Not sure which bank to choose from? With a seemingly endless number of banks looking to add you to their roster, it can feel overwhelming when deciding who to bank with.
Some banks offer great benefits, like numerous locations, but charge high overdraft fees while others require large minimum deposits if you want to get the most benefits from your account. In short, discovering which bank to choose is tough. Luckily, the online landscape has changed drastically over the years, with online-only banks causing brick-and-mortar locations to change their banking style to meet customer expectations.
Keep reading to learn more about the five friendliest banks so you can bank with the right company sooner rather than later.
Bank of America
Let’s start with the negative: Bank of America is not in every state, interest rates on checking and savings accounts are minimal and $35 overdraft fees can be charged up to 4 times a day.
However, with a comprehensive and easy-to-use online banking system, Bank of America makes self-banking easier than ever before. You won’t need to worry about where your financial information is, nor will you wonder what all that complicated banking legalese actually means. With an A+ rating on the Better Business Bureau website, you know you’re getting a quality banking experience (in comparison, Wells Fargo currently holds an F rating). You also will have access to over 16,000 ATMs and 4,200 branch locations. When you sign up, you’ll receive a $100 sign up bonus as well, giving your bank account a much-needed boost. Finally, you can avoid overdraft fees in a couple of ways (besides not over-drafting your account).
First, their overdraft protection is $12 per transaction. While this can add up quickly, it’s still significantly less than the $140 you can expect to spend if they charge you four times in a day. Second, depending on which account you choose, you can avoid overdraft fees completely. It’s not perfect by any stretch, but it is significantly better than most brick-and-mortar banks. Many Americans select Bank of America when deciding which bank to choose.
Ally truly is your ally in banking, providing some of the most comprehensive and rewarding banking on our list. As an online bank, you’re not going to have access to brick-and-mortar locations; however, you will have access to over 40,000 ATMs across the country via the Allpoint network.
Their high-yield savings accounts make your money grow quickly, while their interest checking accounts give you a little extra every month as well. One of the best reasons to bank with Ally? Their 24/7 customer service. Customers love that they can talk to a real person at any time versus needing to wait for someone in the morning at other banking locations.
Another benefit to Ally is that anyone can open an account with no minimum deposit for the account, and deposits can be made via popular methods like direct deposit, mobile check deposit or through their ATM network if you have cash. The main drawback to Ally is that their checking accounts offer lower interest rates that some of their competitors.
Discover isn’t just for credit cards; they also offer one of the best checking accounts on our list, with customers earning 1% cash back on up to $3,000 in qualifying purchases every month. With Discover, you can cover all of your financial needs in one institution, ranging from borrowing to investing to banking. With over 60,000 ATMs via Allpoint and MoneyPass, you’ll be able to access your account anywhere you go in the U.S., Canada or Carribean; however, you cannot use your debit card anyplace else in the world (sorry frequent travelers). Another drawback for some people is the single brick-and-mortar location.
Axos is a highly rated online bank that’s quickly picking up steam amongst those looking for a flexible banking solution. You won’t be able to access a physical location; however, you will have access to roughly 91,000 ATMs in addition to out-of-network ATM fee reimbursement. The main thing that makes Axos stand out from other companies is that they offer the following five different checking accounts:
- First Checking (13-17)
- Golden Checking (55+)
- CashBack Checking (Earn up to 1% cash back on qualifying purchases)
- Rewards Checking (High APY at 1%)
- Essential Checking (Get paid 2 days early)
Axos also offers savings accounts in addition to never charging a monthly maintenance fee. All these benefits are great; but Axos does have a rather lengthy list of requirements for certain accounts, including a minimum of $250 to open a high-yield savings account, with a Rewards Checking account requires at least $1,500 in direct deposits, a minimum of 10 debit card transactions per month and investment requirements to get the full 1%.
Learning which bank to choose can feel like a difficult task, but more and more people are finding they can receive a great banking experience if they explore their options. From staple brick-and-mortar banks like Bank of America to online companies like Axos and Ally, you can easily find the right bank for your needs in no time. Look at the pros and cons of the banks you’re considering to find the right account for your needs, and remember that banking should be friendly and easy rather than scary or hard!
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