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Tag: bank accounts

  • More couples are ditching joint bank accounts, and experts see a benefit

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    First comes love, then marriage, and then separate bank accounts.

    The days of “what’s yours is mine” may be behind us as more and more couples move toward keeping their personal finances personal.

    According to 2023 data from the U.S. Census Bureau’s Survey of Income and Program Participation, the share of couples without any joint bank accounts rose by more than half, from 15% in 1996 to 23% in 2023. Meanwhile, the share of couples with joint bank accounts has declined, though the practice remains common.

    Marrying later in life, after finances have already been established, may be one reason fewer couples are combining accounts, the survey said.

    A more recent survey from Bankrate underscores this, finding that fewer than 2 in 5 American couples (38%) completely combine their finances, and about 1 in 4 (26%) keep their financial accounts completely separate. The remaining 36% have a mix of joint and separate accounts.

    Read more: Should unmarried couples have joint bank accounts?

    Experts say these kinds of boundaries aren’t necessarily about shutting your partner out. It’s more about protecting your personal security within your relationship.

    “Many couples choose to keep some or all of their finances separate to preserve autonomy or reduce conflict,” said Kimberly Miller, lawyer, marriage, and family therapist, CFP®, CDFA®, and founder of PartWise, a divorce education platform. “This approach can feel especially practical for partners who entered the relationship with assets or debts, substantially different incomes, or children.”

    Some couples may also choose to keep their finances separate if one or both partners have experienced financial control or instability.

    Miller notes that separate or hybrid financial arrangements are especially prominent among younger generations, who favor independence over shared finances, as well as among some older generations, who may be in their second or third marriages and tend to prioritize personal asset protection.

    However, keeping your finances separate can also come with emotional downsides — and potential tax implications.

    “Clarity, openness, and fewer financial disputes are some advantages. It can hold each partner responsible for spending habits and make budgeting easier,” said Jenny Bradley, a board-certified family law specialist, author, certified mediator, and the founder of Triangle Smart Divorce in North Carolina. “But if there is no mutual understanding, it can bring about suspicion or estrangement. If a couple is overly strict about their separation, they may also lose out on some of the monetary benefits of combining resources, such as pooled investments or tax breaks.”

    In 2025, Married Filing Separately taxpayers get a standard deduction of $15,750. However, couples who file jointly get a standard deduction of $31,500, which is up from $14,600 and $29,200, respectively, in 2024. Filing jointly also raises certain income thresholds so that you can still qualify for tax breaks you may not have qualified for as a single filer.

    Read more: Tax brackets and rates for 2025-2026

    Your finances don’t have to be completely joint or completely separate. In fact, most partners strike the perfect balance somewhere in the middle. However, in order to do that, you’ll need to have open and honest communication with your significant other about how you envision your financial relationship with them.

    As your relationship and your finances evolve over time, your decision to keep things joint or separate could change, which is why it’s important to keep the lines of communication open and check in with each other frequently to make sure that your current arrangement is still the best fit.

    If you tackle these conversations early on in your relationship, you can set clear boundaries and come up with an arrangement that you’ll both be happy with.

    “Money conversations should begin early, ideally before major commitments like living together, marriage, or having children,” said Miller. “Ongoing financial communication and goal setting also make sense. Setting financial parameters in a relationship works best when couples start with shared financial goals, agree on what expenses are joint versus individual, and document decisions in writing, even though that may not be protected in divorce.”

    As you’re approaching these conversations with your partner, it’s also important to keep in mind that your partner’s approach to money is rarely arbitrary. Their financial decisions and habits are likely influenced by a number of factors, including their upbringing and culture.

    “Seeing financial volatility as a child may make someone more cautious and want to keep money separate,” Bradley said. “Others may organically merge if they were raised in houses where money was shared. Knowing each partner’s past helps develop a strategy that benefits both parties.”

    If you’re embarking on this financial journey with your partner and aren’t sure how you want to proceed, there are a few steps you can take to come up with the right arrangement.

    • Come to the table with your financial facts: Knowing your partner’s financial situation, including debts, assets, spending habits, and financial values, can help you level set and pinpoint the areas where you are most aligned. This is also an opportunity to ask questions and better understand your partner and their money philosophy — and for them to do the same.

    • Be honest about any emotional feelings this process can stir up: As you’re having these conversations with your partner, be honest about how the process is making you feel. Not disclosing your feelings can create a barrier between the two of you and could lead you to make choices that aren’t necessarily aligned with what you want.

    • Decide what’s absolutely a joint expense or goal: Splitting up your goals and expenses into “yours, mine, ours” columns can help you see your shared financial picture from an aerial view and understand how your money works together. This can help you determine if a joint financial situation is appropriate or if keeping things separate — or at least partially separate — makes the most sense. For example, if one partner has student loans on an income-driven repayment plan, maintaining some financial separation — particularly around tax filing and income reporting — can help protect the other partner from taking on that debt and may prevent monthly payments from increasing due to a higher combined household income.

    • Set up regular check-ins: Your finances can and will change. As such, you’ll want to keep things flexible, check in with your partner periodically, and be open to your arrangement changing to better accommodate your finances and goals.

    Read more: 4 common mistakes couples make that lead to divorce (and how to avoid them)

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  • How to protect your bank account – MoneySense

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    Banking these days is something that increasingly leaves out the bank. “People don’t go to an ATM or into a bank a lot anymore, instead they mostly log in on our laptops or mobile devices,” says Octavia Howell, vice-president and chief information security officer for Equifax Canada.

    Banking from your phone or computer is convenient, but it leaves a lot of the security that used to be undertaken by the bank up to the customer. Financial institutions have whole departments dedicated to protecting customers from theft and fraud, and strong controls to secure online banking. Still, bad personal habits can leave users vulnerable.

    “Consumers have to be careful at all times and do their part to protect themselves and their families,” Howell says.

    How cyber criminals try to access your bank account

    Criminals may try to target individuals and withdraw money from consumers’ accounts, but there’s also a newer, faster-growing pattern of crime, which is trying to access the personal information of large numbers of people in order to commit fraud on a larger scale.

    “A lot of bank fraud starts with someone trying to get you to share your information,” Howell says. “What we’re seeing in the industry right now is criminals  gaining access to banking information directly from the account owners.”

    Here’s how it works: The criminal organization obtains partial information on a group of people through an artificial intelligence assisted internet search. Scammers then call or otherwise contact their targets, often claiming to be representatives from a financial institution. The fraudsters might say there’s been a security issue and they need the last four digits of the customer’s account number or other information relating to a recent transaction in order to “validate” the account. Victims sometimes co-operate under the false impression that the caller is being helpful to them—at least it may seem so.

    “No credible bank will ever call you and ask for banking information without you initiating the conversation,” Howell says. 

    If you receive a call of this sort, say you’ll call back, hang up, then call the organization directly using the customer service number published on its website or on the back of your card.

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    Best practices for protecting your bank account

    Here are some other things you should do daily to help secure your bank account:

    • Make sure your account PIN (personal identification number) is not something available online or that can be easily guessed, such as an anniversary or a child’s birthday.
    • Use a strong password that is unique from your other accounts.
    • Enable multi-factor authorization (which requires separately texted or emailed codes) or biometric logins that recognize your face or fingerprint. Biometrics is considered state-of-the-art in terms of digital security and can stop scams, says Howell “There’s only one you and scammers can’t easily fake that.”
    • Avoid accessing your bank account over public Wi-Fi networks, such as those in coffee shops and airport departure lounges where criminals can “sniff” for users entering login credentials or credit card numbers. Use a private network such as your home internet or your wireless provider to access your banking information. If you must use a public network, download a VPN (virtual private network) and use that to access your account.
    • Don’t share login credentials with anyone and make sure that your information is secure. Conceal credit or debit card codes you punch in at an ATM or a store checkout. “You never know who’s looking over your shoulder,” Howell says.
    • Make sure you have a way to recover your account should it get compromised. Set up code words and security questions that will enable you to access your account if it gets locked by your financial institution. “It’s important to take the time to set the code words,” says Howell. “Carefully selected security questions can also play an important role in helping to protect your bank account.”

    sponsored

    Equifax Complete Protection

    Go to site

    Equifax Complete Protection is a credit and cybersecurity protection service designed to help Canadians spot the signs of identity fraud faster.

    • Provides daily credit monitoring and alerts
    • Scans for your personal data on the dark web
    • Social media monitoring by industry leader ZeroFox

    Subscription price: $34.95 per month

    Go to site

    Extra reassurance from Equifax Complete Protection

    Most people know that they need to take extra care around financial transactions, says Howell. It’s the extra precautions they may not have considered that can leave them exposed to fraud and theft. 

    For a higher level of protection, consider Equifax CompleteTM Protection, a monthly subscription service that helps to keep your personal data and devices safe while alerting you to potential fraudulent credit accounts being opened in your name.

    Features of Equifax Complete Protection include:

    • Daily credit monitoring and alerts to notify you of key changes to your Equifax credit report, such as a new credit card or loan application
    • WebScan, which monitors the dark web (hidden websites where criminals like to hang out and trade data) to see if your personal information appears there
    • Social media monitoring provided by industry leader ZeroFox, to alert you to suspicious activity on your social media accounts
    • Online data encryption by NordVPN and online password generation and storage by NordPass
    • Parental controls from Bitdefender to restrict which websites and apps your kids can access
    • Device protection from Bitdefender to help stop phishing attempts and protect devices from viruses and malware.
    • Support from an Equifax identity restoration specialist, if your identity is stolen
    • Identity theft insurance up to $1 million for out-of-pocket expenses (not available in Quebec)

    Equifax Complete Protection costs $34.95 per month. To learn more, visit the Equifax website.

    “What is identity theft, and how is it impacting Canadians?”

    Read more about fraud and scams:



    About Michael McCullough


    About Michael McCullough

    Michael is a financial writer and editor in Duncan, B.C. He’s a former managing editor of Canadian Business and editorial director of Canada Wide Media. He also writes for The Globe and Mail and BCBusiness.

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    Michael McCullough

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  • How much money should I have saved by age 40? – MoneySense

    How much money should I have saved by age 40? – MoneySense

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    All the while, you’ve got a serious case of FOMO every time you check social media—all those friends who are jetting off on lavish vacations, buying new cars and splurging on cottages. How are ordinary Canadians actually doing this? And how can you get ahead and save more?

    What’s the average savings for Canadians in their 30s? How much should they have saved?

    A lot of Canadians are managing to save, despite the above financial challenges and obligations. According to Statistics Canada’s 2019 figures (the most recent available), the average person under age 35 had saved $9,905 towards retirement (RRSPs only) and held $27,425 in non-pension financial assets. For Canadians aged 35 to 44, these numbers are $15,993 and $23,743, respectively.

    The table below shows the average savings for individuals and economic families, which Statistics Canada defines as “a group of two or more persons who live in the same dwelling and are related to each other by blood, marriage, common-law union, adoption or a foster relationship.” In 2019, the average household savings rate was 2.08%.

    Financial assets, non-pension No private pension assets, just RRSPs Private pension assets and RRSPs
    Individual under age 35 $27,425 $9,905 $25,263
    Economic family under age 35 $105,261 $140,662 $60,305
    Individual aged 35–44 $23,743 $15,993 $39,682
    Economic family aged 35–44 $131,017 $138,488 $399,771
    Source: Statistics Canada

    The pandemic had a positive effect on savings; the disposable income of the average Canadian rose by an additional $1,800 in 2020, according to the Bank of Canada. That meant most Canadians were able to save an average of $5,800 that year.

    Despite this pandemic silver lining, most Canadians aren’t saving enough for their age groups. When CIBC polled Canadians in 2019 on how much money they’d need in retirement, on average they guessed they would need $756,000. The actual amount you’ll need depends on many factors—to estimate your own number, check out CIBC’s retirement savings calculator.

    How to prioritize financial goals and obligations in your 30s

    With so much going on in your 30s, it can be very challenging to save when you have so much to pay for. After all, you may be carrying a lot of debt due to student loans, a car loan or a mortgage. In the third quarter of 2023, Canadians aged 26 to 35 owed an average of $17,159, and Canadians aged 36 to 45 owed $26,155, according to a report from Equifax.

    Maybe debt is less of a concern for you, but you’re saving for a big goal—like a down payment on a home—and you’re feeling the strain of a high interest rate and inflation. Perhaps you’d like to start a family, but you’re worried about the costs of raising a child. Or you’ve dabbled a bit in the stock market and want to make a few more investments.

    Whatever your situation, talking to a financial planner about your finances and your priorities can help you map out a customized financial plan that factors in your immediate goals—as well as long-term savings and retirement strategies. This might include focusing on paying off high-interest debt, putting aside money for a home, shopping around for life insurance and ensuring that you save each month.

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    Anna Sharratt

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  • Mortgage broker vs. bank—which will save you more money? – MoneySense

    Mortgage broker vs. bank—which will save you more money? – MoneySense

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    For most Canadians, using a broker is the wisest choice to save money, as they have access to a wider selection of products and should have more experience in going through the application process than you do. 

    However, not all brokers are made the same. Some specialize in mainstream lenders, others are more familiar with getting you a mortgage if you have impaired credit, while others tend to source mortgages for investment properties. Again, ask around, search online. Look at reviews and get referrals if you can.

    What to do before signing a mortgage contract

    Before signing your mortgage contract it’s worth reading the fine print, to make sure everything’s above board. Are you getting the interest rate you signed up for? What about the cost of any lender fees, like an arrangement or booking fee? 

    One important aspect is your “prepayment privilege,” which means how much you’re able to overpay your mortgage every month, shortening the time it takes to pay off the loan. It’s good to know where you stand, because by paying too much you can be charged a prepayment penalty, which makes paying it off faster not worth it.

    Buyers should view a survey of the property before signing the contract, as this can reveal if there are any issues with the home they’d need to deal with, and could even justify a renegotiation on the price. Surveys reveal the boundary of the home, so you have an idea of where you’re allowed to build on. In Canada most sellers take out the survey, known as real property reports (RPRs), and they should be scrutinized before you sign on the dotted line.

