Online banking is generally safe. Still, you can take steps to better secure your online accounts. You can also make sure the banks you are using or considering are reputable.

After addressing safety concerns and choosing between online and traditional banking, you can shift your focus from asking, “Is online banking safe?” to “Which online bank is the best fit for me?” Note that some banks are fully online, while others have brick-and-mortar locations along with online and mobile functionality.

How safe is online banking?

To make your online banking experience as safe as possible, you’ll first want to make sure you’re banking with a legitimate financial institution.

To verify a bank’s legitimacy, you can confirm that its deposits are insured by the Federal Deposit Insurance Corp. (FDIC) on FDIC’s BankFind website. The FDIC recommends looking for slight misspellings of the names of real banks, which can appear in the web addresses of fake banks.

You can also review complaints about the financial institution in the Consumer Financial Protection Bureau’s consumer complaint database. Sites such as Trustpilot are good places to check for reviews. A good rating from the Better Business Bureau is also a positive sign.

Some bad reviews don’t necessarily mean that an online bank is unsafe, but if you spot a lot of complaints related to security issues, that could be a red flag. Data breaches can affect financial institutions, although compromised systems don’t always indicate compromised customer financial information.

How do financial institutions make online banking safe?

Your financial privacy is protected under the law, whether you bank online or in person. Banks secure customer data using a variety of tactics, including multifactor authentication, encryption and anomaly detection, according to the American Bankers Association.

Here’s how these online banking security measures can protect you:

• Multifactor authentication: Requiring more than one method to verify your identity can be accomplished in obvious ways, such as pairing your card with a password or PIN. But banks also work behind the scenes to authenticate your activity.
• Encryption: When a financial institution encrypts your information, it transforms it into text that can only be deciphered by parties with a specific decryption key.
• Anomaly detection: Anomaly detection technologies can track patterns in account activity. This information can help banks automatically flag fraud.

Steps to boost your online banking security

If you’re eager to boost your online banking security, be sure to take steps that are actually helpful. For instance, public Wi-Fi networks were once unsafe for sensitive data, but increased encryption online means that they are now generally safer for accessing your banking information.

The following steps can make a difference in your online banking security:

1. Select strong passwords. Your password should be unique, meaning you don’t use it anywhere else. A strong password generally includes letters, numbers and special characters. You could also change your password regularly, such as every couple of years.
2. Use two-factor authentication. A solid password is a starting point, but you’ll want more than that to ensure your account security. With two-factor authentication, you’ll have to provide something additional to access your account, such as a response to a push notification on your cellphone. Doing so creates an extra layer of protection to keep hackers out even if they have your password.
3. Know the signs of scams. Phishing scams and other forms of bank fraud can compromise your account. Look out for suspicious text messages and email links, especially those that try to persuade you to act quickly. Be sure to verify downloads, too, including mobile apps.
4. See if your bank offers supplemental features. You could set up alerts for certain types of transactions, allowing you to be quickly notified about anything unusual. Your bank also might allow you to log in using biometric data, such as your fingerprint.
5. Monitor your accounts regularly. This could mean taking a close look at your monthly account statements or monitoring transactions as they happen through account alerts.

Is a traditional bank safer than an online bank?

Traditional banks offer similar levels of safety to online banks, as long as they are federally insured.

Even if you use a traditional bank, you’ll likely have the option to set up an online account. The advantage of a traditional bank is that it provides physical locations and some services that digital platforms may not accommodate, such as cash deposits and in-person advisors.

Online banks, on the other hand, allow you to bank at your own convenience and may provide more competitive product offerings.

Is an online bank right for you?

Whether an online bank is right for you will depend on your priorities.

Online-only banks can offer higher rates and lower fees because they have lower overhead costs than traditional banks. If you’re looking for a high-yield savings account, for instance, you’ll likely find that online-only banks offer some of the most competitive rates.

At the same time, their customer service experience may be inferior to what you’d get with a local bank or even a large national bank. Checking a bank’s reviews before opening an account can help you get a sense of the customer service experiences of current and former customers.

In either case, make sure the bank you choose offers features that are important to you. If you want or need to deposit checks in person or make other regular ATM transactions, for example, you’ll likely want a bank with a convenient ATM network. That can be either a traditional or online bank.

How to choose a secure online bank

Although banks generally take steps to protect your information — and you can take steps to protect yourself — you can also screen a bank before opening an account.

Data breaches are possible, and user error can leave your information exposed.

Factors to consider include:

• FDIC protection: Check the FDIC BankFind tool to make sure your bank has federal protection. With FDIC insurance, each of your accounts is insured for up to $250,000.
• Reputation: If you notice a lot of reviews that cite poor security or issues with online accounts, this could be a red flag. Checking a bank’s ratings with organizations such as the Better Business Bureau can help you confirm its legitimacy.
• Security approach: Learn about the bank’s security protocols, such as their data encryption, fraud detection and two-factor authentication methods, for insights into how they protect your financial information.

How to safely open an online account

To open a bank account online, you can navigate to the page on the bank’s website with the product you’re interested in. You’ll likely see an “open an account” button or something similar.

Click through and check that your browser connection is secure. Look for “https” at the start of the URL or for a lock icon, which indicates the site connection is encrypted.

You’ll need to provide sensitive personal information for the bank to verify your identity, such as your Social Security number. Once you’re approved for an account, make sure to create a secure password.

Is using a banking app safer than online banking?

Mobile banking apps are likely to be encrypted, just like bank websites. You may be able to set up biometric authentication for your banking app, using your face or fingerprint to sign in.

As with other downloads, make sure your banking app is legitimate. Some malicious apps can install malware on your device, according to the FDIC.

If you’re not confident in answering the question “Is online banking safe?” with a yes, then you likely won’t feel comfortable with mobile banking, either. On the flip side, if you’re comfortable with online banking, then you’ll likely feel good about mobile banking.

Treasury bills, commonly known as T-bills, are short-term securities — essentially loans — issued by the Treasury Department to raise money for the federal government.

T-bills may be attractive if you’re seeking a safe investment option because they’re backed by the U.S. government and highly liquid, meaning they can easily be sold for cash. But they also produce lower returns than higher-risk investments, such as stocks and bonds.

Here’s more about Treasury bills, including how to buy them and take advantage of today’s Treasury bill rates that exceed 4.0%.

What are current Treasury bill rates?

This chart shows average monthly interest rates of Treasury bills from July 31, 2024, to May 30, 2025. You can search for additional rate history between 2001 and 2024 on the Treasury Department’s Fiscal Data website.

How have T-bill rates changed over time?

This graph shows how T-bill rates have changed over the last five years, using data from the Treasury Department.

While Treasury bill rates have certainly increased sharply since the pandemic, growth has declined in recent months, suggesting that an economic slowdown may be on the way.

What is a Treasury bill?

When you buy a T-bill, you're extending a short-term loan of one year or less to the U.S. government. You typically pay less than its face value and then receive the bill’s full value when it matures.

You can keep a T-bill until it matures or sell it before then on the secondary market. If you sell before maturity, you may not recoup the full face value of your Treasury bill.

T-bills usually offer lower returns than Treasury bonds or notes. This holds true for most longer-term Treasurys in the first half of 2025, according to Fidelity Investments.

