Having a bank account is one of the essential things needed in life. An account makes sure that the finances of an individual are well looked after. It further ensures a streamlined, systematic process that, to a large extent, reduces the probability of fraud, theft, and in other cases losing money due to human error. In the past, there have been several incidents where people decided to keep their money at their home in a safe, and they did not prefer banks due to some reason. As a result, they ended up regretting that decision.
People need to have access to a debit card to make purchases or, in some cases, a direct deposit from a client or your current employer. These payment cards are directly linked to the account of individuals and allow them to make purchases or spend money without actually going to a bank or an ATM machine for withdrawals.
Debit cards can also be used to withdraw cash from an ATM machine that allows the use of payment cards. And people often do that when they need cash. Moreover, a debit card can also allow people to send money to another account for reasons like business transactions, etc. In order to enjoy these basic necessities, individuals are required to have an account.
The normal criteria that many banks follow are to check the credit history before granting the customers permission to open a checking account. While some banks check the credit history of their customers with the help of three major credit bureaus, other banks would take the help from this company, ChexSystems.
Checking accounts are an important financial element, particularly if an individual is running a business. Specifically, in that case, people need to have a checking account. Checking accounts can turn out to be more costly since there are many fees linked to it. Those costs include maintenance fees, maintaining a minimum account balance, the initial deposit, and so on.
However, there are several other options for checking accounts that do not have a list of requirements to be maintained by the customer. These checking accounts by some banks and credit unions offer both online and offline services. And what makes them a good no-fee option is that they do not charge any maintenance fee, and hence all types of customers can opt for it.
What is a Checking Account? What is it used for?
A checking account is a current account that people have at a financial institution like a bank or credit union so that they can keep their money there for a short period of time. People who are involved in doing some businesses usually keep a checking account for the smooth flow of the transaction. However, there are people that have a checking account for personal use. These people are more interested in having a checking account with no deposit or checks on their credit. People wish to hide their bad credit from others. As a result, they wish to keep their credit hidden.
Although many banks do have hidden charges related to checking accounts, some online banks provide services and features that are totally free, having no set requirements like initial deposit, minimum account balance, amongst others.
People keep a checking account in order to eliminate the liability factor of keeping a large amount of money at a personal safe, at home, or even at the workplace.
A checking account provides people with immediate availability of funds that could be drawn at any time due to health-related issues or some other emergency situations. Life is absolutely unexpected, and there could be events that would require funds to cater for the expenses.
A checking account is used for several reasons that include buying food, traveling expenses, and even paying the utility bills such as electricity, water, gas, etc. Such reasons require an individual to settle the payment as quickly as possible to avoid further problems.
Why do many people do not have a Bank Account?
There is an increased quantity of people that prefer not to have an account at the bank, checking account, or a saving account. A survey was carried out in which it was concluded that there are 7 million people in the United States alone that want to remain un-banked, and a shocking 124 million households have only one bank account even if there are several adults or working-class men or women in the house. Although this survey was carried out ten years ago, the numbers indicate a very important point regarding steady economic conditions around the globe.
According to another survey carried out by FDIC, the above-mentioned alarming numbers are decreasing gradually as economic conditions around the world are improving, and people are getting more aware of such services as checking accounts, saving accounts, etc., offered to them by various banks. The last decade has seen significant improvement in education, income, and job opportunities. As a result, the conditions have become favorable for individuals to opt for such services.
In a questionnaire by FDIC, people presented a candid view of why they remained absent-minded regarding checking accounts, saving accounts, and opening a bank account. Most of the people were of the opine that they could not fulfill the requirement for least initial deposits, minimum account balance, checks on credit for bad credit, and hidden fees. Hence, if a family could afford to have an account, then they would need to pay all such fees and costs.
Why do people want to open a Checking now?
In the last ten years, due to globalization, industries across the world expanded their business and operations, which led to a surge in economic conditions. People now had more wealth than they did before, and they could afford to open a business account at a bank even if those financial institutions would ask for costs and expenses that the customer would have to bear.
However, the economic boom did make people wealthier, but there were still working-class people that were living on daily and average wages. For these individuals, to open a bank account was a need, but incurring fees related to it was an unwanted expense.
The Banking industry made some changes and brought some convenience in the lives of such individuals. Due to their free online checking account that did not ask for any deposit or check on credit for bad credit, people choose to open a checking account for their ease because it was entirely free. They could even keep a check on their wealth. Such a check kept the banking process streamlined. People can now easily deposit money and be assured that their money is in safe hands.
