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By
Jenni Sisson
Jenni Sisson
Contributor
Jenni is a personal finance editor and writer. Her favorite topics are investing, mortgages, real estate, budgeting and entrepreneurship. She also hosts the Mama’s Money Map podcast, which helps stay-at-home moms earn more, spend less and invest the rest.
When she’s not writing or editing, you can find Jenni taking her family for hikes along the Wasatch Front, sewing with her sisters or beating someone at Scrabble.
Read Jenni Sisson's full bio
Reviewed By
Robert Thorpe
Robert Thorpe
Senior Editor
Robert is a senior editor at Newsweek, specializing in a range of personal finance topics, including credit cards, loans and banking. Prior to Newsweek, he worked at Bankrate as the lead editor for small business loans and as a credit cards writer and editor. He has also written and edited for CreditCards.com, The Points Guy and The Motley Fool Ascent.
Read Robert Thorpe's full bio
Say goodbye to fees and minimums; say hello to cash back and budgeting tools
Minimum deposits and monthly fees used to come standard with consumer checking accounts—but not anymore. Today you can find numerous free online checking accounts with no deposit, as well as a few offered by brick-and-mortar institutions.
Beyond the lack of deposit and fees, many checking accounts now come with additional perks, like cash back or budgeting tools. We’ve compiled the details of some of the best free online checking accounts without an opening deposit from across the web so you can make an informed choice about which one is right for you.
Our Methodology
Newsweek Vault’s banking experts have done hundreds of hours of research to present you with all the latest information about your banking options. Whether you’re interested in opening a new checking account or savings account, our research spans all the top online banks, credit unions and brick-and-mortar branches.
We assessed the following five key factors to help you choose the best account for your personal finance needs.
- Associated fees
- ATM access
- Balance requirements
- Customer service
- Interest-earning potential
Our Picks
- Best for cash back: Upgrade Rewards Checking Plus
- Best APY: Kasasa Cash Checking
- Best budgeting features: Ally Spending
- Best ATM access: Axos Bank Essential Checking
- Best for no overdraft fees: Capital One 360 Checking
- Best for physical branches: PNC Bank Virtual Wallet Checking Pro with Spend
6 Best Free Checking Accounts With No Opening Deposit
Best for Cash Back
Upgrade Rewards Checking Plus
Vault Verified
Why We Chose It
Many credit cards offer cash back on purchases, but only a few checking accounts do. Upgrade offers 2% cash back on common, everyday purchases made with your debit card and 1% on all other transactions. This rate assumes you have at least a $1,000 direct deposit coming in each month; if not, the cash back rates are 1% and 0.5% respectively.
Pros
- 1% to 2% cash back on debit card common, everyday purchases, payments and subscriptions
- Get direct deposits up to two days early
- No overdraft fees
Cons
- Must have direct deposit for highest cash back
- No APY
- No cash deposits
Best APY
Kasasa Cash Checking
Vault Verified
Why We Chose It
Kasasa partners with local banks and credit unions to offer free checking accounts with some of the highest APYs on the market. (If there’s not one near you, Falcon Bank allows you to open an account online from anywhere in the U.S.). There’s no minimum balance to earn interest, but you must have a direct deposit and at least 15 debit transactions each month to qualify for the best APY.
Pros
- High APY of up to 7.0%
- No minimum balance to earn APY
- ATM fee refunds
Cons
- Must meet qualifications to get high APY
- Does not offer many other banking products
- If you don’t meet qualifications, base rate APY is 0.05%
Best Budgeting Features
Ally Spending
Vault Verified
Why We Chose It
If you’re looking for extras to help you organize and optimize your finances Ally’s Spending account offers several. You can designate up to 10 buckets for specific expenses, like a vacation fund, emergency savings or a large upcoming insurance bill. You can also opt into Round-Ups (which rounds all transactions to the nearest dollar and deposits it into savings) and Surprise Savings (which analyzes your checking account for safe-to-save money and transfers it to your savings account). Read our Ally Bank review.
Pros
- Spending buckets help you save for and categorize expenses
- Get direct deposit two days early
- Double overdraft protection
Cons
- ATM refunds limited to $10 per month
- No cash deposits
- Other banks offer better APYs on savings
Best ATM Access
Axos Bank Essential Checking
Vault Verified
Why We Chose It
If ATM access is a prime concern, Axos Bank’s Essential Checking is a great option as it offers unlimited ATM fee reimbursem*nts and a massive network of ATMs. Interest rates on Axos savings products are less than competitive, making this online bank less than ideal for customers who want to use a full suite of banking products in one place.
