Nobody likes bank fees, especially ones for just regular account maintenance.
Luckily, many digital banks offer free online checking accounts. While they may have requirements to avoid a fee, they’re usually relatively easy to meet.
You may even find that a free online checking account has no opening deposit with overdraft protection. It can also come with other exciting features, such as excellent interest rates, early paydays and automated transfers to your savings or investments.
Here are our picks for the best free online checking accounts with no opening deposit that offer overdraft protection.
Our team of experts analyzed hundreds of data points and then used data-driven methodology and thorough fact-checking to determine the best free online checking accounts with overdraft protection and no minimum opening deposit. We heavily emphasized fees because the best free online checking accounts shouldn’t burden customers with extra charges. You can read more about our methodology below.
Acorns is a fintech company that makes investing more accessible. Although the service requires a monthly subscription, you can get the fee waived if you have the Mighty Oak Card and receive $250 in direct deposits each month.
The Mighty Oak Card is a metal debit card that gives you the option to round up your purchases and send the spare change to your investments. With the card, you receive an outstanding 3.00% APY on your checking and 5.00% on your savings.
Acorns is a great way to automate saving and investing, but it’s best for people who can receive at least $250 in monthly direct deposits.
With Chime’s SpotMe program, customers with direct deposit can get up to $200 in no-fee overdraft coverage. Plus, you and your friends can increase your SpotMe limits by sending each other a Boost. The next time you get a deposit, Chime will apply it toward your negative balance.
Chime Checking comes with a debit card that you can use at over 50,000 ATMs. Its mobile app has excellent ratings on both Apple and Android. You can also receive your paycheck two days in advance with direct deposit.
Chime may be a good choice for people living paycheck to paycheck because it doesn’t charge fees for account overdraws.
SoFi’s checking account automatically comes with a linked savings account. When you set up direct deposit (or deposit $5,000 monthly), you receive 0.50% APY on your checking and 4.50% on your savings balance.
If you receive a minimum of $1,000 in direct deposits each month, the account provides $50 in overdraft protection. SoFi will also use funds in your linked savings account to cover overdrafts on your checking account. You can earn a $50 welcome bonus with $1,000 in direct deposits within the first 30 days. However, with $5,000 or more in direct deposits, you can get $300.
With the account, you can get paid up to two days early with direct deposit. Discover also provides free help with opting out of people-finder sites. Its mobile apps have received excellent reviews from users on both Apple and Android.
If you refer a friend to Axos, you both get $50 deposited into your account if they meet the welcome bonus requirements. Referrals are unlimited, so you can invite as many friends as you want. To receive the bonus, your friend must use your referral link and direct deposit at least $1,000 in the first 90 days.
With Axos Bank Essential Checking, you can get paid up to two days early when you set up direct deposit. The bank has over 90,000 surcharge-free ATMs, but if you can’t find one near you, there are unlimited reimbursements for third-party ATM fees.
This account will appeal to those looking to avoid fees as well as those who can take advantage of the referral bonus.
Online-only banking isn’t for everyone; sometimes it’s nice to know you can drive to a branch and talk to someone. Capital One has over 270 branches, and some cities also have cafés where you can grab a coffee and speak with a representative about Capital One products and services.
You can withdraw money at over 70,000 in-network ATMs or deposit cash at any CVS, Walgreens, or Duane Reade by Walgreens location. 360 Checking has no overdraft fees and zero liability protection if your debit card is lost or stolen.
Capital One 360 Checking is ideal if you have a branch or café near you or if you want to avoid overdraft fees.
Varo Bank’s mobile apps have earned high praise from its users, with 4.7 stars on Google Play and 4.9 stars on the App Store. The app offers live customer support, a free credit score tracker, balance updates and transaction alerts. You can also track your spending for different categories.
Your Varo debit card can earn up to 6% cash back with select brands like McDonald’s, Circle K and Macy’s. Varo Bank charges no monthly, transfer or overdraft fees; however, there is a $3.50 fee for out-of-network ATMs.
The nbkc Everything Account is a combination of a checking and savings account. It lets you see all your funds in one place, making it easy to track your spending and savings. The account provides 1.75% APY, which is excellent for a checking account.
