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What is a Checking Account?
A checking account is a deposit account offered by a bank, credit union, or other financial institution that allows customers to deposit and withdraw money regularly. Checking accounts act as easy access points for your cash and give you the ability to electronically transfer funds, make online payments, write checks or money orders, and facilitate debit card transactions.
Checking accounts are easy to set up and are perfect accounts to help process short-term and recurring expenses. However, not all checking accounts are created equal. Checking accounts can vary significantly from one another in terms of their annual percentage yield, customer service, monthly fees, minimum account requirements, sign-up promotions, and more. Below, we examine some of the best checking accounts on the market and provide our Smart Money recommendation for each account.
Best Online Checking Accounts
| Bank | SM Ranking | APY | Heading |
|---|---|---|---|
 |
5/5 | 0.05% | Learn More |
 |
5/5 | 0.10% | Learn More |
 |
5/5 | 3.30% | Learn More |
 |
5/5 | N/A | Learn More |
 |
5/5 | 0.10% | Learn More |
Our Top 5 Picks for Best Checking Accounts:
Member FDIC
Axos Bank® Rewards Checking
Smart Money Rating: 5/5
APY: 3.30% with No Minimum Balance
Bonus Offer: Up to $300 Bonus (Terms Apply)
Monthly Fee: 0$
Member FDIC
SoFi Checking and Saving
Smart Money Rating: 5/5
APY: 0.5% with No Minimum Balance
Bonus Offer: Up to $250 Bonus (Terms Apply)
Monthly Fee: 0$
Member FDIC
Ally Spending Account
Smart Money Rating: 5/5
APY: 0.10% with No Minimum Balance
Bonus Offer: N/A
Monthly Fee: 0$
Member FDIC
Discover Cashback Debit
Smart Money Rating: 5/5
APY: N/A
Bonus Offer: N/A
Monthly Fee: 0$
Member FDIC
LendingClub Rewards Checking
Smart Money Rating: 5/5
APY: 0.10% (with $2,500 minimum balance for APY)
Bonus Offer: N/A
Monthly Fee: 0$
Why You Should Have a Checking Account
Almost everyone needs a checking account to carry out day-to-day transactions and survive in our current economy. Checking accounts should be the central hub of your financial ecosystem, especially if you want to automate your finances. Your checking account is often the most frequently used because it facilitates regular transactions. Picking a checking account that aligns with your lifestyle and financial goals can make the banking process fun and easy.
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How to Choose the Best Checking Account
There are many factors to consider when selecting the best checking account. Here are five variables to analyze when vetting checking accounts.
Annual Percentage Yield
Traditional checking accounts are not known for their high Annual Percentage Yield (APY). But it can be helpful to maximize interest income, especially if you have idle cash, by looking for an account with better APYs. If you are trying to maximize APY, consider high-yield checking accounts or high-yield savings accounts.
Quality of Website & Mobile App
If you are like most people, most of your dealings with your bank will be via their website and mobile applications. These interfaces can vary tremendously in terms of user-friendliness and intuitiveness among banks. Selecting a bank with a great mobile app will make your banking painless.
Checking Account Fees
Many checking accounts require minimum account balances. If you plan on keeping your checking account as a clearing account for your financial ecosystem, ensure the account doesn't charge high fees.
ATM Convenience
Not all checking accounts have convenient ATM locations. Some national or local banks will only have a few ATMs in your area, so you will want to analyze their fees for withdrawing your funds from other banks’ ATMs.
Access to Deposits
Whether you want local branch locations to talk to a banker or ATMS close by, having easy access to your deposits is essential. Consider both brick-and-mortar locations, as well as easy online access to your account. You want the ability to transfer funds quickly (look for same-day delivery ability).
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Smart Summary
Selecting the best checking account for you is a smart money move. Take the time to analyze the variables that are most important to you and choose the best checking account for your financial situation. Setting up a checking account is a relatively simple process that can be done in minutes. Conduct your research and select the best solution that aligns with your financial goals.
Frequently Asked Questions
It is usually best to select one checking account that works for you. Not only will you maximize the variables you care about (like annual percentage yield or interest income) but having one checking account will declutter your financial life.
If your checking account is FDIC insured, your account can be insured up to $250,000. Making sure that your account is protected is an essential variable in selecting the best savings account.
Checking account bonuses are usually offered to new customers opening a new checking account. These sign-up promotions come with strings attached. For example, you may have to deposit a minimum amount of cash into your account and keep it in the account for several months. Some banks have other requirements, such as a minimum number of deposits into the account.
