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The best bank for you will depend on factors like your financial needs, priorities, and what you value most in day-to-day banking. Whether you’re looking for a bank with competitive interest rates or one with local branches and a large ATM network, it’s important to find a financial institution that suits your needs.
The tips below on how to choose the best bank for daily banking can help you as you’re making your decision.
Key Points
• When choosing a bank, consider factors like security, bank fees, interest rates, location, ease of deposit, and digital banking capabilities.
• Other important considerations include minimum requirements, availability of funds, customer service, investment account options, and perks offered by the bank.
• Security is crucial, so ensure the bank is insured by the FDIC or NCUA.
• Bank fees can eat into your savings, so be aware of ATM charges, maintenance fees, and overdraft protection fees.
• Interest rates vary significantly across institutions, so compare APYs at different banks, including online banks, which typically offer higher rates on savings and checking accounts.
Why It Is Important to Find a Good Bank
Knowing how to choose a bank matters more than most people realize, and the potential benefits go well beyond having a place to store money:
• A bank account provides a home base for the money you earn.
• It can provide security, knowing that the bank has deposit insurance and that your cash is safe.
• It can pay you interest on your funds so your cash grows.
• It could help you build your financial security and literacy.
• It may offer you additional benefits, like a cash back debit card or a lower mortgage rate.
What to Look For When Picking a Bank
There are thousands of banking options in the U.S. So how to find a good bank for you? Consider the following 12 factors that can help you find the right bank account for your needs. Creating a comparison chart in a spreadsheet lets you track the factors that matter most as you research your options. Then you can use the process of elimination to find your perfect financial institution match.
Here are key things to consider when choosing a bank.
1. Bank Security and FDIC Insurance
Whether you choose to put your money in an online bank, a traditional bank, or a credit union, it’s vital to make sure your funds are safe with secure banking features. Check to make sure any bank you’re considering is insured by the Federal Deposit Insurance Corporation (FDIC) or if you’re looking at a credit union, that it is insured by the National Credit Union Administration (NCUA).
In the very rare event of a bank or credit union closure, either FDIC or NCUA would cover your deposits up to the insurance limits. You would be covered for up to at least the standard limit of $250,000 per depositor, per insured institution, for each account ownership category.
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2. Low or No Monthly Bank Fees
Fees can eat away at your deposits and the savings you’re trying to build. Some banks charge minimal or no account fees, but others have multiple charges that can add up fast. Common examples include ATM charges, monthly maintenance fees, and overdraft fees.
ATM fees can run almost $5 per out-of-network withdrawal and sometimes even more. Overdraft fees often range from about $30 to $35, and while they’re a good way to avoid negative balances, they can cost you hundreds of dollars if you fall behind.
Returned deposits, foreign transactions, low balances, and lost cards also incur fees. If you want to avoid monthly maintenance fees and other fees, be sure to read through the terms and conditions carefully so you aren’t unpleasantly surprised. You may decide to choose an account that’s fee-free instead.
3. Competitive Interest Rates and APY
While some banks might still offer the standard low savings account interest rates , it doesn’t mean you’re stuck with that.
When choosing the right bank account for your needs, keep in mind that online-only banks typically have lower overhead than traditional brick-and-mortar banks, so they often pass those savings on to customers through annual percentage yields (APYs) that are many times higher than the national average when you open a savings account. Some online banks also offer high-yield checking accounts.
Recommended: APY vs. Interest Rate
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4. Branch Locations and ATM Access
As you’re thinking about how to choose a bank, consider whether you like to visit brick-and-mortar branches. If you do, you may want a bank that has physical locations close to your home or workplace, or both.
You might also want to check if your bank has ATMs or a partner network of no-fee machines near you and the neighborhoods where you typically spend time. This can be important for avoiding ATM fees, such as non-network fees and ATM operator fees. These fees can add up to a few dollars or more per transaction, which accumulates quickly if you use ATMs regularly.
5. Mobile Deposits and Ease of Access
Along the same lines, you may want to consider how easy it is to deposit funds in a particular financial institution. Many banks offer mobile check deposit, which allows you to add a check to your account by snapping a photo with your cell phone and uploading it. Check to see what’s available.
Also, if you are looking at online banks, suss out how you might deposit cash, if that’s something you frequently do, and make sure it’s a convenient process for you.
Recommended: What Do You Need to Open a Bank Account?
6. Strong Digital Banking Features
It’s also a good idea to check out a potential bank’s app and online services. Are they easy to navigate? Do they offer the features you’re most likely to use? Comparing a couple of financial institutions’ user experiences can reveal important nuances.
See if you can download a demo. Ratings and reviews can also be a great way to find out other customers’ experiences.