How do Treasury bills work?

Treasury bills are sold only in electronic form and can be purchased through a bank, broker, dealer or through TreasuryDirect, the U.S. government’s website for buying Treasurys.

You can buy bills at a discount or face value, and they come in terms of four, eight, 13, 17, 26 and 52 weeks. Your “interest” is the face value minus the purchase price. Bills pay interest only at maturity.

The Treasury Department sells T-bills in $100 increments and requires a $100 minimum purchase. You can buy a bill in two ways: with a noncompetitive bid or a competitive bid.

With a noncompetitive bid, you agree to accept the discount rate determined at auction. You’re guaranteed to receive the bill you want in the amount you want.

Meanwhile, with a competitive bid, you specify the discount rate you are willing to accept. Your bid may be accepted if the rate is less than the discount rate set at auction, accepted in part if your bid matches the discount rate or rejected if your rate is higher than the discount auction rate.

Note that auctions for Treasury bills are scheduled weekly for four-, eight-, 13-, 17- and 26-week bills and every four weeks for 52-week bills. See the auction calendar for specific dates.

How are T-bills taxed?

Federal tax is due on interest earned from Treasury bills. Remember to report interest from your Treasury bill in the year it matures or you sell it, which may not be the year you bought it.

T-bills are exempt from state or local taxes.

What causes Treasury bill rates to change?

T-bill rates can be influenced by many factors, including the federal funds rate, inflation and even a bill’s term.

Federal funds rate: Federal Reserve rate changes significantly affect T-bill rates. Short-term Treasurys typically move in line with the target federal funds rate.

Maturity period: Your Treasury bill’s term also affects its price. A one-year bill offers a higher rate of return than a three-month bill, for instance, because it means additional risk as you’re tying up your money for a longer period of time.

T-bill demand: Generally, the demand for Treasurys will increase when investor confidence is low, causing Treasury prices to rise and lowering their yields. Often, declining Treasury yields are interpreted as a sign of a potential economic slowdown.

Inflation: Inflation can reduce demand for T-bills and lower prices. That’s because inflation can erode the T-bill’s purchasing power. Say the inflation rate is 5% and the T-bill discount rate is 3% —in this scenario, the real rate of return is a loss.

How to buy Treasury bills

You can buy a Treasury bill either through the U.S. government or through a bank or broker. Here’s an overview of both processes:

Through the U.S. government: You can purchase bills at TreasuryDirect.gov. The minimum purchase is $100, and you must buy T-bills in $100 increments. There are no fees for opening an account or buying securities.

You’ll need to set up a TreasuryDirect account if you don’t have one. You can use the account to make noncompetitive bids for securities. You must place a bid when TreasuryDirect auctions the type of security you want.

Through a bank or broker: You can make competitive or noncompetitive bids through a broker, dealer or other financial institution. Brokerage firms, such as Fidelity or Charles Schwab, may require a minimum investment of $1,000 or more. Note that some brokers charge fees or commissions. Fidelity, for example, charges a flat fee of $19.95 if you buy or sell T-bills through a representative but $0 if you place an order online.

You can also buy and sell T-bills on the secondary market through a brokerage. The secondary market is where investors buy and sell securities, such as stocks, from other investors. Well-known secondary markets include the New York Stock Exchange (NYSE) and the Nasdaq.

Pros and cons of investing in T-bills

Are Treasury bills a good investment?

Whether Treasury bills are a good investment depends on your risk tolerance and investment timeline, as well as your financial goals. T-bills are typically low risk but also low reward.

Some investors like the short-term nature and high liquidity of T-bills. If you shy away from risk and desire the safety of U.S. government backing, then a T-bill might be a good fit for you.

Treasury bills may not be the right choice, however, if you need to earn more interest for long-term investment goals, such as retirement. For this purpose, stocks can make more sense, at least for a portion of your portfolio.

To determine what’s best for your investment goals, consider yield, liquidity and risk.

Frequently asked questions

How do Treasury bonds compare with Treasury notes and Treasury bills?

Treasury bonds have long maturities of 20 or 30 years and pay interest every six months, whereas Treasury notes have midrange maturities of two, three, five, seven or 10 years. Both pay interest every six months. Treasury bills, however, have terms of one year or less and pay interest only at maturity.

What types of interest payments does a T-bill earn?

A T-bill earns interest only when the bill matures. That’s when you are paid the par amount — also called the face value — of the bill. Bills are usually sold at a discount from the par amount, and the difference between the par amount and the purchase price is your interest.

Are Treasury bills the only type of debt security issued by the Treasury Department?

Treasury marketable securities have been one of the primary financing tools the U.S. government has used to operate throughout the years, going as far back as the Revolutionary War.

The five types of Treasury marketable securities are bills, notes, bonds, Treasury Inflation-Protected Securities (TIPS) and Floating Rate Notes (FRNs). These securities can be bought and sold in the secondary market.

The terms “financial planner” and “financial advisor” may seem interchangeable because both are professionals dedicated to providing financial advice to consumers. But financial planners typically focus on the big picture, creating overall money strategies, while financial advisors offer guidance in specialty areas, such as managing an investment portfolio.

Understanding the similarities and differences between the two can help you choose the right expert to improve your financial health while meeting your long-term needs.

What is a financial planner?

A financial planner is a professional who works with clients to define short- and long-term goals, and then creates actionable steps to meet those goals. Services may include budgeting, managing debt, planning for retirement, developing tax strategies and more.

The focus of a financial planner tends to be broader than a financial advisor, who concentrates on one area of finance.

Notably, the field of financial planning isn’t regulated, which means anyone can claim to be a financial planner.

However, working with a certified financial planner (CFP) may be a safer choice because certification requires meeting rigorous standards involving education and experience. Also, CFPs must adhere to the fiduciary standard — in other words, they put their clients’ best interests above their own profits.

You can typically find a CFP through an investment firm or brokerage. Some online and traditional banks may offer financial planning services as well, usually if you meet specific criteria.

Working with an independent financial planner is also an option, especially if you get a referral from colleagues, friends or family members.

Financial planner pros and cons

What is a financial advisor?

A financial advisor typically helps clients with a specific area of their finances, such as investments, retirement savings, taxes, estate planning or insurance needs. Financial advisors may work independently, or with an established bank or brokerage company.

Similar to financial planners, financial advisors have no universal licensing requirements. However, those who sell investment products are generally required to register with the Securities and Exchange Commission (SEC), while insurance agents need to meet state regulations.

Working with a licensed financial advisor can provide an extra layer of security because licensing requires rigorous training and certifications.

Note that financial advisors may follow the “suitability standard,” which means the advisor’s decisions must be suitable and fair for the investor’s circumstances. However, this doesn’t mean that a financial advisor’s decisions are necessarily the best for the client’s long-term goals and comfort with taking risks.

Financial advisor pros and cons

Financial planner vs. financial advisor: Key differences

While financial planners and financial advisors both provide financial advice and services to individuals and companies, they differ in several ways. Key differences between the two include:

• Level of expertise

  A financial planner uses a big-picture approach, similar to a general practice doctor, considering all aspects of your life to create a robust plan to take your finances to the next level. In comparison, a financial advisor typically focuses on one area in the financial field, such as investing strategies to maximize your retirement savings. You may decide to use a financial planner to create a comprehensive plan and then implement sections of that plan with specialized financial advisors.

