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 and our top choice for a second chance bank account.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 the credit bureaus.
Features include mobile deposits, direct deposit, online bill payment, NO monthly or annual fees, NO overdrafts, NO credit check, and NO CheckSystems. Opening an account is super easy. It takes about 2 minutes and you don’t have to make an initial deposit. Here’s what we like:
No Hidden Fees
For the past couple of years, Chime’s huge growth has come at the expense of the big banks and their outrageous fees. And it’s one of the best features of a Chime account. There are no monthly or annual service charges, no minimum balance requirement, no foreign transaction fees, no fees at over 60,000 ATMs, and no fees for mobile and online bill pay.
Smart Technology
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.
You can transfer funds to friends and family, Chime members or not… and they can claim their money instantly without any additional apps. The Chime app also has a series of notifications that you can turn on or turn off so you stay in complete control. Misplaced or lost your card? You can instantaneously turn off your card using the app. No wonder over 300,000 customers have given the app a 5-star review.
Customers First 
Chime was one of the first to offer a “round up” option. If you use your Chime card on a purchase of $10.65, Chime gives you the option of automatically rounding up to $11.00 and putting the remaining $.35 in your free Chime savings account. And that adds up over time! Plus, Chime pays you 0.50% in interest on that savings account.
If you use direct deposit with your Chime account, you can get your paycheck up to 2 days early. And Chime is just saying no to big bank NSF charges with a fee-free overdraft program up to $200. Finally, Chime just recently launched their Credit Builder credit card with no interest and no annual fee. We don’t think there is another company innovating for their customers like Chime.
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.
Nearside is a fast-growing company built specifically around business banking solutions for entrepreneurs and small business owners. In addition to dramatically streamlining the application process, Nearside requires no minimum deposit, doesn’t check your credit, and has no monthly maintenance fees. Here’s a recap:- FREE business Mastercard debit card
- FREE access at over 55,000 ATMs nationwide
- FREE online and mobile app
- FREE cashback and rewards program
- NO minimum deposit is required when you apply
- NO monthly fee
- NO NSF fees
- NO card replacement fees
- NO ACH transfer fees
Banking Services
Transferring money is easy with Nearside using ACH, bill pay, or paper check. And you can deposit checks using the Nearside app. Need cash? Get it at over 55,000 ATMs. We also like that there are no NSF fees on the account. If you lose your debit card, Nearside will replace it free of charge. Finally, you can link your Nearside debit card to Apple Pay or Google Pay and monitor all your transactions from the Nearside app.
Rewards Program
Cashback and rewards programs can save you a ton of money when you use your Nearside debit card. You can save 5% cashback on car rentals, 4% on hotels and dining, 3% on business vendor spending, and 1% on gas. Nearside Perks is a discount program offered when you use such services as Quickbooks, Constant Contact, Yelp, Indeed, Square, and many more.
Application Process
Nearside targets account approvals within one business day. Information required to open an account includes name, address, and social security number or tax identification number. If applicable, Nearside may ask for a copy of your business license and business formation documents. They do not check your credit or use ChexSystems.
Nearside is one of the most competitive business bank accounts for entrepreneurs and small business owners. Their combination of services and offerings, the fast application process, and customer support create an outsized competitive advantage for both the bank and its customers. Every small business owner understands how critical that is for success.
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. When you sign up and deposit at least $10 within 5 days, SoFi will deposit an additional $25 in your account immediately!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.
Gena 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 1.00% APY
You can earn a $100 new account bonus by setting up an account by November 30, 2021, and depositing at least $1,500 within the first 60 days after the account is opened. The promotional code for the offer is HOLIDAYS.
The Rewards Checking interest payment can be earned by jumping through a couple of hoops. To learn more, you can visit the Axos website.
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.