7. Minimum Balance Requirements
Explore whether your potential bank has a minimum deposit and minimum account balance requirement. If so, that means you must initially put in a certain amount of cash to open your account or to start it and earn a certain APY. Then, with minimum balance requirements, if you dip below a given level, you’ll likely pay a monthly account charge.
With online banks, you may not face a minimum opening deposit or balance requirement, but earning the top APY often depends on conditions like maintaining a certain balance, making a set number of debit card transactions per month, or setting up direct deposit. Read the details and fine print when considering a bank.
8. Quick Availability of Funds
Few people like waiting for funds to clear, so it’s worth comparing how quickly different banks make deposits available before opening an account. Some banks may offer early paycheck access, for instance, for qualifying accounts.
9. Reliable Customer Service
Here’s another dimension to consider when thinking about how to find a good bank: What kind of customer service do they offer and when? If you like to interact in-person, you may prefer a traditional bank with branches.
Also consider the availability of support by phone and online chat during non-business hours. What if you have a pressing financial problem at 9am on a Sunday? Would help be there for you?
10. Integrated Investment Options
If you’re looking for more than just checking and savings, consider a bank that also has investment account options. Keeping your checking, savings, and investments in one place could simplify transfers, deposits, and automatic saving.
11. Sign-Up Bonuses and Member Perks
Some banks may offer perks that appeal to you, so see what’s out there. For instance, some banks might offer a cash bonus when you set up direct deposit, while others provide cash back on everyday purchases. Still others may offer educational events to boost financial literacy. Some online banks may offer a cash bonus for opening an account like a checking account or setting up qualifying direct deposits.
However, when choosing a bank, it’s important to make sure any financial institution you’re considering aligns with your everyday needs and overall goals.
12. Your Personal Banking History
One last factor to consider when choosing a bank: if your financial history has a few rough patches, find out whether a bank may consider your application. For instance, some banks might scrutinize your banking history. If you have enough overdrafts in your history or other issues, they may not approve your account application. Or you might need to open what’s known as a second chance checking account until you prove that you’re a reliable client. It’s wise to consider this as you go bank shopping.
The Takeaway
Choosing the right bank depends on your needs and financial goals. In general, you’ll want to look for low (or no) fees, competitive interest rates, and convenient access, whether through local branches, ATMs, or online banking.
Also consider your personal banking preferences. For example, if you want to have the option of meeting with bank staff in person, you might choose a bank or credit union with nearby branches. If, on the other hand, you prioritize digital convenience and user-friendly interfaces, you might consider an online bank. Either way, be sure to compare your options, read reviews, and choose a bank that aligns with your lifestyle and financial priorities.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
FAQ
How do I know which bank is best for my daily needs?
To help find a bank that suits your daily needs, consider your everyday spending and saving habits. For example, do you prefer to take out money from an ATM? If so, you may want to look for a bank with convenient ATM access in the area where you live and work. Do you want a bank you can visit and do your banking in person? Then a financial institution with branches near you might be a good option. Also, be sure to consider factors like fees and minimum balance requirements, as well as digital features like mobile deposit.
Is it better to choose a traditional bank or an online bank?
Whether a traditional bank or online bank is better for you depends on your financial needs and priorities. Generally speaking, a traditional bank may be a better fit if you want to visit a physical location where you can interact with staff for your banking needs and/or if you regularly make cash deposits. An online bank might suit you if you are looking for higher interest rates and lower fees, which online banks typically offer, and you don’t typically need to make cash deposits. Think carefully about what you want and need from a bank before making a decision.
What are the biggest red flags when choosing a new bank?
Some of the biggest red flags to look out for when choosing a bank include high fees, negative reviews from other customers, outdated or slow digital features like apps and websites, and poor customer service, such as long telephone wait times. Also, check to make sure that the bank is FDIC insured. If it’s not, look for another financial institution that does carry FDIC insurance.
Does opening a new bank account affect my credit score?
Opening a new bank account typically does not impact your credit score because new bank account openings are generally not reported by banks to the major credit reporting bureaus.
How many bank accounts should a person have?
There’s no one “right” number of bank accounts a person should have. The number of bank accounts a person has generally depends on their financial needs and lifestyle. For example, you might be satisfied with two bank accounts — one for checking and one for savings — or you might want joint accounts with a partner as well separate accounts. Some people also open different accounts for different savings goals, such as one account for an emergency fund and another for a down payment on a house. Think about your situation and financial priorities to help determine how many bank accounts make sense for you.
SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2026 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
^Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.
Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 5/28/26. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet
Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.
Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.
Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.
See additional details at https://www.sofi.com/legal/banking-rate-sheet.
We do not charge any account, service, or maintenance fees for SoFi Checking and Savings. We do charge transaction fees for outgoing wire transfers, Instant Transfers, and global remittance transfers. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
*Awards or rankings from Forbes are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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