Best Checking Accounts of 2025

What To Know About Checking Accounts

A checking account is a secure place to keep your money for daily transactions, like paying bills or setting up direct deposit for your paycheck. Most banks offer several types of checking accounts tailored to different financial needs.

Checking accounts are typically the most frequently used type of bank account. Most of the top-rated checking accounts offer online banking tools, wire transfers, deposits and even overdraft protection to help you avoid costly fees if your balance runs low.

Pros and Cons of Checking Accounts

Here’s a look at the pros and cons of checking accounts.

Pros

• Easy access to funds: You can access money in a checking account at any time, with no limits on the number of withdrawals.
• Security: Most checking accounts come with FDIC insurance, protecting up to $250,000 even if the bank closes.

Cons

• Low to no interest: Checking accounts are designed for convenience, not growth, so they typically pay little or no interest on your balance.

How To Choose a Checking Account

With so many checking accounts available, choosing the right one can seem like a Herculean task. You can start by analyzing your needs and prioritizing features that matter most to you. Here are some tips to simplify your search:

• If you have a large amount of money to deposit, look for accounts with added perks and no monthly fees.
• For smaller deposits, consider online banks that don’t require a minimum balance or charge monthly fees.
• Think about how you use ATMs. If you travel a lot, you might prefer a checking account that reimburses overseas ATM fees. If you only use in-network ATMs, you might not care about your bank’s ATM policy and select a bank that offers local discounts.
• Check for sign-up bonuses. Many banks offer cash bonuses for opening a new account and meeting deposit requirements, which can add extra value upfront.

Steps To Choose a Checking Account

Here are some steps you should take when choosing a checking account.

Step 1: Know the Basics of Checking

A checking account is merely a holding place for money. Both incoming and outgoing transactions are processed electronically within the FDIC-insured account, generally overnight. Debit card and ATM transactions usually reduce your available balance immediately, whereas it can take up to a few business days for a paper check to clear.

Step 2: Find the Right Checking Account For You

A checking account should offer financial safety and convenience through mobile apps, ATMs and in-person banking.

Choose one that fits your financial goals, keeps fees low and offers the features you need — for example, sign-up bonuses, overdraft protection or ATM fee reimbursements.

Step 3: Factor in the Fees and Minimums

Every checking account comes with its own rules for fees and balances. Keep these points in mind:

• Some accounts charge fees for failing to maintain a minimum balance.
• Overdraft fees occur when you spend more than your available balance.
• Monthly service fees can often be waived if you maintain a set balance or meet other requirements.
• Expect fees when you use an ATM outside of your bank’s network. Some financial institutions offer ATM fee reimbursements. 
• Account holders will get a statement cycle report so they can see all of their transactions and fees for that period. 

Step 4: Fund Your Checking Account 

Keep enough money in your checking account to avoid bank fees and cover one to two months of living expenses for emergencies. After that, consider moving extra funds to a savings or high-yield savings account so your money can earn interest while remaining accessible.

Alternatives To Checking Accounts

If you’re unsure about opening a checking account, here’s how it stacks up against other options.

Account Type	Best For	Access to Funds	Interest Earned
Checking account	Everyday spending, bill payments	Unlimited withdrawals	Very low or none
Savings account	Growing money over time	Limited monthly withdrawals	Low to moderate
Money market account	Earning interest with some liquidity	Limited withdrawals	Moderate
Prepaid debit card	Spending without a bank account	Reload required before use	None

How Can You Open a Checking Account?

Opening a checking account is straightforward. You’ll need to provide some personal information and make an opening deposit if required. Many banks let you open an account online, while others may require you to visit a branch. Some banks may also perform a soft credit check as part of the process.

Here’s what to prepare:

• Personal information: Name, address, birthdate, phone number, email address and Social Security number
• Documents: Government-issued ID such as driver’s license, state ID or passport
• Age restrictions: Ages 13 to 17 typically need their ID. If they don’t have one, they can use a birth certificate and Social Security card, but an adult co-owner will need to be on the account.

Daria Uhlig contributed to the reporting for this article.

*Capital One interest rates accurate as of 9/11/2025. See website for all current rates.

SoFi members who enroll in SoFi Plus with Eligible Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or SoFi members with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. If you have satisfied Eligible Direct Deposit requirements for our highest APY but do not see 3.80% APY on your APY Details page the day after your Eligible Direct Deposit arrives, please contact us at 855-456-7634. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. See the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.

SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at SoFi.com/banking/fdic/sidpterms. See list of participating banks at SoFi.com/banking/fdic/participatingbanks.

Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with direct deposits of $1,000 or more during the current 30-day Evaluation Period as determined by SoFi Bank, N.A. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Members with a prior history of non-repayment of negative balances are ineligible for Overdraft Coverage.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at sofi.com/legal/banking-fees/.

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