COVID-19 has changed the way people shop, work, socialize, and make payments. The pandemic may be pushing us closer and closer to a cashless society. While some consumers had already embraced online banking and payment options, others are going digital for the first time. According to one survey, 45% of respondents said the way they conduct banking has changed permanently due to COVID-19.
The COVID-19 public health crisis has introduced more consumers to the benefits of online banking, whether as part of their traditional brick-and-mortar banking relationship or with an online-only bank. Digital and online banking seems to be the new normal.
Today, almost every bank offers online banking options, but did you know that there are banks that operate either solely online or with a very limited branch network? Without the overhead of a large branch operation, they can offer a variety of banking products while passing the savings to their customers, who will enjoy lower fees and added benefits, including protection from bank fraud. Opening a free online checking account could be the solution for you.
>> MORE: Why You Shouldn’t Hoard Money In A Checking Account
The Best Free Online Checking Accounts: Our Selection Process
We reviewed over 1,000 checking accounts found at banks and credit unions across the country and found five that top our list of The Best Free Online Checking Accounts.
We wanted full featured checking accounts with all the bells and whistles and without ANY limitations. Importantly, our finalists all offered checking accounts that are truly free: no hidden fees or monthly charges. Our search included banks that required no account balance minimums and all of them had to have an outstanding customer reputation for their online and mobile apps as well as human customer service availability.
8 Features Your Online Bank Should Include
Your checking account should be safe, simple, and full of the features you need. We found most banks had confusing offers, monthly balance or usage minimums, gimmicks to get you to use your account, and a host of other nonsensical add-ons. Instead we chose institutions that help you keep your finances simple and understandable. Most of all, these banks don’t charge fees or engage in silly promotions. The best free online checking accounts offer:
- Free debit card and unlimited check writing
- No monthly or annual fees
- No account minimums
- Free use of ATMs
- Powerful mobile tools
- Free online banking and bill pay
- Strong customer service
- Low overdraft fees
>> MORE: Opening A Checking Account: 8 Things You Must Know
Chime is a fast-growing internet-only financial company. Unlike big banks, Chime was created during the smartphone era and, therefore, features an app that is more than just a way for customers to review their bank accounts.And, best of all, Chime accepts almost all customers who apply. Even if you have bad or poor credit or have been blacklisted by ChexSystems or credit bureaus.
Features include mobile deposits, direct deposit, online bill payment, NO monthly or annual fees, NO overdrafts, NO credit check, and NO CheckSystems.
Here are a few of the highlights:
- FREE Visa® debit card
- NO monthly Service Charge
- NO monthly minimums
- NO credit check; Bad credit OK
- NO ChexSystems or Telecheck; guaranteed approval
- FREE online banking and mobile banking/deposits
- FREE mobile and online bill pay
- NO foreign transaction fees
- NO fees at over 60,000 ATMs at convenient locations like Walgreens, 7-Eleven, CVS and more
- SAVINGS: You can round up every purchase to the nearest dollar and automatically deposit that difference into your savings account.
Chime Lets You Get A Jump On Payday
You can receive your paycheck up to two days earlier than at a traditional bank if you set up direct deposit — Chime processes your employer’s check immediately instead of waiting like other banks may.
Chime is one of the most friendly for those who have been negatively impacted by bad credit, ChexSystems, or Telecheck.
Get a Chime Account Today!
Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank or Stride Bank, N.A.; Members FDIC.
The SoFi Money Cash Management Account is offered by SoFi Securities LLC, a FINRA registered broker dealer. It’s a checking account on steroids and we love that. Plus, they don’t use ChexSystems to approve accounts.You get a debit MasterCard and a very slick smartphone app. You can make deposits, write checks, utilize electronic bill pay, and transfer money. There are no monthly fees or overdraft fees. Plus, you earn interest on all the money in the account! The sign-up process can take less than 60 seconds.
There is no minimum balance requirement and SoFi Money is available in all 50 states.
- No account fees
- Unlimited reimbursed ATM fees
- Access to SoFi member benefits like career coaching and financial advising
- Automated bill pay
- Freeze debit card on-the-go
SoFi Money has been great! The account was easy to open and I got my debit card a few days later. The smartphone app is easy to use and I can check everything from my computer, too. I’ve had some issues with ChexSystems in the past and SoFi Money seems to be the perfect account.
Kevin M., SoFi Money Customer
Axos Bank, formerly called Bank of Internet USA, has been around for over 20 years and has created some of the best banking offerings we’ve reviewed. And our favorite is the Axos Bank Rewards Checking account. So what are the rewards? Check it out:- NO monthly minimum balance
- NO monthly maintenance fees
- NO overdraft or NSF fees
- UNLIMITED domestic ATM fee reimbursements
- Earn up to 1.25% APY
The Rewards Checking interest payment can be earned by jumping through a couple of hoops. If you have a direct deposit of $1,000 per month, you’ll earn one-third of the interest amount. If you use your Axos Visa Debit Card at least 10 times per month, you’ll earn another one-third of the interest amount. And, if you increase that number to 15 transactions per month, you’ll earn the final one-third of the interest amount. We like the fact that that the interest payment isn’t an all-or-nothing feature.
Axos has created a simple, but powerful smartphone app to manage your account. You can chat 24/7 with a financial assistant, get real-time account transactions and notifications, and freeze your account if your card is lost or stolen. Anything you need to do can be completed using their robust and user-friendly app.
Applying is easy. You’ll need your social security number, a valid form of ID such as a driver’s license, a valid U.S address, and you must be a U.S. citizen or resident alien. There is an initial deposit of $50 to set up the account.
Finally, as a member of FDIC, Axos offers the full protection offered by that institution.
Varo Bank is another internet-only bank with services based on their mobile apps for Apple and Android devices. Varo doesn’t charge fees at 55,000+ Allpoint ATMs and offers strong budgeting tools and automatic savings programs.When you open an account at Varo you can do so with no initial deposit. Plus, there are never any monthly maintenance fees, foreign transaction fees, transfer fees, or debit card replacement fees.
Finally, if Varo receives a payroll notification before your payday, it can deposit your money more quickly than many banks.