Unsure how to choose a checking account? Learn all the basics about checking accounts, including types, features, benefits and fees.
Article: 6 minutes
Updated: September 24, 2026 Published: March 10, 2022
By: USAA Reviewed by: Editorial contributors
A checking account is a bank account meant to be used for everyday transactions. You can deposit money, pay bills, make purchases and access your money using a debit card, paper check or online bill pay. A checking account is a good way to manage short-term spending and cash flow, keeping your money accessible and secure.
Checking accounts offer one of the easiest ways to store and access your hard-earned money safely. Even though check writing may seem antiquated in an age of digital wallets and online banking, there's a lot more value to a checking account than paper checks, starting with a place to deposit your paycheck.
Whether you're looking to open your first checking account or your first in a long time, you'll have no shortage of choices. Read on to learn more about the benefits of a checking account and how to pick the one that best suits your lifestyle.
Think of a checking account as the centerpiece of your financial life, a place to keep money for the short term to pay bills or to use for everyday expenses. Unlike a savings account, a checking account is designed to be transactional so you can move money in and out as needed using a debit card, checks or online payments.
Opening a checking account doesn't require a large deposit. For example, some banks will let you get started with a minimum of $25. Unlike most savings accounts, your checking account may not earn interest. If it does, it'll typically be a lower percentage rate. So, a checking account might not earn much interest, but that's OK since that's not its main purpose.
The benefits of checking accounts go beyond keeping your money secure.
Regardless of whether you open a checking account at a bank or credit union, you can have peace of mind knowing that your money is generally insured up to a certain limit set by the Federal Deposit Insurance Corp., or the FDIC, or the National Credit Union Association, or NCUA, even if the participating bank or credit union closes.
When you select a checking account, consider a bank that offers complimentary budgeting and money management tools. These services are designed to help you track spending and take control of your finances.
For many people, checking accounts are especially valuable because they're easy to use and offer options to access your money, including:
You can make in-store and online purchases with your phone or digital device by adding your debit card to a digital wallet. This includes apps such as Apple Pay®, Google Pay® or Samsung Pay®. In addition to their convenience, digital wallets add an extra level of security against data breaches because they don't expose your card numbers to retailers.
By connecting your checking account to mobile payment apps such as Zelle® and Cash App®, you can easily transfer funds between friends, family members and small merchants. Just be sure never to send money to someone you don't know.
Remember: Any purchases made using your debit card or a digital wallet connected to your debit card are immediately deducted from your checking account.
So far, we've referred to checking accounts as a general term. However, as you start to research banks' offers, you'll discover that not all checking accounts are the same. Some are bare-bones products, while others earn interest and offer rewards. Here are a few of the more common checking account types:
As the name suggests, this type of account has no monthly service fees and may not have a minimum balance requirement. Keep in mind, though, that even "free" checking accounts will have fees associated with various activities or services, such as wire transfers, overdrafts or nonsufficient fund fees.
These accounts may offer incentives for setting up direct deposits, maintaining a specific balance or using your debit card for a specific number of transactions. Rewards can vary from waiving a monthly service fee to cash back.
Most banks offer an entry-level checking account for teens and college students. These low- or no-fee accounts are designed to help young people gain financial independence.
As your financial needs evolve, banks and financial services companies are also innovating and adapting to their customers. Even after you've selected an account, contact your bank regularly to see if a new account might be better for you.
The first decision you'll make when opening a checking account is finding the right bank to fit your needs. Then, you should be ready to make choices on what type of checking account is best for you.
Not long ago, consumers had only a handful of choices: small, local banks with a few branches, or giant, national banks with branches in several, if not all, states.
For many consumers, online banks make sense because, while they may lack physical locations, they offer increased flexibility and competitive interest rates on checking and savings accounts. For service members who move on a regular basis, the flexibility to take their bank with them wherever they go can be critical to their financial health.
While you can always switch banks, it can become more complicated the longer you keep your account in one bank. This is true if you link your account to direct deposits or automatic payments or other withdrawals. When you move to a different bank, you'll need to change those transactions to the new account.
Sometimes a "free" checking account is anything but. That's why you need to examine the fine print to avoid surprises on your monthly statements. Here are some of the most common fees banks charge on checking accounts:
This is a service charge for keeping your account open, but it can sometimes be waived if you meet criteria such as setting up direct deposit, keeping a specific balance or making a certain number of transactions.
Accounts with specific minimum balance requirements will be charged a fee if the balance dips below that amount.
Some banks charge a fee if, after a certain amount of time, the account has no transactions.
When you wire money from your bank to another, the money is sent and received usually on the same day. Your bank may charge a fee for the service.
Using your bank's ATMs for cash withdrawals is typically free. When you use another bank's ATM, you may pay fees and surcharges, possibly twice: An out-of-network fee to your bank and an ATM operator fee to the other bank.
If you spend more than your account balance, the bank will normally charge you a penalty. You may be able to avoid these fees by enrolling in the bank's overdraft protection program, which transfers extra funds from your linked account, if you have one, to cover the check amount to avoid overdrafts.