Best Banks That Don't Use ChexSystems
SoFi - Best for Direct Deposit
SoFi Checking and Savings Account
4.5
Our ratings take into account a product’s features, costs, consumer ratings, security and other category-specific attributes. All ratings are determined solely by our editorial team.
Annual Percentage Yield
Up to 4.60%
Minimum Deposit Requirement
$0
Monthly Maintenance Fee
$0
On SoFi's Website
Up to 4.60%
$0
$0
Editor's Take
We chose SoFi Bank’s Checking and Savings for direct deposits because it offers early direct deposit and pays a respectable 0.50% APY on checking and 4.60% 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. The SoFi Checking and Savings account does not use ChexSystems to review account applications, and it’s easy to open and maintain.
Why We Like It
We like all the perks of this account, like cash back, automatic round-ups, overdraft coverage, and ATM access. We also like that SoFi is a full-featured hybrid bank account with no minimum deposit requirement, no monthly fees and competitive rates on all balances.
What We Don’t Like
This account has a steep direct deposit requirement to earn the highest APY, so it’s not best if you can’t meet that requirement consistently.
Who It’s Best For
This account is ideal for anyone who can meet its direct deposit requirements to earn the highest APY. It’s also excellent for avoiding fees and earning rewards on debit card spending.
Pros & Cons
- Competitive APY
- Few fees
- Early direct deposit
- 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 $300 bonus, you must open a new SoFi Checking and Savings account and receive at least $5,000 in direct deposits by June 30, 2024, or within 25 days of receiving your first direct deposit, whichever comes first. So, if your first direct deposit is on June 1, you’d have until June 26 to reach the $5,000 minimum. But if your first direct deposit is on June 15, you’d have until June 30, which is the overall deadline for the promotion.
SoFi’s checking and savings account has no monthly fees or overdraft fees. You’ll earn a 4.60% APY on your savings balance, and direct deposits hit your checking account up to two days early. 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.
Disclosure
SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.60% 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. Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
Capital One - Best for Cash Access
Capital One 360 Checking Account
4.5
Our ratings take into account a product’s features, costs, consumer ratings, security and other category-specific attributes. All ratings are determined solely by our editorial team.
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 love the Capital One 360 Online Checking account for cash access because it provides fee-free withdrawals at over 80,000 ATMs. Capital One also has a few in-person branches and cafes in select locations. This account offers multiple overdraft options and the ability to get paid up to two days early.
Why We Like It
We like that the Capital One 360 Checking Account is a fee-free, interest-bearing checking account with no minimums. We’re also fans of the fact that it’s a regular checking account that does not use ChexSystems to screen applicants, so you don’t have to worry about a negative history preventing you from qualifying.
What We Don’t Like
We don’t like that you can only deposit cash at Capital One branded ATMs, and the APY could be higher.
Who It’s Best For
Consider this account if you need to access cash frequently and want the convenience and minimal fees of an online bank with the ability to visit in-person branches.
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.
Chime - Best for Overdrafts
Chime® Checking Account
4.4
Our ratings take into account a product’s features, costs, consumer ratings, security and other category-specific attributes. All ratings are determined solely by our editorial team.
Annual Percentage Yield
None
Minimum Deposit Requirement
$0
Monthly Maintenance Fee
$0
On Chime's Website
None
$0
$0
Editor's Take
We picked Chime’s Checking Account because Chime keeps fees to a minimum—including overdraft fees. Chime’s SpotMe® feature is an optional, fee-free service that allows you to overdraw your account up to $200* on debit card purchases and cash withdrawals, so long as you receive a single deposit of $200 per month. You can also receive paychecks up to two days early^ with direct deposit, and this account works with Google Pay and Apple Pay.
Why We Like It
We like that there’s no monthly fee and that you get access to more than 60,000 surcharge-free ATMs. Chime’s Round Up[ ] feature is another plus—each time you use your debit card, the transaction is rounded up to the nearest dollar, and the difference is transferred to your Chime Savings Account.
What We Don’t Like
We don’t love that Chime charges $2.50 per transaction at out-of-network ATMs˜ and doesn’t earn interest.
Who It’s Best For
If you’re looking for a fee-free account, especially if you frequently overdraft, look into Chime’s checking option.
Pros & Cons
- Highly rated mobile app
- Tools to automate savings goals
- Few fees
- Receive direct deposits up to two days early*
- SpotMe® feature allows for up to $200 in fee-free overdrafts*
- Customer service is available 24/7
- Account doesn’t pay interest
Details
Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.
LendingClub Bank - Best for Rewards
LendingClub Bank Rewards Checking
4.2
Our ratings take into account a product’s features, costs, consumer ratings, security and other category-specific attributes. All ratings are determined solely by our editorial team.
