The best bank for you depends on what you actually use and what you pay

There is no single best bank — the right choice depends on whether you need a branch you can walk into, how many times you withdraw cash each month, whether you carry a balance on a credit card, and how much money you keep in savings. A bank that works well for someone who uses mobile deposits and never visits a branch may charge fees that hurt someone who needs in-person service. The banks with the lowest fees for one person often have higher fees for another.

The most useful comparison is not "best banks" but "which bank's fee structure and features match how I actually bank." This means looking at your own habits first, then finding the bank that charges you the least for those habits.

Key Takeaways

  • Monthly maintenance fees, overdraft fees, and ATM fees vary widely between banks, so the cheapest option for you depends on your specific banking habits.
  • Large national banks like Chase, Bank of America, and Wells Fargo have many branches but often charge higher fees than online-only banks or credit unions.
  • Online banks such as Ally, Charles Schwab, and Discover typically charge no monthly fees and reimburse out-of-network ATM fees, but offer no physical branches.
  • Credit unions often have lower fees and better rates on savings accounts and loans, but membership is limited to people who meet specific criteria (employer, location, or affiliation).
  • Comparing the same three to five banks across the fees you actually pay — not advertised rates — takes 15 minutes and usually saves you $100 to $300 per year.

National banks with branch networks

Chase, Bank of America, and Wells Fargo are the three largest banks in the United States by number of branches. If you need to deposit cash, withdraw cash, or speak to someone in person regularly, a large national bank may be worth the higher fees.

Chase's basic checking account charges a $12 monthly fee if you do not maintain a $500 minimum balance or set up direct deposit. Bank of America charges $12 per month unless you maintain $1,500 in the account or have a may have access to deposit. Wells Fargo charges $10 per month unless you maintain $500 or set up direct deposit. All three charge $35 per overdraft, though they differ on how many overdrafts they allow per day.

The trade-off is access: Chase has roughly 4,700 branches, Bank of America has roughly 4,300, and Wells Fargo has roughly 7,000. If you live in a rural area or travel frequently, branch density matters. If you rarely visit a branch, these fees are expensive for what you get.

Online banks with no physical branches

Ally Bank, Charles Schwab Bank, and Discover Bank operate entirely online. They charge no monthly maintenance fees, no overdraft fees (Ally and Discover), and reimburse ATM fees charged by other banks' machines — meaning you can use any ATM without paying out-of-pocket.

Ally's checking account has no monthly fee, no minimum balance, and no overdraft fees. Charles Schwab's checking account also has no monthly fee, no minimum balance, and no overdraft fees; it reimburses all ATM fees worldwide. Discover's checking account has no monthly fee, no minimum balance, and no overdraft fees.

The downside is that you cannot deposit cash at a physical location. If you receive cash regularly and need to deposit it quickly, an online-only bank requires you to use a partner bank's ATM or mail deposits, which takes longer. If you rarely handle cash, online banks usually cost you nothing and often pay higher interest rates on savings accounts than national banks do.

Credit unions and membership requirements

Credit unions are member-owned financial institutions that often charge lower fees and pay higher rates on savings than banks do. However, membership is not open to everyone — you must meet a specific requirement such as working for a particular employer, living in a certain county, or belonging to an organization.

For example, Navy Federal Credit Union is open only to military members, veterans, and their families. Connexus Credit Union serves people who live in Illinois, Indiana, Iowa, Michigan, Missouri, or Wisconsin. Many credit unions serve employees of a single large employer or members of a professional association.

If you are may be able to access for a credit union, compare its checking account fees, overdraft fees, and savings account interest rates against the banks you are considering. Credit unions often win on fees and rates, but only if you can join. Use the CO-OP Network or Shared Branch network to find ATMs and branches near you if you choose a smaller credit union.

How to compare banks on the fees that matter to you

Start by writing down your own banking habits: How many times per month do you withdraw cash? Do you overdraft your account? Do you use out-of-network ATMs? Do you carry a credit card balance? Do you maintain a savings account? Do you need to deposit cash in person?

Then pick three banks that seem to fit your needs and look up their fee schedules on their websites — not their marketing pages, but their actual fee disclosure documents. These are usually titled "Schedule of Fees" or "Deposit Account Agreement." Calculate what you would pay in a typical month at each bank based on your habits.

For example, if you overdraft twice per month and use out-of-network ATMs four times per month, a bank charging $35 per overdraft and $3 per ATM fee costs you $82 per month, or $984 per year. An online bank charging $0 for both saves you nearly $1,000. But if you never overdraft and rarely use ATMs, that same online bank and a national bank with a $12 monthly fee differ by only $144 per year.

Savings accounts and interest rates

If you are comparing banks partly to find a good place for savings, look at the annual percentage yield (APY) each bank offers on savings accounts. This varies by bank and changes weekly based on Federal Reserve rates.

Online banks and some credit unions typically offer higher APY on savings accounts than national banks do — often 4% to 5% APY, compared to 0.01% to 0.05% at large national banks. However, the APY is only useful if you actually keep money in savings. If you spend everything you earn, the interest rate does not matter; the monthly fee does.

If you plan to save $5,000 or more, the difference in interest rates can outweigh higher fees at a national bank. A $5,000 balance earning 4.5% APY at an online bank earns $225 per year, while the same balance at 0.01% APY at a national bank earns less than $1. That $224 difference per year is real money.

When to switch banks

Switching banks takes time but is straightforward. You need to set up direct deposit at your new bank, update any automatic bill payments, and move any remaining balance from your old account. Most banks have a guide for this on their website.

Switch if you are paying more than $100 per year in fees you could avoid, if your current bank's savings rate is more than 1% lower than competitors, or if you no longer need the features you are paying for (such as a branch network you never visit). Do not switch for a promotional offer alone unless the offer is large enough to cover the time cost of moving.

Frequently Asked Questions

Is it safe to bank with an online-only bank?

Yes. Online banks are insured by the Federal Deposit Insurance Corporation (FDIC) just like traditional banks, meaning deposits up to $250,000 per account are protected if the bank fails. Check the bank's website to confirm FDIC insurance before opening an account.

Can I use an ATM at a different bank if I bank online?

Yes, but it depends on the bank. Charles Schwab and Ally reimburse ATM fees charged by other banks, so you pay nothing. Other online banks may not reimburse fees, so using an out-of-network ATM costs $2 to $4 per transaction. Check the bank's fee schedule before opening an account.

What if I need to deposit cash but I bank online?

Most online banks let you deposit checks by taking a photo on your phone. For cash deposits, you can use a partner bank's ATM, mail a check to yourself and deposit it, or transfer money from another account. Ask the bank what options they offer before opening an account if cash deposits are important to you.

Do I need a minimum balance to avoid fees?

It depends on the bank. Online banks typically have no minimum balance requirement. National banks often require $500 to $1,500 to waive monthly fees. Credit unions vary. Check each bank's specific requirements — do not assume all banks in the same category have the same rules.

What is the difference between a bank and a credit union?

Banks are for-profit companies owned by shareholders. Credit unions are non-profit organizations owned by their members. Credit unions often charge lower fees and pay higher rates, but membership is restricted. Banks are open to anyone and have more branches and services, but usually charge more.