Final Verdict

SoFi's checking account is worth looking into because of its customer-friendly features, lack of fees, and competitive APY. But there are a lot of strong options on this list depending on the attributes that are important to you. For example, the best APY opportunity is an impressive 3.30% from Axos Bank, while Capital One offers more than 70,000 fee-free ATMs. If you want to go with a more well-known banking brand, you can’t go wrong with Ally Bank or SoFi.

Whether you prefer online banking, walking into a physical branch, or having the choice to do either, you’ll find free checking account options on the list to match your preference.

Compare the Best Free Checking Accounts

Account	Minimum to Open	Minimum Balance to Maintain	Offers Overdraft Protection
SoFi: SoFi Checking Account	$0	$0	Yes
Lake Michigan Credit Union: Max Checking	$5	$0	Yes
Alliant Credit Union: High-Yield Checking	$25	$0	Yes
BMO: Smart Advantage	$25	$0	Yes
Ally Bank: Interest Checking Account	$0	$0	Yes
Axos Bank: Rewards Checking	$50	$0	Yes
Capital One 360 Checking	$0	$0	Yes

Guide to Choosing a Free Checking Account

Factors to Consider When Opening a Free Checking Account

• FDIC insured: This means up to $250,000 in your checking account is federally protected. Credit unions offer similar insurance coverage through the National Credit Union Administration.
• Minimum deposit requirements: Many checking accounts require a certain amount to open an account, so that’s something to ask about in case you have limited funds available.
• Fees: While free checking means no monthly maintenance fees, you should see if there are other charges that you might have to pay, like overdraft fees, ATM fees, paper statement fees, and others.
• ATM network: If you make withdrawals often, the number of fee-free ATMs in your area will be an important consideration because those out-of-network fees can add up.
• APY: While checking accounts aren’t traditionally big interest earners, some free checking accounts offer the opportunity to earn a bit.
• Promotions, rewards, or cash back: Some free checking accounts give you the chance to earn extra cash, whether it’s as a bonus for account opening or for using your debit card for transactions.
• Mobile app functionality: Look into how a bank’s app is rated and to see what features it has, like the ability to make mobile deposits, transfers, and bill pay, as well as tools to track your spending and set goals.
• Online or brick-and-mortar availability: Depending on your comfort level with online-only banks, you may or may not wish to have the option to walk into a physical branch.

How to Open a Free Checking Account

Opening a free checking account should be a fairly simple process whether you’re doing it online, in person, or by phone. There will be basic requirements to meet such as being 18 years of age or older, having proper identification, and sometimes a funding source or minimum deposit. Some online checking accounts can be opened in just a few minutes.

If you’re opening an account with a credit union, you may also have to become a member, which sometimes can mean proving a certain affiliation or making a small donation to an outside organization.

Common Checking Account Fees

• Monthly maintenance fee: Free checking accounts will not have this recurring fee, which basically charges you each month to keep the account open. Some accounts with these fees offer ways to have them waived (i.e. setting up direct deposit).
• Overdraft fee: If you do not have or do not opt into overdraft protection and you overdraw your account, you could be hit with a fee, sometimes multiple times per day. Not all free checking accounts charge overdraft fees, but the ones that do can be as high as $30.
• Non-sufficient funds (NSF) fee: If you try writing a check and do not have the funds available when it is cashed, you can be charged this fee.
• ATM fee: Most free checking accounts have a fee-free ATM network. But if you go to an ATM that is not supported, you can pay a fee to that third party and sometimes an additional fee from your bank. Some banks reimburse you up to a certain amount for external ATM use.
• Paper statement fee: Many banks charge a small fee if you prefer to receive paper statements in the mail. Opting into paperless statements will save you this fee.
• Foreign transaction fee: Using your checking account debit card abroad will typically incur a fee, although there are some banks that do not charge.
• Account closure fee: There is sometimes a charge for closing your account, most commonly if it’s within a short time frame after account opening.

Pros and Cons of Free Checking Accounts

Pros Explained

• No monthly maintenance fees: Free checking accounts don’t charge monthly fees to maintain your account. 
• May not require a minimum balance or opening deposit: If a checking account is truly free, it won’t charge a fee for dropping below a minimum balance. Free checking accounts also typically don’t require a minimum deposit to open the account.  
• May earn interest on your balance: Some free checking accounts offer interest earnings on your balance or other perks, such as a cash-back debit card or reimbursement for out-of-network ATM fees. 

Cons Explained

• May charge overdraft fees: Some banks with free checking accounts still charge fees if you overdraw your account. 
• May charge a fee for out-of-network ATM withdrawals: While you may have access to a large network of fee-free ATMs, you could incur a fee for taking out cash from an ATM that’s not in-network. 
• Online banks may not have physical branches: If you opt for a free checking account from an online bank, you probably won’t have the option of visiting a brick-and-mortar location. Some online banks don’t let you deposit physical cash into your account or only permit this through a third-party service for a fee. 

Alternatives to Checking Accounts

As you explore options for storing your money, consider these alternatives to checking accounts: 

• High-yield savings account. If you’re looking to meet a savings goal, consider parking your cash in a high-yield savings account. You’ll earn interest on your balance, but watch out for any withdrawal limits that restrict the number of times you can access your cash per month. 
• Money market account: Money market accounts are like a checking and savings account hybrid. They usually come with a debit card and check-writing capabilities while offering a decent interest rate on your balance. However, they may come with monthly fees or high minimum balance requirements. 
• Certificate of deposit (CD): If earning interest is a priority, consider parking your money in a CD for a certain period of time. CD terms often range from one to five years or longer, and your rate may depend on your balance and term. See the best CD rates available today.
• Brokerage account: Investing in a taxable brokerage account is another option, especially for long-term wealth creation. Make sure you understand the tax implications and fees before you start investing. 
• I Bonds. These government-issued bonds are a fairly safe investment and can help protect your money from inflation. However, you won’t be able to withdraw your money for at least a year. 

Methodology

Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews. To rate free checking accounts, we collected hundreds of data points, including, APYs, fees, and account requirements from a dozen popular banks to ensure that our review helps readers make informed decisions about their banking needs.