KATY, Texas (Covering Katy) — As banking fees continue to rise nationwide, consumers searching for the best free checking accounts with no minimum balance requirements or no monthly service fees are increasingly turning to credit unions as alternatives to traditional banks and online banking options.
Bankrate's 2023 checking account survey, the average monthly maintenance fee at banks nationwide has risen to $14.58, with only 43% of banks offering ways to waive these fees through minimum balances or direct deposits.
Credit unions typically offer more favorable terms for checking accounts than traditional banks. Bankrate's research indicates that credit unions are 41% more likely than banks to offer free checking accounts with no strings attached.
"The banking industry has moved away from truly free checking accounts over the past decade," said Greg McBride, Bankrate's chief financial analyst, in a recent Bankrate article about free checking. "Credit unions have bucked this trend, with many still offering genuinely free checking accounts."
Advancial Federal Credit Union, headquartered in Dallas with a branch location in Katy, Texas, provides free checking with no monthly service fees, no minimum balance requirements, unlimited free ATM transactions worldwide and unlimited debit card rewards.
The credit union's free Ultimate Checking account includes online and mobile banking, bill pay services, a Visa® debit card and secure card control features to ensure the safety and security of their members. They even give members the opportunity to receive their paycheck up to two days early with their Advanced Direct Deposit feature.
Unlike some financial institutions that advertise "free checking" but impose conditions such as direct deposit requirements or minimum transaction counts, Advancial's Ultimate Checking account has no such stipulations.
Credit unions frequently offer better terms because of their not-for-profit status, returning profits to members through better rates and fewer fees rather than to shareholders. For Texas residents, particularly those in the Dallas or Katy areas, Advancial represents one of the best options for free checking.
Bankrate recommends consumers consider these factors when searching for fee-free checking accounts:
- Look specifically for accounts advertised as "free checking" or "no-fee checking"
- Review minimum balance requirements
- Examine the complete fee schedule before opening an account
- Consider online banks and credit unions
- Compare several institutions and read the fine print on any account agreement
Financial experts recommend consumers review their bank statements to identify all banking fees they're paying and research alternatives at least once a year.