Annual Percentage Yield
Up to 0.15%
0.10% APY on balances of $2,500 to $99,999.99 and 0.15% APY on balances of $100,000 or more
Minimum Deposit Requirement
$25
Monthly Maintenance Fee
$0
Learn More
Read Our Full Review
Up to 0.15%
0.10% APY on balances of $2,500 to $99,999.99 and 0.15% APY on balances of $100,000 or more
$25
$0
Editor's Take
We ranked the LendingClub Rewards Checking account highly for rewards because it offers up to 1% cash back on qualified purchases made with your debit card, interest on deposits and the attractive benefit of bypassing ChexSystems.
You’ll earn 1% cash back on qualified purchases made with your debit card with this account when you maintain an average balance of $2,500 or receive this amount in qualifying direct deposits monthly. In addition to unlimited cash back, this checking account earns 0.10% APY on balances of $2,500 to $99,999.99 and 0.15% APY on balances of $100,000 or more.
Why We Like It
We like that this account offers rewards and unlimited ATM fee reimbursem*nts and is easy to qualify for. Instead of using ChexSystems, LendingClub Bank uses its own system to review applicants and determine eligibility, which might make it more forgiving toward negative banking histories than the average bank.
What We Don’t Like
There is a $25 minimum deposit to open a LendingClub Rewards Checking account, but there are no monthly fees to worry about if your balance drops below this. We also wish the account didn’t have a minimum balance or monthly direct deposit requirement to earn rewards.
Who It’s Best For
This account is worth considering if you’re looking to earn cash back on debit card purchases and can meet the minimum requirements.
Pros & Cons
- Unlimited ATM fee rebates worldwide
- No monthly maintenance fee
- Unlimited cash back for qualified purchases
- Broadly available customer service hours
- No branches available
- Interest earned is minimal
Details
Most online and signature-based transactions are eligible for cash back, but for in-store purchases, merchants must run your card as “credit” instead of “debit.” You must also meet the following requirements to earn cash back:
- Have your Rewards Checking account open for at least 30 days
- Receive at least $2,500 in monthly direct deposits OR maintain a minimum $2,500 account balance
How much interest you earn depends on your Rewards Checking balance. Earn 0.10% APY on balances of $2,500 to $99,999.99 and 0.15% APY on balances of $100,000 or more.
Varo Bank - Best for Transfers
Varo Bank Account
4.1
Our ratings take into account a product’s features, costs, consumer ratings, security and other category-specific attributes. All ratings are determined solely by our editorial team.
Annual Percentage Yield
N/A
Minimum Deposit Requirement
$0
Monthly Maintenance Fee
$0
Learn More
Read Our Full Review
N/A
$0
$0
Editor's Take
We picked Varo Bank‘s Online Bank Account for transfers because Varo offers access to 40,000+ fee-free ATMs via the Allpoint ATM network and Zelle transfers through the mobile app. Varo also has its own peer-to-peer payment service, Varo to Anyone.
Why We Like It
We like that this online account carries no fees, no minimums and no burden of a ChexSystems screening for new applicants.
What We Don’t Like
Unfortunately, Varo Online Bank Account balances don’t earn interest, but the Varo Savings Account earns 3.00% APY without charging a monthly fee and up to 5.00% APY by meeting specific requirements each month APY and offers automatic savings tools—including debit card round-ups. While there are no Varo branches, you can contact support seven days a week.
Who It’s Best For
Look into this account if you make frequent peer-to-peer transfers and want to avoid monthly fees and minimum deposit requirements.
Pros & Cons
- Early direct deposit feature
- Few fees
- Contactless Visa debit card offers cash back
- Deposit cash at more than 90,000 retail locations
- $3.50 fee for third-party ATM transactions
- Doesn’t pay interest
Details
In 2020, Varo became the first U.S. consumer fintech company to receive a national bank charter, allowing it to offer FDIC insurance and expand its banking services.
Varo doesn’t charge for depositing cash with the Green Dot Reload program, but a $5.95 service fee applies.
Varo maintains more than 40,000 surcharge-free ATMs—but there’s a $3.50 cash withdrawal fee for out-of-network ATM transactions. Account holders receive a contactless Visa debit card, which comes with zero liability for unauthorized charges. The Varo Visa debit card earns up to 6% cash back on select brands.
Account holders can deposit cash into their Varo account at more than 90,000 retail locations using Green Dot Reload. Many other online banks don’t accept cash deposits.
Summary Of The Best Banks That Don't Use ChexSystems Of 2024
| Bank / Credit Union | Company - Logo | Forbes Advisor Rating | Forbes Advisor Rating - Image | 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 |  | 4.5 |  | Up to 4.60% | $0 | $0 | Learn More | On SoFi's Website | |
| Capital One 360 Checking Account |  | 4.5 | | 0.10% | $0 | $0 | Learn More | Read Our Full Review | |
| Chime® Checking Account |  | 4.4 | | None | $0 | $0 | Learn More | On Chime's Website | |
| LendingClub Bank Rewards Checking |  | 4.2 |  | Up to 0.15% | $25 | $0 | Learn More | Read Our Full Review | |
| Varo Bank Account |  | 4.1 | | N/A | $0 | $0 | Learn More | Read Our Full Review |
What Is ChexSystems?