Pros
- Unlimited ATM fee reimbursem*nts
- $50 referral when you invite a friend
- Over 90,000 ATMs nationwide
Cons
- Low APYs on savings products
- Many requirements for perks on other accounts
- No cash deposits
Best for No Overdraft Fees
Capital One 360 Checking
Vault Verified
Why We Chose It
Few large banks offer free checking accounts with no deposit, but Capital One is one of the few that do. The 360 Checking has no overdraft fees, and unlike many online banks, Capital One allows you to add cash to your account at CVS or Walgreens. As one of the larger banks on this list, it offers a full suite of banking products, making it a good option for those who want to integrate savings, credit cards, CDs, auto loans, and more. Read our Capital One review.
Pros
- No overdraft fees
- Full suite of banking products
- Add cash in any CVS, Walgreens or Duane Reade location
Cons
- Physical locations in select states only
- No ATM reimbursem*nts
- Low APY at 0.1%
Best for Physical Branches
PNC Virtual Wallet Checking Pro with Spend
Vault Verified
Why We Chose It
Sometimes you need in-person service, and PNC has one of the largest physical footprints of banks offering free checking accounts with no deposit. They have branches in 28 U.S. states and Washington, D.C. Like some online banks, PNC has developed digital tools to help you manage your cash flow, budget your funds and avoid overdrafts. Read our PNC Bank review.
Pros
- Full suite of banking products, loans, and commercial banking
- Digital tools like Low Cash Mode and Danger Day alert you when funds are low
Cons
- No CDs or money market accounts
- High-yield savings accounts are only available in certain zip codes
- High overdraft fees of $36 per instance
How Do Free Checking Accounts With No Opening Deposit Work?
Charging a monthly fee for a checking account and requiring a minimum deposit used to be standard practice for most banks, and many large banks still do. But an increasing number of institutions are marketing checking accounts without fees or deposit requirements as a way to attract new customers. Most of these are online banks that don’t have the overhead costs of physical branches, so they can pass those savings onto customers by not charging as many fees.
Banks assume that if you open a checking account, you intend to use it. They know they will make money on your future deposits, so they can safely skip requiring you to make a deposit when you open an account.
Why Would You Need a Free Checking Account With No Deposit?
Why pay deposits and fees if you don’t have to? There are numerous, legitimate banks that offer checking accounts without fees or deposit requirements, and several offer additional perks such as reimbursed ATM charges, cash back or budgeting tools.
Here are a few more reasons to avoid checking accounts with fees and deposit minimums.
- You don’t have the required deposit. If your funds are tied up elsewhere or you are living paycheck to paycheck, even a $100 deposit can be a problem. Whether you can’t commit the money to a deposit or you just don’t want to, a checking account without a required deposit is a good solution.
- You’re transitioning from another bank account. Switching banks can be a hassle, and keeping track of the deposit and fees while you hold two accounts is even more so. You can open a free checking account with no deposit as far in advance as you like without worrying about getting dinged for not keeping enough money in the account.
- You don’t want to pay a monthly fee. In today’s market, dozens of banks offer checking accounts without a monthly fee. While monthly fees are usually small (between $5 and $15 a month), they add up and reduce the balance in your bank account.
- Your direct deposits are irregular. Many banks waive their monthly fee if you have a certain number or amount of direct deposits from a paycheck. If you work as a freelancer or your pay isn’t predictable, you may not be able to meet these requirements to avoid the fee, making fee-laden checking accounts less attractive.
- You like convenience. Suppose you don’t want to worry about whether you have enough account activity to avoid a fee or dig up a check from a different account to deposit funds. If that’s the case, you’ll enjoy the freedom of a checking account that doesn’t require fees or minimum deposits. It keeps the process of opening and maintaining your bank account simple.
How to Choose the Best Free Online Checking Account With No Deposit
Once you’ve got your list of possible free checking accounts without deposit requirements, you’ve cleared two major criteria for choosing the right account for you. Here are a couple of other factors to keep in mind as you make your selection.
Other Fees
The bank may not charge a monthly fee, but there might be other fees to consider. Overdrafts, inactive accounts, paper statements, and ATM use are just a few things banks charge for. Check the bank’s complete fee schedule to see if any of these apply.
