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For Ages
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Annual Percentage Yield
N/A
Earn 1% cash back on up to $3,000 in debit card purchases each month. See website for details.
Minimum Deposit Requirement
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On Discover's Website
18+
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Earn 1% cash back on up to $3,000 in debit card purchases each month. See website for details.
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Best Bank Accounts for Bad Credit in September 2024
Many financial institutions, including traditional banks, online banks and credit unions, offer accounts with flexible requirements for folks who’ve had money trouble in the past. Namely, they don’t use ChexSystems to screen your banking history.
The best bank accounts for bad credit are easier to open than most because they don’t use ChexSystems, and they offer a combination of low fees and practical features for saving and accessing your money. We compared the most widely available accounts that met our criteria to come up with this list of the top bank accounts for bad credit.
Annual percentage yields (APYs), account details and fees are accurate as of August 30, 2024.
Best for Combined Checking and Savings
SoFi Checking and Savings Account
Annual Percentage Yield
Up to 4.50%¹
Minimum Deposit Requirement
$0
Monthly Maintenance Fee
SoFi account fee policy is subject to change at any time.
$0
On SoFi's Website
Member FDIC
Up to 4.50%¹
$0
SoFi account fee policy is subject to change at any time.
$0
Editor's Take
We picked SoFi Checking and Savings because it combines the best features of savings and checking accounts with competitive interest rates and convenient spending perks. It’s a solid bank account for people who want more than the basics, and it doesn’t use ChexSystems to screen applications.
Why We Like It
We like this account because you can earn a 0.50% APY on checking and 4.50%¹ APY on savings if you set up direct deposit or by depositing $5,000 or more every 30 days. Customers who don’t meet this criteria earn 1.20% APY on savings balances, with no account fees and fee-free access to over 55,000 ATMs. Other potential benefits of this account include cash-back rewards on eligible debit card purchases, the ability to receive direct deposits up to two days early and sign-up bonuses—a perk not always found in second-chance banking.
What We Don’t Like
If you’re primarily using this account for savings, consider stashing your funds elsewhere to earn better yields. Some of the best high-yield savings accounts offer 5.00% APY or more.
Who It’s Best For
SoFi Checking and Savings is best for those who want a combined checking and savings account and don’t mind only banking online. And if you want to earn interest and avoid fees, don’t let bad credit stop you from applying for this account.
Pros & Cons
- Competitive APY
- Few fees
- Early direct deposit4
- Can earn cash-back rewards using SoFi debit card
- 55,000+ fee-free ATMs
- Must sign up for direct deposit or deposit $5,000 or more every 30 days to earn the highest interest rate
- No stand-alone checking account
Details
To qualify for the up to $300 bonus2, you must open a new SoFi Checking and Savings account and receive at least $5,000 in direct deposits by December 31, 2024, or within 25 days of receiving your first direct deposit, whichever comes first.
SoFi’s checking and savings account has no monthly fees3 or overdraft fees3. You’ll earn a 4.50% APY on your savings balance, and direct deposits hit your checking account up to two days early4. You can also earn up to 15% cashback on SoFi debit card purchases.
A direct deposit is an electronic deposit you receive from your employer, the government or a benefits provider. You’ll receive your bonus within seven business days after your direct deposit window closes.
Disclosures
1SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.50% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 8/27/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
2New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus when they set up Direct Deposit of at least $1,000 during the Direct Deposit Bonus Period. Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 12/31/24. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.
SoFi members with Direct Deposit can earn 4.50% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the 4.50% APY for savings (including Vaults). Members without Direct Deposit will earn 1.20% 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 8/27/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
3Sofi account fee policy is subject to change at any time.
4Early 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.
5Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with 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.
Best Credit Union Bank Account
Navy Federal Credit Union Free EveryDay Checking
Annual Percentage Yield
0.01%
Minimum Deposit Requirement
$0
Monthly Maintenance Fee
$0
Learn More
Read Our Full Review
0.01%
$0
$0
Editor's Take
We picked the Navy Federal Credit Union Free EveryDay Checking Account because it has no monthly fees and no balance requirements, and it filters applications using a screening system separate from ChexSystems.