    If you’re buying a condominium—often the most affordable option in cities—you’ll want to review documents on how it’s run. Generally you join a condominium corporation where you have to pay fees which are used to manage common areas of the building, so it’s a good idea to know what you’re getting into.

    In the contract you should make sure any verbal agreements are in writing. For example if the seller informally agreed to leave some furniture as part of the purchase it’s best to make this official, just in case you get a nasty surprise when you move in.

    When getting a mortgage it’s important to make sure you don’t overburden yourself and have a backup plan if something goes wrong. Like, could you afford to repair a major leak if that happened? Do you have a plan of action on how you’ll be able to repay the mortgage if you lost your job? In some cases the latter issue can be mitigated by either taking out insurance, or using a guarantor when applying for a mortgage. 

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    Ryan Bembridge

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  • “Can I get scammed through an e-transfer?”—and other questions about protecting yourself from fraud – MoneySense

    “Can I get scammed through an e-transfer?”—and other questions about protecting yourself from fraud – MoneySense

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    Sometimes the fraud is sneakier—although who can be blamed for wanting to pay a bill? For Daria, she and six friends paid Bailey, a “travel hacker” for a trip to Thailand in January 2024. A had a Clubhouse group (remember the conversation app?) and Daria and the other members had got great tips from A and other co-mods in the space. (Names have been changed as the case has yet to be resolved.)

    The seven women paid Bailey for hotel rooms and flew the 20-hour trip from North America to Thailand, only to find out that Bailey wasn’t joining them until a few days later. Then to their horror, Bailey never showed up, canceled her trip two days before it ended and had never paid the hotel for their rooms with the money she was paid by the seven women. Just one received a refund. The others have issued credit card chargebacks and have even contacted the FBI. 

    It seems like scams and phishing attacks are everywhere. If they’re not calling or texting, they are messaging you. On every. Single. Platform. Just as writing this, I had two calls threatening me with the police and a text message asking me to verify my address. 

    It’s irritating at best and financially devastating at worst. According to the RCMP, the Canadian Anti-Fraud Centre (CAFC) received reports totalling $531 million in victim losses in 2022. That’s a 40% increase from 2021. In 2023, Canadians lost $554 million. Think those numbers are big? Know that the CAFC estimates that just five to 10% of people report fraud.

    Why do scams and phishing work on Canadians?

    Why do we fall for frauds, scams and phishing? Maggie Cheung, a spokesperson from the Canadian Bankers Association, says it’s because of deception, manipulation and pressure tactics.

    “Cyber criminals often use human psychology and the art of manipulation to scare, confuse or rush you into opening a malicious link or attachment or into providing personal information through a process known as social engineering,” she says.

    These social engineering tactics force us to respond quickly, through the use of fear (like, you owe the Canada Revenue Agency money that needs to be paid stat) and leveraging our urges to respond to authority. (The CEO really needs you to send that bank transfer now, and the email looks real). These pressure tactics are so sophisticated, they’re believable. That’s why the finance writer of The Cut found herself putting USD$50,000 in a cardboard box into the back of a car.

    The common types of scams

    Anyone can be a victim of a scam, says Cheung. That’s because the techniques to convince you are complex, and cyber criminals are adept at telling a believable story. Some of the more popular scams are:

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    Renée Sylvestre-Williams

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  • RBC to convert HSBC locations as soon as takeover closes next week – MoneySense

    RBC to convert HSBC locations as soon as takeover closes next week – MoneySense

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    RBC spokesperson Christine Stewart said in an email that the bank will begin converting HSBC branches and offices on March 28, the same day its $13.5-billion takeover deal will close, if it clears customary conditions.

    Branches and offices being converted into RBC locations will reopen on April 1.

    Stewart did not say whether any HSBC branches or offices would be permanently closed.

    The brick-and-mortar transformation that will take shape at HSBC is one of the earliest manifestations of the expansion of RBC’s empire.

    When did RBC purchase HSBC?

    RBC announced plans to purchase HSBC Bank Canada in November 2022. At the time, HSBC had about 800,000 clients, 130 branches, 4,200 employees and 2% market share.

    It also counted $130 billion in assets, making it the seventh largest bank in the country.

    Despite being a minor player in comparison to some of the larger banks, experts predicted the deal could have a negative impact on consumer choice because HSBC often undercut its rivals on borrowing costs.

    Other, larger banks offered fixed and variable mortgage rates that were 20 to 80-plus basis points higher than HSBC, mortgage strategist Robert McLister said in December 2023.

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    The Canadian Press

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  • What new bare trust tax filing rules mean for Canadians – MoneySense

    What new bare trust tax filing rules mean for Canadians – MoneySense

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    What is a bare trust?

    The Income Tax Act does not specifically define a bare trust, Chander. The Canada Revenue Agency (CRA) says: “A bare trust for income tax purposes is a trust arrangement under which the trustee can reasonably be considered to act as agent for all the beneficiaries under the trust with respect to all dealings with all of the trust’s property.”

    Essentially, a bare trust may exist when someone holds legal title to an asset, but some or all of the asset technically belongs—meaning it beneficially belongs—to someone else. Unlike formal trusts that are generally established with a lawyer, a bare trust is informal and can result simply from adding someone’s name to an account or to the ownership of a real estate property.

    Common bare trust situations

    Some common examples of bare trusts are:

    • a parent co-signing a mortgage for their child and going on the title
    • a parent or grandparent who has an account for a minor child or grandchild
    • an adult child with joint ownership of their parent’s bank account, investments or real estate for estate planning purposes

    Who has to file a trust tax return?

    The trustees of the trust need to file a tax return for it. The trustees are the people who own the assets on behalf of others. So, in the case of a parent co-signing a mortgage, it is the parent who needs to file. In the case of an account for a minor child or grandchild, it is the parent or grandparent who owns the account. In the case of an adult child who holds assets jointly with their elderly parent, it is the child who needs to file.

    Only trusts with assets of $50,000 or more are required to file.

    Required tax filings

    Bare trusts are required to file T3 Trust Income Tax and Information Returns for the 2023 tax year. A bare trust may not need to submit as much information as other trusts. The CRA has provided this guidance (see section 3.3) to Canadians:

    Step 1: Identification and other information

    • When using our online services, identify the type of trust as Bare Trust by selecting “code 307, Bare Trust” and provide the trust creation date in the appropriate field.
    • If this is the first year of filing a trust return, send us a copy of the trust document, unless such information or document has been previously submitted. See 5.3 for more information on what documents may be required.
    • Where applicable, provide a response and information related to whether the trust is filing its final return (and if so, provide the date on which the trust has been terminated or wound up in the year). Provide a response and information related to applicable questions on page two.

    Step 5: Summary of tax and credits

    • Complete the last page including the parts “Name and address of person or company who prepared this return” and “Certification.”

    For bare trusts, the remaining parts of the T3 Return can be left blank. All income from the trust property for a taxation year should be reported on the beneficial owner’s return of income.

    Complete all parts of Schedule 15.

    Choosing a name for the trust

    A trust must have a name so it can be identified by the CRA. The CRA gives this example: For a bare trust for which “Ms. Andrews” is the beneficiary, a name like “Ms. Andrews trust” may be appropriate. If there are multiple beneficiaries, the CRA suggests putting the names in alphabetical order based on last name, with the word “trust” at the end.

    How to get a CRA trust number

    A trust also needs a trust number. This number is similar to a social insurance number in that it helps the CRA identify the taxpayer—which in this case is the trust.

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    Jason Heath, CFP

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  • ₹2000 withdrawal: Total value of banknotes in circulation declined to ₹8,470 crore by Feb-end: RBI

    ₹2000 withdrawal: Total value of banknotes in circulation declined to ₹8,470 crore by Feb-end: RBI

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    The Reserve Bank of India (RBI) on Thursday said 97.62 per cent of the ₹2,000 banknotes in circulation as on May 19, 2023, had been returned by February 29, 2024, with the remaining notes in circulation continuing to be legal tender.

    Also read: RBI revises BBPS framework to streamline bill payments, enhance protection

    The central bank, in its update on withdrawal of ₹2,000 denomination banknotes, underscored that the total value of ₹2,000 banknotes in circulation, which amounted to ₹3.56 lakh crore as at the close of business on May 19, 2023 when their withdrawal was announced, has declined to ₹8,470 crore as at the close of business on February 29, 2024.

    The facility for exchange of the ₹2,000 banknotes is available at RBI’s 19 Issue Offices since May 19, 2023, per a central bank statement.

    From October 09, 2023, RBI Issue Offices are also accepting ₹2,000 banknotes from individuals/entities for depositing into their bank accounts.

    Further, members of the public are sending ₹2,000 banknotes through India Post from any post office within the country, to any of the RBI Issue Offices for credit to their bank accounts.

    The RBI initiated the exercise for withdrawal of ₹2,000 banknotes on May 19, 2023, as the objective of introducing them (to meet the currency requirement of the economy after the withdrawal of legal tender status of all ₹500 and ₹1,000 banknotes in circulation in the November-December 2016 period) was met once banknotes in other denominations became available in adequate quantities.

    “About 89 per cent of the ₹2,000 denomination banknotes were issued prior to March 2017 and are at the end of their estimated life-span of 4-5 years.It has also been observed that this denomination is not commonly used for transactions. Further, the stock of banknotes in other denominations continues to be adequate to meet the currency requirement of the public.”

    Also read: NBFC-MFIs seek revision in annual household income criteria for giving microfinance loans

    “In view of the above, and in pursuance of the “Clean Note Policy” of the Reserve Bank of India, it has been decided to withdraw the ₹2,000 denomination banknotes from circulation,” the central bank said in a statement on May 19, 2023.

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  • RBC’s takeover of HSBC: What will happen to HSBC Canada customers? – MoneySense

    RBC’s takeover of HSBC: What will happen to HSBC Canada customers? – MoneySense

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    Although the transition will be largely managed internally by RBC, current HSBC customers might have questions about what’s coming up in the next two months. In this article, we’ll walk you through what to expect. 

    What will happen to HSBC Canada customers? 

    During the transition, most changes will be automatic, so HSBC customers can continue to bank as they normally would. Customers should look in the mail for a product and services guide, called Welcome to RBC, and keep it around during the transition as it contains reference information and links. Below we’ve outlined what is expected to happen with HSBC accounts, loans and investments. 

    Personal banking

    What’s happening: RBC will identify suitable bank accounts for HSBC customers based on the features of their current accounts and will send new RBC debit cards in the mail. Customers without an HSBC chequing or savings account will receive an RBC client card number. Expect to receive your cards or client card number by the end of February 2024. 

    What to do: Continue to use your HSBC card until the transition to RBC is complete. In the meantime, use your new RBC card or client number to enroll in RBC online banking or the RBC app. You can activate your debit card online. This will ensure that you have access to your RBC accounts once the transition is complete.

    Note: Your historical account information will migrate to RBC but you can also download it from HSBC to have it on hand. For more information, refer to Section 2 of your welcome package.

    Credit cards 

    What’s happening: As with your personal bank accounts, RBC will identify which RBC credit cards to offer you based on the features of your current HSBC credit cards, and the bank will mail them to you by the end of March 2024. Your personal credit limits and balances will be the same as they were with HSBC. Any insurance coverages and services you had through HSBC, however, will come to an end and be replaced with those offered by RBC, if applicable. 

    What to do: Activate your credit cards online right away, but also carry your HSBC cards until your RBC cards are ready to use. Find out more about credit cards in Section 5 of the welcome guide or by visiting RBC’s website. 

    Mortgages and other loans

    What’s happening: All HSBC lending products, including lines of credit, loans and mortgages will migrate to RBC at the end of March 2024. The terms of your mortgage agreement, including the interest rate, term, payment amount and frequency, amortization, portability and pre-payment privileges will remain the same until your current term ends. 

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    Keph Senett

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  • Married with money: How to combine finances with your partner – MoneySense

    Married with money: How to combine finances with your partner – MoneySense

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    Whether you’re planning to cohabitate or you’re already living together and are starting to plan financial goals, here are some tips on bringing your money together.

    Talk about money with your partner early

    Whether you’re married or not, it’s important to understand your partner’s financial situation, goals and values. Feelings about money formed during childhood often influence us as adults—for instance, fear of not having enough, discomfort with debt, or family taboos around talking about money. Even without these money hang-ups, everyday spending and saving can be stressful when you’re combining finances with another person.

    If you and your partner are moving in together, discuss how you’ll split household costs. Will regular expenses like rent or mortgage payments, utilities, home insurance, groceries and internet be shared equally or in proportion to your respective income levels? If either of you has children, will you share daycare and other child-rearing costs?

    Once you’ve covered everyday expenses and how to track them, consider how you’ll deal with the unexpected. Will you both contribute to an emergency fund? What about big-ticket surprises like a broken appliance or leaky roof? How will you handle it if one person wants the cheapest solution while the other prefers paying more for quality or prestige?

    Then discuss how much to budget for discretionary items like restaurant meals, vacations, recreation and entertainment. Is everything shared, or does each partner get to spend their own “fun money” after financial obligations are covered?

    Every couple is different, but for these and other money matters, clear, open and honest communication is vital to avoid conflicts and resentment down the road. Don’t wait until you face major events like buying a home or dealing with one partner’s sudden unemployment to start discussing your finances openly.

    Sharing your life—and your debt

    Legally, each person remains responsible for their own bank accounts, loans and credit card debt. But if you’re planning a life together, reducing your combined debt creates a stronger financial foundation. Helping your partner pay their debt will also improve their credit score, which may benefit you both in the future, when you need to finance major purchases like a home. Talk about how you’ll manage debt together. Will you help each other pay off existing obligations like credit card balances or student loans?

    If you choose to keep debts separate, be aware that if your partner is behind on loan payments, the lender may seek permission to make a claim on jointly held assets—including your home.