Although NBKC has a smaller ATM network than some banks, it will reimburse up to $12 in third-party ATM fees each month. The bank has a 4.9 rating on Trustpilot with over 700 reviews. Its mobile app is also rated highly by Apple and Android users.
The nbkc Everything Account is best for people who just want one account for all of their banking. It can also help those wishing to keep close tabs on spending.
This account is best for people who want to quickly move cash to investments. It’s also an excellent choice for travelers because you don’t have to worry about ATM or foreign transaction fees.
However, with an online financial institution, you can often find checking accounts that don’t charge fees. They may not even require an initial deposit to open the account.
“It’s generally lower cost because [online institutions] don’t have the infrastructure from a cost perspective,” said Tony DeSanctis, senior director of Cornerstone Advisors, a consulting firm for financial institutions and fintech companies. “The consumer ultimately tends to benefit from lower fees and higher interest rates.”
Overdraft coverage means that the bank will still process a transaction, even if you don’t have enough funds in your account to cover it. It typically results in a negative balance on your checking account.
This protection can be helpful in situations where you need to pay for an emergency expense but don’t have enough money. It can also prevent the embarrassing scenario of your payment being declined in public.
Many traditional banks charge a fee (usually around $35) if you overdraft on your account.
This way, you don’t need to constantly check your account balance to make sure you don’t overdraft.
There are a lot of checking options out there, so think about the features that you need the most, for example:
- APY: If you plan to keep a significant chunk of money in checking, an interest-bearing account ensures you still earn a return on your funds.
- Debit card rewards: Some checking accounts offer excellent rewards on purchases you make using your debit card.
- Fees: Even if a checking account says it’s free, review the account terms for requirements to avoid a charge or any other costs (out-of-network ATM transactions, inactivity, wire transfers and overdrafts, for example).
- ATM access: With online banks, you usually have to withdraw your funds from an ATM; check for in-network ATMs near you to avoid third-party fees.
- Digital banking: Online banks often provide ways to manage your money through their mobile app or website; look for reviews on sites like Reddit, Trustpilot or your device’s app store.
“Make sure they have the product offerings that you not only need now but are going to need in the future,” said DeSanctis. “Do they offer loans? Do they offer investments? What are the other things that are going to be important to you? Make sure that they have those product offerings.”
When applying for an online checking account, you typically have to fill out an application through the bank’s website.
If you have questions throughout the application process, call the bank’s customer service line for assistance.
The “terms and conditions” is a legal document that outlines the agreement between the bank and its customer. Always read them carefully before applying for a free online checking account to make sure you’re aware of all the account details.
- Fees: As mentioned above, double-check for any potential costs, even if the bank advertises the account as “free.”
- Minimum balance requirements: Some financial institutions charge a maintenance fee if your account falls below a certain balance, so ensure there are no requirements in the fine print.
- Other requirements: While a bank may not have balance requirements, watch out for other stipulations, such as setting up direct deposit, to avoid a fee or earn the advertised APY.
- Transaction limits: Checking accounts typically don’t have a limit on the number of transactions but may restrict the amount you can withdraw or purchase on your debit card daily.
CNN Underscored Money analyzed accounts from more than 20 financial institutions to develop the rankings for the best free online checking accounts with overdraft protection and no required initial deposit. We ranked each account on 13 data points across six categories.
Here are the categories we analyzed and how we weighted each:
Fees are a critical factor to consider with your checking account because they can quickly eat away at your money. We analyzed overdraft fees, NSF fees, third-party ATM fees and the ability to get fees waived.
Because you’ll likely be making frequent transactions with your checking account, access is important.
Minimums affect how flexible your checking account is which accounts you’re able to access. We analyzed minimum balances to avoid fees, minimum opening deposits and minimum balances to earn interest.
You’ll want a bank with a usable app and plenty of online features so that it’s easy to bank from anywhere. We analyzed app reviews and the ability to bank online.
It’s important to have a bank that’s trustworthy and easy to reach when you need help. We considered customer service availability and Trustpilot ratings in this category.
APY is not a critical factor for checking accounts, but some accounts do offer APY comparable to savings accounts, which will help your money grow.
Free online checking accounts don’t charge monthly fees for account maintenance. Many also don’t require a minimum deposit.
Online checking accounts usually have fewer fees and may earn some interest on your balance. However, online banks typically don’t have physical locations and may offer fewer financial products than traditional banks.