• Fiduciary duty protection vs. suitability standard

  Thanks to the fiduciary duty protection, certified financial planners are legally required to prioritize their client’s best interests over their own profits. This can give clients an extra layer of reassurance, knowing their finances are in safe hands. In contrast, financial advisors may follow the suitability standard, which requires only that recommendations be “suitable” for the investor’s circumstances. This could lead to decisions that are not aligned with the client’s long-term goals.

• Compensation

  Financial planners generally offer several payment options, such as hourly, fixed fee, retainer or commission. This allows you to pick which payment structure works best for you and your long-term goals. While some financial advisors may offer different compensation plans, they typically charge a percentage for managing assets or earn commission when selling financial products. Costs for each can vary greatly. Gathering quotes and pricing structures can help you decide whether to go with a financial advisor versus financial planner.

Choosing between a financial planner and financial advisor

When to choose a financial planner

If you have multiple financial goals or need help managing various aspects of your financial life, a financial planner might be a better fit than a financial advisor.

“Planners are well-equipped to help identify and prioritize goals, apply concurrent solutions that work in harmony, and then manage for best outcomes,” says Jessica L. Villagrana, financial advisor and certified financial planner with financial services firm Edward Jones.

While many financial planners offer broad and generalized support, some provide niche services, such as planning for retirement or tax strategies. You have to know your financial goals and find a professional who aligns with them.

Villagrana advises consumers to interview two or three potential planners from different firms. Look for someone who will fit your communication style and help you stay committed to your growth strategies.

“Think of it as a financial marriage,” Villagrana says.

The good news is that most firms offer a free introductory session to see whether their services will meet your needs.

When to choose a financial advisor

If you need help with a specific area of your finances, such as exploring investment strategies or managing your portfolio, a financial advisor may be valuable.

“Financial advisors are great for new investors starting to build wealth,” Villagrana says. “However, as wealth builds and life becomes more complex, investors may eventually need a financial planner.”

When choosing an advisor, ask what you can expect to pay yearly for services, Villagrana says. At the same time, avoid reviewing the advisor’s investment performance records.

“Your required rate of return will be determined by your goals, timeline, risk tolerance and existing resources,” she says.

Ultimately, your financial professional’s task is to help you achieve your financial goals, which will likely differ from other clients’ goals.

If you decide that you want a blend of what a financial advisor and a financial planner have to offer, you’re in luck. Many financial advisors, such as Villagrana, also hold a CFP certification. Professionals with multiple qualifications may be better equipped to meet certain clients’ needs as their financial circumstances and long-term goals evolve.

How to find a financial planner or financial advisor

When shopping for a financial planner, you can consider factors such as credentials, specializations and referrals.

The Certified Financial Planner Board of Standards provides a CFP lookup tool where you can verify an individual’s current and past certifications, as well as any legal or disciplinary actions taken against them or their organization.

The Financial Planning Association (FPA), a nonprofit organization, allows you to search for CFPs in your area with its PlannerSearch tool.

The BrokerCheck tool, designed by the Financial Industry Regulatory Authority (FINRA), allows you to vet registered financial advisors to find a good fit for your needs.

Be sure to consider the different types of financial planners and their areas of expertise. For example, some CFPs add certifications to better serve their clients, such as becoming a Chartered Financial Analyst (CFA) for investment strategies, a Certified Private Wealth Advisor (CPWA) for high-net-worth clients, or a Certified Divorce Financial Analyst (CDFA) to assist clients with the financial aspects of divorce.

Here are some popular financial institutions to consider when looking for financial planning services. You can also look into private banking to see what financial services are available.

Step-up CDs offer predictable rate increases and are commonly found in rising interest-rate environments. These CDs can seem particularly attractive because they offer steadily increasing yields.

Still, step-up CDs may not be right for every investor. Here’s what you need to know before tying up your money in a step-up CD for the long haul.

How do step-up CDs work?

For the most part, a step-up CD functions like a traditional CD. When you open an account, you agree to leave your money in the account for a specified period of time in exchange for earning interest.

However, there is one big difference between the two products: A traditional CD earns a fixed interest rate for the term you choose, while a step-up CD earns a rate that increases over time. The increases happen according to a set schedule you’ll receive before opening your account.

Step-up CD example

Take a look at the following example to get a better sense of what the annual percentage yield (APY) could look like on a step-up CD with a 28-month maturity term:

• Months 1-7: 0.05%
• Months 7-14: 0.25%
• Months: 14-21: 0.45%
• Months: 21-28: 0.65%

Step-up CDs vs. bump-up CDs: What’s the difference?

Step-up CDs should not be confused with bump-up CDs. The two names might sound similar, but each product is distinct. Here’s a look at the differences between the two:

Pros and cons of step-up CDs

Step-up CDs have a few key benefits and disadvantages you should be aware of before opening an account, including:

Are step-up CDs a good idea?

No one financial decision is right for everyone, but investors may want to do their research before diving headfirst into step-up CDs.

A step-up CD promises rising rates, but the overall yield can end up being less than what you might have earned with a regular CD, says Matt Schulz, chief consumer finance analyst for LendingTree.

“Step-up CDs generally aren’t a great investment compared with regular CDs or even high-yield savings accounts,” Schulz says.

But if you’re not concerned with the highest possible return but want predictability and rising returns, a step-up CD could be appealing, he adds.

Alternatives to a step-up CD

If you decide that a step-up CD is not the right fit for you, here are some alternatives:

• Use a CD laddering strategy: If you like the idea of investing in CDs but hesitate to commit because of potentially declining returns, think about using a CD laddering strategy instead. You’ll invest in multiple CDs with different maturity terms, allowing you to take advantage of a wide rate spread without worrying about locking your funds up for too long.
• Consider investing in Treasury bills: If you’re in the market for a safe investment, consider Treasury bills. T-bills, as they are often called, are short-term securities that are issued by the U.S. government with a guaranteed rate of return stated upfront.
• Open up a HYSA or money market account: If you’re hoping to be able to access your funds when needed, look into opening a high-yield savings account (HYSA) or money market account instead. These accounts offer higher-than-average interest rates while keeping your investments flexible. Money market accounts come with debit card and ATM access; HYSAs don’t, but they may also be subject to transaction limits.

If you change employers or you’re ready to retire, you might wonder what to do with your old 401(k). One option is to roll over the 401(k) into an individual retirement account (IRA). IRAs typically come with a wide range of investment options, including stocks, bonds and mutual funds, which may make it easier to reach your retirement goals.

While a rollover IRA allows you to consolidate past and future 401(k) balances in one centralized account, a rollover can have tax implications if you don’t follow the rules. Here’s what you need to know about rollover IRAs.

What is a rollover IRA?

A rollover IRA is a specific type of retirement account designed to hold funds transferred from an employer-sponsored retirement plan, such as a 401(k) or 403(b). This account acts as a different investment vehicle for your hard-earned retirement savings until you reach an age when you can access them penalty-free.

