Types of checking accounts: How to choose the best one for you

A checking account is a staple for managing money. Whether you're opening your first account or looking to switch, understanding the types of checking accounts can help you find the best one for you. Explore a comparison of checking accounts as you walk through your options.

What is a checking account?

A checking account is a day-to-day money management tool that makes it easy to deposit funds, pay bills, make purchases and access cash when you need it. It's a deposit account designed for frequent use, giving you quick access to your money through debit cards, ATMs, digital banking and direct deposit for your paycheck.

Whether you're opening your first account or looking to switch, understanding the types of checking accounts available can help you find the best fit for your financial needs.

What are the 5 main types of checking accounts?

Not all checking accounts are the same. Consider these types of checking accounts before deciding where to put your money.

1. Standard checking account

What is it?

A standard or basic checking account lets you make purchases with a debit card, send and receive money (like ACH transfers), access cash at ATMs, and, when needed, write checks. You can also make mobile check deposits into the account. Standard checking accounts typically don't earn interest and may have a monthly service fee.

Who should consider it?

People who want a secure and insured but accessible place to put their money and only need basic features like bill pay and debit card access.

2. Premium checking

What is it?

Premium checking accounts typically have higher minimum balance requirements. In some cases, the balance minimum can be from a combination of multiple accounts at the same bank. In exchange for the high balance, the bank may waive a maintenance fee, pay interest or offer discounts on other bank services.

Who should consider it?

People who have a lot of cash reserves and want to avoid paying monthly fees.

3. Teen or student checking

What is it?

Teen checking accounts are made for younger people who are learning how to manage money. This type of student checking account may have fewer fees than standard checking accounts. Some have age requirements.

Who should consider it?

Young people opening their first bank account or parents who are hoping to teach their teens about money management.

4. Interest-bearing checking

What is it?

An interest-bearing checking account pays interest, often based on the amount of money in the account. Typically, the higher the balance, the higher the interest rate.

Who should consider it?

People who can keep the minimum balance requirement in their checking account and want to earn a return.

5. Opportunity checking

What is it?

Opportunity checking accounts give people who currently don't have a bank account a fresh start. They typically charge a monthly fee and often have more limitations than a standard checking account.

Who should consider it?

People who have either never had a bank account or who previously had trouble with their personal finances or bank accounts.

Other types of checking accounts

You may also come across several specialized checking accounts tailored to specific needs or situations. These options take a more targeted approach than the more common checking accounts, offering features for specific uses.

• Business checking: Made for small business owners and major corporations alike, a business checking account enables companies to buy products and pay employees.
• Joint checking: A joint checking account is shared by two people. Each person is an account owner and has equal access to the money.
• Multicurrency checking: A multicurrency checking account allows you to hold funds in several currencies, such as U.S. dollars or euros.
• Online-only checking: Online-only checking accounts often have fewer fees and higher interest rates than standard checking accounts since the bank doesn't have expenses associated with brick-and-mortar locations.
• Group-specific checking: Like teen checking, some checking accounts are designed for people in specific groups, such as military checking accounts that may offer services like free personal money orders and waived ATM frees.

How to choose a checking account

Your checking account should make your life easier and help you feel ready for whatever comes your way. When picking a checking account, consider the following:

• Account features: Look at what the checking account includes, such as a debit card, mobile app, compatibility with your preferred digital wallet and the ability to set up direct deposit.
• Account access: Consider how you'll access your money and account information. Many accounts offer online and mobile banking, while others may rely more on in-person branch visits. Also think about branch proximity and the bank's ATM network.
• Access while traveling: If you travel frequently — whether out of state or internationally — review any fees for using out-of-network or foreign ATMs, as well as whether the bank offers convenient options for withdrawing money away from home.
• Minimum balance requirements: Check whether the account requires a minimum balance and decide if you're comfortable keeping that amount in the account as a buffer.
• Fees and costs: Review the structure of account fees, including monthly maintenance fees, overdraft fees, out-of-network ATM fees and any other charges that may apply.

Consider opening a savings account too

Personal savings accounts are designed to hold funds for a longer period of time. They often earn interest and may have some transaction restrictions. When you're saving for short-term financial goals, a savings account may be a good choice since the funds are easily accessible.

Plus, when you open a savings account at the same time as a checking account, you may be eligible for sign-on savings account bonuses or offers. What a way to kick-start your savings goals!

Checking account FAQs

If you still have questions about the types of checking accounts, get the answers here.

How much money should I keep in my checking account?

Keep enough in the checking account to meet the minimum balance requirements and to pay your monthly bills. If your checking account doesn't have a minimum balance, consider keeping a small cushion in it to reduce the risk of overdrawing.

Which types of checking accounts require a minimum balance?

Interest-bearing and premium checking accounts require you to keep a minimum balance.

Do checking accounts have fees?

Yes, checking accounts may have fees, so it's important to understand the fee structure and any requirements to waive them. You may already qualify to avoid certain fees by maintaining a minimum balance or setting up direct deposit. Make sure you understand any fees associated with your checking account to help you save money and avoid unnecessary costs.

What is overdraft protection?

Overdraft protection allows transactions to go through even when you write a check or make a debit card purchase for an amount that exceeds your account balance. In return, you usually have to pay an overdraft fee.

Manage your finances with a checking account

Learn about our checking account options and how we're ready to help you reach your money goals. Open an FDIC-insured¹ Citizens checking account today.