Why We Like It
We like that this account provides three overdraft protection choices to help you avoid trouble when money is tight. If you’ve overdrawn accounts in the past, overdraft protection can help you avoid negative marks and fees of this kind in the future. This account also offers convenience in the form of Zelle transfers, surcharge-free access to over 30,000 ATMs and basic checks.
What We Don’t Like
We don’t like that this bank account isn’t available to everyone. Navy Federal membership is restricted to active-duty service members, veterans, retired service members and immediate family members of these individuals, and you won’t be eligible to join unless you meet the qualifications.
Who It’s Best For
The Free EveryDay Checking Account is best for those who meet membership eligibility and are looking for a simple, free checking account at a full-service credit union.
Pros & Cons
- No minimum opening deposit or balance requirements
- No monthly fee
- Branch banking access
- Member benefits, including discounts on insurance, car rentals and more
- Low APY
- Limited branch locations
- Membership restrictions
Details
You’ll need to join Navy Federal Credit Union to open an account. Eligibility is open to service members, veterans of any branch of the armed forces, Department of Defense employees and immediate family members or household members of these individuals. Applications are accepted online, over the phone and at Navy Federal branches.
Best for No Fees
Capital One 360 Checking Account
Annual Percentage Yield
0.10%
Minimum Deposit Requirement
$0
Monthly Maintenance Fee
$0
Learn More
Read Our Full Review
0.10%
$0
$0
Editor's Take
We chose the Capital One 360 Checking Account as one of the best bank accounts for those who want to avoid ChexSystems because it won’t cost you a penny to use. This no-fee checking account doesn’t charge monthly service fees or many incidental banking fees, and there are no foreign transaction fees when you travel.
Why We Like It
We like that Capital One makes it easy to add, move and access funds. You can withdraw cash at more than 70,000 fee-free ATMs or in person at Capital One branch and Cafe locations. You’ll also be able to add cash to your account at any CVS, Walgreens or Duane Reade by Walgreens location, and the 360 Checking Account works with Zelle for easy transfers.
What We Don’t Like
We don’t like that you can’t deposit funds at any ATM with Capital One. You must deposit cash at a Capital One-branded ATM only.
Who It’s Best For
Capital One 360 Checking is best for those who want an account with no fees and could also be a good fit for those who want to do all their banking at one institution. Capital One is a full-service bank with an extensive product suite that includes standout credit cards.
Pros & Cons
- No minimum opening deposit or balance requirements
- No monthly fee
- Highly rated mobile app
- Overdraft protection
- Cash deposits only at Capital One branded ATMs (not partners)
- APY not competitive with top checking accounts
Details
Interest is compounded and credited monthly for 360 Checking. You may incur fees for cashier’s checks, outgoing domestic wire transfers and additional checkbooks.
Best for In-Person Access
Chase Secure Banking℠
Annual Percentage Yield
N/A
Minimum Deposit Requirement
$0
Monthly Maintenance Fee
Avoid the monthly service fee when you have electronic deposits made into the account totaling $250 or more during each monthly statement period.
$4.95 or $0
Via Chase.com
N/A
$0
Avoid the monthly service fee when you have electronic deposits made into the account totaling $250 or more during each monthly statement period.
$4.95 or $0
Editor's Take
Chase Secure Banking made our list because Chase has one of the largest branch networks in the U.S. The bank operates over 16,000 ATMs and 4,700 branches, making it ideal for those who value in-person banking. This account also offers basic tools to help you manage your finances and save.
Why We Like It
We like this account because you can use it to pay bills, deposit checks and send money. And while you won’t earn interest, you will get access to some valuable in-app benefits to help you save. The Chase Spending Planner tool, for example, lets you track your spending, set a budget and follow your progress. This account has no overdraft fees because you can only spend what you have.