ChexSystems is a banking reporting agency owned by the eFunds subsidiary of Fidelity National Information Services, Inc. The agency collects data about consumer banking activity and reports it to financial institutions in compliance with the Fair Credit Reporting Act.
ChexSystems is similar to a credit bureau, such as Experian, in that it maintains a historical report of your banking activity as a consumer to help banks predict and prevent risk. ChexSystems reports include negative activity like overdrafts, bounced checks and involuntary account closures, as well as information about new and closed bank accounts.
Banks and credit unions often use ChexSystems to review your banking history when you apply for a new account. If your report shows negative marks, your application may be denied.
Second Chance Banking
Fortunately, some banks offer second-chance bank accounts that don’t use ChexSystems or are more lenient toward people with less-than-perfect banking histories. These checking and savings accounts are easier to qualify for and a good option for those who struggle to qualify for a regular bank account.
How To Check ChexSystems
Many banks use ChexSystems to find out more about you when you submit an application for a bank account. To learn how institutions see your banking history, you can access your own ChexSystems report free once every 12 months under the Fair Credit Reporting Act. This is called a Consumer Disclosure Report, and it contains everything in your ChexSystems file.
You can access and download your ChexSystems Consumer Disclosure Report online through the ChexSystems website or submit a request by mail. A ChexSystems Consumer Score is an overall score based on your report summarizing your risk profile, and you can also access this.
When you check ChexSystems, you’ll see the following details of your banking history:
- Overdraft occurrences, non-sufficient funds activity and negative balances
- Bounced checks
- Involuntary account closures
- Suspected account abuse, fraud or identity theft
- Account inquiries and recent applications
- Check orders
- Other negative reported activity
If you find errors in your ChexSystems report or have reason to believe something should be removed, you can file a dispute. ChexSystems is required by law to investigate disputes and update you. You can submit a dispute through the ChexSystems portal, by phone or by mail.
Why Do Banks Use ChexSystems?
Banks use ChexSystems when you apply for a bank account for the same reason they use your credit score when you apply for credit—to mitigate their risk. ChexSystems checks for negative marks in your banking history to quickly alert banks to anything suspicious in your file.
In addition to accessing your full report, banks may review your ChexSystems score to evaluate how risky you are as a customer. Higher ChexSystems scores correlate with lower risk, but institutions have different methods for applying these scores when reviewing applications. Some may accept lower scores than others, and some don’t use scores at all.
Find The Best Banks Of 2024
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Do Credit Unions Use ChexSystems?
Credit unions often use ChexSystems to evaluate potential customers. They might use these reports and scores to decide whether to approve or deny applications, just as many banks do.
While credit unions differ from banks in that they are typically member-owned and not-for-profit, they still employ risk management strategies to ensure solvency. For many credit unions, this includes using ChexSystems to review applications for new deposit accounts.
Methodology
To create this list of the best banks for avoiding ChexSystems when applying, Forbes Advisor analyzed 15 checking accounts at 15 different financial institutions, including online banks, brick-and-mortar banks and fintechs. After verifying that these accounts did not use ChexSystems to screen applicants, we ranked each on 16 data points within the categories of fees, in-person access, customer experience, digital experience and minimums.
These categories were assigned the following weightings:
- Fees: 50%
- Access: 15%
- Customer experience: 15%
- Digital experience: 10%
- Minimums: 10%
Subcategories included monthly, overdraft, ATM, foreign transaction and NSF fees; ATM and branch networks; Better Business Bureau grades and Trustpilot ratings; live chat availability and customer support hours and App Store and Google Play ratings.
Note that our analysis was performed for specific checking accounts, not for banks overall. Institutions on this list may use ChexSystems for some products and not for others or for none. Look to the specific accounts mentioned if you want to avoid this screening system.
To learn more about our rating and review methodology and editorial process, check out How Forbes Advisor Reviews Banks.
Chime is a financial technology company, not a bank. Banking services are provided by The Bancorp Bank or Stride Bank, N.A., Members FDIC.
˜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.
^Early 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.
Frequently Asked Questions (FAQs)
What is the best second chance bank?
SoFi, Capital One 360, Chime, LendingClub and Varo are all banks that don’t use ChexSystems, which may provide a second chance to people whose ChexSystems history is not favorable.
How long can a bank keep you on ChexSystems?
Most information stays on your ChexSystems report for up to five years, although certain negative information may stay on your report for up to seven years.
Can a bank remove you from ChexSystems?
Yes, you can request that a bank or collection agency remove a negative record from your report if you’ve paid off the account or the information is inaccurate. You can also put in a request with ChexSystems to have information removed, but you’ll want to keep any receipts of payment or other documentation to prove the account has been paid off.
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