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    Stephanie Griffiths

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  • The 20 Best Bank Promotions of February 2023

    The 20 Best Bank Promotions of February 2023

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    So, you’re looking for a new bank account.

    You’ve got several factors to consider — ATM access, interest rates, monthly account fees, minimum balances, online bill payments and more.

    Another factor: sign-up bonuses. Banks and credit unions frequently run promotions to entice prospective customers to open a new account — and they often come with cash. You have to meet specific criteria, such as making a minimum opening deposit, and generally the account must remain open for a certain amount of time — at least long enough to earn the cash bonus.

    Many banks offer such sign-up bonuses, but often, they aren’t advertised. We did some digging to find the best bank promotions currently on offer.

    Best Bank Account Bonuses of February 2023

    Keep an eye on what each promotion requires, as well as any limitations. Recurring direct deposits and maintaining a minimum balance are common requirements in securing bank bonuses. Also pay attention to monthly maintenance fees; over time, these could easily exceed a one-time cash bonus.

    20 Bank Promotions That Give You Cash

    Bank Promo Payoffs Up to $600

    BANK TOP FEATURE BONUS
    Chime Referral Bonus No monthly fees $100 SEE DETAILS
    Alliant Credit Union Ultimate Opportunity Savings High yields $100 SEE DETAILS
    Huntington Perks Checking Quick cash bonus payout $200 SEE DETAILS
    Huntington Platinum Perks Checking Account Interest on checking $300 SEE DETAILS
    Albert Up to 20% cash back $150 SEE DETAILS
    Chase Total Checking Account Fees may be waived $200 SEE DETAILS
    Fifth Third Momentum Checking No hidden fees $325 SEE DETAILS
    TD Convenience Checking Basic checking account $200 or $400 SEE DETAILS
    TD Beyond Checking Free checks $300 or $500 SEE DETAILS
    Discover Bank Online Savings HIgh APY $150 or $200 SEE DETAILS
    M&T Bank EZChoice Checking Account No monthly fees $200 SEE DETAILS
    M&T Bank MyChoice Plus Checking Account Discounted loan rates $200 SEE DETAILS
    M&T Bank MyChoice Premium Checking Account Premium CD rates $200 SEE DETAILS
    Bank of America Advantage Banking Fees can be waived $100 SEE DETAILS
    SoFi Checking and Savings High APY Up to $250 SEE DETAILS
    BMO Harris Smart Advantage Account No fee for paperless $200 SEE DETAILS
    BMO Harris Smart Money Account No overdraft fees $200 SEE DETAILS
    BMO Harris Premier Account Unlimited ATM use $350 SEE DETAILS
    PNC Virtual Wallet Combination checking and savings Up to $400 SEE DETAILS
    Axos Rewards Checking High APY $100 SEE DETAILS

    Chime Referral Bonus

    Best for Helping Out a Friend

    Key Features

    • Must be current Chime account holder
    • No minimum daily balance
    • Good for first-time banking clients

    If you refer a friend and they open a new account and receive a direct deposit of at least $200 in the first 45 days, you will each receive $100. Make sure to use the referral link from your account to get the cash bonus. Referral bonuses are capped at $1,000 each calendar year.

    Chime Referral Bonus Account

    Bonus amount

    $100 per referral, plus $100 to the friend you refer

    How to get it

    Referred friend receives $200 direct deposit.

    When you get it

    Upon completion of requirements

    The fine print

    Be sure to use a unique referral link from your own account.

    Expiration

    None

    More Information About Chime Referral Bonus Account

    Though not technically a bank, Chime is becoming increasingly popular as an online financial institution for banking customers of all ages. Top features include early access to direct deposit, fee-free overdraft, 60,000+ ATMs, a 2.00% APY for the high-yield savings and plenty of features to automatically grow your savings.

    Alliant Ultimate Opportunity Savings

    Best for Fans of Suze Orman

    Key Features

    • $0 monthly fees with eStatements
    • High-yield savings account
    • Easy-to-track bonus criteria

    Not only does Alliant Credit Union’s Ultimate Opportunity Savings Account (in partnership with Suze Orman) have one of the best APYs currently available (2.95%), it pays out its bonus pretty easily. No massive balances or monthly direct deposits to think about.

    Alliant Opportunity Savings

    Bonus amount

    $100

    How to get it

    Deposit at least $100 a month for 12 months.

    When you get it

    Within four weeks of completion.

    More information

    Balance must be $1,200 at the end of 12 months.

    Expiration

    December 31, 2023

    More About Alliant Ultimate Opportunity Savings Account

    The Ultimate Opportunity Savings Account from Alliant Credit Union has a lot to like: 80,000+ fee-free ATMs, no monthly fees if you opt in to online statements, a leading mobile app, and a strong APY at 2.95%.

    Huntington Perks Checking

    Best for Quick Bonus Payout

    Key Features

    • Easily waivable monthly fee
    • Only available in certain states
    • Quick cash bonus payout

    This offer is only available to customers who live in CO, IL, IN, KY, MI, MN, OH, PA, SD, WV or WI. The Huntington Perks Checking account earns interest (but only 0.02%) and charges a $10 monthly fee. That fee is easy to waive, however, as long as you receive $1,000 in monthly deposits or maintain $5,000 total across all your Huntington accounts

    Huntington Perks Checking

    Bonus amount

    $200

    How to get it

    Open a new account and make cumulative new deposits totaling $1,000 within the first 60 days.

    When you get it

    Within 14 days of meeting bonus criteria.

    More information

    Account must remain open for at least 90 days.

    Expiration

    June 7, 2023

    More Information About Huntington Perks

    Huntington’s Perks Checking account pays out nominal interest (0.02%), but the easily waivable monthly maintenance fee makes it appealing for an easy checking account. Key features include mobile banking, five fee-free out-of-network ATM withdrawals, the No Overdraft Fee $50 Safety Zone and the 24-Hour Grace Overdraft and Return Fee Relief.

    “New account” is defined as money not currently in another Huntington account; money transferred from one account to another does not qualify. The bonus offer cannot be combined with any other checking offer.

    Huntington Platinum Perks Checking

    Largest Bonus Payout

    Key Features

    • $25 monthly fee (can be waived)
    • Interest-earning checking
    • Quick cash bonus payout

    This offer is only available to customers who live in CO, IL, IN, KY, MI, MN, OH, PA, SD, WV or WI. This account earns interest (currently a 0.03% APY, which is quite low). It also has a monthly maintenance fee of $25, which is waived if you have at least $25,000 across every Huntington bank account.

    Huntington Platinum Perks Checking

    Bonus amount

    $300

    How to get it

    Open a new account and make deposits totaling $25,000 within the first 60 days.

    When you get it

    Within 14 days of meeting bonus criteria.

    More information

    Account must remain open for at least 90 days.

    Expiration

    June 7, 2023

    More Information About Huntington Platinum Perks Checking

    While the Huntington Platinum Perks account does have a monthly $25 fee, you can waive it by having $25,000 across accounts with Huntington. By upgrading to this account, you’ll get a higher bonus, get unlimited fee-free ATM withdrawals and earn 0.03% interest on your balance.

    “New account” is defined as money not currently in another Huntington account; money transferred from one account to another does not qualify. The bonus offer cannot be combined with any other checking offer.

    Albert Accounts

    Best for Cash Back

    Key Features

    • Up to 20% cash back
    • Geniuses for personal finance questions
    • No fees or investment commissions

    Albert is an all-purpose personal finance app that lets you spend, save and invest your money. There are no monthly maintenance fees, no minimum balances and no commissions (if you choose to invest). While you won’t earn a traditional APY, Albert gives users a 0.10% annual cash bonus on funds in savings, plus up to 20% cash back. New members are eligible for a $150 bonus.

    Albert Accounts

    Bonus

    $150

    How you get it

    Receive a qualifying direct deposit of at least $500 within 45 days and then every 30 days for 90 days

    When you get it

    Upon meeting requirements over a 90-day period

    More information

    Must be new to Albert

    Expiration

    None

    More Information About Albert Accounts

    Members of Albert don’t have to worry about monthly fees or minimum balances, and they can take advantage of several cool features, like 55,000+ fee-free ATMs, early paycheck access, cashback rewards, Smart Savings (automatically analyzes your money and helps you to save), unlimited transfers, annual cash bonuses, the ability to invest, and a cash advance up to $250 (no interest, no credit check) instead of overdraft fees. Perhaps the coolest part is daily access to finance experts called Geniuses; pay what you think is fair for their advice. Just keep in mind that Albert is not a bank but an app (banking services are provided by Sutton Bank, Member FDIC).F

    Chase Total Checking

    Best for Basic Checking

    Key Features

    • $12 monthly fee
    • Fee waived by meeting conditions
    • Basic checking

    The Total Checking account carries a $12 monthly service fee, but you can have it waived if you receive monthly direct deposits totaling $500 or more, keep a daily minimum balance of at least $1,500 in your new checking account, or keep a daily minimum balance across all your Chase bank accounts of at least $5,000. Direct deposit via person-to-person payment apps do not qualify. Chase offers access to 16,000 ATMs and more than 4,700 branches.

    Chase Total Checking Account

    Bonus amount

    $200

    How to get it

    Receive a qualifying direct deposit within 90 days of account opening.

    When you get it

    Within 15 days of meeting requirements

    More information

    $12 monthly fee, which can be waived.

    Expiration

    April 19, 2023

    More Information About Chase Total Checking Account

    The Chase Total Checking account gets you access to more than 4,700 branches nationwide, plus 16,000 ATMs. The easy-to-use mobile app is highly rated. While Chase does charge a $12 monthly service fee, you can waive it by earning $500+ in monthly direct deposits, maintaining a daily balance of $1,500+ or having $5,000 across all your Chase accounts at the start of each day.

    Fifth Third Momentum Checking

    Best for Early Paycheck Access

    Key Features

    • No monthly or hidden fees
    • Early access to paycheck
    • Overdraft avoidance feature

    Fifth Third Bank is a regional bank with a decent checking account. Its lack of fees, Extra Time overdraft fee avoidance feature, fraud protection, early access to paychecks and physical branches are all highlights, but its lack of APY (you can upgrade to Preferred Checking to earn interest, but it’s only 0.01% APY) and limited branch network (FL, GA, IL, IN, KY, , MI, NC, OH, SC, TN, and WV) work against the bank.

    Fifth Third Checking Account

    Bonus amount

    $325

    How to get it

    Open a new account and make direct deposits totaling $500 or more within the first 90 days.

    When you get it

    Within 10 days of meeting bonus criteria

    More information

    Must apply online or visit website to generate unique offer code to apply in person

    Expiration

    March 31, 2023

    More About Fifth Third Checking Account

    Fifth Third’s checking account boasts immediate funds for all check deposits, Extra Time for overdraft fee avoidance, early paycheck access, no minimum balance and no hidden fees. The account also offers basic fraud protection services and unlimited check writing.

    TD Bank Convenience Checking

    Best for Young Customers

    Key Features

    • Easy to waive monthly fee
    • Easy-to-use mobile app
    • No overdraft fees for 17 to 23 year olds

    TD Convenience Checking is not a glamorous checking account. It doesn’t earn interest, and there aren’t any cash back rewards. However, it’s easy to waive the $15 monthly maintenance fee: Just maintain a $100 minimum balance. Customers who are 17 to 23 years of age automatically have the fee waived and don’t have to pay fees for overdrafts. New customers earn $200 by receiving $500 in qualifying direct deposits within 60 days; earn an additional $200 when you open a linked savings account (Beyond Savings or Simple Savings) and deposit $10,000+ in the first 20 days.

    TD Bank Convenience Checking Account

    Bonus amount

    $200 or $400

    How to get it

    Meet direct deposit qualifications ($500 within 60 days) to earn $200; add savings account for additional $200

    When you get it

    No later than 180 days after account opening.

    More information

    For savings bonus, you must maintain a daily balance of $10,000+ for 90 days.

    Expiration

    February 28, 2023

    More Information about TD Bank Convenience Checking

    The TD Convenience Checking account is a great account for first-time banking customers. There are no monthly fees or overdraft fees for members who are 17 to 23. However, you cannot earn interest on this account. If you are over 23, there is a $15 fee, which you can waive by maintaining a $100 daily balance.

    TD Bank Beyond Checking

    Best for Overdrafters

    Key Features

    • Two overdraft fee forgivenesses
    • Free checks
    • Fee reimbursement for out-of-network ATMs

    TD Beyond Checking offers more perks than the Convenience Checking, including two fee-free overdrafts per year, out-of-network ATM fee reimbursements, and free checks. The account does earn interest, but the monthly fee is higher ($25) and harder to waive. Bonus terms for the TD Beyond Checking are similar; coupled with the savings promotion, you could earn $500.

    TD Bank Beyond Checking Account

    Bonus amount

    $300 or $500

    How to get it

    Meet direct deposit qualifications ($2,500/60 days) to earn $300; add a savings account for additional $200.

    When you get it

    Within 180 days of opening.

    More information

    For savings bonus, you must maintain a daily balance of $10,000+ for 90 days.

    Expiration

    February 28, 2023

    More Information About TD Bank Beyond Checking

    The TD Beyond Checking account is great for unique perks, like free checks, ATM fee reimbursement, and overdraft fee coverage (two a year). To waive the monthly $25 fee, you’ll need to earn $5,000 in direct deposits each month, maintain a $2,500 minimum balance in the checking account or maintain a $25,000 balance across all TD accounts.

    Discover Bank Online Savings

    Best for Big Savers

    Key Features

    • High-yield savings account (3.30% APY)
    • No monthly fees or minimum opening deposit
    • No insufficient funds fees

    Discover Bank’s Online Savings Account offers one of the highest APYs on our list. You can also pair the account with the Discover Bank Cashback Debit account (one of the best online checking accounts of 2022). However, the deposit amounts to earn the bonus are quite high, making the bonus offer far less achievable for most.

