How to choose the best bank for checking and savings accounts

Choosing the best bank for checking and savings accounts isn't a once-and-done decision. Your needs change—so should your bank. That’s why switching institutions isn’t a red flag; it’s smart money alignment.

No one bank will stay the right fit forever. But knowing the key decision points—fees, interest rates, access, and features—can help you choose wisely for where you are now. Most consumers today can choose between traditional banks, online banks, and credit unions. Each serves a different kind of user preference and tradeoff.

Brick-and-mortar banks offer in-person service, wide ATM access, and the security of name recognition. If walking into a branch matters to you—or you’re handling complex issues like business banking or mortgages—you may prefer this setup.

But convenience often comes at a price. Traditional banks tend to charge higher monthly fees and offer lower interest on deposits. Even with apps and websites, many lag behind digital-first peers.

Tip: Ensure any traditional bank you choose is FDIC-insured up to $250,000 per depositor, per account type.

These banks operate entirely online, with minimal overhead. That translates into fewer fees and higher interest rates for you. The tradeoff? Service is often digital-only. While some offer robust chat or phone support, you won’t find a physical branch if issues arise. Many traditional banks now offer online services too, blurring the line—but pure online banks still win on savings account yields.

Credit unions are member-owned cooperatives, not profit-driven institutions. That allows them to offer higher savings rates and lower fees. They may have eligibility requirements (employment, region, membership), and not all are tech-forward. But if you want a bank that prioritizes local community and member benefits, this is worth exploring.

Tip: Like FDIC for banks, NCUA insures up to $250,000 for credit union depositors.

Maintenance charges, overdraft fees, and even ATM usage penalties can quietly eat away at your balance. Some banks waive fees with direct deposit or minimum balances—others don't.

Before opening an account, check for:

• Monthly fees
• Overdraft and insufficient fund fees
• ATM fees (especially for out-of-network use)
• Wire transfer and check issuance costs

Rule of thumb: Go with the checking account that minimizes friction and fees for your day-to-day banking style.

You’re not likely to touch this account often—so the interest rate matters more than app functionality. Online banks and credit unions typically lead here, but rates still vary widely. Compare annual percentage yields (APYs) and make sure there are no hidden restrictions on withdrawals.

Beyond fees and interest, banks differ in features that can significantly impact your daily financial life.

Online & mobile banking: Does the app let you manage payments, deposit checks, and set up alerts?

Branch access: Is in-person help important to you for complex needs like loan servicing or wire issues?

ATM network: If you travel often or use cash frequently, ensure ATM access is wide—and free.

Security: Look for two-factor authentication and fraud alert options. Research recent breaches to rule out risky choices.

Remember, trust matters. Whether it’s name recognition or a positive service experience, comfort with your bank can bring peace of mind—and that’s not easily quantified.

What are the different types of banks available?
Traditional banks, online banks, credit unions, and investment banks serve different purposes. Most people choose between the first three for everyday accounts.

Do all banks offer mobile banking?
No. Most do, but smaller or community banks and some credit unions may lag in digital services. Always check before signing up.

What fees should I expect?
Expect to see charges for account maintenance, ATM usage, wire transfers, and overdrafts. Some banks waive these with certain conditions.

Why assess a bank’s reputation?
Reputation signals reliability. Look at customer reviews, financial health, and regulator ratings to avoid hidden risks.

A good bank isn’t necessarily the one your parents used—it’s the one that fits your goals, habits, and growth path. Your money deserves a home that grows with it.

Start with what matters most to you: low fees, high savings interest, in-person service, digital ease—or all of the above. Then make a shortlist, compare with intent, and don’t be afraid to switch if the match isn’t right.

Financial planning isn’t just about how much you save. It’s about where you store your trust.