Several banks provided support of free online checking account along with other features that were specific to those banks only. For instance, Chime Bank and MonyLion Bank provide some cash-related features if an individual opts to have their paycheck deposited to these banks. This is very convenient for people since they don’t need to worry about their paycheck. The paycheck gets deposited to their bank account due to that special feature which is totally free, and there are no costs related to it. This free service attracted people to open an account.
Almost all the banks have their own App now through which customers can deposit bills and can check their account balance. Having an application on your smartphone is beneficial for individuals as it skips them unnecessary expenses that banks charge for depositing money, be it for utility bills or for some other purpose. With online banking, no fees are deducted, and all transactions have no hidden fees.
In the first step, the individual has to do self-examination and select a bank that offers the right balance of services that the individual is looking for to satisfy their needs. The Banking industry is as competitive as any other industry having different banks all offering more or less the same services with some unique features too. As an individual looking to have a checking account, it is imperative to weigh all options and then select one option and stick with it.
It is important to understand that personal checking accounts (not business-related) can have multiple differences across various banks within the industry. These differences can be in overdraft protection, cash-related features, maintaining minimum account balance, ATM fee, along foreign transaction fee.
For people that do not have any problem in paying the costs and fees of having a checking account at a bank, the decision to select which bank to choose would not be a difficult one. However, for those people that belong to a working-class household, it is imperative that they select a bank that provides overdraft protection, widespread use of ATM services, and no need for having a minimum account balance as a requirement. These aforementioned factors should be considered before making a decision to open a bank account.
Lastly, there are certain documents and requirements needed to open a free online checking account with any online bank. These documents include the following:
- Copy of ID (such as a Passport or Driving License)
- Complete and Permanent address (Proof of address might be needed like a utility bill)
- Direct deposit information (this is needed in case a customer opts for the cash advance feature)
The above-mentioned steps are quite general that every online bank asks for in order for a customer to open a checking account for free. However, there might be some bank-specific requirements too that only that specific bank would know or the customers who have an account at that bank.
Best Free Checking Account Has No Opening Deposit and No Credit Check
There are a number of checking accounts offered by various banks that can be considered by individuals who are seeking to avoid any deposits or checks on credit in case of bad credit. The following list contains several checking accounts that are vouched by people who use it for personal or business-related use.
1. Chime Checking
Chime is a type of financial institution that only operates online since it has no brick or mortar store. All kinds of services offered by this bank are totally online. A positive thing about this bank is that it does not use ChexSystems to run a check on customers’ credit on different customers who are interested in opening a checking account with the bank. So it’s safe to say that a customer’s banking history will not affect their application process for a checking account with Chime.
A few benefits of choosing Chime is that there is no requirement of having an initial deposit at the time of opening the checking account. The individual can deposit that amount as per their choice. A debit card will also be provided to use for online and in-person transactions, along with the withdrawal of money from the ATM machine.
Moreover, Chime has no hidden charges such as maintenance or overdraft fees. A competitive edge of having a checking account at Chime is that money is deposited in an efficient way, and an individual can have their money with them 48 hours before other conventional banks. Lastly, Chime offers a special feature that grants a customer a free overdraft of up to 100 USD. And the money an individual keeps at Chime is insured and well protected by FDIC.
2. NBKC Bank
At NBKC, people can also opt for a checking account that does not come with a series of requirements since the services offered by this bank are purely free. For example, there is no need for a minimum deposit at the time of opening a bank account. People have a choice of free will to deposit an amount at any time after the account has been opened under their name.
List of perks that NBKC offers consists of no minimum balance requirement at the individual’s checking account. This would mean that customers can have any set amount, be it low or high, in their checking account. Moreover, there are no hidden charges like monthly fees. So having a checking at this bank would make sense.
There are a number of advantages of having a checking at NBKC, such as the bank offers a high APY rate of 0.50% that would earn a high interest for the customer. This would mean that the customer will bear fruitful returns on that high APY rate. In addition to this, customers would also get a debit card to pay for goods and services and for other various transactions. And lastly, check deposits which include payment checks from a customer’s employer, are free of any fee.
