7 Banks That Offer Free Checking Accounts With No Minimum Balance

In this article we’ll share a list of 7 banks that offer free checking accounts with no minimum balance, which is not nearly as common a practice as it once was.

To say that the financial crisis devastated the banking sector would be putting it about as plainly as possible. Several banks were shuttered, while others required government bailouts to stay in business. Interest rates plummeted to historic lows (and we mean truly historic, like the lowest they’ve ever been in the known history of humanity), which put further pressure on banks to find alternate revenue streams. Among other things, that has lead major banks like Bank of America Corp (NYSE:BAC), Wells Fargo & Co (NYSE:WFC), JPMorgan Chase & Co. (NYSE:JPM), and Citigroup Inc (NYSE:C) to get more creative with their account offerings and fees.

Whereas there used to be a lot more than 7 banks that offer free checking accounts with no minimum balance, the majority of major banks now have fees or other requirements associated with all of their checking accounts. For example, JPMorgan Chase & Co. (NYSE:JPM)’s Premier Plus Checking account waives its $25 monthly service fee only if either a minimum balance of $15,000 is maintained, or in the event that automatic payments are made to Chase first mortgage from your Chase account. So if the latter scenario doesn’t apply to you, you’re stuck with fees or hefty minimum balances that most of us either don’t have, or don’t want to keep in a checking account that pays absolutely paltry interest rates (like 0.01% paltry).

While it’s difficult to know exactly how much money banks are making from their checking accounts alone, we do know that major banks have become far more profitable than ever, despite the low interest rates. JP Morgan had $15.4 billion in net income on $116 billion in revenue in 2007, which jumped to $24.7 billion in net income on just $90.3 billion in revenue in 2016. Likewise, Citigroup Inc (NYSE:C) had just $3.6 billion in net income in 2007 on $81.7 billion in revenue, which jumped to $14.9 billion in income in 2016 despite revenue having fallen to just $62.6 billion. Needless to say, the major banks have quickly become adept at wringing money out of consumers in the challenging interest rate environment.

Thankfully for consumers that can’t suffer fees for basic banking accounts, there has been a rise in online banking options in recent years which are far more friendly in terms of fees, including those that offer free checking accounts online. Regional banks in USA also tend to be less fee-heavy, partially because they aren’t under the same restrictions that were placed on larger banks coming out of the financial crisis (the Dodd-Frank Act) and have a little more flexibility with their capital.

For further bank-related reading, don’t miss the list of the 16 Biggest Commercial Banks in New York City.

Now then, head to the next page to begin the list of 7 banks that offer free checking accounts with no minimum balance.

Ally Financial Inc (NYSE:ALLY)

Ally Financial Inc (NYSE:ALLY) offers a great interest checking account that has no monthly fees and requires no minimum balance deposit. You’ll get a modest APY of 0.10% on your balance when it’s under $15,000, and Ally offers plenty of other benefits to entice consumers. Perhaps one of the nicest is the fact that they’ll reimburse you up to $10 monthly for ATM fees charged by other institutions (using their own ATMs, of which there are over 43,000 nationwide, is free). 24/7 live customer support, mobile and online banking, and remote check deposit are just some of the other features that make Ally Financial Inc (NYSE:ALLY)’s checking account one of the best available. Now, let’s see what’s next on our list of banks that offer free checking accounts with no minimum balance.

Capital One Financial Corp. (NYSE:COF)

It literally pays to open a Capital One 360 checking account, as you get a $50 bonus regardless of the size of your initial deposit. In keeping with the theme of this list, there is also no minimum balance requirement or other monthly service fees associated with the account. Capital One 360 checking offers a yield of 0.20% on your balance under $50,000, you get a free Mastercard debit card that is tied to your account for all of your online or offline purchasing needs, as well as a great app for Android or Apple devices that lets you locate ATMs, deposit checks remotely, and much more.

Alliant Credit Union

Next in line on our list of banks that offer free checking accounts with no minimum balance is Alliant offers a free checking account that has some great features. In addition to no minimum balance requirements and up to $20 per month in ATM rebates, Alliant also provides consumers with a free Visa debit card and a free first batch of checks. Alliant checking account members also have access to over 80,000 surcharge-free ATMs in addition to its Courtesy Pay feature, which will cover your payments in exchange for the $25 NSF fee you would’ve been dinged for anyway, which could save you being charged late fees by companies.

Bank5 Connect

We’ve reached the midway point of our list of the 7 banks that offer free checking accounts with no minimum balance, which brings us to Bank5 Connect, which offers an impressive high-interest checking account. The account offers a 0.76% APY on balances as low as $100, which crushes the APYs of many other banks, even when the minimum balance must be significantly higher. Otherwise, there is no minimum balance required after the $10 deposit that is needed to open the account. In addition, Bank5 Connect will also reimburse all of your monthly ATM fees up to a maximum of $15 per month, and offers a UChoose Rewards system, which awards you points for purchases made using your Bank5 Connect Visa debit card, which can then be exchanged for prizes.

FNBO Direct

FNBO Direct’s Online Checking Account comes with some very handy features, such as free stop payments, which often cost $25+ at other institutions, as well as free debit card fraud monitoring (you get a free FNBO Direct Visa Debit Card with your account). The free checking account, which requires no minimum balance, also offers a solid 0.65% APY on all balances. While it doesn’t charge ATM fees itself, it also does not reimburse any of the fees charged by other banks’ ATMs, so depending on your ATM usage, that could be a breaking point. Otherwise, FNBO Direct’s checking account is one of the better free options available.

Bank of Internet USA

Next up on our list of Banks That Offer Free Checking Accounts With No Minimum Balance is Bank of Internet USA’s Rewards Checking account, which offers an APY of up to 1.25% if certain conditions are met, as well as free monthly banking and no minimum balance requirements. Bank of Internet USA one-ups some of its competitors with unlimited ATM reimbursements, and also offers overdraft protection, cash back rewards, and free access to the FinanceWorks money management software. You can also get your first 50 checks for free if you ask nicely. One of the top free checking account options on the market.

Independent Bank Group Inc (NASDAQ:IBTX)

Independent Bank Group Inc (NASDAQ:IBTX)’s Free Rewards Checking account does require a $100 deposit initially, but there is no minimum balance necessary afterwards and no monthly service fees. Independent Bank Group Inc (NASDAQ:IBTX) is another outlet that offers the potential for as much as a 1.50% APY if certain conditions are met, such as signing up for free e-statements. There’s also online and mobile banking (Apple and Android), a free Visa debit card (subject to bank approval), and reimbursements of up to $20 per statement cycle for ATM fees.

We hope that our list of the 7 banks that offer free checking accounts with no minimum balance helps you find a great, low-cost banking option that has the perfect features for you. If you have experience dealing with any of these or other banks, please share your opinions with our readers so they have a better idea of what to expect from them.

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