    Discover Bank Online Savings Account

    Bonus amount

    $150 or $200

    How to get it

    Open an account using code CY323 and deposit at least $15,000 for $150 or $25,000 or $200 within 30 days

    When you get it

    Within 30 days of meeting bonus criteria

    More information

    Must be a first-time Discover savings account customer; current and prior customers are not eligible.

    Expiration

    March 15, 2023

    More Information About Discover Bank Online Savings Account

    The Discover Bank Online Savings Account offers a competitive APY (3.30%) with interest compounded daily instead of monthly. There’s no monthly fee with Discover, no minimum deposit and no insufficient funds fee. All in all, not a bad offer.

    M&T Bank EZChoice Checking

    Best for Beginners

    Key Features

    • No monthly maintenance fees
    • Unlimited check writing
    • Physical branches

    The EZChoice Checking account from M&T Bank is the most basic package offered. It’s great for beginners because it has no monthly maintenance charge and no monthly minimum balance requirement. Plus, there’s unlimited check writing. You will need $25 to open the account and have qualifying direct deposits totaling at least $500 within the first 90 days to earn the bonus. This offer is only valid in select states.

    M&T Bank EZChoice Checking

    Bonus amount

    $200

    How you get it

    Make qualifying direct deposits totaling at least $500 within 90 days of opening the account.

    Whey you get it

    Within 90 days after the direct deposit.

    The fine print

    There’s a $50 early close-out fee if you close the account within 180 days of opening.

    Expiration

    April 30, 2023

    More Information About M&T Bank EZChoice Checking

    M&T Bank has more than 700 branches and 1,800 ATMs with operations in New York, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virgina, West Virginia, Vermont, Massachusetts and Washington, DC, but you can also do your banking entirely online.

    M&T Bank MyChoice Plus Checking

    Best for Loan Seekers

    Key Features

    • Discounted loan rates
    • ATM fee reimbursement
    • Interest-bearing options

    The MyChoice Plus Checking account from M&T Bank requires extra work to avoid a monthly fee ($14.95): Either maintain an average daily balance of $2,500 or receive $1,500 in direct deposits each month. With this account, you qualify for discounted loan rates with M&T. You will need $25 to open the account and have qualifying direct deposits totaling at least $500 within the first 90 days to earn the bonus. This offer is only valid in select states.

    M&T Bank MyChoice Plus Checking

    Bonus amount

    $200

    How you get it

    Make qualifying direct deposits totaling at least $500 within 90 days of opening the account.

    When you get it

    Within 90 days after the direct deposit.

    The fine print

    There’s a $50 early close-out fee if you close the account within 180 days of opening.

    Expiration

    March 31, 2023

    More Information About M&T Bank MyChoice Plus Checking Account

    M&T Bank has more than 700 branches and 1,800 ATMs with operations in New York, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virgina, West Virginia, Vermont, Massachusetts and Washington, DC, but you can also do your banking entirely online.

    M&T Bank MyChoice Premium Checking

    Best for CD Rates

    Key Features

    • Discounted loan and premium CD rates
    • ATM fee reimbursement
    • Interest-bearing checking

    The MyChoice Plus Checking account from M&T Bank requires extra work to avoid a monthly fee ($24.95): Either maintain an average daily balance of $7,500 or $25,500 across all M&T accounts. With this account, you qualify for discounted loan rates and premium CD rates with M&T. You will need $25 to open the account and have qualifying direct deposits totaling at least $500 within the first 90 days to earn the bonus. This offer is only valid in select states.

    M&T Bank MyChoice Premium Checking

    Bonus amount

    $250

    How to get it

    Make qualifying direct deposits totaling at least $500 within 90 days of opening the account.

    When you get it

    Within 90 days after the direct deposit.

    More information

    There’s a $50 early close-out fee if you close the account within 180 days of opening.

    Expiration

    April 30, 2023

    More Information About M&T Bank MyChoice Premium Checking

    M&T Bank has more than 700 branches and 1,800 ATMs with operations in New York, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virgina, West Virginia, Vermont, Massachusetts and Washington, DC, but you can also do your banking entirely online.

    Bank of America Advantage Banking

    Best for Standard Checking

    Key Features

    • Monthly maintenance fees (very by account)
    • Standard checking accounts
    • Fees can be waived

    Open your new checking account online using the promo code DMF100CIS. Qualifying direct deposit must be regular monthly income, such as salary or pension payments. Advantage Banking checking accounts come in three levels: SafeBalance, Plus and Relationship. All three carry monthly maintenance fees that can be waived by meeting direct deposit and minimum balance requirements.

    Bank of America Advantage

    Bonus amount

    $100

    How to get it

    Receive direct deposits of at least $1,000 within 90 days.

    When you get it

    Within 60 days of completing requirements.

    More information

    Monthly fees can be waived

    Expiration

    June 30, 2023

    More Information About Bank of America Advantage

     

    Bank of America’s Advantage account is broken into three tiers: SafeBalance Banking, Plus Banking, and Relationship Banking. SafeBalance boasts no overdraft fees or non-sufficient funds fees; Plus offers multiple ways to waive the monthly service fee; and Relationship earns interest (though the percentage is quite low).

    SoFi Checking and Savings Account

    Best for High APY

    Key Features

    • Up to 3.75% APY
    • Fee-free overdraft coverage
    • Early access to paycheck

    The SoFi bank account currently has the highest APY of any account on our list. Plus, it has one of the highest new customer bank bonus offers: up to $250. Other highlights of this account include early access to your paycheck with direct deposit, no-fee overdraft coverage, automatic saving features and up to 15% cash back when you shop local. Plus, there are no monthly account fees.

    SoFi Checking and Savings Account

    Bonus amount

    Up to $250

    How to get it

    Earn qualifying direct deposits totaling $5,000+ within 25 days.

    When you get it

    Within 14 days of the end of the 25-day evaluation period.

    The fine print

    Direct deposits totaling $1,000 to $4,999 for $250 bonus; $1,000 to $1,999 for $50 bonus.

    Expiration

    March 31, 2023

    More Information About SoFi Checkings and Savings

    SoFi’s online bank account certainly rewards members for spending and saving. The account, which doubles as a checking and savings account, allows you to organize your savings into vaults so you can work toward your goals. You’ll earn 3.75% APY on money in savings and 2.50% on checking funds, and when you shop local, you can earn up to 15% cash back. The bonus is tiered; to get the full $250 bonus, make sure your qualifying direct deposits total $5,000 or more.

    BMO Harris Smart Advantage Account

    Best for Fee-Free ATM Network

    Key Features

    • No monthly fee if you go paperless
    • Standard checking account
    • Fee-free transactions at 40,000+ ATMs

    Get a $200 bonus for opening a new BMO Harris Smart Advantage account and earning at least $4,000 in qualifying direct deposits within 90 days. This entry-level account grants you unlimited fee-free transactions at over 40,000 in-network Allpoint ATMs and 1,400 BMO Harris ATMs in the US. The bank has physical branches in IN, IL, AZ, MO, MN, KS, FL and WI, though you can open an account online.

    BMO Harris Smart Advantage Account

    Bonus amount

    $200

    How you get it

    Receive direct deposits of at least $4,000 within 90 days.

    When you get it

    Approximately 100 days after opening.

    More information

    Monthly fees can be waived with paperless statements.

    Expiration

    May 12, 2023

    More Information About BMO Harris Smart Advantage

    Smart Advantage is BMO Harris’ most popular checking account. It requires no minimum balance, charges no monthly fees when you opt for paperless statements and gets you fee-free access to 40,000+ ATMs nationwide with the Allpoint network.

    BMO Harris Smart Money Account

    Best for No Minimum Balance

    Key Features

    • No monthly maintenance fees if under 25
    • Standard checking account
    • No overdraft or NSF fees

    Get a $200 bonus for opening a new BMO Harris Smart Money account and earning at least $4,000 in qualifying direct deposits within 90 days. This standard account grants you unlimited fee-free transactions at over 40,000 in-network Allpoint ATMs and 1,400 BMO Harris ATMs in the US. The bank has physical branches in IN, IL, AZ, MO, MN, KS, FL and WI, though you can open an account online.

    BMO Harris Smart Money Account

    Bonus amount

    $200

    How to get it

    Receive direct deposits of at least $4,000 within 90 days.

    When you get it

    Approximately 100 days after opening.

    More information

    There is a monthly fee if you’re over 25.

    Expiration

    May 12, 2023

    More Information About BMO Harris Smart Money Account

    Like Smart Advantage, BMO Harris’ Smart Money has no minimum balance required. It’s also noteworthy for having no overdraft or NSF fees. With this account, you will get unlimited fee-free transactions at in-network ATMs (40,000+ nationwide). However, you’ll pay a monthly fee if you’re 25 or older.

    BMO Harris Premier Account

    Best for High Interest Possibility

    Key Features

    • Interest tied to balance
    • High-yield checking account
    • Unlimited ATM transactions

    Get a $350 bonus for opening a BMO Harris Premier account and earning at least $7,500 in qualifying direct deposits within 90 days. The more you have in the account, the more interest you earn. Monthly maintenance fees can be waived if certain requirements are met. The bank has physical branches in IN, IL, AZ, MO, MN, KS, FL and WI, though you can open an account online.

    BMO Harris Premier Account

    Bonus amount

    $350

    How to get it

    Receive direct deposits of at least $7,500 within 90 days.

    When you get it

    Approximately 100 days after opening.

    More information

    There is a monthly fee.

    Expiration

    May 12, 2023

    More Information About BMO Harris Premier

    The highest bonus at BMO Harris comes from the Premier Account with Relationship Packages that reward you with more perks for banking more with BMO. The account earns interest, and the amount you earn increases with the amount of funds in the account. You also get unlimited access to any ATMs, in-network or not.

    PNC Virtual Wallet

    Best for ATM Power Users

    Key Features

    • Geographic based
    • No minimum balance to open
    • Digital financial tools

    The PNC Virtual Wallet includes three different Spend accounts: the baseline account, Performance Spend and Performance Select. All three require no minimum balance to open and get access to 60,000 ATMs nationwide; the premium Performance Select account also reimburses fees at out-of-network ATMs.

    PNC Virtual Wallet

    Bonus amount

    Up to $400

    How to get it

    Qualifying direct deposits must be received within 60 days of account opening

    When you get it

    60 to 90 days after meeting bonus conditions

    The fine print

    Monthly service fees ranging from $7 to $25 if conditions aren’t met

    Expiration

    Jan. 2, 2023

    More Information About PNC Virtual Wallet

    PNC bonus offers are based on the type of account you open and receipt of qualifying direct deposit. This offer is good in specific states throughout the country. Your ZIP Code will be used to determine if you are in a participating state.

    You’ll earn:

    • $50 when you open and use a base Virtual Wallet account.
    • $200 when you open and use Virtual Wallet with Performance Spend.
    • $400 when you open and use Virtual Wallet with Performance Select.

    To waive the Virtual Wallet monthly maintenance fee ($7), earn $500+ in monthly direct deposits to the Spend account or maintain a $500+ monthly balance across the Spend + Reserve accounts. If you’re 62 or older, the fee is automatically waived. Waiving fees on Performance Spend and Performance Select is also possible, if you meet specific criteria.

    Axos Rewards Checking Account

    Best for Unlimited ATM Reimbursements

    Key Features

    • No monthly balance requirements
    • No overdraft or NSF fees
    • Up to 1.25% APY

    Axos continues to land on our roundup of best online checking accounts because of the high APY (up to 1.25% APY), lack of overdraft fees and unlimited domestic ATM fee reimbursement. With Axos, you’ll have zero monthly maintenance fees, and it only takes $50 to open.

    Axos Rewards Checking Account

    Bonus amount

    $100

    How to get it

    Open new account with code RC100 and set up direct deposits of at least $1,500.

    When you get it

    Within 30 days of the 90-day waiting period

    The fine print

    The full 1.25% APY requires additional accounts (loan and investment).

    Expiration

    March 31, 2023

    More Information About Axos Reward Checking

    The Axos Reward Checking is one of the accounts on this list that is so good that we would recommend considering it even without the bonus. In fact, it’s ranked one of the best online banks for 2023.

    If you are tired of overdraft fees, want real earning potential from your checking account and frequently utilize an ATM, this is the bank to go with, as long as you’re OK with an online-only experience.

    How to Search for Bank Account Bonuses on Your Own

    Instead of listing approximately 193 bank promotions, we kept this list short and sweet — only highlighting the best bank promotions for checking and savings accounts.

    But maybe you’re interested in banking with your local credit union, opening a small business checking account or exploring what investment accounts are available. There are often cash bonuses attached to these accounts too.

    Banks don’t always make finding these promotions easy, so here are a few tips to help you get your hands on that cash bonus.

    • Check the bank website first. Sometimes it’ll advertise its offers with a blaring promo code. This is rare, but it’s worth a quick check — it could save you a ton of time.
    • Reach out to customer service. Let them know you’re shopping for a new account, and you’d like to know if the bank is running any promotions. More often than not, the nice representative will send you a special link.
    • Google the best bank account bonuses. You’ll likely dig up some offers from third-party sites, so make sure the offer:
    • Hasn’t expired.
    • Is legitimate. Make sure the bank is FDIC-insured and has a positive Better Business Bureau rating. Read some online reviews.
    • Doesn’t require outrageous qualifying activities. For example, it might not be realistic for you to maintain an average daily balance of $50,000.
    • Reach out to your own network to crowdsource bank recommendations. Sometimes banks have impressive referral programs, so both you and your friend could benefit from you signing up.

    Overall, be smart. Don’t let the promise of a cash bonus blind you. Read the fine print so you don’t get stuck paying high monthly fees, interest rates or closing penalties.

    Will Opening a Bank Account Hurt Your Credit Score?