You might want or need to move your savings into a rollover IRA for several reasons. The most common reason is a job change. Let’s say you change jobs and have money stashed away in your old employer’s retirement plan. Cashing out these funds before retirement age means paying additional taxes and fees, including a 10% early withdrawal penalty.

That penalty is typically charged when people access their retirement funds before they turn 59½. In this scenario, moving that money into a rollover IRA makes more sense because it allows you to maintain the tax-deferred status of your retirement savings.

Rollover IRAs can also be used to consolidate multiple retirement accounts into one for easier management. However, you generally don’t have to move 100% of the funds in your account when you perform a rollover. You can roll over a portion of your account balance as long as you follow other rollover rules, which we’ll explain throughout this article.

Traditional vs. Roth IRAs

To open a rollover IRA, you’ll need to decide between a traditional IRA and a Roth IRA. The key difference between these accounts has to do with how they are taxed:

• If you roll over pretax contributions to a traditional IRA, then the funds continue to grow without any taxation, meaning you won’t pay taxes until you withdraw the money in retirement.
• If you roll over funds into a Roth IRA, then you’ll pay taxes on the amount being deposited during that tax year. However, qualified withdrawals in retirement will be tax-free as long as you’ve held the account for at least five years.

Whichever option you choose, IRAs typically come with a variety of investment options, and you get to decide how involved you want to be. Online brokers provide platforms where you can research and choose your own investments, which is ideal for people who prefer to actively manage their retirement portfolios.

If you’d like a hands-off approach, some providers offer robo-advisers that ask you questions about your financial goals and appetite for taking risks, and then build and manage a portfolio for you based on your responses.

How to roll over a retirement account

There are generally three ways to roll over retirement savings:

1. Direct rollover: Your retirement plan administrator can deposit the distribution from your retirement plan directly into another retirement plan or IRA. Alternatively, your employer might send a check for the full account balance made payable to your new account, which you can then deposit. Taxes won’t be withheld from the amount that’s transferred.
2. Trustee-to-trustee transfer: In this situation, which involves a transfer from one IRA to another IRA, you can ask the financial institution that holds your IRA to make the distribution directly into another account or retirement plan. No taxes will be withheld.
3. Indirect rollover: Sometimes, financial institutions issue distributions from an IRA or retirement plan directly to you. In this case, you have 60 days to deposit all or part of the distribution into another IRA or retirement plan. If the distribution comes from an IRA, you can elect not to have taxes withheld. But if it comes from a 401(k), the payee is required to withhold 20%.

Tax implications of rollover IRAs

With direct rollovers, no taxes are applied until you begin withdrawing money in retirement. But with indirect rollovers — when you receive a check and deposit it into an IRA — there may be tax implications.

In general, the IRS gives you 60 days from the date the funds are received to deposit them into an IRA. If you don’t follow the 60-day rule, the funds will be considered an early withdrawal, and you’ll have to pay a 10% early withdrawal penalty.

Indirect rollovers are also subject to tax. When you receive a retirement account distribution from a former employer, the amount you receive will typically be your 401(k) balance minus 20%, which is withheld for taxes.

The IRS typically allows one tax-free rollover per year, but this rule does not apply to:

• Rollovers from traditional IRAs to Roth IRAs, also known as Roth conversions
• Trustee-to-trustee transfers between IRAs
• Rollovers from IRAs to retirement plans
• Rollovers from retirement plans to IRAs
• Rollovers from retirement plans to retirement plans

Frequently asked questions

How is an IRA rollover different from an IRA transfer?

Some people use the terms IRA rollover and IRA transfer interchangeably, and they have similarities. However, the main difference is that a transfer involves moving money between two accounts of the same type, while a rollover involves moving money between two different types of retirement accounts.

For example, when you leave one job for another, you might transfer the balance of your old 401(k) to your new employer’s 401(k) plan. But if you move the money from a 401(k) into an IRA, that’s a rollover.

Can you roll funds from an IRA to a 401(k)?

Traditional IRAs can be rolled over into almost any other retirement account, including a 401(k), if the new account’s rules allow rollovers.

Moving money from an IRA to a 401(k) is often referred to as a “reverse rollover,” and it might make sense if you want to delay your required minimum distributions or consolidate your retirement savings. However, employer-sponsored retirement plans may offer fewer investment choices.

How do I report rollovers on my tax return?

Even if you didn’t have to pay taxes on the transferred amount, rollovers must be reported on your annual tax return. Typically, the plan administrator will issue a 1099-R tax form, showing the rollover amount and whether the transaction was taxable. You can use this form to report the rollover on your tax returns, but be sure to double-check it for accuracy.

Certificates of deposit (CDs) involve locking up your funds for a set term, such as one year or three years, in exchange for a guaranteed interest rate. If you need to access your money sooner, you’ll usually be charged an early withdrawal penalty, which can reduce your earnings and sometimes even your principal. Below, we’ll cover how to determine whether an early CD withdrawal is the right option for you.

Should you take an early withdrawal from a CD?

Withdrawing money from a CD before it reaches maturity is generally not recommended because of early withdrawal penalties. However, depending on your situation, it could still be the best option. Here are a few scenarios where it could make sense:

• Interest rates are much higher than when you first opened the CD. If rates have gone up significantly since you opened the CD, it might be worth withdrawing early to reinvest the money into a new, higher-yield CD. Just be sure the extra earnings outweigh the penalty you’ll pay for early withdrawal. Try our early withdrawal penalty calculator to see whether it makes sense to pay this fee.
• You’re facing a financial emergency. If unexpected costs arise, such as medical bills or expenses related to a job loss, you may have no choice but to dip into your CD. However, if you have funds in a traditional savings account, it’s wise to withdraw money from those accounts first because you won’t be charged early withdrawal penalties.
• You want to pay off high-interest debts. Carrying high-interest debts, such as credit card balances, can cost you more over time than the penalty for early withdrawal. In this case, using CD funds to repay your debts can make financial sense. Still, explore other debt repayment options first.

How CD early withdrawal penalties work

A CD early withdrawal penalty is typically calculated as a set number of months’ worth of interest. The exact amount you’ll pay as a penalty depends on a few factors, including the CD term, annual percentage yield (APY), and your bank or credit union’s policies. Generally, the longer the term, the bigger the penalty.

Keep in mind that if your CD came with a sign-up bonus or promotional cash incentive, you may also lose the bonus as part of the early withdrawal penalty.

CD early withdrawal penalties at major banks

Can I withdraw the interest on a CD before maturity?

Yes, some financial institutions allow you to withdraw your interest earnings before the CD’s maturity date, which can help you cover unexpected expenses without risking your principal or incurring extra fees. You can generally opt to have the interest sent to a linked bank account or have a check mailed to you, though this will depend on your financial institution.

How to avoid CD early withdrawal penalties

Build an emergency fund

One of the best ways to avoid dipping into a CD early and paying an early withdrawal penalty is to keep some cash in an emergency fund. When deciding where to open an emergency savings account, it’s best to choose an account that’s highly liquid, such as a high-yield savings account or money market account. Having easy-to-access savings can also help you avoid taking out high-interest debt, such as using credit cards, to pay for unexpected expenses.