What We Don’t Like
This account is unlike other bank accounts for bad credit in that it has a monthly fee, and we don’t like that this isn’t offset by interest earnings. However, the small fee of banking_product_maintenance_fee_description pid=”279485″] per month may be worth it for the increased access Chase offers.
Who It’s Best For
Chase Secure Banking is best for those who prefer to do their banking in person and want support with budgeting and not spending more than they have.
Pros & Cons
- No minimum opening deposit or balance requirements
- No overdraft fees
- Extensive network of Chase branches and ATMs
- Highly rated mobile app with budgeting features
- Does not earn interest
- No overdraft protection means transactions may be declined
Details
Certain services are not available with Chase Secure Banking. These include overdrafts, check writing, wire transfers and access to a safe deposit box. There are no fees on money orders or cashier’s checks and no fees to transfer money with Zelle. JPMorgan Chase Bank, N.A. Member FDIC.
Best for Mobile Banking
Chime® Checking Account
Annual Percentage Yield
None
Minimum Deposit Requirement
$0
Monthly Maintenance Fee
$0
On Chime's Website
None
$0
$0
Editor's Take
We chose fintech Chime’s Checking Account®* as one of the best bank accounts for bad credit because it offers fee-free banking with easy-to-use mobile tools. You can apply for this account with no impact on your credit and no peek at your ChexSystems file, and it includes a host of helpful features.
Why We Like It
Chime’s SpotMe®¹ feature is a unique overdraft service that lets you overdraw your account up to $200 fee-free, and it’s available to anyone who meets direct deposit requirements. You can also get paid up to two days early with this account². It has no minimums³, no service fees, no overdraft fees and no ATM fees at more than 60,000˜⁴ locations. You can also deposit cash at Walgreens locations without a fee.
What We Don’t Like
Chime doesn’t offer a full suite of banking products, so if you want to do all your banking in one place, you should look elsewhere.
Who It’s Best For
The Chime Checking Account is best for those who need additional overdraft protection and those who want to open a second-chance savings account with the same bank as their checking account.
Pros & Cons
- Highly rated mobile app
- Tools to automate savings goals
- Few fees
- Receive direct deposits up to two days early²
- SpotMe® feature allows for up to $200 in fee-free overdrafts¹
- Customer service is available 24/7
- Account doesn’t pay interest
Details
Banking services and debit card provided by The Bancorp Bank or Stride Bank, N.A.; Members FDIC.
Customer service is available seven days a week by email or phone.
You can receive direct deposits up to two days early², and this account works with Google Pay and Apple Pay.
Chime customers get access to more than 60,000 surcharge-free ATMs³. It charges $2.50 per transaction at out-of-network ATMs. Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven location, or any Allpoint or Visa Plus Alliance ATM.
Summary Of Best Bank Accounts for Bad Credit Of 2024
| Account | Company - Logo | Forbes Advisor Rating | Forbes Advisor Rating | Annual Percentage Yield | Minimum Deposit Requirement | Monthly Maintenance Fee | Learn More CTA text | Learn more CTA below text | LEARN MORE |
|---|---|---|---|---|---|---|---|---|---|
| SoFi Checking and Savings Account |  | 4.0 | Up to 4.50%¹ | $0 | $0 | On SoFi's Website Member FDIC | |||
| Navy Federal Credit Union Free EveryDay Checking |  | 0.01% | $0 | $0 | Learn More | Read Our Full Review | |||
| Capital One 360 Checking Account |  | 0.10% | $0 | $0 | Learn More | Read Our Full Review | |||
| Chase Secure Banking℠ |  | N/A | $0 | $4.95 or $0 | Via Chase.com | ||||
| Chime® Checking Account |  | None | $0 | $0 | On Chime's Website |
What Is a Second Chance Bank Account?
Bank accounts for bad credit are designed for people who need a fresh start. Often referred to as second-chance bank accounts, these come with many of the same features as traditional checking accounts but are more lenient toward negative marks or don’t use ChexSystems—an agency that monitors consumer banking histories—to screen applications. While ChexSystems doesn’t include your credit history in your file, poor credit and poor banking histories often go hand in hand.