    If you’re worried that opening a new bank account or closing an old one will hurt your credit score, don’t be. Your bank accounts are not included in your credit report and therefore have no effect on your credit score, unless you have an outstanding negative balance that the bank turns over to a collection agency.

    Sometimes when you go to open a new bank account, banks will do a soft credit check. However, that won’t affect your credit score.

    Timothy Moore covers bank accounts for The Penny Hoarder from his home base in Cincinnati. He has worked in editing and graphic design for a marketing agency, a global research firm and a major print publication. He covers a variety of other topics, including insurance, taxes, retirement and budgeting and has worked in the field since 2012.

    Editorial Disclosure: This content is not provided by the bank advertiser. Opinions expressed here are the author’s alone, not those of the bank advertiser. This site may be compensated through the bank advertiser Affiliate Program.


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    tmoorefreelance@gmail.com (Timothy Moore)

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  • Best Checking Accounts – Our 10 Recommendations

    Best Checking Accounts – Our 10 Recommendations

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    Do you remember why you chose your current checking account?

    If you got started early, your parents might have helped you open a kids’ checking or savings account at their bank’s branch. Or maybe you went with the credit union down the street from your work after getting your first W2 job.

    Whatever the reason, location likely played a big part. Thankfully, you’re no longer confined to a financial institution for a checking account because of its proximity to you — or a brick-and-mortar site altogether, for that matter.

    From higher interest rates to better benefits, it pays to expand your search beyond your local bank or credit union these days. Here’s how to choose the right checking account for you.

    10 Best Checking Accounts for February 2023

    Is it Time to Change Checking Accounts?

    Account APY ATM Access Fees
    Chime Checking Account None 60K+ fee-free ATMs No monthly fees GET DETAILS
    Varo Bank Account None 55,000+ Allpoint ATMs Out-of-network ATM GET DETAILS
    Chase Total Checking None 16,000 ATMs Yes, but may be waived GET DETAILS
    Chase College checking None 16,000 ATMs None GET DETAILS
    TD Bank Convenience Checking None 700 ATMs Yes, but may be waived GET DETAILS
    Axos Bank Essential Checking None Fee reimbursements None GET DETAILS
    Ally Interest Checking Up to 0.25% 55,000+ Allpoint ATMs None GET DETAILS
    Consumers Credit Union Free Rewards 2.09% Over 30,000 ATMs Overdraft fees GET DETAILS
    Schwab Bank High Yield Investor Checking 0.45% Unlimited ATM fee-reimbursements None GET DETAILS
    Montgomery Bank New Start Checking None Bank & MoneyPass ATMs None GET DETAILS

    Chime Checking Account

    Best for Digital Features

    Key Features

    • No monthly maintenance fees
    • Free access to in-network ATMs
    • A “Pay Friends” feature to give money to friends

    Chime is an online checking account that truly embraces the digital banking space* — consider that its app has over 550,000 positive reviews. The company’s tagline is “banking that has your back” and it aims to do that through its Early Payday function (where you get access to direct deposit funds up to two days early), fee-free overdraft services and more.

    Chime Checking Account

    Fees

    No monthly fees

    APY

    None

    ATM access

    60K+ fee-free ATMs*

    Promotions

    None

    Prime perk

    “Pay friends” feature

    More information About Chime Checking Account

    Chime doesn’t charge overdraft fees or for overdraft protection, a monthly maintenance fee, foreign transaction fees or minimum balance fees. You can also open an easy-to-access connected savings account — it allows you to automate your savings with features like the round-up tool, which will round up your transactions to the nearest dollar and dump the change into savings. Bonus: Chime has a “Pay Friends” feature, so you don’t have to mess with cash, math or other apps to split the bill.

    For a full run down of fees and services, check out our complete Chime Bank review.

    Varo Bank Account

    Best for Cash Back

    Key Features

    • No hidden fees
    • Early access to your paycheck
    • Tool to project your cash flow

    Varo has combined traditional banking tools with modern technology to help its customers become financially healthy. Its big selling points include Varo Perks — get up to 15% cash back with in-app purchases — no hidden fees and early access to your paycheck. You can also earn up to a whopping 5.00% APY with a Varo high-yield savings account.

    Varo Bank Account

    Fees

    Out-of-network ATM and cash deposit fees

    APY

    None

    ATM access

    More than 55,000 Allpoint ATMs

    Promotions

    Earn money by referring friends

    Prime perk

    Up to 15% cash back

    More information About Varo Bank Account

    With Varo, you’ll pay no monthly service fees, no extra fees for minimum balance requirements, no foreign transaction fees and no cash replacement fees. For money transfers, Varo Bank works with Zelle® so you can send money to folks who user other banks for free. You’ll just pay out-of-network ATM fees and cash deposit fees if you deposit cash in-store through Green Dot®. Varo keeps tabs on how much you spend across all your accounts, too, so you can better analyze and project your cash flow. It also allows you to set spending caps so you have a better handle on your money.

    For a full run down of fees and services, check out our complete Varo Bank review.

    Chase Total Checking Account

    Best for Promotional Offers

    Key Features

    • A hefty sign-on bonus for new customers
    • Offers online, mobile and text banking
    • Lots of branch locations in the U.S.

    Chase Bank is a well-known entity in the financial world, and we had to include its Total Checking Account on our list. The account comes with a $12 monthly service fee, but it’ll be waived if you have monthly direct deposits of at least $500. If you don’t have direct deposit, you can also have the fee waived with a minimum daily balance of $1,500 (or $5,000 across multiple Chase accounts).

    Chase Total Checking Account

    Fees

    Yes, but may be waived

    APY

    None

    ATM access

    16,000 ATMs

    Promotions

    Yes

    Prime perk

    Branches in 33 states to avoid fees

    More information About Chase Total Checking

    This Chase account has other fees. For example, you can use a Chase ATM for free, but you’ll pay a $3 fee for non-Chase ATMs in the U.S., Puerto Rico and the U.S. Virgin Islands and $5 outside of those locations — so, this account isn’t the best for frequent international travelers. Thankfully, the bank has branches and 16,000 fee-free ATMs in 33 states around the U.S., so you can avoid the fees if you’ve got one nearby.

    Bonus (literally): You can get $200 when you open a new checking account. Getting it is pretty simple, too, compared with similar offers — open a new Chase Total Checking account* with $0, and set up direct deposit within 90 days of opening. Keep your account open for at least six months, or you’ll lose the bonus at closing.

    For a full run down of fees and services, check out our complete Chase Bank review.

    Chase College Checking Account

    Best for Responsible Students

    Key Features

    • New applicants can qualify for a bonus
    • Lots of branches and ATMs in the U.S.
    • No monthly service fee

    The Chase College Checking Account is designed with the college student in mind. For anyone ages 17 to 24 with proof of college enrollment, there is no monthly service fee. However, it does come with some hefty insufficient-funds fees and fees for using non-Chase ATMs.

    Chase College Checking Account

    Fees

    None

    APY

    None

    ATM access

    16,000 ATMs

    Promotions

    Yes

    Prime perk

    $100 for signing up

    More Information About Chase College Checking Account

    New applicants can get a $100 bonus in their account just for signing up for paperless statements and making 10 qualifying transactions within the first 60 days. Debit card transactions count, so that should be easy.

    No other rewards are a part of this account, but that’s typical with a student checking account. Beyond that, the account comes with the accessibility of one of the nation’s largest financial institutions, so ATMs are plentiful and online and mobile banking is available.

    For a full run down of fees and services, check out our complete Chase Bank review.

    TD Bank Convenience Checking

    Best for Mobile Banking

    Key Features

    • Free online and mobile banking
    • No maintenance fee for students 17-23 years old
    • Monthly fee that can be waived easily

    TTD Bank is another big name on our list. All TD accounts include free online and mobile banking, including mobile check deposit. The $15 monthly maintenance fee on this account sounds hefty at first, but it’s waived if you maintain a $100 minimum daily balance. However, if you tend to keep a low account balance, that fee — and the account’s $35 overdraft fee — could pinch your wallet.

    TD Bank Convenience Checking

    Fees

    Yes, but may be waived

    APY

    None

    ATM access

    700 ATMs

    Promotions

    Yes

    Prime perk

    No monthly maintenance fees for students

    More Information About TD Bank Convenience Checking

    Anyone can open an online checking account, but TD’s brick-and-mortar banks (and ATMs) are mostly located on the East Coast. With a $3 fee for using an out-of-network ATM, you might want to have a physical location nearby.
    The best thing about this financial institution is it’ll pay you — just for opening an account. For a $300 bonus and an interest-yielding account, consider TD Bank’s higher-tier Beyond Checking account. You must meet certain criteria (and be a new customer) to earn this bonus. (And double-check when the offer ends.)

    Axos Bank Essential Checking

    Best for Online Customers

    Key Features

    • Up to 1.00% APY on certain accounts
    • Requires balance of only $1
    • Unlimited ATM-fee reimbursement in the U.S.

    Axos’ Essential Checking account comes with no monthly, annual or overdraft fees. An Axos representative told TPH all its checking accounts require a $100 minimum opening deposit — but, after that, you only need a minimum balance of $1. Despite the low minimum balance, this bank rewards its customers with up to 1.25% APY on their balance (though Essential Checking accounts are not eligible).

    Axos Bank Essential Checking Account

    Fees

    None

    APY

    Up to 1.25% on certain accounts

    ATM access

    Unlimited domestic ATM reimbursements

    Promotions

    $150 welcome bonus

    Prime perk

    Online bankers valued

    More Information about Axos Bank Essential Checking

    Axos offers a lot if you’re in the market for an online-only checking account. On top of no fees, Axos will also reimburse you by the end of the next business day for unlimited ATM fees within the U.S.
    Regarding spending abroad — per a rep via live chat, you’ll pay a 1% service transaction charge on purchases made in other countries. So, even though this online bank account is flexible, it isn’t ideal for international travelers.

    For a full run down of fees and services, check out our complete .

    Ally Interest Checking Account

    Best for No Fee Perks

    Key Features

    • Use any Allpoint ATM in the U.S. free of charge
    • No overdraft fees
    • Up to 0.25% APY

    With Ally’s online Interest Checking account, you can take advantage of no minimum required deposit and use any Allpoint ATMs in the U.S. for free. Plus, Ally will reimburse you up to $10 per statement cycle for other ATM fees within the U.S. As for no fees, there’s more good news: Last year, Ally permanently suspended overdraft fees for checking accounts and all others.

    Ally Interest Checking Account

    Fees

    None

    APY

    Up to 0.25%

    ATM access

    More than 55,000 Allpoint ATMs

    Promotions

    None

    Prime perk

    Account accessible online or through app

    More Information About Ally Interest Checking

    With a daily balance of $15,000 or more, this checking account yields 0.25% interest. Below $15,000, it’s 0.10%. That tops a lot of bank accounts, but it’s not as impressive as we’d expect for an account with “interest” in the name — and that balance requirement is a beast. We expect more when checking accounts earn interest.

    You can access Ally Interest Checking online or through the Ally app, so it’s an accessible choice for anyone within the U.S.

    For a full run down of fees and services, check out our complete Ally Bank review.

    Consumers Credit Free Rewards

    Best for High Balance Benefits

    Key Features

    • Earn 2.09% interest
    • All ATM fees in the U.S. are reimbursed
    • Branches in IL; anyone in U.S. can bank online

    Prefer to bank at a credit union? Check out the Consumers Credit Union Free Rewards Checking Account. The interest is solid and the rewards are pretty sweet — no monthly maintenance fees, good APY, early direct deposit and more — but the requirements are a bit hefty.

    Consumers Credit Union Free Rewards

    Fees

    Overdraft fees

    APY

    2.09% (but up to 4.09% for all accounts)

    ATM access

    Over 30,000 ATMs

    Promotions

    None

    Prime perk

    Solid interest offers

    More Information About Consumers Credit Union Free Rewards Checking

    With this Consumers Credit Union plant, account holders will earn 2.09% interest on your balance up to $10,000. You’ll also have all ATM fees reimbursed, as long as you:

    • Make 12 debit card purchases each month without using the PIN (as a credit transaction).
    • Have at least one direct deposit or ACH credit of $500 or more each month.
    • Enroll in e-documents.

    In addition to that, you can earn 3.09% or 4.09% APY (annual percentage yield) on balances up to $10,000 if you meet CCU Visa credit card spending requirements: $500 and $1,000, respectively.
    All CCU branches are in Illinois, but anyone can open and manage an account online and through the mobile app.

    Schwab Bank High Yield Investor

    Best for International Travelers

    Key Features

    • Easy-to-use app
    • ATM-fee reimbursements around the world
    • No fees or minimum deposit required

    Schwab Bank is loved by international travelers. The account offers unlimited ATM fee rebates for cash withdrawals at ATMs anywhere in the world. You can manage your account online or through the Schwab app for iPhone, and make deposits through the app, so this account keeps up with jet-setters.

    Schwab Bank High Yield Investor Checking

    Fees

    None

    APY

    0.45%

    ATM access

    Unlimited ATM-fee reimbursements

    Promotions

    None

    Prime perk

    Free ATM rebates worldwide

    More Information About Schwab Bank High Yield Investor Checking

    The downside? Schwab’s online-only High Yield Investor Checking account must be linked to a Schwab One brokerage account. Luckily, there are no fees or minimum deposits to open either account, as long as you open them together.
    Neither account comes with monthly fees or a minimum balance, but “other account fees, fund expenses and brokerage commissions may apply” to the brokerage account once you begin investing, according to the Schwab site.
    The checking account offers a variable interest rate. If you want to grow your savings through Schwab, you’ll want to invest through the brokerage account.

    Montgomery Bank New Start

    Best for No-Frills Banking

    Key Features

    • Low minimum deposit to open an account
    • No service fees or required monthly balance
    • Free debit card

    The Montgomery Bank New Start Checking account is what you want in a second chance banking account. No frills, but no unnecessary fees, either. All it takes is a $20 minimum deposit to open the account. While this is a no-frills account, it offers a lot of benefits for those who are looking to get back on their financial feet again.