Open a no-penalty CD

A no-penalty CD is what it sounds like: a CD that allows you to withdraw funds at any time without an early withdrawal penalty. The trade-off is that no-penalty CDs usually offer lower interest rates compared with traditional CDs. Still, they can be a solid option if you want some growth without losing access to your money for a set time.

Create a CD ladder

A CD ladder involves opening multiple CD accounts with varying maturities, so you have access to lump sums of cash on a consistent basis. Instead of depositing $10,000 into one 3-year CD, for example, you could deposit $2,500 into a 6-month CD, a 1-year CD, a 2-year CD and a 3-year CD, respectively. As each CD matures, you can reinvest the money into new CDs or use the funds for everyday expenses.

If you find yourself counting down the days until payday, you might be able to receive your funds a bit sooner thanks to early direct deposit. This relatively new banking feature is increasingly available as a perk — often for free — on certain accounts.

Here’s more about early direct deposit and how to find a bank that offers it.

31 financial institutions that offer early direct deposit

If you’re looking for banks, credit unions or financial services companies that offer early direct deposit, here are some options to consider.

What is early direct deposit?

Early direct deposit, also called early pay or early payday, allows you to access funds from your paycheck up to two days before your official payday.

Originally offered by financial technology companies, or fintechs, and online banks, early direct deposit has recently become more popular with traditional banks and credit unions, which are eager to provide this perk to customers. Using early direct deposit can help you avoid overdraft fees if your bills are due before payday.

While many banks deliver this service for free, some may charge a small fee. In addition, you may need a specific type of checking account to qualify for early direct deposit.

How does early direct deposit work?

Banks with early direct deposit typically make your paycheck available in your account as soon as they receive payroll details from your employer, rather than waiting for the funds to clear.

Once you start receiving your paychecks via direct deposit, your bank may automatically enable early direct deposit. Turning on alerts in your bank’s mobile app can be a great way to stay updated on when your funds become available. Note that it may take up to two billing cycles for early direct deposits to start.

When you receive a deposit can depend on when your employer submits payment information. The timing can vary, so you may not always receive your funds immediately.

If your bank advertises early direct deposit and you’ve enrolled in direct deposit with your employer but funds don’t come early to your account, check with your bank and your employer. See if you need to take any extra steps to activate this feature.

Pros and cons of early direct deposit

While early access to pay can offer benefits such as helping you cover bills ahead of schedule, weigh potential drawbacks before relying on this service.

Tips to make the most of early direct deposit

If you’re ready to receive your paycheck up to two days early, here are some tips to help you make the most of this service.

• Stick to a budget: Receiving your funds a day or two ahead of schedule could increase the risk of overspending. Create a budget if you don’t already have one, and set up autopay to ensure that essential expenses are covered before you spend on unnecessary items.
• Set up overdraft protection: Because early direct deposit isn’t guaranteed, setting up overdraft protection on your account is wise. This way, you can still handle your bills even if your paycheck arrives later than expected.
• Avoid additional fees: Some financial institutions charge fees for early direct deposit, which can reduce its value. Additionally, you might need to pay a monthly maintenance fee to use a checking account that’s eligible for early direct deposit. These fees can often be waived by making a minimum monthly direct deposit into your account.

*Early Access to Direct Deposit Funds: Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

Many banks have made opening an account online a cinch. You can often do everything on your computer or mobile device in minutes, skipping a branch visit or mailing forms.

Still, the ease of opening a bank account online has limits because all financial institutions must verify your identity. You will likely need personal information from a government-issued ID, such as a driver’s license, state ID or passport.

If you want a quick application — and a solid account — check out our picks for the five easiest bank accounts to open online.

What are some of the easiest bank accounts to open online?

Here’s a quick look at some of the easiest bank accounts to open online. All can be opened in minutes without a minimum initial deposit or monthly fees. Some don’t use ChexSystems in the application process, which can help you get approved for an account even if you have a poor banking history.

5 easiest bank accounts to open online
Bank	Account	Time to apply	Use of ChexSystems	Monthly fees	Minimum opening deposit
[scbankdetails bankid="277" fieldname="bank name"]	[scbankdetails bankproductid="25092" fieldname="product name"] Available nationwide	5 minutes or less	Yes	$0	$0	Learn More at [scbankdetails bankid="277" fieldname="bank name"]’s site
[scbankdetails bankid="20928" fieldname="bank name"]	[scbankdetails bankproductid="265246" fieldname="product name"] Available nationwide	About 5 minutes	No	$0	$0	Learn More at [scbankdetails bankid="20928" fieldname="bank name"]’s site
[scbankdetails bankid="22373" fieldname="bank name"]	Chime Online Checking account Available nationwide	Less than 2 minutes	No	$0	$0	Learn More at [scbankdetails bankid="22373" fieldname="bank name"]’s site
[scbankdetails bankid="11" fieldname="bank name"]	Discover Cashback Debit account Available nationwide	A few minutes	Yes	$0	$0	Learn More at [scbankdetails bankid="11" fieldname="bank name"]’s site
[scbankdetails bankid="22690" fieldname="bank name"] (Member FDIC)	[scbankdetails bankproductid="392219" fieldname="product name"] Available nationwide	A few minutes	No	$0	$0	Open Account at [scbankdetails bankid="22690" fieldname="bank name"]’s site

Summary of the 5 easiest bank accounts to open online

These are our picks for the easiest bank accounts to open online. You can establish one quickly and use it as your primary checking account, with few fees.

[scbankdetails bankid="277" fieldname="bank name"] [scbankdetails bankproductid="25092" fieldname="product name"]

The [scbankdetails bankid="277" fieldname="bank name"] [scbankdetails bankproductid="25092" fieldname="product name"] is a full-featured checking account that can be opened online, on Ally’s mobile app or by phone in five minutes or less.

[scbankdetails bankid="277" fieldname="bank name"] [scbankdetails bankproductid="25092" fieldname="product name"] APY:

[scbankdetails bankproductid="25092" fieldname="apy" amount="15000"] ($15,000 or more), [scbankdetails bankproductid="25092" fieldname="apy" amount="0.01"] (less than $15,000)

[scbankdetails bankid="277" fieldname="bank name"] [scbankdetails bankproductid="25092" fieldname="product name"] features:

[scbankdetails bankid="277" fieldname="bank name"]’s [scbankdetails bankproductid="25092" fieldname="product name"] has certain features in common with a regular account from a brick-and-mortar bank, such as the ability to write checks and use a free debit card. You can use the card without fees at any ATM in the Allpoint or MoneyPass networks.

[scbankdetails bankid="277" fieldname="bank name"] also has features you might expect from an online bank, such as a robust mobile app that allows you to deposit checks, make Zelle person-to-person payments, and manage direct deposit transactions.

If you’re ready to open an account, call [scbankdetails bankid="277" fieldname="bank name"] at 877-247-2559 or apply on the [scbankdetails bankid="277" fieldname="bank name"] [scbankdetails bankproductid="25092" fieldname="product name"] webpage by clicking the purple Open New Account button.

