A bank account is a special arrangement with your bank where you can deposit and use money. Keeping money in a bank is advantageous because your funds are secure, unlike keeping money in your house. Funds in your house, office or other similar place are at risk of being destroyed by fire or flood. Thieves may even make away with them. I will take you through the best banks for checking and savings accounts you can open today.
Checking and savings accounts are the main types of bank accounts you can open with various financial institutions. A savings account allows you to keep the money for the future. If you plan to build a house in the coming years, a savings account can be of great help. Savings accounts are the best to hold money in a bank account since withdrawing the funds is limited. Banks usually restrict the number of times and the amount you can withdraw from a saving account per given time.
On the other hand, a checking account helps you keep money in a bank account for your everyday expenses. Most checking accounts are accessible online, and you can even buy goods and services online from various merchants. Again, checking accounts usually come with debit cards to withdraw money from ATMs, over the counter, and buying goods and services online and at physical stores.
What are the main differences between checking and savings accounts?
Checking and savings accounts allow you to keep money in a bank. However, some differences arise between the two.
First, checking accounts come with debit cards, while most saving accounts do not have debit cards. You can quickly get an online bank account with an instant virtual debit card. The very few saving accounts with debit cards allow you to use the card in a restricted manner. A checking account debit card allows you to use it without any limitations.
Secondly, checking accounts allow you to access your funds 24/7 when the need arises, while savings accounts have specific times when you should withdraw money. Remember that savings accounts are to help you save money and withdraw during a specific time.
Another difference between the two categories of accounts is that money in a savings account attracts interest. Most checking accounts do not earn interest; however, you can come across a checking account that earns interest.
How do you open a bank account?
You were opening a bank account is free and especially when opening one online. Most banks nowadays allow you to open a bank account remotely, and you do not have to move from your place to the nearest branch to open a bank account. By the way, getting an online bank account with an instant debit card is very easy as long as you have all the requirements. The virtual debit card is helpful when making online payments.
You have two options that you can use to open a bank account. You can either open one online or at a physical branch. To open a bank account online, you have to visit the website of the concerned bank and then navigate to the account opening section.
On clicking the “Open Account” tab, a new page opens that requires you to enter details such as your names, email address, phone number, ZIP code, City, and State. You will also need to provide details such as the Social Security Number, identification document, and any other document your bank may ask for.
After filing every detail, you then submit it for verification. The bank then sends you an email or SMS telling you the status of your application. On the other hand, applying for a bank account at a physical branch requires you to carry various details such as your identification document and your Social security Number. You will be able to fill out various papers and go home having completed your application plus an active bank account.
Do I need credit scores to open a bank account?
Most banks do not need credit scores when opening an account. However, if you are in the ChexSystems, then some banks can deny you a bank account. Being listed in the ChexSystems means that you utilized a bank account inappropriately in the past.
However, many banks offer online checking accounts with no ChexSystems no opening deposit once you request an account. Such accounts are suitable to help you build a good reputation.
Which are the nine best banks for checking and savings accounts?
To help you open a bank account with the most exciting features, I have brought you some of the best banks you can use to open an account. They include the following.
1) ConnectOne Bank
This is one of the best banks in which you can open a savings and a checking account. You will also be able to get loans. The ConnectOne Bank also allows you to carry out online banking to deposit money, borrow loans, and save for the future.ConnectOne Bank Online banking system has strong security to safeguard your account from online theft.
Chime has a savings and a checking account that they call a Spending account. The bank operates purely online, and you need to have a smartphone, a computer, or a tablet to get started with the institution. The Chime spending account comes with a debit card that you receive in the physical address that you give during account opening.
Interestingly, the Chime savings account has a high Annual Percentage Yield (APY) of 0.50%. You can thus set money aside for future use. Interestingly, you can open a second chance checking with no opening deposit nor credit check with Chime and start building your credit history.
3) Axos Bank
If you are looking for a bank with excellent customer service, Axos Bank is a bank to count on. Here, you can open a checking account to keep money in your daily spending. Their savings account attracts a high Annual Percentage Yield of up to 0.61% APY.
You can be sure that you will grow your money to higher amounts. You can even invest in various high-yielding money markets. For checking accounts, you can open an Essential Checking, Rewards Checking, or Cashback Checking account.
4) Community Direct
Community Direct offers you a savings account with a 0.55% APY. That means you can significantly save with the bank to realize your future dreams. The Community Direct also gives you a chance to open Certificates of Deposit.
You can have a one-year CD that yields 0.65% APY or a two-year CD that yields 0.70% APY. The bank operates online, and that makes it very convenient.
5) Quontic Bank
The Quontic Bank allows you to save your money for higher interest rates while you pay low fees. It operates online, and opening an account is easy as long as you have the requirements. You will also benefit from the low deposit minimums that will allow you to save as little as possible. You can earn up to 0.55% APY on your savings account and up to 1.01% APY on your checking account.
6) Vio Bank
Vio Bank allows you to open a savings account and earn up to 0.51% apy. You require a $0 minimum balance in your account, so there is not much pressure to have your account packed with money. The Vio Bank also offers CDs that vary from one year to five years. You can have;
- 1-YEAR CD – APY 0.15%
- 3-YEAR APY CD – 0.30%
- 5-YEAR APY CD – 0.50%
7) Varo Bank
Varo bank allows you to open a Checking Account and or a high-yield Savings Account. The Varo Bank has no hidden fees, and you can be sure that you will never be disappointed. You can get a free checking account with no credit check or deposit at Varo and enjoy spending your money in the best way possible.
Again, there are no monthly minimums nor monthly fees, nor will you pay overdraft fees. You can save as much as you want. If you receive direct deposits in your account, you can earn up to 3.0% APY on it.
8) nbkc bank
The nbkc bank is one of the best financial institutions you can open an account with. The nbkc bank has accessible online applications, simple, hassle-free accounts, competitive rates, and knowledgeable support from bank experts. You can open a checking or saving account or both online and start managing your money appropriately. CDs range from 3 months-five years, with the most extended five-year CD having a 0.30% APY.
9) One Spend
Finally, One Spend closes our best nine banks that offer excellent checking and savings accounts. By the way, One Spend is offering a $50 opening bonus if you join them this October 2021. You can open a savings account and autosave with up to 3% APY. Furthermore, you can borrow money and pay with a 12% APR. You can even apply for a credit builder and rectify your bad credit history.
The best banks for checking and savings accounts are the major types of accounts you can open from a bank. You can also open a CD account online and save money for a specified period. A checking account comes with a debit card that you can use to access your funds at ATMs. Some savings accounts also come with a debit card that you can use to withdraw money at specific times as per the guidelines.