    Montgomery Bank New Start Checking

    Fees

    $20 to open, and then none

    APY

    None

    ATM access

    Montgomery Bank & MoneyPass ATMs

    Promotions

    None

    Prime perk

    Lots of freebies

    More Information About Montgomery Bank New Start Checking Account

    This account is loaded with freebies and other extras, such as free direct deposit, unlimited check writing and a free debit card. You can also open interest-bearing accounts with the bank if you’re interested in other options. Additionally, Montgomery Bank offers a business checking account, too.

    Pro Tip

    Check out our current list of bank promotions for a chance to gain a monetary bonus when signing up for a new bank account.

    What Is a Checking Account?

    A checking account is a place to store money at a bank, credit union or other financial institution. The money in a checking account is typically reserved for regular, everyday expenses, as opposed to a savings account. Checking accounts usually distribute paper checks and a debit card to members as well.

    How to Choose a Checking Account

    You probably already know that you need a checking account and if it comes with a free debit card, that’s even better. A checking plan serves as the primary hub for your money. It’s where your paychecks and direct deposits land, and, from there, you use the money to pay bills, buy the stuff you need and hopefully slide some of it into a savings account. Maintaining a savings account is a smart personal finance decision.

    Picking a bank account is a personal choice. What makes checking accounts “good” depends largely on your financial situation and goals. Checking accounts come in a lot of varieties these days, each with different features and benefits. You can pick from online-only banks to those with physical branches, and from those that pay interest to those that offer free checking accounts and no fees for out-of-network ATM use. It’s up to you to do the research and find the one that will benefit you and your lifestyle the most.

    But we can tell you a few things that make certain checking accounts worth opening. Here are a few important features to keep in mind when looking for the best checking accounts:

    • Fees: How much will it cost you to manage your money with this account? Make sure you know the monthly fee — or fees — to maintain the account. Also, understand the account’s overdraft fee protection.
    • Safety: If something happens to the institution where you hold your account, will your money be protected? Make sure your checking account is NCUA- or FDIC-insured.
    • Interest rates and APY: Does a particular checking account offer interest on your money to keep it in an account? (These types of accounts tend to offer no or low interest rates and APY, but there are high-interest checking accounts out there.)
    • Rewards: What do you earn in return for using the account? Are you rewarded for making regular direct deposits or keeping a high balance, for example?
    • Minimum balance:: Is there a minimum or average daily balance needed to maintain the account? Or to open the account? Minimum balance requirements can range for $1 to thousands of dollars (to earn a particular rate) and you’ll want to know this before you open an account, be it at a branch or through online banking.
    • Accessibility: What are the requirements to open this account (again, minimum balance requirements, and earn the rewards?
    • Mobility: Can this account travel and move with you? How are the online banking features? Do direct deposits make your banking life easier? How good is the financial institution’s app in making mobile check deposits easier? Are you considering online banks or only those with physical branches?

    Types of Checking Accounts

    There are a few varieties of checking accounts out there that offer different benefits. You just need to figure out which kind will work best for you. Some of your options for traditional and online checking accounts are:

    • Student Checking: These accounts usually feature minimal fees and no minimum balance. They also don’t offer a lot of perks. They’re bare-bones accounts designed for cash-strapped students who just need the basics.
    • Express Checking: This is the checking account for today’s digital person. If you don’t like going to the bank, this could be for you. These accounts are designed for use on computers, phone apps, ATMs or by telephone. You may actually get a fee for going to a live teller. The upside is fees are minimal as long as you keep banking digitally.
    • Joint Checking: Need to share a checking account with a spouse or another person? A joint account lets you both put money in and take money out as needed.
    • Fresh Start or Second Chance Checking: If you’ve run into financial trouble and have had your accounts closed, it can be tough to get a new account. These accounts are designed to minimize the bank’s risk, but they allow you to open a new account. If you maintain it well for an extended period of time, it may open opportunities for you to upgrade.
    • Rewards Checking: Rewards checking offers the highest perks, such as annual percentage yield (APY) interest on the account balance. Debit card purchases could also receive cashback bonuses or earn points for things like airline travel or gift cards. Some, however, will come with an annual fee.
    Pro Tip

    Check out our current list of bank promotions for a chance to gain a monetary bonus when signing up for a new bank account.

    Checking Account vs. Savings Account

    financial setup. You want to have one location for more regular, everyday expenses (checking) and one for longer-term savings and goals (savings).

    Checking Account Pros and Cons

    There are advantages and disadvantages to checking accounts and below are the most common.


    Pros

    • Relatively easy and quick to open
    • Low- or no-fee account options
    • Typically offer a free checkbook and debit card


    Cons

    • Usually don’t earn interest
    • Certain accounts have fees (like overdraft and minimum balance requirements) that can add up quickly if you’re not vigilant

    Savings Account Pros and Cons

    The following pros and cons of savings accounts can help you decide how to use them.


    Pros

    • Relatively easy and quick to open
    • Offers interest
    • Easy to access your money in times of need (versus a CD, for example)


    Cons

    • Interest rates can vary over time
    • Certain accounts have fees or requirements (like a particular monthly balance to earn a higher interest rate)

    When it comes to checking and savings accounts, don’t think of it as an either-or situation — it’s a good idea to have both. You can also mix and match. For instance, you might go for an online checking account and a local credit union for a savings account.

    You can have multiple checking accounts, too; perhaps one offers a new-member bonus for an influx of free cash, while another offers free overdraft protection for regular spending. Alternatively, when it comes to savings accounts, one might offer a higher annual percentage yield, while another offers other saving products like a money market account.

    Regardless of the checking account or savings account you choose, it’s a good move to keep your money in a secure place

    Choosing a Bank vs. a Credit Union vs. a FinTech Company for Your Checking Account

    Similarly, opening a checking account, period, is generally a good move, regardless of where you do it.

    Keep your own habits and preferences in mind, especially when it comes to choosing between a brick-and-mortar (bank or credit union) and online-only setup. Consider fees, from initial to ongoing, as well to make sure the account doesn’t end up costing you.

    Ultimately, though, don’t get hung up on too many details: When it comes to personal finance, it ultimately comes down to what works for you and your situation.

    Methodology

    We graded 10 of our favorite bank and credit union accounts on the factors that we like to see in any checking account — no fees, free ATMs, good rewards, easy setup and accessibility.

    If an account has a monthly fee or out-of-network ATM charges, we highlighted some more positive qualities (think: a low minimum balance requirement, interest checking account offering or a free debit card). With that said, we prioritized those checking accounts that nixed monthly maintenance fees, featured savings accounts and had no-charge or reimbursed out-of-network network ATM fees.

    Here are the best checking accounts we found across (online) banks, credit unions and other financial institutions.

    Recapping the 10 Best Checking Accounts of February 2023

    • Chime Checking Account: Best for Digital Features
    • Varo Bank Account: Best for cash back
    • Chase Total Checking Account: Best for Promotional Offers
    • TD Bank Convenience Checking Account: Best for Free Mobile Banking
    • Axos Bank Essential Checking Account: Best for Online Customers
    • Ally Interest Checking Account: Best for No Fee Perks
    • Consumers Credit Union Free Rewards Checking: Best for High Balance Benefits
    • Schwab Bank High Yield Investor Checking: Best for International Travelers
    • Chase College Checking Account: Best for Responsible Students
    • Montgomery Bank New Start Checking Account: Best for No-Frills Banking

    Frequently Asked Questions (FAQ) About Checking Accounts

    When it comes to choosing the best checking accounts, there’s a lot of information out there. Here, we’re answering some of the most popular questions about checking accounts.

    What is a Checking Account?

    A checking account is where you hold money at a bank, credit union or other financial institution. You typically use this account to pay for everyday expenses or bills. Depending on where you have you bank, you can access your cash in person, or via an ATM or debit card. Unlike a savings account — which you use for an emergency fund or other financial goal — checking accounts should be fairly accessible for regular spending usually with a debit card. They don’t normally accrue interest.

    How Can I Open a Checking Account?

    Every checking account — whether it’s through a physical or online bank, credit union or other fintech setup — will have its own requirements. Generally, to open a checking account, you need to be at least 18 years old (though guardians can sometimes co-sign an account for a minor) and have a government ID (such as a passport or driver’s license). You’ll likely also need to supply contact information and possibly an opening deposit.

    Which is the Best Bank to Open an Account In?

    The best bank to open an account will depend on your needs. If you prioritize banking at a physical institution with plenty of locations where you can interact with staff in person, you might choose to go with a big-name chain. If you prefer a bank where you might qualify for higher interest rates in lieu of having access to brick-and-mortar locations, an online setup might work best for you. No matter your choice, it’s a good idea to evaluate it over time; if a bank ends up not being over time.

    What is the Best Free Checking Account?

    The best free checking account will vary based on your wants and needs in a banking account. You’ll want to look for an account that has no or a low monthly fee, a free debit card and easy access to your money — whether that is an ATM, a physical branch, an app or all of the above. Bonus: look for a free checking account that also offers a new-user bonus. Right now, Chime, Varo and Axos are overall solid free options for checking. Shop around and look for a checking account that’s best for you.

    Is Wells Fargo or Chase Better?

    Wells Fargo and Chase each offer online checking accounts, among other banking products. But they also have monthly fees, too. Good news: Well Fargo eliminated non-sufficient fees funds (NSF) fees in 2022 and started giving customers early access to eligible direct deposits.

    Each have online and in-person banking; so, one could be a better fit depending on branch locations in your area. Chase often offers significant new-user sign-on bonuses.

    What Bank is Good for a Checking Account?

    What makes a bank good for a checking account weighs largely on what you prioritize in both a bank and an account. As a whole, you want to consider fees (how much does it cost you to keep your money there?), rewards (do you earn anything for banking with them?), accessibility (what are the requirements to open and keep your account open?) and mobility (does the bank charge foreign transaction fees?). Bonus points if they give out a… bonus, too, for being a new account holder.

    How is Interest Taxed on a Checking Account?

    The interest earned on checking accounts is considered taxable income. So, your bank, credit union or financial institution will send you a 1099-INT form each year your account earns interest over $10. You file this paperwork along with your yearly taxes. And don’t let this income being  taxed deter you from saving money; a traditional or high-yield savings account is still a worthwhile tool for your money. 

    Contributor Kathleen Garvin (@itskgarvin) is a personal finance writer based in St. Petersburg, Florida, and former editor and marketer at The Penny Hoarder. She owns a content-writing business and her work has appeared in U.S. News, Clark.com and Well Kept Wallet.

    *Chime disclosure:
    Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank or Stride Bank, N.A.; Members FDIC.

    Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or
    any Allpoint or Visa Plus Alliance ATM.

    *Chase fine print:

    “Checking offer is not available to existing Chase checking customers, those with fiduciary accounts, or those whose accounts have been closed within 90 days or closed with a negative balance. To receive the $200 checking bonus: 1) Open a new Chase Total Checking account, which is subject to approval AND 2) Have your direct deposit made to this account within 60 days of account opening. Your direct deposit needs to be an electronic deposit of your paycheck, pension or government benefits (such as Social Security) from your employer or the government. After you have completed all the above requirements, we’ll deposit the bonus in your new account within 10 business days. You can only receive one new checking account-related bonus per calendar year. Bonus is considered interest and will be reported on IRS Form 1099-INT.

    “Account Closing: If your checking account is closed within six months after opening, we will deduct the bonus amount at closing.”

    Editorial Disclosure

    This content is not provided by the bank advertiser. Opinions expressed here are the author’s alone, not those of the bank advertiser. This site may be compensated through the bank advertiser Affiliate Program.


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    kathleen@thepennyhoarder.com (Kathleen Garvin)

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  • 6 Best Banks and Credit Unions for Military in 2023

    6 Best Banks and Credit Unions for Military in 2023

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    6 Best Military Banks and Credit Unions

    Name Top Feature Best For
    Service Credit Union 10% savings APY High-yield savings SEE DETAILS
    America’s Credit Union 2.02% checking APY High-yield checking SEE DETAILS
    USAA 100,000 ATMs ATM access SEE DETAILS
    Pentagon Federal Credit Union 2% cash back debit card Cash back SEE DETAILS
    Navy Federal Credit Union 24/7 stateside reps Deployed military members SEE DETAILS
    Security Service Federal Credit Union ID theft protection Special features SEE DETAILS

    Members of our military, whether active duty or veterans, have access to unique bank accounts from both banks and credit unions.

    Such accounts are uniquely designed to suit the specific needs of active duty members (easy online bill pay, international branches on bases and 24/7 stateside assistance, for example) but also honor both active members and veterans for their service via a higher annual percentage yield (APY), better insurance rates, lower annual percentage rates (APRs, or interest rates) on loans and other great benefits.

    If you or your spouse currently serves or has previously served as a member of the US military and you are looking for a bank account that meets your needs, consider one of these six military banks and credit unions:

    • Service Credit Union
    • America’s Credit Union
    • USAA Bank
    • Pentagon Federal Credit Union (PenFed CU)
    • Navy Federal Credit Union
    • Security Service Federal Credit Union

    Below, we’ve explored each military bank in detail, focusing on their checking and savings accounts primarily, though we’ve also made note of other features, including credit cards, loans, insurance and investment accounts.

    In determining our list of the best military banks and credit unions, we considered:

    • Who was eligible
    • Savings and checking account APYs
    • Minimum deposit to open
    • ATM and branch access

    While these six are the elite (think of them as the best of the best banks for military personnel), some national financial institutions also offer special accounts for active duty military members, veterans and their families. These bank accounts include:

    We did not include the national financial institutions offering specific military accounts in our consideration, though they are certainly worth exploring for your banking needs if the actual military banks don’t seem to be the right fit.

