The Best Checking Accounts of 2023

When choosing a checking account, the factors that matter most can vary from person to person. You may want to consider any fees that may be associated with having a low balance, whether or not the institution has locations close to you and how user-friendly the institution’s mobile app is. You might also want to look at checking accounts that pay interest, which, although rare, do exist.

GOBankingRates took all of these factors into consideration when selecting the Best Checking Accounts of 2023. Over 80 checking accounts were analyzed and ranked based on the following:

• Total assets
• Number of branch locations
• Minimum deposit to open an account
• Monthly checking fee ratio
• APY
• Overdraft fee
• Mobile app ratings

Based on GOBankingRates’ thorough analysis, these are the Best Checking Accounts of 2023.

GOBankingRates’ Best Checking Accounts of 2023

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What To Know About Checking Accounts

A checking account is a secure place where you can keep your money for daily transactional needs, such as paying bills or depositing your paycheck. Most banks have numerous checking account options that you can choose from based on your daily financial needs.

How Do Checking Accounts Work?

A checking account is merely a holding place for money. Both incoming and outgoing transactions are processed electronically within the FDIC-insured account, typically overnight. Debit card and ATM transactions usually reduce your available balance immediately, whereas it can take a bit longer for a paper check to clear, meaning the funds show up as deducted from your account.

Why Should You Open a Checking Account? 

Not only does putting your money in an FDIC-insured account provide you with financial safety, it also grants you multiple points of easy access to your cash flow such as mobile apps, ATMs or in-person banking. When trying to reach your financial goals, it helps to have your funds organized and safe from check cashing fees.

How Much Money Should You Keep in a Checking Account? 

It’s always important to keep enough money in your checking account to ensure you don’t incur any bank fees. Besides that, a good rule to follow is to keep enough money in your checking account to cover one to two months of living expenses in case anything unexpected happens, such as emergency medical care or job loss. Once you’ve accounted for these expenditures, try and add another couple of months worth to your savings account to earn better interest.

What Kind of Checking Account Fees Exist? 

Checking account fees will vary depending on your bank or type of account. However, many banks charge fees for certain kinds of transactions or if you fail to maintain the required minimum balance of your checking account. Additional fees may include the following:

• Overdraft fees
• Monthly service or maintenance fees
• ATM fees

Checking Account Bonus Offers 

Bonus offers for checking accounts typically are a one-time offer when you open an account. These bank promotions will vary by location, but it’s good to research how much cash you can earn just by opening a new account if you’re in the market.

Is Your Money Safe in a Checking Account? 

As most banks are FDIC insured, your money is safe in a checking account or any other account with that bank as the amount you deposited is covered dollar-for-dollar. Typically this insurance covers the amount deposited and any interest you’re owed up to $250,000.

Checking Account Terms to Know

Here are some common checking account terms to know when banking:

• Bounced check: This occurs when you have written a check you don’t have the funds for, in which case it will be sent back to you and you will possibly owe a fee.
• Canceled check: A check you’ve written that has been cashed or deposited, and cleared from your account is considered to be canceled, and cannot be reused.
• Certified check: A check from a personal checking account that the bank has guaranteed has sufficient funds.
• Check clearing: When funds have been successfully cleared from your checking and deposited into the bank account of the person or institution you have written the check to, it is considered cleared.
• Check kiting: When you knowingly write a check with insufficient funds and deposit it into another bank account, this fraudulent activity is known as check kiting.
• Outstanding check: A check you have written that has not been cashed or deposited yet, and therefor has not been cleared from your checking account.

Pros and Cons of Checking Accounts

PROS

• Easy access to funds – You can access funds held in a checking account at any time, and there are no limits to the number of withdrawals you can make.
• Security – Checking accounts can offer FDIC insurance, which means your funds are protected for up to $250,000. Even if the bank closes, your funds are insured.

CONS

• Low or no interest – While a checking account is a convenient place to store money for transactions, it is not the best type of account for growing your funds. These accounts typically pay little or no interest.