3. Ally Checking
Ally Bank is considered one of the best banks that offer a free online checking account. There are several reasons why people opt to have free checking at this bank. They are as follows:
- No opening deposit
- No monthly fees are charged by the bank for the checking account
- Decent APY rates offered by the bank
Ally bank offers different APY rates to customers holding a checking account at the bank. For instance, APY rate of 0.10% to any amount that is less than 15000 USD and APY rate up to 0.25% to any amount greater than 15000 USD. This means that the customers can earn a meaningful return on the amount they keep at the checking account.
Needless to say that the bank will provide a debit card that the customer can use to make transactions online to pay bills or to buy products and services. There are thousands of ATM machines across the country from where the customer can withdraw cash for use.
One intriguing feature about Ally bank is that it is deeply incorporated with the technological advancement (including banking services) that the world is going through. Such as the customers can transfer money to different accounts using Amazon’s Artificial Intelligence, Alexa, using their voice and command.
This is considered a great choice for people that want to save their money without incurring unneeded fees and expenses.
4. Alliant Credit Union
Many people prefer to open a checkings account at Alliant Credit union. It is considered one of the easiest credit unions to join. What makes it so convenient is that:
- There are no monthly deposits
- There is no minimum opening deposit
- There is a high APY rate on the savings held at the checking account
Since the financial institution is a non-profit organization, so it offers a relatively higher APY rate. A high APY rate means 0.25% on the savings. This also means that the customer would be earning a handsome return on their savings.
The checking would grant the customers a Visa debit card that has no hidden charges. The Visa card can be used at any of the credit union ATM machines to withdraw cash for personal use. Such ATM machines would carry no fee on the amount of money that has been withdrawn. Lastly, the financial institution has an online app that could be used as well to make purchases. One interesting thing about this App is that it won the award for the most convenient, easy to understand and use App in comparison to other apps offered by various banks and financial institutions.
Other good free checking account with no credit check & no deposit
Here are some some other best free Checking accounts has no opening deposit and no Credit check.
Capital One 360 Checking
According to people, the number one best overall free checking account is Capital one 360 Checking. What makes it unique and far better than other financial institutions is the trust the bank develops with its customers. The employees of the bank are very helpful and often receive a positive response from the clients that are happy with the services.
There are no monthly fees attached with the checking, so it ensures people that their savings are not being diminished by any hidden charges. The bank wants to attract a large number of people, and that is why they have kept the least initial deposit at zero. This relieves customers from the undue pressure of keeping a specific amount at the account. Customers can keep the as low or as high amount as they like.
APY rate offered by the financial institution is 0.10% on the savings. It is a decent rate that would earn a good amount of return for the customers. One of the best things about this bank is that the money kept at the bank is FDIC insured, so we can say it is well protected from theft and fraud.
Customers will also receive a debit card that they could use to pay for the goods and services that they purchase. That debit card can also be used to withdraw money from more than 70,000 ATM machines that don’t ask for any fee or cost upon withdrawal.
One of the best features of this bank that makes them so special is that with the help of the online App of the bank, customers can even lock their debit cards in case they lose them or it gets stolen. Similarly, they can also unlock the card at the time of the transaction.
Like many other online banks and credit union that offer free checking account without any credit check or fees, Discover Bank also offers similar features but with greater rewards. Reasons for choosing this bank include the following:
- No minimum deposit
- No monthly fees, so people can save more.
- Free ATM card to make purchases and perform transactions
- Free ATM card to withdraw money from 60,000 ATMs that do not charge any fee
- Money is insured by FDIC. So no need to worry about theft etc.
- No APY rate is offered by the bank, but customers get a 1% cashback when they spend more than 3000 USD on their ATM each month.
- Send and receive money with/to other people without any fee if they have the same bank account.
Frequently Asked Questions
A checking is crucial in case of any emergencies or unwanted incidents that occur without telling. As a result, a checking is needed to have an influx of funds available to make all necessary payments.
According to the article, the top checking accounts are those that have zero monthly fees; no credit checks are run (this is good for people who have bad credit), no use of ChexSystems, no need to have a specified minimum balance in the account, and minimum opening deposit (which is zero) is needed at the time when the account is opened.
In addition, checking provides customers with a debit card that can be used for the purchase of goods and services and for transaction purposes. Moreover, the Visa debit card can even be used to withdraw money from ATMs. There are several ATMs that do not charge any fee on the withdrawal of money. Hence, Online banking is quite easy since it incorporates less hustle and streamlines the entire banking process in a much easier way that is user-friendly.