Best Checking Accounts

A checking account is one of the most basic financial products, but also one of the most complex. Apply for a checking account online or at a branch, and you’ll get a small booklet covering all the terms and conditions. The amount of information involved can make it difficult to pick the right account for your needs. Understanding how checking accounts work will make your life easier and help you save money along the way. Here’s everything you need to know.

Common Questions

See some common questions and answers below
What you need to open a checking account

You will need to bring specific documents and have certain information to complete the process.

  • Basic personal information. The bank will ask for your date of birth, address, phone number, and employment information to complete your checking account profile.
  • Two forms of ID. You’ll need to provide two forms of ID to verify your identity. For example, bring a driver’s license or passport plus another item, such as a credit card, with your name on it.
  • Utility bill or other address verification. Having third-party verification of your address is important to ensure that you actually live at the address listed on your account.
  • Initial deposit. When you open an account, the bank will require you to make an initial deposit. This can be cash or a check. A bank will place a hold on checks with new accounts.
What to look for in a checking account

Below are important features to look for when choosing a checking account that works best for you.

  • Unlimited transactions. Even if you usually don’t make many transactions, make sure you won’t be charged extra if your activity is higher one month.
  • No minimum balance requirements. Is there a minimum balance required before a bank will charge you a fee?
  • Debit card. Having access to your account with a debit card for ATM usage or for debit transactions is critical in today’s society.
  • Online banking and statements. Being able to check your account balance, view your transaction history, and download electronic copies of your statements is also a must.
  • Free bill pay. Instead of writing checks, licking an envelope, and adding a stamp, bill pay takes care of all that for you. Simply pick your vendor, designate the payment account, and choose a date for your payment to arrive.
  • No or minimal fees for services you use. What other services will you use and how much does the bank charge for them? For example, how much is it to send or receive a wire transfer?
  • Perks and benefits. What other perks and benefits are available? For example, some banks provide free credit scores.
  • Overdraft protection. What happens if you overdraw your account? Overdraft protection ensures that payments are approved, even if you don’t have all of the money necessary to cover them. Because of associated fees, this can be a mixed blessing. We’ll look at overdraft protection in more detail in the next section.
How to deposit money in a checking account

Deposit in a bank branch. Simply walk into a branch and hand your money to a teller. The teller will take care of the rest. But be careful: some basic checking accounts charge for in-branch deposits.
ATM card. Walk or drive up to an ATM and deposit your cash or checks. This is a convenient option because you can deposit funds 24/7. It’s also cost-effective for the bank because they don’t have to pay a teller.
Electronic deposits. These deposits are made without any activity by you. Terms like ACH and EFT also refer to this method. The most common form of an electronic deposit is receiving a paycheck directly into your account.
Mobile banking. With the rise of smartphone use and functionality, depositing a check via your phone or tablet is becoming a popular option. You can deposit with mobile banking wherever you are. This is a good way to ensure you don’t lose a check before you have a chance to deposit it.

How to withdraw money from your checking account
  • Write a check. When you write a check, it’s viewed much the same as handing someone cash for payment, except that only the designated payee can legally cash it, deposit it, or sign it over to a third party. (Huntington Bank provides some useful guidance on the last point.) Check usage is declining, but this method is still common.
  • Withdrawal in a branch. When you visit a branch, you can withdraw cash from your account. You can also request a cashier’s check or money order made payable to someone.
  • Cash from the ATM. The 24/7 access to cash is very popular. Before ATMs, if you needed cash after hours, you had to find an open business willing to cash your personal check (or let you write a check for more than a purchase in order to get cash back). Often, you’d end up waiting until the branch reopened again in the morning.
  • Electronic withdrawals or bill pay. An electronic withdrawal is when you authorize payments, for example, to your credit card, auto or home loan, or investment accounts. Apps like PayPal and Venmo are popular tools used to make electronic payments for various reasons.