we found across (online) banks, credit unions and other financial institutions.

Recapping the 10 Best Checking Accounts of February 2023

• Chime Checking Account: Best for Digital Features
• Varo Bank Account: Best for cash back
• Chase Total Checking Account: Best for Promotional Offers
• TD Bank Convenience Checking Account: Best for Free Mobile Banking
• Axos Bank Essential Checking Account: Best for Online Customers
• Ally Interest Checking Account: Best for No Fee Perks
• Consumers Credit Union Free Rewards Checking: Best for High Balance Benefits
• Schwab Bank High Yield Investor Checking: Best for International Travelers
• Chase College Checking Account: Best for Responsible Students
• Montgomery Bank New Start Checking Account: Best for No-Frills Banking

Frequently Asked Questions (FAQ) About Checking Accounts

When it comes to choosing the best checking accounts, there’s a lot of information out there. Here, we’re answering some of the most popular questions about checking accounts.

Contributor Kathleen Garvin (@itskgarvin) is a personal finance writer based in St. Petersburg, Florida, and former editor and marketer at The Penny Hoarder. She owns a content-writing business and her work has appeared in U.S. News, Clark.com and Well Kept Wallet.

*Chime disclosure:
Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank or Stride Bank, N.A.; Members FDIC.

Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or
any Allpoint or Visa Plus Alliance ATM.

*Chase fine print:

“Checking offer is not available to existing Chase checking customers, those with fiduciary accounts, or those whose accounts have been closed within 90 days or closed with a negative balance. To receive the $200 checking bonus: 1) Open a new Chase Total Checking account, which is subject to approval AND 2) Have your direct deposit made to this account within 60 days of account opening. Your direct deposit needs to be an electronic deposit of your paycheck, pension or government benefits (such as Social Security) from your employer or the government. After you have completed all the above requirements, we’ll deposit the bonus in your new account within 10 business days. You can only receive one new checking account-related bonus per calendar year. Bonus is considered interest and will be reported on IRS Form 1099-INT.

“Account Closing: If your checking account is closed within six months after opening, we will deduct the bonus amount at closing.”

Editorial Disclosure

This content is not provided by the bank advertiser. Opinions expressed here are the author’s alone, not those of the bank advertiser. This site may be compensated through the bank advertiser Affiliate Program.