APY or Cash Back
While most people use a savings or money market account to earn money on their cash, that doesn’t mean your checking account can’t too. Many banks are raising the annual percentage yields (APYs) they pay on checking accounts. Others offer a percentage of debit transactions as cash back, much like many credit cards do. These may not be outsized rewards, but they are a perk to consider if all other criteria are equal.
ATM Accessibility
While most transactions have gone digital, we all need cash now and then. Most online banks work with ATM networks, such as Allpoint or MoneyPass, to provide ATM access to their customers. But if your nearest in-network ATM is miles away or located in a store with inconvenient hours, that’s a point to consider.
Cash Deposit Capability
A major limitation of online banks is that it’s difficult to deposit cash. Check if your online bank supports ATMs with cash deposit capabilities if you anticipate needing this feature. Otherwise, you’ll need to deposit cash at another bank account and link it to your checking account.
Integration with Other Accounts
It’s convenient to have all your bank accounts at the same financial institution, so check if the bank also has other attractive offerings (like savings, CDs, money market accounts, credit cards, loans, etc.) that will pair well with your checking account.
Alternatives to Free Online Checking Accounts With No Deposit
While checking accounts work well for the banking needs of most people, no account is perfectly suited to every customer. With that in mind, here are a few alternatives if a free checking account with no deposit doesn’t work for you.
Free Online Checking Accounts With No Deposit vs. Banks with Waived Fees
Many banks that charge fees will waive them if you meet certain criteria during the statement cycle. Usually, you must have a certain number or volume of direct deposits or an automatic bill payment set up to waive the fee. If you already know your usual banking activity will exempt you from the monthly charge, it may not be a dealbreaker when you choose what institution to bank with.
Free Online Checking Accounts With No Deposit vs. Savings Accounts
Many savings accounts do not have monthly fees or deposit minimums, but they are less suited to everyday banking activities than checking accounts. You may be able to set up digital payments with the account and routing numbers from your savings account, but point-of-sale transactions will be more difficult without checks or a debit card. Your bank may issue you an ATM card with your savings account, allowing you to get cash out easily for everyday transactions.
Free Online Checking Accounts With No Deposit vs. Prepaid Debit Cards
You don’t need a bank account to load your paycheck or cash onto a prepaid debit card, which can be helpful if you have trouble getting approved due to previous negative account activity. You can get prepaid debit cards at a pharmacy or grocery store, but most have monthly fees and may charge you a fee each time you load money onto the card.
Frequently Asked Questions
Can You Open a Checking Account with $0?
Yes. Many banks allow you to open an account without putting money into it immediately. This can be helpful if you’ve just moved to a new city or started a new job. Be aware that if you do not fund your account after a certain period of time, the bank may close your account due to inactivity.
Which Banks Offer Money for Opening an Account?
Several banks (usually the large, legacy ones) offer sign-up bonuses when you sign up for a checking account. But most of these have a monthly fee or direct deposit requirement to qualify for the bonus. If you plan to keep the account for a long time, you’ll likely pay more in monthly fees than the bonus was worth.
Is There a Downside to Switching Banks?
Not if you plan the transition carefully. Opening a new fee-free, no-deposit checking account is the first step, but you should plan to keep some cash in your old account to cover any recurring charges you have forgotten to cancel. This will help you avoid any insufficient funds charges. Changing banks does not affect your credit score.
Why Do Banks Charge Fees?
Lawrence Sprung, CFP and Founder of Mitlin Financial, explains how banks use money from fees and minimum deposits: “Banks want to be compensated for holding your monies on deposit, insuring them, and handling transactions. Monthly maintenance fees offset the cost the bank incurs for you to be a customer. Also, certain levels of balances (and the bank’s use of them) help cover these costs. This is why depositors who meet deposit minimums will not incur the same fees as someone who does not.”
Related Articles
- What Is a High-Yield Savings Account (HYSA)?
- Best High-Yield Savings Accounts of April 2024: From 4.35% to 5.35%
- Best 1-Year CD Rates of April 2024
Editorial Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post. We may earn a commission from partner links on Newsweek, but commissions do not affect our editors’ opinions or evaluations.
Jenni Sisson
Contributor
Jenni is a personal finance editor and writer. Her favorite topics are investing, mortgages, real estate, budgeting and entrepreneurship. She also hosts the Mama’s Money Map podcast, which helps stay-at-home moms earn more, spend less and invest the rest.
When she’s not writing or editing, you can find Jenni taking her family for hikes along the Wasatch Front, sewing with her sisters or beating someone at Scrabble.
Read more articles by Jenni Sisson
