Most reputable banking agencies charge fees on their checking accounts; some will charge you penalties when the report is below the required minimum. At the end of the month, they can be a great investment.
Some banks have free checking accounts available that earn interest. Before opening any of them, you should know the terms and conditions to avoid paying disguised fees.
Banks with free checking accounts in 2022
Many banks paid attention to customer dissatisfaction with fees and decided to offer quality products without additional charges. Some of the best free checking accounts are:
Capital One and its 360 checking account
Capital One is one of the most popular banking institutions in the United States, has an account with no set-up fees, no commissions on credit cards used abroad, and has efficient and simple mobile banking.
There is no minimum deposit to open the account. It has 0.1% APY; you can open it in any nine branches available in different parts of the country. The app is compatible with both Android and iOS devices.
Ally Interest Checking Account
Ally Bank has an interest checking account that requires no initial deposit and has no account maintenance fee. Will pay interest paid on balances under $15,000 and at an annual percentage yield of 0.1%.
For accounts with a daily balance of $15,000 or more, you will earn 0.25% APY. Interest checking accounts enjoy benefits such as free standard checks and access to Allpoint ATMs.
It’s an account you’ll manage digitally from any Android or iOS device, have over 43,000 surcharge-free Allpoint ATMs, and receive a $10 statement reimbursement for fees charged at any other ATM.
eCentive Account at Heritage Bank
Heritage Bank does not enjoy the recognition of the nation’s big banks, although it does offer good APY rates of up to 1.02% on qualifying balances of no more than $25,000 in your eCentive account.
Balances over that amount will have a lower APY of 0.14%. To enjoy a higher APY on higher balances, you need to make payments of at least $500 or purchase with your debit card each month; you also need to make a monthly direct deposit or automatic payment.
You will be charged a $30 fee if you close the account within six months of opening the account. To have your eCentive account, you must make a $100 deposit. Their branches are located in Minnesota, South Dakota, and Lowa.
FNBO Direct Online Checking Account
Best for annual overdraft refunds, only a $1 deposit is required to open, wire transfers are completely free, and there are no monthly maintenance fees. You have access to Allpoint network ATMs with no surcharges and enjoy APYs up to 0.15%.
Benefits of free checking accounts
Having a checking account that generates earnings and zero fees is a great way to keep your financial life. They are accounts with many benefits; among the highlights, you will see:
Minimum balance or opening deposit requirements
Some of them do not require opening deposits, but those that impose it as a requirement, on many occasions, will accept to open the account with only $1. Most of the current charges that do not generate interest are considered free.
You also need to maintain a minimum balance to avoid maintenance fees; most accounts require a $162 minimum. Some checking accounts have no minimum balance and no maintenance fees.
You get incentives and rewards
Popular free checking accounts on the market have a high APY if you make direct deposits or purchases with your debit card. You could also get reimbursed for out-of-network ATM fees.
They have overdraft options
Some banks have the option to enroll in debit card overdraft protection. Before you sign up, be aware of the bank’s fee when you make transactions that go negative on your account.
According to a Bankrate study, the average overdraft fee is $33.58, but it all depends on the banking agency where you have your account.