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Key takeaways
Common types of checking accounts include traditional, online, student, premium, interest-bearing, rewards, business, joint, senior, second-chance, private bank, and checkless accounts.
Online checking accounts often come with lower fees, while second-chance accounts can help you rebuild your banking history.
Compare fees, minimum balance requirements, ATM access, and mobile banking before choosing a checking account.
Checking accounts generally pay little to no interest, so a savings or money market account may fit better if you want to grow your money.
A checking account gives you a secure place to receive your pay, make debit card purchases, and cover your bills. With so many types of checking accounts to choose from, picking one can feel overwhelming. This guide explains how these accounts work, compares 12 common options, and walks you through choosing one that fits the way you manage money.
What is a checking account?
A checking account is an everyday account for money you plan to spend soon. It typically lets you:
Make debit card purchases and cash withdrawals
Receive direct deposits and pay bills
Transfer money and, on some accounts, write checks
Checking accounts prioritize quick access to your cash. Savings accounts, by contrast, help you set money aside and may earn more interest over time.
12 types of checking accounts
Checking accounts generally share the same core purpose, but they come in several varieties built for different needs. The most common types of checking accounts are traditional, online, student, premium, interest-bearing, rewards, business, joint, senior, second-chance, private bank, and checkless accounts.
Each type differs in its fees, minimum balance rules, and perks. Traditional and online accounts handle everyday spending, while specialized options like student, senior, and second-chance accounts fit specific situations.
Here's a closer look at these checking account options and what makes each one useful. This quick comparison shows who each type typically suits and what to generally watch for.
Account type | Best for | Trade-off to watch |
Traditional | Everyday spenders who want a basic account | Possible monthly fees or balance rules |
Online | People comfortable banking by app | No in-person branch service |
Student | Students and teens learning to manage money | Age or enrollment rules |
Premium | People who want extra perks | Higher fees and balance requirements |
Interest-bearing | People who want a return on their checking balance | Variable rates and higher opening deposits |
Rewards | People who can meet account conditions | Stricter requirements and possible higher fees |
Business | Business owners and sole proprietors | Extra paperwork to open |
Joint | Couples, family members, and roommates | Full access for every owner |
Senior | Older adults who want reduced fees | Terms a regular account may beat |
Second-chance | People with past banking issues | More restrictions and possible monthly fees |
Private bank | Customers with large deposits or investments | High deposit or investment requirements |
Checkless | People who rarely write checks | No check-writing option |
1. Traditional accounts
Traditional checking accounts are the most common type of account. Strong options typically have no minimum balance requirements, low monthly fees, and easy access to your money.
These accounts may also come with overdraft protection, check-writing abilities, and fee-free in-network ATM withdrawals. They can suit people who want a no-frills, basic option.
2. Online accounts
Online checking accounts typically let you manage your money entirely through a website or mobile app. Because digital-only financial institutions often skip brick-and-mortar locations, they tend to have lower overhead costs. That can mean fewer fees and, in some cases, interest earnings.
An online checking account typically gives you around-the-clock access, mobile check deposit, and quick transfers. The trade-off is that you give up in-person branch service, so these accounts fit people who are comfortable banking digitally. If avoiding monthly costs matters most, compare no-fee checking accounts before you decide.
3. Student accounts
Student checking accounts typically serve high school and college students, and age rules vary by bank. These accounts generally come with low or no monthly fees and minimum deposit requirements.
They often add perks like discounted checks and in-network ATM access.
If you're under 18, you'll typically need a parent or guardian as a joint owner. Once you turn 18, you can usually take sole ownership of the account.
4. Premium accounts
Premium checking accounts tend to offer more benefits than traditional accounts, though they often come with higher fees and larger minimum balance requirements. They can include extras like ATM fee reimbursements, checking account interest rates, and rewards programs.
These accounts could help people who want more perks and can keep a higher balance.
5. Interest-bearing accounts
Interest-bearing checking accounts typically let you earn a return on your deposits without investing in the stock market. Some may come with higher opening deposit requirements and monthly maintenance fees, and the rate can change at any time.
Even so, high-yield checking accounts generally offer more earning potential than standard checking. If earning interest is your main goal, you can also compare money market accounts and certificates of deposit.
6. Rewards accounts
A rewards checking account is a checking account that gives you perks for everyday activity, such as debit card purchases. Typical extras include cash back, fee-free ATM access, and bonus points you can redeem for merchandise, discounts, or travel.These accounts often carry higher fees and stricter requirements.
If you can meet the account conditions, you could come out ahead on the rewards.
7. Business accounts
Financial institutions offer business checking accounts to people who own or operate a company. They typically come with tools that fit a company's needs, such as higher account limits, mobile banking, electronic bill payment, and overdraft protection.
To open one, financial institutions commonly ask for an Employer Identification Number, or a Social Security number if you're a sole proprietor. They may also request your business formation documents and operating license, if applicable.