[scbankdetails bankid="20928" fieldname="bank name"] [scbankdetails bankproductid="265246" fieldname="product name"]

[scbankdetails bankid="20928" fieldname="bank name"] has branches in several states but has focused on its digital operations over the last few years. You can open a [scbankdetails bankproductid="265246" fieldname="product name"] in about five minutes online or set up an account at a [scbankdetails bankid="20928" fieldname="bank name"] branch.

[scbankdetails bankid="20928" fieldname="bank name"] [scbankdetails bankproductid="265246" fieldname="product name"] APY:

[scbankdetails bankproductid="265246" fieldname="apy" amount="0"]

[scbankdetails bankid="20928" fieldname="bank name"] [scbankdetails bankproductid="265246" fieldname="product name"] features:

[scbankdetails bankid="20928" fieldname="bank name"] [scbankdetails bankproductid="265246" fieldname="product name"] blends the best of online and traditional banking. Deposit checks, make transfers and receive real-time spending alerts, among other options, in the bank’s mobile app. You can also write a check, access a large national ATM network and deposit cash for free at any CVS or Walgreens store.

To open a [scbankdetails bankid="20928" fieldname="bank name"] [scbankdetails bankproductid="265246" fieldname="product name"], you can set up an account online or visit a [scbankdetails bankid="20928" fieldname="bank name"] location in person.

Chime Online Checking Account

[scbankdetails bankid="22373" fieldname="bank name"]’s checking account can be opened easily and managed online or through a mobile app. Unlike many financial institutions, [scbankdetails bankid="22373" fieldname="bank name"] does not use ChexSystems and other reports to approve your account application. ChexSystems tracks your banking history, and a blemished record may lead to trouble opening an account.

Chime Online Checking Account APY:

None — 0.00%

Chime Online Checking Account features:

[scbankdetails bankid="22373" fieldname="bank name"] is a financial technology company and not a bank. Deposits are insured, but the Federal Deposit Insurance Corp. (FDIC) has warned of risks with this arrangement.

You can sign up for [scbankdetails bankid="22373" fieldname="bank name"] online and download the [scbankdetails bankid="22373" fieldname="bank name"] app to manage your account. You’ll have access to more than 50,000 fee-free ATMs and the ability to make cash deposits, though fees may apply.

Log in to the mobile app — available via the Apple and Google app stores — or at Chime.com if you’re ready to get started.

Discover Cashback Debit account

[scbankdetails bankid="11" fieldname="bank name"] offers online and mobile banking for checking, savings, money market and individual retirement accounts (IRAs), as well as certificates of deposit (CDs).

The Discover Cashback Debit account allows you to earn 1% back on up to $3,000 in monthly debit card purchases. You’ll also be able to access more than 60,000 fee-free ATMs and 24/7 customer service by phone.

Discover Cashback Debit account APY:

None — 0.0%

Discover Cashback Debit account features:

As the name suggests, the Discover Cashback Debit account offers cash-back rewards on debit card purchases. This type of reward, unusual for a debit card, sets apart this account from others.

You’ll get paper checks and no-fee reorders, free access to a large nationwide ATM network and the capability to add cash to your account without fees at any Walmart in the U.S.

Visit the webpage for the Discover Cashback Debit account and click Get Started to apply with no effect on your credit score.

[scbankdetails bankproductid="392219" fieldname="product name"]

SoFi is an online personal finance company and bank that aims to provide the best of both worlds: customer-focused technology and the safety of an FDIC-insured bank. You can quickly and easily open and manage SoFi’s Checking and Savings account online or with the mobile app.

[scbankdetails bankproductid="392219" fieldname="product name"] APY:

[scbankdetails bankproductid="399763" fieldname="apy" amount="15000"] on checking; up to [scbankdetails bankproductid="392219" fieldname="apy" amount="0.01"] on savings; 0.20% boost on savings APY for six months on new accounts with direct deposit (terms apply)**

[scbankdetails bankproductid="392219" fieldname="product name"] account features:

The [scbankdetails bankproductid="392219" fieldname="product name"] is a combo checking and savings account. You can’t open a stand-alone checking or savings account. This hybrid account allows you to write checks, use fee-free ATMs nationwide*** and deposit cash through certain retail merchants.

Use the SoFi mobile banking app — download it from the Apple or Google app stores — or head to the website to open your combination [scbankdetails bankproductid="392219" fieldname="product name"].

How to choose an online bank

With so many online banks, how can you choose one? As you compare options, consider these important factors to help you decide.

Make sure your money will be insured

Bank accounts are backed by the FDIC. Use the FDIC’s BankFind tool or call 877-275-3342 to verify coverage. The National Credit Union Administration insures credit unions. Confirm coverage with the NCUA’s Credit Union Locator tool. The standard coverage is $250,000 per person, per institution, per account ownership category.

Consider the purpose of the account

To pay for everyday transactions, a checking account may be the best fit. To build savings, a savings account or money market account may be a better option.

Evaluate products, rates and fees

Online banks are known for higher rates and lower fees than brick-and-mortar banks, but some have better deals than others. Compare APYs and fees on the products you need, making sure you can meet any minimum balance requirements.

Check out digital banking tools

Can you automate bill payments, for example? Can you use the bank’s mobile app to manage your money? And how can you reach customer service when you need help?

Frequently asked questions

Can you open a bank account with bad credit?

Bad credit can make approval for a bank account difficult but not impossible. You’ll need to consider second-chance bank accounts designed for people who can’t qualify for standard checking accounts. Many banks offering these accounts don’t screen applicants with ChexSystems reports, which reveal flawed banking histories.

Can you open a bank account online without an ID?

You will need some form of identification to open a bank account. If you don’t have a valid driver’s license, passport or state-issued ID — considered primary ID sources — then you will have to search for a bank that’s flexible with ID. You’ll need to call the bank ahead of time to see what alternative forms of ID are acceptable.

Can you open a bank account online and use it immediately?

As soon as your account opening is complete, you should have access to your account. But before you can start using it, you’ll need to fill out an application and fund the account. You may need to wait a few days for a deposit to process and appear.

Methodology

To compile our list of easiest bank accounts to open online, we considered how quickly and easily you can apply for and fund an account and how quickly you can start using it. We analyzed nearly 115 bank accounts at different banks, credit unions and financial technology companies.

Accounts also needed to have these features:

• Provide a fully remote application
• Require no minimum deposit or balance
• Charge no monthly service fees
• Offer many free ways to make deposits and withdrawals
• Function as a primary checking account
• Come with federal insurance

*APY disclosures: APY disclosures: SoFi members who enroll in SoFi Plus with Eligible Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or SoFi members with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. If you have satisfied Eligible Direct Deposit requirements for our highest APY but do not see 3.80% APY on your APY Details page the day after your Eligible Direct Deposit arrives, please contact us at 855-456-7634. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. See the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus..

**0.20% savings APY boost: Earn up to 4.00% Annual Percentage Yield (APY) on SoFi Savings with a 0.20% APY Boost (added to the 3.80% APY as of 7/10/25) for up to 6 months. Open a new SoFi Checking & Savings account and enroll in SoFi Plus by 8/12/25. Rates variable, subject to change. Terms apply at sofi.com/banking#2. SoFi Bank, N.A. Member FDIC.