Can You Open a Bank Account With Bad Credit?
You can open a bank account if you’ve made banking mistakes or have bad credit, but you may need to look for accounts that won’t use ChexSystems if you’re worried about your banking history.
Your ChexSystems report provides a snapshot of your banking history—including negative activities like involuntary account closures, unpaid fees and overdrafts—as well as a summary of times you’ve applied for new accounts. You might not have a ChexSystems file at all if you’ve always kept your accounts in good standing, but you will likely have a report if you’ve ever misused bank accounts.
Banks don’t check your credit when you apply for a checking or savings account, but they often check your banking history with ChexSystems. And while ChexSystems doesn’t report on credit, banking and credit histories can tell similar stories about your finances. Just as a bad credit score can indicate problems with debt, a poor ChexSystems file may indicate trouble using bank accounts responsibly. But this doesn’t mean you’re stuck if you need a new account.
How To Get a Bank Account With Bad Credit
Getting a bank account with bad credit is a two-step process.
First, find a bank account that fits your needs. Online banks can be better for bad credit and second chance banking not only because they typically charge fewer fees and have lower minimums than traditional banks but also because many don’t use ChexSystems to screen applicants. Consider the accounts on this list, which have been selected for people with negative banking histories.
Next, apply to open the bank account you’ve chosen by providing the following personal information:
- Your full name
- Date of birth
- Mailing address and email address
- Phone number
- Government-issued ID
- Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN)
Once approved, you can fund your account. You may be able to deposit money with an electronic transfer, check or cash deposit.
Tips for Improving Your Credit Score
Fixing your credit score and building a positive credit history can make many aspects of your life easier. When it’s time to apply for a loan or credit card, take out insurance or rent an apartment, for example, good credit may help you secure better rates and more favorable borrowing terms.
Here are a few tips for improving your credit score:
- Pay your bills on time or early each month.
- Check your credit score and credit report and report any errors you find.
- Work on paying down large loans and credit card balances.
- Use only as much credit as you need.
- Limit new accounts and hard credit inquiries.
If you’re trying to rebuild credit, consider a secured credit card. These require cash deposits to open and establish a credit limit, and they can help you build your credit history safely over time.
Methodology
To create this list, Forbes Advisor analyzed 14 checking account offerings at a mix of traditional brick-and-mortar banks, online banks and credit unions. We ranked each account on 16 data points within the categories of fees, access, customer experience, digital experience, minimums and whether or not the account considers an applicant’s ChexSystems banking file.
These categories were assigned the following weightings:
- ChexSystems: 30%
- Fees: 29%
- Minimum deposit requirement: 10%
- Access: 9%
- Customer experience: 9%
- Digital experience: 8%
- Minimum balance requirement to avoid monthly fee: 5%
Only accounts that are reported to not consider ChexSystems were included. Accounts with no or low fees and minimums rose to the top, as did those with higher customer service and mobile app ratings. Branch access was considered, but accounts at online-only banks ranked above those at brick-and-mortar institutions if they offered better perks and lower fees. To appear on this list, the checking account must be nationally available.
Find The Best High-Yield Savings Accounts Of 2024
Learn More
*Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A.; Members FDIC. The secured Credit Builder card issued by Stride Bank, N.A.
¹Chime SpotMe is an optional, no fee service that requires a single deposit of $200 or more in qualifying direct deposits to the Chime Checking Account each at least once every 34 days. All qualifying members will be allowed to overdraw their account up to $20 on debit card purchases and cash withdrawals initially, but may be later eligible for a higher limit of up to $200 or more based on member’s Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your limit. Your limit may change at any time, at Chime’s discretion. Although there are no overdraft fees, there may be out-of-network or third party fees associated with ATM transactions. SpotMe won’t cover non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. See Terms and Conditions.
²Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.
³Out of network ATM withdrawal and over the counter advance fees may apply. See here for details.
⁴Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.
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