Different Types of Checking Accounts

Depending on where you bank, you’ll likely have a choice regarding what type of checking account you want to open. These choices might include the following:

• Traditional checking accounts: This type of checking account enables you to write checks, make purchases with a debit card and pay bills online. You might have a minimum required amount to open a checking account and it might come with fees.  
• Student and teen checking accounts: Teen checking accounts are designed for those between the ages of 13 and 16, and student checking accounts are for those ages 17 to 24. These accounts charge low to no fees and are great for teaching kids how to manage their money.
• Senior checking accounts – Senior checking accounts come with an age requirement — usually 55 and older — and typically offer perks like free checks, fee waivers and even interest.
• Interest checking accounts – You can earn interest on your balance with an interest checking account. 
• Rewards checking accounts – You can earn rewards as you make purchases with a rewards checking account. You’ll likely earn cash back or points, which you’ll get deposited into your account at the end of the month.
• Second-chance checking accounts – A second-chance checking account is the right choice for those who may not be eligible for traditional checking accounts. They offer many of the same features of traditional accounts, and provide the opportunity to build up a positive banking history.
• Checkless checking accounts – This type of account requires that you do all of your transactions via your debit card or through online or mobile banking.

How To Choose a Checking Account

With so many checking accounts available, choosing the right one can seem like a Herculean task. Simplify the process by analyzing your personal financial situation and prioritizing which checking account features are the most important for you.

For example, if you have a large amount of money to deposit, you might be able to access an account loaded with services from a major international bank for no monthly fee. If you aren’t quite ready to make a deposit but want to establish a checking account, you might want to look at online banks that still offer traditional services but don’t require a minimum balance to waive their monthly fee.

Your choice may also be affected by how you use ATMs. If you travel a lot, for example, 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 gravitate toward one that offers local discounts, for example.

Overall, your choice should provide you with the most amount of services that you will actually use at the lowest possible cost.

Do Checking Accounts Earn Interest?

Though there are some banks that offer special checking accounts where you can earn interest, in general, most checking accounts do not. This is due to the fact that these accounts allow you to store money that you can spend immediately through checks, cash withdrawals or debit card transactions.

There are some high-yield checking accounts, which are interest-bearing accounts with a high rate of return. To hold such an account you typically will be required to maintain a minimum balance, receive direct deposit into the account or have only a minimum amount of monthly transactions. The interest you earn on these accounts, as with most bank accounts, is taxable.

Here are some banks that offer interest-bearing checking accounts or high-yield checking accounts:

• Bank of America
• Capital One
• LendingClub
• Marcus by Goldman Sachs

Alternatives to Checking Accounts

If you are debating what type of account is best for you, it is good to know how checking accounts compare to other types of bank accounts.

Checking Account vs. Savings Account

A checking account tends to be your daily transaction account which you can write checks from or link your debit card for digital transactions. A savings account is where you store funds that you don’t need to access often, which helps with the goal of accumulating more and earning interest.

Checking Account vs. Money Market Account

Most checking accounts don’t earn interest whereas money market accounts do accrue interest, typically at competitive rates. The interest earned in a money market account is tier-based and established by the amount of the account’s balance.

Checking Account vs Prepaid Debit Card

The main difference between a checking account and a prepaid debit card is that a regular debit card is linked to your checking account and the funds within that account, whereas a prepaid debit card requires you to load money onto that card before use. 

How Can You Open a Checking Account?

Checking accounts are easy to open — you just need to supply your personal and financial information and arrange your opening deposit, if one is required.  Here are some typical requirements you’ll need to meet in order to open a checking account:

• 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: Though it can vary from bank to bank, in general, ages 13 to 17 years old need their ID, or if they don’t have an ID, need both their birth certificate and social security card. They’ll also need an adult co-owner to open a checking account. 

Recap of Best Checking Accounts

• SoFi Checking and Savings: Best for High Interest
• Ally Bank Interest Checking: Best for No Fees or Minimums
• Axos Bank Essential Checking: Best for ATM Reimbursement
• Bank of America Advantage Plus Banking®:Best for Large ATM Network
• Capital One 360 Checking: Best for Flexibility
• Charles Schwab Bank High Yield Investor Checking: Best for Checking APY
• Chase Bank Total Checking®:Best for Mobile App
• Chime Checking: Best for Digital Checking
• Citi® Basic Banking: Best for Unlimited Check Writing
• Current Spend: Best for Cash Back
• EverBank Yield Pledge Checking: Best for No Fees
• First Internet Bank Free Checking: Best for a Free Account
• First National Bank of Pennsylvania Freestyle Checking: Best for Unlimited Checks
• LendingClub Bank Rewards Checking: Best for Checking Rewards
• NBKC Everything: Best for ATM Reimbursement
• New York Community Bank My Community Free Checking: Best for Checking Rewards
• ONE Finance Spend Pocket: Best for Direct Deposit Bonus
• Quontic Bank Checking: Best for Great APY
• Truist Bank Confidence: Best for No Overdraft Fees
• Wells Fargo Bank Everyday Checking: Best for Number of Locations

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