***ATM access: We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.

****Early access to direct deposit funds: Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

*****Overdraft coverage: Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with Eligible Direct Deposits of $1,000 or more during the current 30-day Evaluation Period as determined by SoFi Bank, N.A. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Members with a prior history of non-repayment of negative balances are ineligible for Overdraft Coverage.

While some credit unions have strict requirements to join, usually based on where you live or work, others welcome a wider range of customers.

Below is our big list of credit unions anyone can join, along with a shorter list of some of our favorites, and details on how to join a credit union.

Big list of easy-to-join credit unions

This searchable list features credit unions with easy membership requirements and includes headquarters location, number of branches, and size in terms of assets under management.

If you want to narrow down your choices, you’ll find our short list of 10 credit unions with some great features also worth considering.

Updated Daily:

10 great credit unions that are easy to join

Here are 10 credit unions with open membership that we like and why we like them.

Affinity Plus Credit Union

Why we picked it: Affinity Plus Credit Union offers a large range of products, including bank accounts, loans, individual retirement accounts (IRAs) and insurance policies.

Membership requirements: You have many ways to become eligible, including through your employer or school, a relative, or even a roommate who is a member. You can also make a one-time $25 donation to the Affinity Plus Foundation to become eligible for membership.

Alliant Credit Union

Why we picked it: Alliant Credit Union features a high-yield savings account with a relatively low minimum balance.

Membership requirements: You can join Alliant Credit Union if you live in one of its eligible communities, or if you join the Alliant Credit Union Foundation, which helps promote digital inclusion in underserved communities.

Connexus Credit Union

Why we picked it: Connexus Credit Union offers a lot of different personal banking products, including checking and savings accounts and certificates of deposit (CDs). It also has credit cards for both individuals and businesses.

Membership requirements: The easiest way to join if you don’t qualify through an employer or family member is to make a one-time $5 donation to the Connexus Association.

Consumers Credit Union

Why we picked it: With its rewards checking account, you can earn up to 5.00% APY and get your direct deposits up to two days early.

Membership requirements: Anyone can get an account with Consumers Credit Union by joining Consumers Cooperative Association. All you need is a one-time $5 membership fee, which may be eligible for reimbursement.

First Technology Credit Union

Why we picked it: First Technology Credit Union provides banking, investment and insurance products to its members and offers solid rates on its First Tech Rewards Savings account.

Membership requirements: You can qualify for First Technology Credit Union by working for one of its 900-plus partner companies or by becoming a member of the Computer History Museum or Financial Fitness Association.

Hanscom Federal Credit Union

Why we picked it: Hanscom Federal Credit Union has some competitive CDs with varying terms.

Membership requirements: You can qualify for membership through an employer or relative or become a member of a partner organization. Active-duty military members and veterans are automatically eligible to join.

Liberty Federal Credit Union

Why we picked it: Liberty Federal Credit Union’s Vertical Checking account earns good yields and includes rate discounts on mortgages and auto loans.

Membership requirements: You can join Liberty Federal if you’re eligible through an employer, relative or community organization. You can also become a member by donating $5 to the Mater Dei Friends and Alumni Association.

Northwest Federal Credit Union

Why we picked it: Northwest Federal has a strong selection of CDs, with terms between 10 months and five years.

Membership requirements: Northwest Federal partners with businesses, nonprofits and government agencies. If you don’t work at one of its partner nonprofits, you can volunteer with them to qualify.

PenFed Credit Union

Why we picked it: PenFed Credit Union has a wide range of products and services, including checking accounts, savings accounts, mortgages and auto loans. It offers a free checking account, and it has competitive loan rates.

Membership requirements: Anyone can apply to join PenFed Credit Union. You must deposit $5 into a PedFed savings account to become a member.

Spectrum Credit Union

Why we picked it: Spectrum Credit Union’s MarketEdge Money Market Savings account earns on par with a high-yield account, as does its 12-month share certificate.

Membership requirements: If you don’t qualify for membership through one of Spectrum’s company partners or because of where you live, you can become a member of one of its nonprofit partners.

What is a credit union?

A credit union is like a bank, offering financial products and services, such as checking and savings accounts, loans, and credit cards. But unlike traditional banks, credit unions operate as not-for-profit organizations. 

Credit unions serve customers who are members. Profits are reinvested to benefit members, usually through lower rates and fees.

Some credit unions allow anyone to join, while others require specific affiliations. Credit unions usually serve particular geographic areas, employees of certain companies or federal agencies, or distinct groups of people, such as military members and veterans. 

When you join a credit union, you become a part owner or shareholder.

How to choose a credit union?

When comparing credit unions to find the right one for you, consider the following factors:

• Interest rates and fees: Compare interest rates at several different credit unions to find the best deals and help you save money in the long run. Also, make sure there aren’t a lot of fees, such as a monthly maintenance fee for a checking account.
• Account options: Some credit unions have a wide range of account types, while others are more limited. Make sure the credit union has the specific account (or accounts) you want to open. 
• Membership requirements: Unlike at a traditional bank, customers must be members. Each credit union has its own eligibility requirements, and you may need to live in a certain area, work for a specific company or be affiliated with a partner organization. Some credit unions may also require a small minimum deposit to join, such as $5.
• Customer service reviews: Reviewing a credit union’s customer service ratings can give you an idea of the quality of service. Pay special attention to recurring complaints — this can be a red flag.

Pros and cons of credit unions

How to join a credit union

The process of joining a credit union will differ from place to place, but you’ll usually go through the following steps:

• Provide your ID: You’ll likely need to supply a valid driver’s license or other government-issued ID, along with your Social Security number.
• Show that you’re eligible: You may need to provide proof of eligibility, such as documentation confirming your employment or affiliation with a partner organization.
• Make your first deposit: Some credit unions require a $5 deposit into a share savings account to become a member.

Other great credit unions

If you want to cast a wider net and look at all credit unions, with any kind of membership requirements, have a look at our picks for the best credit unions.

As a student, managing money can be overwhelming. Fortunately, student checking accounts typically come with some unique perks that may make it easier to stay on top of your finances. Here are nine of the best student checking accounts available today.

Best free student checking accounts

Having a checking account is a great way for students to learn financial responsibility, but fees can be attached to many accounts. Thankfully, many free checking accounts are designed specifically for students. These accounts skip the bank fees and put money back in your pocket.

Here are the best free student checking accounts available now.

[scbankdetails bankid="77" fieldname="bank name"] – Smartly® Checking

Open to students ages 13 to 24, the U.S. Bank Smartly Checking account is a solid option because it comes with no monthly maintenance fee. In addition, the account has relaxed overdraft fee policies plus no fees on in-network ATMs and no fees on your first four out-of-network ATM transactions per statement period.

The bank also provides some unique perks geared toward students and their families, including a campus banking program and complimentary access to the Greenlight app, which helps parents and kids work together to build smart financial habits. Students under 18 must apply for this account jointly with an adult.

[scbankdetails bankid="22690" fieldname="bank name"] – Student Checking and Savings

[scbankdetails bankid="22690" fieldname="bank name"]’s combined Student Checking and Savings account is light on fees, boasting no overdraft fees, no monthly maintenance fees and no minimum balance fees. Students will also have access to more than 55,000 fee-free ATMs through the Allpoint network.

