Which Bank is the best to Open Account

Many people receive their income into a checking account which can be used for spending and paying bills. In some cases, checking accounts can also be a good option for your savings goals. 

Either way, a checking account is a necessity for managing your finances. Follow the steps below when choosing and setting up a checking account:
1. Shop around. Some checking accounts have large ATM networks, reimburse ATM fees, and/or pay interest. Most offer debit cards and check writing. You’ll want to research banks and credit unions to compare accounts. When doing so, make sure the minimum opening deposit is in line with how much you have available and check if there are ongoing minimum balance requirements and monthly maintenance fees. Generally, savings account and money market account rates are higher than checking account yields, but there are some exceptions.
2. Open the checking account and deposit the funds into it.

3. Consider setting up a direct deposit to have your income automatically deposited into the checking account.

Which Bank is the best to Open Account
  • Best overall rate: Heritage Bank
  • Best for no/low fees: NBKC Bank
  • Best for members of the military and veterans: Navy Federal Credit Union
  • Best for mobile app and high-yield rate: Ally Bank
  • Best for unlimited ATM fee rebates: LendingClub Bank
  • Best rate for no minimum balance: Capital One
  • Best for APY guarantee: TIAA Bank
  • Best for sign-up bonuses: Chase Bank

Bankrate's experience on financial advice and reporting
At Bankrate, we regularly survey approximately 4,800 banks and credit unions in all 50 states to provide you with one of the most comprehensive comparisons of interest rates. All of the checking accounts below are insured by the FDIC at banks or the NCUA at credit unions. When selecting the best checking account for you, look for the highest yield while also considering introductory rates, minimum balances and accessibility.

We strive to help you make smarter financial decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. The top banks listed below are based on factors such as APY, minimum balance requirements and broad availability.

What is a checking account?
A checking account is a financial tool that offers everyday access to your money. These accounts typically come with personal checks and a debit card. In recent years banks have expanded their checking account services to include online and mobile banking. With checking accounts, there's no limit to how often you can access your money. Unlike savings accounts, you can withdraw, transfer, write checks and make debit card charges as often as you'd like. Virtually all banks and credit unions offer checking accounts.

To clear checks and transfer funds, banks use the Federal Reserve's automated clearing house service, or ACH, a nationwide network operated by the two national ACH operators — the Reserve Banks and the Electronic Payments Network. Checking accounts are typically easy to set up with a small deposit. If they earn interest at all, it tends to be less than savings and money market accounts. However, checking accounts offer the same level of safety. Like savings and money market accounts, checking accounts are insured up to $250,000 by the Federal Deposit Insurance Corp. (FDIC) or by the National Credit Union Share Insurance Fund, depending on whether your account is at a bank or credit union.

Why should you open a checking account?
Because of their accessibility and safety, checking accounts make for a good financial hub — a versatile account that can be used to pay bills, make purchases and receive deposits. Checking accounts can simplify your financial life. For example, you can set up your checking account to receive automatic deposits from your employer and make automatic withdrawals to pay your bills. Mobile apps enable you to make payments, transfer money and review your transaction history on the go.

What to look for in a checking account

Types of checking accounts
Checking accounts come in several varieties, including versions geared to specific populations, such as seniors, teens, business owners or those who have checkered credit histories. Some offer perks, such as cash back for using debit cards or interest paid on the account balance. Regardless of your financial situation or needs, Bankrate can help you find the best type of checking account for you.

Some banks will pay you hundreds of dollars to get you to open a checking account, but these bonuses usually come with strings attached. For instance, Chase will pay $200 to new customers who open a Chase Total Checking account by Oct. 19, 2022, but they must set up direct deposit of a paycheck, pension or Social Security benefit and keep the account open for at least six months. Bankrate can help you find the best bank account sign-up bonuses.

Potential obstacles to opening a checking account:
Checking accounts typically have some general requirements. And if you don't meet them, it can be difficult to open an account.

Age: It's typically difficult to get a checking account under age 18. That said, opening a joint account or a custodial account can be an option for minors.
Identification: Most banks and credit unions require two forms of identification to open an account — a Social Security card, passport, state ID or driver's license.
Minimum deposit: The minimum deposit to open a checking account is typically around $25 or more, although there are some accounts that allow for less.
Address: You'll need to provide proof of address when opening an account. Utility bills, lease agreements and insurance cards can work well for this.
What to know about minimums and fees
It's important to be aware of minimums and fees when opening a checking account. Here's an explanation of the different types of minimum requirements and fees you may face:

Minimum balance to open: Otherwise known as an opening deposit, this is the minimum amount of money required to open a checking account. This minimum is often $25 or more. However, it's possible to find some accounts that require no minimum to open.
Minimum balance to avoid fees: Many checking accounts require that you keep a minimum balance in the account in order to avoid the monthly maintenance fee. This minimum requirement can range anywhere from $250 to more than $1,500. Often, as long as you maintain the monthly minimum, the bank will often waive the fee.
Monthly fees: Checking accounts frequently charge a monthly fee for "maintenance." These fees can add up to $100 or more per year. In order to get the fee waived, you may need to meet the bank's minimum balance requirement, enroll in direct deposit or even open a savings account.
ATM fees: Banks normally charge for using your checking account's debit card at non-network ATMs to withdraw money. These fees generally range anywhere from $2 to $5 (or more at international ATMs). But there are some banks that don't charge for non-network ATM use, and some will even reimburse you for non-network ATM fees.
How to avoid fees and why it matters
Bank fees are costly. Even though Bankrate’s 2022 checking account and ATM fee study found that the average overdraft fee decreased from $33.58 last year to $29.80 this year, it’s still expensive to pay these fees. 

Luckily, some banks have eliminated or cut overdraft fees. 

A Bankrate survey published in January found that millennials and Generation Z have faced the brunt of these increasing costs, paying more than three times as much in bank fees than older generations. 

In monthly checking account fees alone, the survey showed millennials paid $16 and Gen Zers paid $19, on average, versus $4 for Gen Xers and $2 for baby boomers. The disparity caused by bank fees most significantly affects working class people and people of color. 

For many millennials and Gen Zers, tracking money and investing in the right savings account may not seem like a priority, especially given that they are increasingly overwhelmed by work, student debt and the ongoing pandemic. Unfortunately, these overlapping struggles also put younger generations at the most risk of conceding to higher bank fees or being less careful with their money. The cost of high monthly checking account fees can amount to over $400 a year, money that otherwise could have gone into emergency savings or investments.

Source : bankrate.com

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