    Service Credit Union

    Best Bank for High-Yield Savings

    Key Features

    • Deployed Warrior Savings (10% APY)
    • APR discounts on loans
    • Early direct deposit

    Service Credit Union offers Everyday Checking and Dividend Checking accounts, but it’s the Military Savings account that you’ll want if you’re active duty in a combat zone. This pays an APY of 10% on up to $10,000. Even if you don’t qualify, the regular savings option pays 5% APY on the first $500 and then 0.25% on additional funds. You can also open an account for your children.

    Service Credit Union

    Savings APY

    Up to 10%

    Checking APY

    Up to 0.15% in dividends

    Minimum opening deposit

    $5 for savings

    ATM access

    30,000 fee-free ATMs and no out-of-network ATM fees

    Branch access

    Branches in Europe, Northeast and N.D,

    More Information About Service Credit Union

    With up to 10% APY, Service Credit Union easily boasts the highest APY of any bank on our list thanks to the Deployed Warrior Savings. If you are an active duty member of the US military serving in a combat zone, there should be no question about it. This should be where you save all your money.

    But Service CU is ideal for military members for more than just offering amazing APYs on its savings account. It also boasts a free Everyday Checking account (and a Dividend account) with unique tiers that grant up to $30 a month in ATM surcharge reimbursement and up to a 0.75% APR discount on loans. These checking accounts also include online and mobile banking, early direct deposit and ID theft protection.

    Service CU is great for military members deployed in Europe thanks to its multitude of branches abroad. Back home, Service CU is mostly focused in the Northeast with a location in North Dakota, but with the ease of online banking, you can hold a Service CU account from anywhere.

    In addition to the savings and checking accounts, Service CU offers business banking, vehicle loans, home loans, credit cards, personal loans, student loans and military loans. You can also rely on Service CU for investment services, insurance certificates, trusts and money market accounts.

    Eligibility: Active duty military, veterans and their family members; Department of Defense employees; members of select employer groups; and other select groups

    America’s Credit Union

    Best for High-Yield Checking

    Key Features

    • Cash back on debit card
    • Cell phone insurance
    • Monthly fee on Plus account

    America’s Credit Union offers the best checking account of any military bank or credit union on our list. America’s CU also offers low-interest savings account options, no-fee credit cards, loans and investment accounts and easy access to brick-and-mortar banking through shared branches. Cell phone insurance and identity theft coverage through a checking account are unique features.

    America’s Credit Union

    Savings APY

    Up to 0.10%

    Checking APY

    Up to 2.02%

    Minimum opening deposit

    $25 for savings

    ATM access

    Nearly 30,000 fee-free ATMs

    Branch access

    Nearly 5,000 locations via shared branching

    More Information About America’s Credit Union

    Service CU may have the best of all the savings accounts on our list of the best military banks and credit unions, but then America’s Credit Union has the best checking account. In fact, America’s CU offers several great options for checking accounts.

    The headliner account is Affinity Basic, which pays 2.02% APY on up to $1,000 — then 0.10% on additional funds up to $15,000 and 0.25% on funds exceeding $15,000 (but you probably shouldn’t keep that much in a checking account). This high-yield checking account has no monthly maintenance fees or minimum balance requirements and offers online and mobile banking.

    The Affinity Premier account requires a $25,000 opening balance, pays a 0.75% APY on funds up to $34,999 and pays market rate on dividends.

    The only account with a monthly service fee is the Affinity Plus ($7 a month), but this account gets you 10 cents cash back for every swipe of your debit card, as long as you spend at least $5. (At most, that’s 2% cash back.) This account also pays 0.75% APY on any balance up to $25,000, which makes it better than a lot of standard savings accounts. The account even includes identity theft coverage, cell phone insurance and a $10 monthly ATM fee reimbursement.

    America’s Credit Union’s savings account is nothing to write home about: a meager 0.01% APY on balances below $2,500, and even then, just 0.10% APY on $2,500 and higher. The Guaranteed Money Market Ultra account has more appeal, with 1.76% APY on balances above $2,500.

    America’s CU does offer a variety of loans: home loans, personal loans, student loans and auto loans, as well as rewards credit cards. You can also use America’s CU for business banking and investment services.

    Eligibility: Members of the Armed Forces, civilian personnel and their relatives; members of the Association of the United States Army; members of the Pacific Northwest Consumer Council (or PNW residents willing to donate to the council — ACU will cover the cost!). Family members of current members may also join.

    USAA Federal Savings Bank

    Best for ATM Access

    Key Features

    • Stellar mobile app
    • Best military insurance
    • No monthly fees

    As the only bank on this list, USAA is lacking when it comes to competitive APYs for checking and savings accounts. But this is the most well-rounded financial institution on our list, offering a full-suite of offerings and what is highly regarded as the best home and auto insurance for members of the US military. It also has the most ATMs of any military bank on our list.

    USAA Federal Savings Bank

    Savings APY

    Up to 1.04%

    Checking APY

    Up to 0.01%

    Minimum opening deposit

    $25 for checking or savings

    ATM access

    60,000+ USAA-preferred ATMs nationwide

    Branch access

    5 physical branches

    More Information About USAA Federal Savings Bank

    Upon first glance, USAA might not seem like the best financial institution for members of the military. The checking account’s APY is almost nonexistent (and only kicks in if you have more than $1,000 in the account), and the APY for the basic savings account is just as low.

    You can earn more interest with the USAA Performance First, but the tiered account doesn’t start paying out competitive interest (0.50%) until you have $50,000 in the account and tops out at 1.04% — but you need at least $250,000 in savings.

    So why is USAA so popular among members of the military and one of the best military banks and credit unions overall?

    For starters, USAA is a household name for military members because of their impressive insurance offerings and super low rates. But in addition to insurance, you can use USAA for retirement accounts, investment accounts, certificates of deposit, credit cards, youth banking and all forms of loans, including home and auto; personal; and motorcycle, RV and boat.

    Access to ATMs is nothing to sneeze at with more than 100,000 nationwide (and a rebate of up to $10/month for out-of-network ATM surcharges). Physical branches are limited to just Colorado Springs, Colorado; Annapolis, Maryland; and San Antonio, Texas (two New York branches are temporarily closed).

    That said, USAA’s mobile and online banking make it so that your location does not matter. The bank’s app has a 4.8 star rating on the App Store (1.6 million reviews) and a 4.1 star rating on Google Play (nearly 200,000 reviews).

    Eligibility: Active Duty, National Guard, Reserves, Veterans who served honorably, Cadets and Midshipmen, plus military spouses and children of USAA members.

    Pentagon Federal Credit Union (PenFed)

    Best for Cash Back

    Key Features

    • Cash back debit card
    • Convenient ATM locations
    • Early direct deposit

    PenFed has a wide network of ATMs; they’re easy to find since many are located in stores such as Kroger, Walgreens, CVS, Target, Safeway, Circle K, Speedway, 7-Eleven and Winn Dixie. PenFed also carries respectable APYs for both checking and savings accounts and offers a 2% cash back debit card.

    Pentagon Federal Credit Union (PenFed)

    Savings APY

    Up to 2.30%

    Checking APY

    Up to 0.35%

    Minimum opening deposit

    $5 for savings

    ATM access

    85,000+ ATMs

    Branch access

    DC branches + some international bases

    More Information About Pentagon Federal Credit Union (PenFed)

    You can choose from multiple savings accounts at PenFed CU, including the Regular Savings (0.05% APY and easy ATM access with an ATM card) or Premium Online (2.30% APY, no monthly maintenance fees and free online transfers). You can also open a Money Market Savings account that pays a 0.15% APY on balances over $100,000, but that money would be better invested in a high-yield savings account or, better yet, in a diversified brokerage account.

    You can choose from two checking accounts. The PendFed free Checking account has no monthly fees and no minimum balance requirements. You’ll get more perks with Access America Checking. There’s a $10 monthly fee, but you can easily have it waived by either earning a direct deposit totaling $500 or more each month OR just keeping an average daily balance of $500. This is a good idea for checking accounts anyway—to avoid overdraft fees.

    Access America Checking earns 0.15% APY on balances less than $20,000, but when you hit that $20K mark, you’ll start earning 0.35% APY.

    Some hallmarks of this account, aside from the super convenient ATM access, include a highly rated mobile app and early direct deposit. You can also open a Money Market Certificate, with terms ranging from six months to seven years; right now, it’s paying 4.70% APY on the 18-month term. You can invest as little as $1,000.

    In addition to the savings, checking and money market accounts and the certificate, you can utilize PenFed for credit cards, home and auto loans, student loans, personal loans and retirement accounts.

    Eligibility: This is the easiest bank or credit union to join on our list. Anyone can apply.

    Navy Federal Credit Union

    Best for Deployed Military Members

    Key Features

    • Cash back credit card
    • Great service wherever you’re stationed
    • Easy-to-use mobile banking

    With 350 branches globally, advanced mobile banking and 24/7 customer service, Navy Federal Credit Union is ideal for active duty members deployed outside the country. Checking account options are bountiful, but the Flagship Checking is the way to go. You can also open a credit card with 1.75% cash back.

    Navy Federal Credit Union

    Savings APY

    0.25%

    Checking APY

    Up to 0.45%

    Minimum opening deposit

    $5 for savings

    ATM access

    30,000+ ATMs

    Branch access

    350 worldwide

    More Information About Navy Federal Credit Union

    Navy Federal Credit Union offers the most checking account options of any financial institution on our list. This includes the Free Active Duty Checking (with $20 of monthly ATM fee reimbursements); Free Easy Checking (with Checking Protection Options to avoid the $20 overdraft fee); Free Campus Checking (ideal for students of deployed military members); Free EveryDay Checking (nominal APY but no monthly fees); and the Flagship Checking, which boasts up to 0.45% APY and a 0.45% dividend rate.

    There is a $10 monthly fee for the Flagship account, but you can get that waived by maintaining an average daily balance of $1,500 a month.

    This financial institution is a favorite of deployed military members who are constantly globe-trotting. The 24/7 customer service means you don’t need to worry about time zones when you call in for help, and the mobile banking (with mobile check deposit and online bill pay) is very convenient.

    Beyond checking and savings accounts, Navy Federal CU offers loans for motorcycles, boats and leisure vehicles; student loans, home and auto loans; credit cards; and money market and retirement accounts.

    Eligibility: Members of the Armed Forces, employees of the Department of Defense, veterans and the family members of all qualifying members.

    Security Service Federal Credit Union

    Best for Special Features

    Key Features

    • Social media monitoring
    • Identity theft protection
    • Limited eligibility

    Security Service Federal Credit Union may not seem like a top-tier bank for military families upon first glance thanks to its low savings APY, but its Power Protected Checking Account comes with a wide range of unique perks for a low fee of $6 a month that might just make the bank worth another consideration.

    Security Service Federal Credit Union

    Savings APY

    Up to 0.05%

    Checking APY

    Up to 0.79%

    Minimum opening deposit

    $5 for savings

    ATM access

    30,000 ATMs

    Branch access

    TX, CO and UT w/ shared branching

    More Information About Security Service Federal Credit Union

    Security Service Federal Credit Union offers a Basic Savings Account, but the APY is so low (0.05%) that it’s not worth much consideration. (Children may benefit from the Youth Savings Account with the same APY.)

    There’s also a basic free checking account (if you opt into eStatements), but you’d be better served by another free checking account elsewhere.

    But the paid Power Protected Checking account is worth a second glance. This unique account comes with a handful of extra features for a $6 monthly fee:

    • Social media monitoring
    • Identity theft protection
    • Mobile phone coverage
    • Credit monitoring

    The APY for this account varies widely depending on how much money you keep stored in the account. Balances below $10,000 earn just 0.05%, but if you have $250,000 or more in the checking account (yeah, right), you’ll earn up to 0.79% APY and 1.00% in dividends.

    Another plus: There is no minimum balance requirement for this account.

    While the accounts and branches are limited to Texas, Colorado and Utah, no worries if you are deployed elsewhere. With shared branching and online banking, you won’t have any problems.

    Security Service Federal also offers credit cards, certificates and money market accounts, investment services, IRAs, insurance, and plenty of loans: auto and other vehicles, student and home.

    Eligibility: Limited to three states (Texas, Colorado and Utah) and members of select military branches and Department of Defense employees.

    What Should Active Duty Military Members Consider When Considering Military Banks and Credit Unions

    Having trouble determining the right financial institution for your needs? We have found that service members should look for these hallmarks of the best military banks and credit unions:

    • Easy access to funds. Moving regularly means access to ATMs and branches nationwide (or even globally) is key.
    • An easy-to-use mobile app. Along those same lines, the busy and unpredictable schedule of a service member necessitates a great mobile banking experience.
    • Excellent customer service. Military members often don’t have time to deal with banking issues, especially when deployed. Fast and helpful customer service is key to the banking experience.
    • Great APYs. There is perhaps no job more challenging than serving one’s country. Military members want to ensure that the money they are making while keeping us safe is growing a respectable amount.
    • No hidden fees. Worrying about monthly service fees is going to be the last thing on a military member’s mind. Find an account that is upfront about fees and offers options like overdraft forgiveness.
    • Experience with VA loans. Find a financial institution that has a background in working with loans from the Department of Veterans Affairs.
    A veteran flexes his muscle.
    Getty Images

    Military Banking: Frequently Asked Questions (FAQ)

    Here are some of the most frequently asked questions from service members when reviewing military banks and credit unions.

    Which Military Credit Union Is Best?

    Five out of six of the financial institutions on our list are military credit unions. While we can’t say one is the absolute best, this does tell us that credit unions seem to be the better option for service members. That said, USAA is a respectable bank option for full-suite needs while Pentagon Federal Credit Union offers great APY on checking and savings, plus a cash back debit card.

    What Banks Offer Military Discounts?

    Financial institutions frequently change the bonuses they offer, including military discounts. However, military members should prioritize a bank that has the features listed above. The six military financial institutions on our list, plus the four additional accounts from national banks, are a great place to start.

    Which Banks Waive Fees for Military Members?

