Exploring Free and Low-Cost Checking Accounts in Illinois

Bank account fees can be inconvenient when you want to open a simple banking account. As personal banking shifts from traditional to digital, free and low-cost checking accounts are becoming more mainstream. In Illinois, finding a free checking account with no hidden fees is simple when you know what to look for.

What Is a Free Checking Account?

A free checking account is a bank account with no hidden fees at sign-up or afterward. Regular checking accounts typically require monthly maintenance fees or charge you for using an ATM outside their network, but free ones will not. It is a bonus if the account does not require you to deposit a certain amount upon signing up, considering you may not have the money at the time.

Read the fine print before opening a seemingly free checking account. Look for insurance and overdraft fees to ensure you are getting the type of account you want.

Types of Banks in Illinois

The types of banks available to customers in Illinois are basically the same as anywhere else. The following are three types of banks you should be aware of. Most offer a free checking account option:

• Traditional banks: These banks are available in person and typically require visits to the actual building to complete specific tasks. This is the most common type, but many are releasing online options to keep up with the current market.
• Digital banks: These banks operate exclusively online, with no physical branches. They tend to have low or no fees to inspire people to sign up.
• Credit unions: These are similar to banks, but a group of people governs them rather than a single institution. They are a good option for customers who prefer a democratic, community-based approach to banking.

Where to Open a Low-Cost Bank Account in Illinois

Now that you know what to look for, the next step is to find a low-cost bank account in Illinois. There are many options, but the following are the top choices to consider.

1. Midland States Bank

Midland States Bank offers a Totally Free Checking account for customers. It takes a few minutes to open one. There is no minimum balance to deposit into the account during sign-up and no monthly service charges afterward. The bank also has a free digital banking option for customers on the go. Midland sends free paper or eStatements to customers, as opposed to other banks that charge you for print summaries. It is also free to pay a bill.

An additional perk is that if you bring in your unused checks or previous debit cards, it will buy them from you for $10. The bank has a team of helpful staff and a wide range of digital tools. You can also use over 55,000 fee-free ATMs with the Totally Free Checking account.

2. Capital One

Capital One offers a Capital One 360 Checking account available online with no fees. You do not have to deposit a minimum amount into the account or pay additional overdraft fees, making it a low-cost bank account.

You can use over 70,000 fee-free Capital One, MoneyPass or Allpoint ATMs with a Capital One 360 Checking account, helping limit worries about unwanted fees. It takes merely five minutes to sign up for your convenience.

3. Ally

Ally has an Ally Bank Spending Account with no monthly maintenance fees. The bank advertises no catches with a straightforward offer. It does not have overdraft fees or require a minimum balance that gains interest. You can also access around 75,000 no-fee ATMs with the account.

Ally makes it simple to pay your friends online and offers 24/7 human support if you have any issues. You can set up alerts for suspicious activity to ensure your account is secure, but the bank is FDIC-insured in case of an incident. The account lets you add cash for free and set up direct deposit. It also has various smart tools to track your money and budget, as well.

4. SoFi

SoFi offers a SoFi Online Checking Account for customers interested in a low-cost bank account. It has no account fees and lets you get your paycheck two days early in some cases. It practices 24/7 banking security, including the use of multi-factor authentication and real-time alerts.

If you set up an eligible direct deposit, SoFi lets you earn money. You can make mobile deposits and manage your essentials. The bank is FDIC-insured and gives you access to over 55,000 fee-free ATMs. For convenience, it has an instant digital wallet and offers contactless payments. There is no fee for overdraft coverage. The account also integrates well with a savings account.

5. Alliant Credit Union

Alliant Credit Union’s low-cost checking account is called Alliant Credit Union High-Rate Checking. It gives you $20 a month in ATM fee rebates and offers no overdraft fees or nonsufficient funds item fees. There are also no monthly service or monthly minimum balance requirements for the account. As a customer, you would have access to over 80,000 fee-free ATMs nationwide.

Upon opening an account, the credit union may provide you with a free Visa contactless debit card. The account works well with popular mobile cash apps. It has 24/7 fraud monitoring and sends you alerts if anything suspicious occurs. The account is also NCUA-insured for your peace of mind.

6. Axos Bank

Axos Bank offers customers an Axos Bank Rewards Checking account with no monthly maintenance fees, overdraft fees or minimum balance requirements. The bank also reimburses you for out-of-network ATM fees.

On Axos Bank’s website, it compares its accounts to those of top banks to demonstrate its benefits. As a customer, you would have access to an all-in-one mobile app for convenient banking. When you set up direct deposit, you can earn some interest. The bank is FDIC-insured, which makes customers feel more secure.

7. NBKC Bank

NBKC Bank offers a low-cost Everything Account. The bank itself is FDIC-insured for peace of mind. The account has no minimums or monthly fees. As a customer, you can bank from your phone using NBKC Bank’s online options.

You would have access to 90,000 ATMs with NBKC Bank’s Everything Account. You can easily transfer savings and earn high-yield interest with no minimums. The account is entirely online, but the bank has some physical locations if you prefer. You can also easily track your cash flow.

Bank Options Comparison Table

The following table outlines each bank’s key features for quick comparison.

Methodology for Choosing Each Bank

Each bank was selected according to its low-cost bank account options and availability in Illinois. The ranking of each bank was determined by the features each account offers, including ATM access and online options for convenience.

Find a Low-Cost Bank Account That Suits You

Potential customers should research bank account options thoroughly to check for hidden fees when they want to open a free or low-cost checking account. Consult the list above for quick references. You can find the best bank account option once you decide which perks and values matter most to you.

Disclaimer: This article is for informational purposes only and does not constitute financial, banking, or investment advice. Readers should consult qualified professionals before making banking or financial decisions.