The 7 Best Free Checking Accounts

© (Getty Images)Young woman depositing check online with camera phone in living room

Free checking accounts have slowly become more rare over the last several years. "After the Dodd-Frank banking act took away much of the revenues banks saw from consumer and business debit card fees, checking account holders were hit with these new costs," says Cristopher Carillo, the co-founder of payment processing firm Allied Payments.

In 2009, 76% of banks offered free checking. As of 2018, that number dropped to 38%. From monthly maintenance fees to ATM fees to overdraft fees, banks have found plenty of ways to squeeze an extra few dollars from their customers each month.

That doesn't mean, however, that you're stuck with an expensive checking account. You shouldn't have to pay for access to your own money - and you don't have to. Especially with the proliferation of online banks, which have fewer overhead costs and can pass those savings on to customers, it's possible to find a checking account that charges zero fees. And the best accounts also offer additional benefits, such as competitive interest rates and tools that make it easier to manage your daily money needs.

How Much Can Checking Accounts Cost?

Despite the availability of fee-free checking accounts, there are plenty of offerings on the other side of the spectrum. Considering the routine nature of opening a checking account, you may not have given much thought to how much that bank account could cost you in the long run.

The truth is that it can cost you quite a bit. Take maintenance fees, for example. Many banks charge a monthly fee to cover the administrative costs of maintaining your account, says Sarah Blanchfield, a financial therapist and founder of My Bulletproof Budget. Maintenance fees can be up to $15.

Some accounts waive this fee if you maintain a minimum balance or a certain amount of monthly direct deposits, but these thresholds may be fairly high and not realistic. The Chase Total Checking account, for example, charges a $12 monthly fee unless account holders electronically deposit at least $500 each month or maintain a daily balance of at least $1,500. Plus, "it must remain about that amount always - any dip below and you will be charged," Blanchfield says.

Overdraft fees are another way checking accounts can cost you big. "This is what the bank charges you if you spend more money than you have in your account and they front you the money to cover the charge," Blanchfield says. Overdrafting your checking account results in a fee of about $34, according to the Consumer Financial Protection Bureau. However, it's one of the easiest fees to avoid, Blanchfield adds. "You have the option to turn off your overdraft protection."

Then there are fees to receive paper statements, order checks, use an out-of-network ATM, make a transaction overseas and even close your account, all of which add up. On average, checking account holders incur $9.87 in fees per month, or $118 annually, according to the CFPB. That amount increases to $349 annually for customers who opt into certain penalty fees, such as overdraft coverage.

Best No-Fee Checking Accounts

You know what to look for, but where do you actually find these low-cost checking accounts? Among the thousands of financial institutions offering checking accounts, these seven stand out as the top no-fee checking options.

Alliant Credit Union High-Rate Checking Account. Though the credit union is based in Chicago, just about anyone can qualify for a membership with Alliant Credit Union. Its checking account is one of the best on the market. There is $0 needed to open an account, no monthly maintenance fees, no minimum balance requirement and a competitive 0.25% annual percentage yield when you sign up for e-statements and a monthly electronic deposit. What's most unique about this checking account is that users receive up to $20 in ATM fee reimbursements per month - a savings of up to $240 per year in ATM fees. Alliant members also have access to more than 80,000 in-network ATMs nationwide.

Ally Bank Interest Checking Account. The online checking account offered by Ally Bank is another fee-free option. There is no monthly maintenance fee or minimum balance requirement, and no minimum deposit is required to open an account. Account holders with less than $15,000 earn a less-than-impressive 0.1% APY, but higher balances qualify for 0.25% APY. Ally also refunds up to $10 in ATM fees per statement cycle.

Capital One 360 Checking Account. Another online option, Capital One's 360 Checking Account doesn't charge a monthly fee and does not require a minimum opening deposit or monthly balance. Account holders have access to more than 40,000 free ATMs and a top-rated mobile app.

Chase College Checking Account. College students ages 17 to 24 have access to fee-free checking through Chase. The checking account comes with no monthly fee for up to five years while you're attending college; nonstudents can qualify for zero fees in other ways. New Chase customers can also currently earn $100 cash when they open a college checking account with qualifying activities.

Discover Cashback Debit Account. Not only does the checking account from online bank Discover come with zero monthly maintenance fees, but it also offers 1% cash back on up to $3,000 in debit purchases per month. Discover also does not charge overdraft fees or require a minimum balance.

Schwab Bank Investor High Yield Investor Checking Account. This no-fee checking account available to Schwab brokerage customers is great for frequent ATM users. Though you may not be doing much traveling these days, Schwab offers unlimited ATM rebates for cash withdrawals anywhere overseas (other banks will likely charge 1% to 3% of the transaction amount). There is also no monthly fee or minimum balance requirement.

Wealthfront Cash Account. The checking account from robo-advisor Wealthfront is truly fee-free. There is no fee for maintenance, overdrafts or stop payments. It only requires $1 to open, and there is no monthly balance requirement. Account holders can earn 0.35% APY on their balance. Wealthfront also allows customers to access their paychecks two days early and provides a network of more than 19,000 fee-free ATMs.

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