Unlike credit cards, banks typically don't review your credit score when you open a bank account, such as a checking account or savings account. Instead, banks and credit unions will review your information with a reporting agency that tracks banking activity, such as ChexSystems. Your ChexSystems report includes information about account openings, closings, overdrafts and more.
If you have negative marks on your ChexSystems report, such as closing an account with a negative balance, it will be more difficult to be approved for a new deposit account. However, some checking accounts are designed for people in this situation. These accounts are usually referred to as second chance accounts, and your ChexSystem report usually isn't reviewed as part of your application.
CNBC Select compared options from some of the top financial institutions to round up the best second-chance checking accounts. (See our methodology for more information on how we made this list.)
Best for no fees
Chime Second Chance Banking
Monthly maintenance fee
None
Minimum balance
None
Free ATM network
60,000+ fee-free ATMs
Overdraft fee
None
Minimum deposit to open
None
Annual Percentage Yield (APY)
N/A
Terms apply.
Pros
- No minimum balance
- No monthly fees
- No overdraft fee
- FDIC-insured
- Access to over 60,000 fee-free ATMs
Cons
- No APY
- No physical branches
Who's this for? Chime Second Chance Banking* is ideal for those who don't want to worry about common banking fees, such as monthly maintenance charges, overdraft fees and foreign transaction fees.
Standout benefits: Chime debit cardholders have access to over 60,000 ATMs, including fee-free transactions with Allpoint ATMs, MoneyPass ATMs located at 7-Elevens and Visa Plus Alliance ATMs. These ATMs can be found at stores such as Target, Walgreens and CVS.
Best for rewards
Varo Bank Account
Monthly maintenance fee
None
Minimum balance
$0
Free ATM network
More than 40,000+ fee-free in-network Allpoint ATMs in the U.S.
Overdraft fee
$0
Minimum deposit to open
None
Annual Percentage Yield (APY)
$0
Mobile check deposit
Yes
Terms apply.
Pros
- Huge ATM network
- No monthly fee and no overdraft fee
- No minimum balance
Cons
- No APY
- No physical locations
Who's this for? Varo is great for those who want the convenience of mobile banking and an opportunity to earn cash back on select debit card purchases.
Standout benefits: With a Varo debit card, you can earn up to 6% cash back (up to $50 back per month) on eligible purchases with specific retailers. These offers vary, but in the past have included brands such as McDonald's, Popeyes, Macy's, PetSmart and Forever 21.
Best for welcome bonus
Chase Secure Banking℠
Monthly maintenance fee
$4.95
Minimum deposit to open
$0
Minimum balance
None
Annual Percentage Yield (APY)
N/A
Free ATM network
More than 15,000 Chase ATMs
ATM fee reimbursement
None
Overdraft fee
N/A
Mobile check deposit
Yes
Terms apply.
Pros
- Top-rated mobile app
- No minimum deposit to open an account
- New account holders can earn a $100 bonus with qualifying activities (Offer expires 7/24/2024)
Cons
- No APY
- No reimbursement for out-of-network ATM fees
Who's this for? Chase Secure Banking℠ is a second-chance account that comes with a rare opportunity to earn a welcome bonus.
Standout benefits: New Chase Secure Banking account members can currently earn a $100 bonus after completing 10 qualifying transactions within the first 60 days after opening the account. (Offer expires 7/24/2024). Qualifying transactions include online bill payments, debit card purchases, ACH credits, Zelle transactions and Chase QuickDeposit activity.
Best for military members
Wells Fargo Clear Access Banking
Monthly maintenance fee
$10, with options to waive
Minimum deposit to open
$25
Minimum balance
None
Annual Percentage Yield (APY)
N/A
Free ATM network
11,000+ Wells Fargo ATMs
Overdraft fee
N/A
Terms apply
Pros
- Four ways to waive the monthly maintenance fee
- Send and receive money with Zelle
- Easy-to-use mobile app
Cons
- $25 minimum deposit to open an account
- No APY
- No reimbursement for out-of-network ATM fees
How to avoid the monthly fee:
- Maintain $500 in combined minimum deposit balances,
- or make qualifying direct deposits totaling $500 or more,
- or be between 17 - 24 years old
- or have a linked Wells Fargo Campus ATM Card or Campus Debit Card (for college students)
Who's this for? Wells Fargo Clear Access Banking is a second-chance account to consider if you qualify for Wells Fargo's Worldwide Military Banking program.
Standout benefits: This checking account's $5 monthly fee is waived if you are part of Wells Fargo's Worldwide Military Banking program. To be eligible for the program, you need to receive a "qualifying monthly non-civilian military direct deposit" to your Wells Fargo account.
The fee is also waived if the primary account holder is between the ages of 13 and 24 years old or a Wells Fargo Campus ATM Card or Campus Debit Card is linked to the account.