Other account features include an attached savings account with a [scbankdetails bankproductid="392219" fieldname="apy"] annual percentage yield (APY) and an option to enroll in up to $3 million in FDIC insurance coverage (with eligible balance). As of the time of writing, a $30 account bonus offer was available by signing up for and funding a student bank account. Students must be at least 18 to open this account.

[scbankdetails bankid="9491" fieldname="bank name"] – Complete Checking

Best suited for users ages 17 to 23, the TD Bank Complete Checking account has no minimum opening deposit, no monthly maintenance fee, no fees at in-network ATMs and waived out-of-network ATM fees for young adults. A grace period for overdrafts is included as is TD Early Pay, which allows working students to get paid up to two business days early on qualifying direct deposits.

Account holders also receive a free linked savings account of their choice.

Best student checking accounts for studying abroad

Students planning on studying abroad will want to look for an account with no foreign transaction fees, a robust ATM network and limited out-of-network ATM fees. Here are a few smart options:

[scbankdetails bankid="842" fieldname="bank name"] – Investor Checking™

Those looking for a truly international checking account should consider the Schwab Bank Investor Checking account. This account charges no foreign transaction fees and offers unlimited ATM fee rebates worldwide.

Keep in mind that you will need to link your new checking account to a Schwab One® brokerage account to access these benefits. However, that brokerage account has no minimum balance requirement when opened with a linked Investor Checking account, so it’s fine if you can’t fund it.

[scbankdetails bankid="20928" fieldname="bank name"] – 360 Checking

The [scbankdetails bankid="20928" fieldname="bank name"] [scbankdetails bankproductid="265246" fieldname="product name"] account is advertised as a no-fee checking account — and that includes no foreign transaction fees. The account will also give you access to a network of more than 70,000 MoneyPass and Allpoint ATMs. If you need to use an out-of-network ATM, [scbankdetails bankid="20928" fieldname="bank name"] won’t charge you anything, but the ATM operator might.

Additionally, [scbankdetails bankid="20928" fieldname="bank name"] waives its monthly maintenance fees, minimum balance requirements and overdraft fees for its 360 Checking account holders.

[scbankdetails bankid="12" fieldname="bank name"] – Access Checking

[scbankdetails bankid="12" fieldname="bank name"]’s Access Checking account grants you fee-free access to a network of more than 60,000 ATMs across the U.S. [scbankdetails bankid="12" fieldname="bank name"] ATMs are also available in more than 20 countries, providing an easy way to grab the cash you need if you’re planning to study abroad in an area where [scbankdetails bankid="12" fieldname="bank name"] is located.

This account is likely a best fit for students who don’t mind having a joint account with their parents or guardians because of the high balance requirements to access many of the perks. Foreign transaction fees are waived and out-of-network ATM fees are reimbursed for [scbankdetails bankid="12" fieldname="bank name"]’s relationship banking members, but you’ll need to maintain at least a $30,000 balance to qualify.

If you can’t meet the balance requirements, you’ll be subject to a 3% fee on all international debit card transactions and a $2.50 fee when using a non-[scbankdetails bankid="12" fieldname="bank name"] ATM.

Best student checking accounts at nationwide banks

Whether you’re on campus or home for the summer, opening a checking account at a national bank will help ensure your banking needs are covered wherever you are. These picks are a particularly good fit for those who want access to in-person assistance and plenty of options for brick-and-mortar locations.

[scbankdetails bankid="772" fieldname="bank name"] – Advantage SafeBalance Banking®

[scbankdetails bankid="772" fieldname="bank name"]’s Advantage SafeBalance Banking account features no monthly maintenance fees for those under age 25 and no overdraft fees. Debit card users can also temporarily stop debit purchases within the banking app if a card is lost or stolen. In total, [scbankdetails bankid="772" fieldname="bank name"] has 3,700 financial centers – physical branch locations – and 15,000 ATMs across the country.

[scbankdetails bankid="7102" fieldname="bank name"] – Virtual Wallet Student

[scbankdetails bankid="7102" fieldname="bank name"]’s Virtual Wallet Student allows students to take advantage of no monthly fee for up to six years from the date of account opening as well as overdraft protection. [scbankdetails bankid="7102" fieldname="bank name"]’s Low Cash Mode gives you the option to pay or return certain eligible checks and payments when your balance is negative.

[scbankdetails bankid="7102" fieldname="bank name"] has about 2,200 branches and 60,000 ATMs in its network.

[scbankdetails bankid="100" fieldname="bank name"] – College Checking^SM

Available to students ages 17 to 24, [scbankdetails bankid="100" fieldname="bank name"]’s College Checking account features no monthly maintenance fees until the student’s graduation date, with a five-year maximum. Account holders can also enjoy no monthly fee on a Chase savings account linked to this checking account for overdraft protection.

Chase has more than 4,700 branches and 15,000 ATMs.

What is a student checking account?

As the name suggests, student checking accounts are checking accounts that are geared toward young adults or those who are enrolled in higher-education programs. Many of these accounts offer special features, such as reduced fees or options for parental oversight, in an effort to set up students for success as they build financial independence.

By the same token, the benefits that come with these accounts are often short-lived. An account may have an age or time limit, after which it may convert to a traditional checking account.

Features to consider when choosing a student checking account

When thinking about opening a student checking account, consider these factors:

• Deposit insurance: Check that your funds are protected in the event of bank failure. The standard coverage limit for institutions insured by the Federal Deposit Insurance Corp. (FDIC) and the National Credit Union Administration (NCUA) is $250,000 per depositor for each ownership category at each institution.
• Fees: Most student checking accounts don’t impose common charges, such as monthly maintenance fees or overdraft fees. However, fees may still be associated with some account transactions, including check orders or wire transfers. Read the disclosures for any account you’re considering to understand its fee structure.
• Limits: A unique feature of student checking accounts is that many of them impose age restrictions or time limits. Make sure you qualify before you apply for the account.
• Branch and ATM access: Look for a financial institution that has locations in all the places you intend to be, including near campus.

How to open a student checking account

1. Choose a financial institution. Depending on your needs, one bank or credit union may be a better fit for you than another. Do your research and choose a financial institution that suits your needs.
2. Confirm eligibility requirements. Some institutions set different eligibility criteria for opening an account. For example, students under the age of 18 may need to have an adult open the account as a joint account holder.
3. Apply for the account. Most institutions allow you to apply for an account online. In some cases, you may need to visit a branch in person.
4. Make your initial deposit. Some accounts may have initial deposit requirements, meaning you’ll have to fund your account within a certain amount of time after opening it. Be sure to read the disclosure for your chosen student checking account to know whether you’ll be subject to one.

How we chose the best student checking accounts

We reviewed a wide variety of checking accounts from financial institutions across the country to come up with a list of the top nine contenders. Here is the criteria we used to make our selections:

• Student-specific accounts: We prioritized accounts that are geared toward students and young adults.
• Fewer fees: We looked for accounts that offered waived or reduced fees, even if only for a set period of time.
• Branch and ATM access: We highlighted accounts that have widespread branch and ATM access.