Chances are, if you’re an adult you use banking products. The financial account that likely sees the most activity is a checking or debit card account. These accounts get used for everything from automatic payments to impulse purchases, which means finding the best checking accounts to meet all your needs is important.
Right now, the best banks for checking accounts are offering low account minimums to open, along with fee-free services, access to an ATM network and some form of interest or account rewards.
The 5 best checking accounts of June 2020
- N26 — Best mobile app
- Ally Bank — Best for high APY
- Capital One — Best for overdraft protection
- Discover — Best for cash back rewards
- PNC Bank — Best for digital tools (basic virtual wallet)
|Provider||Min. Deposit||Monthly Fee||ATM Network||APY||Key Benefit|
|N26||$0||$0||55,000+||Not listed||Get paychecks two days early|
|Ally Bank||$0||$0||43,000+||0.10% to 0.50%||Reimbursement for ATM use outside network|
|Capital One||$0||$0||39,000+||0.20%||Several overdraft assistance options|
|Discover||$0||$0||60,000+||1% cash back||Monthly cash back on debit purchases|
|PNC Bank||Not listed||$0 to $25||15,000+||Not listed||New account bonuses available|
The best checking accounts of 2020
N26 — Best mobile app
Digital bank N26 has a checking account option that comes with some notable perks. First, the bank’s mobile app is driven by artificial intelligence to simplify and streamline banking processes for users. An account with N26 also comes with a debit card and access to free cash withdrawals at over 55,000 ATM locations throughout the world.
Still, while the number of ATMs is one of the highest on this list, it’s important to remember that the ATMs are spread throughout six different countries.
One additional perk of an N26 checking account is that users who receive direct deposit paychecks can get their money on Wednesdays instead of Fridays — two days early. This is not in the form of a loan, either, but rather the bank simplifying backend processes to approve the deposit faster.
Ally Bank — Best for high APY
Those of you looking to earn interest on the money in your checking account may like the APY rates offered on a high yield checking account from Ally Bank. For balances under $15,000, the rate is 0.10%. If you keep a minimum daily balance over $15,000, that APY jumps to 0.50%. This is lower than what you’d get through a savings account, but is higher than many checking account options offer.
Plus, you won’t see those interest earnings gobbled up by fees, because Ally does not charge monthly maintenance fees or fees on many common banking processes, like ACH transfers, incoming wires or cashier’s checks.
Capital One — Best for overdraft protection
For many people, a checking accounts require constant supervision to prevent overdraft charges, especially when direct deposits and payments post on different schedules. Capital One’s online checking account comes with four different overdraft protection options to limit the need for meticulous monitoring. These options include auto-decline, an overdraft line of credit, free savings transfer and next day grace.
On top of all of this, checking account users earn 0.20% APY on the money in their accounts, regardless of the balance size.
Discover — Best for cash back rewards
Instead of giving users an APY return, Discover offers monthly cash back on checking accounts of 1% on up to $3,000 in purchases. If you regularly use your checking account for purchases rather than your debit card, the cash back option makes Discover’s checking account attractive. All of Discover’s checking accounts come with terms that include no account minimums, no maintenance fees and access to over 60,000 ATMs throughout the nation.
More passive spenders might be better served with a high yield checking account regardless of spending, and may want to consider using a savings account for some of their funds.
PNC Bank — Best for digital tools (basic virtual wallet)
PNC Bank refers to its online checking account options as virtual wallets. According to PNC, these virtual wallets offer innovative online tools for managing your money and checking account, which is what makes it stand out against the competition. It also includes online banking, online bill pay, online statements and mobile banking, options that are also offered by a lot of the other banks on this list, at least to some degree.
Some of PNC’s checking accounts come with fees, so depending on the level of checking account you select, you may be subject to monthly service fees that range from $7 to $25. These fees are avoidable, though, by meeting certain monthly requirements. The easiest way to avoid the fees is to keep the required minimum daily balance. For the basic virtual wallet account, that is $500. For the highest-tier account, that amount is $5,000.
One nice perk about the PNC accounts is that they come with new account bonuses of $50, $200 or $300. Customers will need to meet the bank’s list of eligibility requirements to qualify.
What is a checking account?
A checking account is a bank account that holds your money and is designed for high-traffic use. Typically, checking accounts come with the ability to store funds with the bank and withdraw those funds via check, electronic transfer or through the use of a debit card. If you currently have a debit card, you have a checking account (unless it is a prepaid debit cards).
Compared to savings accounts, checking accounts offer lower interest rates so your money earns less, but they do offer more access to your money. Savings accounts are limited to six transactions monthly, but checking accounts rarely have any such limits.
How should I choose the right checking account?
Finding the best checking account involves looking at several different factors and determining what is most important to you. Many people choose their checking account solely based on the interest rate or APY offered. Yes, it’s important to have your money working for you when you can, but you should be looking at more than just the rates.
Most customers will be actively using their checking accounts in daily life. This makes things like customer service, fees, access to ATM networks and security important factors to consider. Ultimately, you want the checking account that pays the highest rates while still meeting all of your needs.
The bottom line
Having a checking account that you can count on is necessary for day to day life. For many, your checking account is how you make your purchases, where you deposit your paychecks and ultimately the lifeblood of your economic life. Taking the time to find the best checking account option for you and your family can help to mitigate future headaches and set you up for financial success.