More about the best second-chance checking accounts
Chime Second Chance Banking
Chime is an online-only fintech company that offers banking services through The Bancorp Bank, N.A. or Stride Bank, N.A. Its Second Chance Banking option boasts no monthly fees and no credit or ChexSystems check. Although it has no physical branches, you can deposit cash for free at Walgreens locations.
Minimum balance requirement
None
Minimum opening deposit
None
Annual percentage yield (APY)
N/A
Important fees
- Overdraft fee: None
- Monthly maintenance fee: None
- Foreign transaction fee: None
- ATM fees: No transaction fees at MoneyPass ATMs at 7-Eleven locations and Allpoint or Visa Plus Alliance ATMs
Varo Bank Account
Varo is an online-only national bank. It has no monthly fees, no overdraft fees and no minimum balance requirement. Customers have access to more than 40,000 fee-free ATMs, and those with direct deposits set up can get access to their funds up to two days early.
Minimum balance requirement
None
Minimum opening deposit
None
Annual percentage yield (APY)
N/A
Important fees
- Overdraft fee: None
- Monthly maintenance fee: None
- ATM fees: No fees at U.S.-based All-Point ATMs; $3.50 fee for cash withdrawals at non-All-Point ATMs and international ATMs
Chase Secure Banking℠
Chase Secure Banking℠ has a small monthly maintenance fee with no way to waive it, but the account's welcome bonus can ease the sting of that fee significantly. As one of the biggest banks in the U.S., customers have access to a large ATM network and more than 4,700 physical branches. Other perks include Chase Credit Journey, allowing you access to your free credit score and identity fraud alerts.
Minimum balance requirement
None
Minimum opening deposit
None
Annual percentage yield (APY)
N/A
Important fees
- Overdraft fee: None
- Monthly maintenance fee: $4.95
- Foreign transaction fee: 3%
- ATM fees: None for Chase ATMs; $3 fee per withdrawal at a non-Chase ATM in the U.S., Puerto Rico and the U.S. Virgin Islands. Surcharge Fees from the ATM owner/network still apply. $5 fee per withdrawal at a non-Chase ATM outside of the U.S., Puerto Rico and the U.S. Virgin Islands. Surcharge Fees from the ATM owner/network still apply.
Wells Fargo Clear Access Banking
Wells Fargo Clear Access Banking offers a clear path to eventually to a standard bank account. After 365 days, customers can convert into any Wells Fargo consumer checking account available. Although the account has a low monthly fee, there are several ways to avoid it.
Minimum balance requirement
None
Minimum opening deposit
$25
Annual percentage yield (APY)
N/A
Important fees
- Overdraft fee: N/A
- Monthly maintenance fee: $5, can be waived by meeting certain requirements
- Foreign transaction fee: 3%
- ATM fees: $0 at Wells Fargo ATMs; $2.50 at non-Wells Fargo U.S. ATMs (including U.S. territories); Up to $5 at non-Wells Fargo ATMs outside the U.S.
FAQs
What is a second-chance bank account?
A second-chance bank account is a type of bank account that's available for consumers who have had issues with overdrafts or other negative banking activity. This type of account typically doesn't require a ChexSystems report review.
What is ChexSystems?
ChexSystems is a reporting agency that collects information about consumer banking activity. Banks and credit unions will often review your ChexSystems report when you apply for accounts such as checking or savings accounts.
Can you open a bank account if you have a negative balance at another bank?
If you have an unpaid negative account balance with one bank, it can hurt your chances of being approved for an account with a different bank. This is because this information will appear on your consumer report with agencies such as ChexSystems. In this situation, you may want to consider a second chance bank account that doesn't require a ChexSystems review as part of the application.
Bottom line
If you struggled with overdraft charges, bounced checks or negative bank account balances, you're likely to have a hard time getting approved for a new bank account. However, second-chance accounts provide an opportunity for a fresh start. There are even second-chance checking accounts available with no overdraft fees, no monthly fees and no minimum balance requirements.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every bank account review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of banking products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best second-chance checking accounts.
Read more
Our methodology
To determine the best second-chance checking accounts CNBC Select analyzed U.S. checking accounts offered by online and brick-and-mortar banks. We narrowed down our rankings by only considering checking accounts that don't require a ChexSystems review as part of the application process.
We also compared each checking account on other features, including:
- Minimum balance requirement
- Initial deposit requirement
- Fees
- Nationwide availability
- Physical branch locations and/or online accessibility
- ATM network
- Ease of use and account accessibility
All of the accounts included on this list are covered by the Federal Deposit Insurance Corporation (FDIC) and insured up to $250,000. This insurance protects and reimburses you up to your balance and the legal limit in the event your financial institution fails.
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*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, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted.