8. Joint accounts
Two or more people can share a joint checking account, and each owner typically has full access to the money. Couples, family members, and roommates often use these accounts to manage shared bills.
Any owner can generally deposit or withdraw funds, so this setup works well when everyone communicates openly. It can make budgeting for common goals easier when trust is in place.
9. Senior accounts
Financial institutions often create special checking accounts for senior citizens. These accounts typically include perks such as reduced fees, fee-free checks, and ATM access.
They can make sense for seniors who want to save money while keeping the benefits of a traditional account. Still, compare a regular no-fee option too, since it may offer better terms.
10. Second-chance accounts
A second-chance checking account is a checking account for people who can't open a regular account because of past banking issues. Many banks and credit unions offer second-chance bank accounts to help these customers get back on track.
Financial institutions generally use checking account reporting companies, such as ChexSystems, to review your recent banking history for negative balances or involuntary account closures. A negative ChexSystems report could make it harder to get a regular checking account.
Your financial institution may offer you a second-chance account instead. These accounts usually come with more restrictions and may charge monthly fees. Still, they typically give people a way to rebuild their banking history and keep an account open.
11. Private bank accounts
A private bank checking account generally targets customers with significant deposits or investments, often $100,000 or more. Some banks pair these accounts with a dedicated private banker, credit cards, and other benefits you may not find with regular accounts.
They may also offer custom lending solutions and other perks that fit high-income individuals.
12. Checkless accounts
A checkless account generally works like a traditional checking account but doesn't let you write checks. Some financial institutions also call these noninterest-bearing accounts.
These accounts often charge a small monthly fee in exchange for no check writing. However, they may not offer as much flexibility as accounts with check-writing.
Pros and cons of checking accounts
Checking accounts vary, but regulated financial institutions typically help keep your money safe and easy to reach. These pros and cons can show you what to look for in your next account, including any fees you could waive or avoid.
Pros
Checking accounts can make everyday money tasks simpler. Here are some common upsides.
No minimum balance on some accounts. Certain traditional accounts may skip the opening deposit or monthly minimum.
Waivable monthly service fees. Some accounts charge one, but meeting a balance minimum or setting up direct deposit may remove it.
Automatic deposits. You can typically set up direct deposit so your pay arrives automatically, which can cut check-cashing costs and branch trips.
Access to an ATM network. Many checking accounts connect you to low- or no-fee ATMs, which can save money on withdrawals and deposits.
Check-writing benefits. Some accounts may provide checks for paying bills or making purchases that require a physical payment.
Extra services. Some accounts may offer extras such as overdraft coverage and ATM fee reimbursement for out-of-network withdrawals.
Cons
Checking accounts also have a few drawbacks. Keep these in mind as you compare options.
Minimum balance requirements. Some financial institutions require a minimum balance, and dipping below it can limit your rewards and interest earnings.
Extra fees. Some institutions may charge monthly maintenance fees, overdraft fees, and costs for checks or stop-payment requests.
Little to no interest. Many checking accounts pay little interest. A high-yield savings account may fit better for growing your balance.
How to choose a checking account
Choosing the right checking account comes down to your needs and preferences. Do you need online access, ATM availability, or mobile banking? These steps can help you make an informed decision.
1. Determine your needs and priorities
Start by narrowing down what you're looking for. Think about how often you use the account, what you'll use it for, and how much you'll typically keep in it.
These answers point to the features you actually need. They can also guide you as you choose a financial institution.
2. Consider monthly balance requirements
Many financial institutions set a monthly average balance requirement and charge a maintenance fee if you fall below it. A basic or traditional account may be a better option if you don't expect to keep a steady balance.
If your balance tends to dip during the month, look for an account with overdraft coverage or one that doesn't charge overdraft fees.
3. Compare checking account fees
Some financial institutions may charge monthly maintenance fees or per-item overdraft fees. Make sure you aren't paying more than you need to.
Even if a provider advertises an account with no monthly fees, read the account agreement and fine-print disclosures to check for hidden costs.
4. Evaluate interest-bearing rates if interested
If you want an interest-bearing account, make sure you can meet the minimum balance or transaction rules. Also find out how the institution calculates the rate – tiered or flat.
A tiered rate changes with your balance, while a flat rate stays the same no matter how much you keep in the account.
5. Choose an account
Pick an account type that matches how you bank. For example, accounts with no foreign transaction fees or out-of-network ATM rebates can suit frequent travelers. And if you withdraw cash often, steer toward an account with a large network of fee-free ATMs.
If you want better control of your money, look for a mobile app with spending and reporting tools. The Chime® Checking Account, for instance, has no monthly fees, and you can manage it from the Chime app.
There's a checking account option for everyone
Checking accounts come in many forms, including traditional, online, rewards, and second-chance accounts. Narrowing down your choices can save you time, money, and future headaches.
Compare fees, features, and benefits, and ask about anything that doesn't make sense before you agree to the terms. That way, you can pick an account that fits your needs and supports your financial progress. When you're ready, this guide on how to open a checking account walks you through each step.