    While most of the accounts on our list have no monthly service fees, most that do carry fees can be waived by meeting simple criteria. In addition, several banks now waive credit card fees for service members. We did not focus on credit cards in our analysis above, but these national credit card companies are noteworthy for waiving annual credit card fees for US military members and their spouses:

    • American Express
    • Capital One
    • Chase
    • Citi
    • US Bank

    Timothy Moore covers bank accounts for The Penny Hoarder from his home base in Cincinnati. He has worked in editing and graphic design for a marketing agency, a global research firm and a major print publication. He covers a variety of other topics, including insurance, taxes, retirement and budgeting and has worked in the field since 2012.


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    tmoorefreelance@gmail.com (Timothy Moore)

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  • Bank of America Review 2023: Big Bank, Big Advantages

    Bank of America Review 2023: Big Bank, Big Advantages

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    As one of the largest financial institutions in the United States, Bank of America has a lot to offer. The range of personal and business account options is impressive, and the availability of bank branches makes it extremely convenient.

    BofA has had its share of controversies and its sheer size can sometimes make service inconsistent. In 2014, it was fined $16.65 billion for its role in the 2008 financial crisis. Additionally, some of the accounts are a bit lacking in features.

    In 2021, a number of banks and fintech platforms eliminated overdraft fees and Bank of America joined them in 2022, though not completely. It announced in January 2022 that it would drop its overdraft fee from $35 to $10 beginning in May. Other banks, most notably Capital One, have eliminated overdraft fees totally.

    Starting in February 2022, Bank of America eliminated insufficient funds fees and will also no longer allow customers to take out more than they have at the ATM. The $12 that it charged customers to move money from another account to cover a withdrawal will also be stopped.

    If you need overdraft protection in general, we’ve got some handy tips on how to keep from overdrawing your accounts.

    All that said, is Bank of America the right place for you to do your banking? Our deeper dive on what the bank offers will help you decide.

    This Bank of America review looks at the bank’s checking and savings features for individuals and small businesses, as well as its overall convenience and mobile banking features. Note that Bank of America’s credit cards and lending products are not included in this review.

    Checking Accounts

    Bank of America offers three checking accounts, each with its own attributes.

    Advantage SafeBalance Checking

    Best for Customers with Simple Needs

    Key Features

    • Low opening balance required
    • Multiple ways to waive the $8 monthly fee
    • No overdraft fees

    You can open Bank of America’s most basic checking account, Advantage SafeBalance Checking, with a pretty standard $25 minimum opening deposit.

    Advantage SafeBalance Checking

    Monthly fee

    $4.95 per month, but can be waived

    Interest

    None

    Minimum balance

    None

    ATM fees

    None at Bank of America ATMs.

    The AdvantageSafe Balance Checking account comes with $4.95 in monthly fees. Bank of America will waive this fee if you can check one of the following boxes:

    • You enroll in the Preferred Rewards program. To qualify as a Bank of America Preferred Rewards client, you need a three-month combined average of $20,000 in your Bank of America and Merrill Edge/Merrill Lynch accounts. That can be a tall order for a lot of customers.
    • You’re under 24 years old and in school.

    Two More Checking Accounts

    The next step up in BofA’s checking account offerings is Advantage Plus Checking. It comes with $12 in monthly fees, but it also has a couple more ways to avoid it. Besides enrolling in Preferred Rewards or qualifying as a student, you can avoid the monthly fee if you:

    • Have at least one qualifying direct deposit of $250 or more, or
    • Maintain a $1,500 minimum daily balance.

    Even part-time employees are likely to make a direct deposit of at least $250, so the fee shouldn’t be a major nuisance. Unfortunately, neither the AdvantageSafe Balance Checking account nor the Advantage Plus checking account offers interest on your money.

    AdvantageSafe Balance Checking does, however, offer Balance Connect, which allows account holders to connect accounts in order to prevent overdraft of the checking account. It also offers the opportunity to buy paper checks.

    To earn interest with a Bank of America checking account, you need to bump up to the Advantage Relationship checking account. This account offers up to 0.02% APY on your money, which is below the national average for interest checking accounts. You can get that increased if you join the Preferred Rewards program.

    Advantage Relationship bank accounts have a hefty $25 in monthly fees attached, but it can be waived with a combined balance of at least $10,000 in eligible linked accounts. However, Advantage Relationship offers no-fee banking services the other accounts do not offer, and free paper checks (of limited styles).

    Savings Accounts

    Bank of America’s basic savings account is a good beginner account and you can bump up to another level to receive more perks. There is also a savings account for minors.

    Advantage Savings Account

    Best for Customers Opening First Savings Account

    Key Features

    • Low opening deposit
    • No minimum daily balance
    • Cash back deals

    You won’t make any great gains on your money by way of interest with the Bank of America Advantage Savings account. You’ll earn just 0.01% APY, well below the national average for savings accounts. The only way to earn more is to become a Preferred Rewards member. There are three other tiers of savings accounts – Gold, Platinum and Platinum Honors, and each step up adds 0.01% to your APY.

    Advantage Savings Account

    Opening deposit

    $100

    Interest

    0.01% APY

    Minimum daily balance

    None, but if your balance is $500 your monthly service fee waived

    Bank of America’s basic savings account has a $100 minimum opening deposit. There’s also an $8 monthly fee that’s waived if:

    • You maintain a minimum daily balance of $500.
    • You’re a Preferred Rewards Member.
    • You link your savings account to your Bank of America Advantage Relationship Banking account (waiver applies to first four savings accounts).

    More About Savings

    If you’re looking to open a savings account for a minor, you’re in luck. BofA has a Minor Savings account. It only requires a $25 opening deposit, but there is no minimum balance requirement after that and no monthly maintenance fee. The interest rates are the same as for the Bank of America Advantage Savings account (0.01%), making it a perfect starter account to help get children in the habit of saving.

    Other Bank of America Features

    Because of its size — it has more than 200,000 employees and annual revenue in excess of $85 billion — Bank of America has many more features than smaller financial institutions. Here are some that we think you’d want to know about:

    Credit Cards

    Bank of America offers a (very) large number of credit card options. Some are Bank of America-branded cards, and some are third-party cards backed by Bank of America, like the Alaska Airlines Visa.

    These cards generally come with no annual fees and offer some type of reward, whether that’s cash back, travel rewards, or points. There are also options specifically geared towards students and people building credit.

    Credit cards (and credit in general) is a tricky subject—even the best card can get an unwise user in trouble. However, the Bank of America cards make decent options if you want, or need, a new credit card and want to keep things with the same financial institution.

    Loans

    Bank of America also offers a variety of loan options. These include mortgages, mortgage refinancing, home equity lines of credit, and various auto loans.

    For the most part, the advantages of using Bank of America over other lenders for these types of loans is to keep things in-house. For example, existing customers might be able to get discounts on various mortgage fees.

    Keep the Change

    We like the Keep the Change program. If you opt in to this feature, your debit card purchases will automatically be rounded up, and the leftover change is deposited into your Bank of America savings account. It’s a simple way to add to your savings without having to think about it, and the money can add up quickly.

    Certificate of Deposit

    If you’re looking for a certificate of deposit, you can start out with a minimum of $1,000. You can also choose your term from as little as 28 days up to 10 years. CD rates begin at  0.05% at the time of this writing.

    Small Business Banking

    Bank of America has a dedicated site just for small business banking. The site makes it easy to track your account and keep on top of things. That said, there are some shortcomings to its services.

    The Business Fundamentals Checking account isn’t interest-bearing and doesn’t list a minimum opening deposit amount. However, there is a $16 monthly service fee. This can be waived if you:

    • Spend $250 in net new purchases on a business debit or credit card.
    • Maintain an average monthly balance of $5,000 or more.
    • Maintain a minimum daily balance of $3,000.
    • Maintain a combined average monthly balance of $15,000 or more in your linked Bank of America accounts.
    • Qualify and enroll in the Preferred Rewards for Business program (waiver applies on up to four eligible business checking accounts.)

    You’ll get 200 free transactions per billing cycle and $7,500 worth of free cash deposits.

    Bank of America’s next-level account for small business checking is called the Business Advantage Checking. This account comes with a $29.95 monthly fee. To get this waived, you need to:

    • Spend $2,500 in net new purchases on a business credit card.
    • Maintain an average monthly balance of $15,000 or more.
    • Maintain a combined average monthly balance in your linked Bank of America accounts of at least $35,000.
    • Actively use one or both of these business services: Bank of America Merchant Services or Payroll Services.
    • Qualify for and enroll in the Preferred Rewards for Business program (first four checking accounts per enrolled business)

    This account comes with 500 free transactions and no fees for the first $20,000 of cash deposits. As you can see, the Business Advantage Checking is designed for businesses with a little heavier cash flow.

    Here is a comparison of the two business checking accounts.

    Convenience

    BoA has 3,900 bank locations. That number has been decreasing in recent years, though. It’s not hard to find a BoA ATM either as there are 16,000 in existence, though that number is less than half what is available for many of the nation’s growing online banks.

    As you would expect, Bank of America offers many modern-day banking conveniences like a phone app, online banking, and mobile deposits. It’s easy to forget just how powerful these features are until you have to go without them — particularly mobile deposits. Since paper checks are being used less and less these days, having to go to the bank to deposit one is a nuisance. Mobile deposit spares you that inconvenience.

    As with most bigger banks, you can do a lot more than just checking and savings with Bank of America. You can get a mortgage, car loan, credit cards and even some investment accounts linked with Merrill Lynch. They even have a Better Money Habits web page that provides financial wellness tips for consumers.

    The convenience is one of the best aspects of Bank of America, and one of the big reasons it gets picked over competitors. It’s everywhere, and offers nearly everything, so you don’t need to worry about maintaining accounts at multiple banks. That said, with the relatively poor interest rates on savings accounts, you may want to.

    Mobile Banking

    The BofA mobile banking app gets rave reviews. With a 4.8 out of 5 score in the Apple App Store and 4.6 of 5 in the Google Play Store, it doesn’t get much better.

    Users comment on its ease of use, as well as features like money transfers, mobile alerts for low funds, and the ability to deactivate a lost or stolen card. Its fingerprint and face recognition features make it easy to log in and keep your account safe, as well.

    Have you ever had your card declined because you are traveling? Bank of America’s phone app has a feature that you can turn on that will compare the location of your phone to where the transaction takes place. If your phone is nearby, they can assume it’s you and approve the transaction. That’s pretty slick and could save an enormous amount of hassle (unless the crook steals your phone and your card).

    If you like to feel a personal connection to your banking app, you can even tap into Erica, BofA’s virtual assistant to walk you through your banking tasks. It’s not the most creative name for a virtual assistant, but she gets the job done.

    Pro Tip

    Check out our current list of bank promotions for a chance to gain a monetary bonus when signing up for a new bank account.

    Bank of America Review: The Pros and Cons

    We’ve rounded up pros and cons for one of the nation’s largest banks.


    Pros

    • The Keep the Change feature lets you add to your savings without thinking about it because it rounds up each debit card transaction and deposits the change into your savings account.
    • BoA’s mobile app is easy to use with some pretty advanced features you don’t find with a lot of banks, such as the ability to approve transactions as long as your phone is nearby.
    • There are 16,000 ATMS and almost 4,000 brick-and-mortar branches.
    • Between the plentiful physical locations, solid mobile app, and the generally great Bank of America customer service, it’s easy to bank with BoA.
    • Although a number of BoA accounts come with monthly fees, there are generally multiple ways to avoid them, such as by keeping a certain minimum balance.
    • In February 2022, BofA eliminated insufficient funds charges and will not allow customers to take out more than they have at the ATM.


    Cons

    • Bank of America continues to charge overdraft fees but in May 2022, the fees dropped from $35 to $10 per incident.
    • The APY rates for checking and savings accounts are well under average.
    • There’s an $8 monthly fee for savings accounts that do not keep a minimum balance of $500.

    Frequently Asked Questions (FAQs) About Bank of America

    Here are the answers to some of the most frequently asked questions about Bank of America, including a discussion of its reputation.

    Is Bank of America a Good Bank?

    Bank of America is an excellent bank if you value convenient branch locations and keeping all your money under one roof. It offers a wide range of checking account and savings account options, solid small business bank accounts, and a stronger customer experience than many other banks.

    What is the Reputation of Bank of America?

    Bank of America has a decidedly average reputation. Since it’s a large national bank, it’s possible to have an outstanding experience at one branch and a terrible experience at another just up the road. You may not get the same level of direct care that you’d find at a smaller institution, but the sheer availability may make up for it.

    Is Bank of America Better than Chase?

    That really depends on what you need from your bank. They’re both part of the Big Four: Chase, Bank of America, Wells Fargo, and Citigroup. As such, they each offer a wide variety of products, from checking and savings accounts to small business tools. To choose between the two, determine exactly what you need from your bank and then compare offerings. You may even want to mix and match, with checking accounts at one and savings at the other.

    Why is Bank of America the Best Bank?

    If we were to name Bank of America the best bank, it would be for convenience. Between the enormous number of physical locations, the wide range of bank accounts and products, and the sheer number of different ways to access those accounts and waive the various fees involved all add up to make BoA a fantastic option compared to other banks.

    Is Bank of America FDIC Insured?

    Yes. All bank of America accounts are FDIC insured. Coverage is offered for up to $250,000 per depositor, per insured bank, for each account. This covers checking accounts, savings accounts, money market savings accounts, and CDs — essentially all the personal finance options.

    Does Bank of America Offer Loans?

    Yes! Bank of America offers auto loans, mortgages, small business loans, and a single personal finance loan option called Balance Assist. Balance Assist is the only personal loan option and is capped at $500, so if you need a larger personal loan, you’ll have to look elsewhere.

    Penny Hoarder contributor Dave Schafer has been writing professionally for nearly a decade, covering topics ranging from personal finance to software and consumer tech. Information from contributor Kent McDill h is included in this report.


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    dave@dschaferwrites.com (Dave Schafer)

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