When you go to open a bank account, the institution is likely to check into your history to determine if there are problems in your past. One of the ways they do this is using ChexSystems.
With ChexSystems, banks can see if you’ve overdrawn your account and other banking interactions. Depending on the bank, your ChexSystems record can be used to deny you a bank account.
However, not every bank uses ChexSystems to make decisions about whether you can open a bank account. Here are five of the best no ChexSystems banks that you can use to park your cash.
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Overview of Best No ChexSystems Banks
|Maintenance Fee||Minimum Deposit||Best For|
|Chime||$0||$0||No monthly fees|
|TD Convenience Checking||$15 (waived with $100 daily balance)||$0||Integration with a brokerage account|
|LendingClub Bank Essential Checking||$9||$0||Second-chance banking|
|BBVA Online Checking||$0||$25||All-around banking|
|Netspend All-Access Account by MetaBank||$5||$0||Extra perks|
Best No ChexSystems Banks
Chime offers an online banking experience with a debit card and no fees. In addition to having no monthly maintenance fees, you also don’t need to worry about foreign transaction fees or overdraft fees. Plus, you can access cash fee-free at MoneyPass and Visa Plus Alliance ATMs, with more than 38,000 locations around the country.
Another nice perk offered by Chime is the fact that you can set up direct deposit and get your paycheck up to two days earlier.
Chime SpotMe® Disclosure - Eligibility requirements and overdraft limits apply.
Chime Disclosure - Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank or Stride Bank, N.A.; Members FDIC.
1Chime cannot guarantee when files are sent by the IRS and funds can be made available.
^Early access to direct deposit funds depends on payer
Chime APY Disclosure - 1The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of November 1, 2021. No minimum balance required. Must have $0.01 in savings to earn interest. 2The average national savings account interest rate of 0.06% is determined by FDIC as of November 1, 2021 based on a simple average of rates paid (uses annual percentage yield) by all insured depository institutions and branches for which data are available. Visit https://www.fdic.gov/regulations/resources/rates/ to learn more.
TD Convenience Checking
For those looking for an account that integrates with their brokerage account, TD Convenience Checking can be a good choice. However, it’s important to note that there is a $15 monthly maintenance fee. You can avoid the fee, though, by making sure that your daily balance always remains above $100.
There are other perks with Convenience Checking, including live customer support and a rate discount if you get a personal loan or home equity loan through TD Bank.
LendingClub Bank Essential Checking
Rather than using ChexSystems, LendingClub Bank offers its Essential Checking as a second-chance account. As a result, there is a $9 monthly service charge and a daily debit card limit of $500.
Even so, this account can help you get back on track with your banking habits, and the account is feature-rich, with mobile wallets and mobile deposit, as well as bill pay. After being on track for 12 months, you might be able to upgrade to a Rewards Checking account.
Read more in our LendingClub Bank Review
BBVA Online Checking
If you’re looking for a full-service bank, BBVA Online Checking can be a good choice. However, while they don’t use ChexSystems, they do use Early Warning Services when evaluating applicants.
There is no monthly Service Charge and you can get free ATM access at the more than 64,000 locations in the AllPoint network. You do need $25 to open an account, but once that’s done you don’t have to worry about an account minimum.
BBVA also offers customizable alerts, unlimited check writing, debit card, and full-service account features like mobile deposits and free bill pay. You do need to make sure to un-enroll in paper statements otherwise, you’ll be charged $3 per month. Member FDIC.
Netspend All-Access Account by MetaBank
If you’re looking for extra perks from your no ChexSystems bank, the Netspend All-Access Account by MetaBank might be the right choice. There’s no way to avoid the $5 monthly fee, however.
Even with that, you get access to early direct deposit, a fee-free ATM network, payback rewards for certain debit card purchases, access to a purchase cushion, and the option to connect a savings account and receive a bonus APY.
How We Chose This List
We reviewed several banks that don’t use ChexSystems before approving you for an account. We tried to choose different banks that meet various needs with different features and a variety of requirements. There’s a good chance that you can find an account that meets your needs and preferences on this list.
What Is ChexSystems?
ChexSystems is a reporting agency that focuses on deposit accounts. In general, banks that use ChexSystems report issues with checking and savings accounts, including activity like overdrafts, number of accounts applied for, involuntary account closure, and unpaid negative balances.
When you apply for a bank account that uses ChexSystems, your banking history will be considered and you might be rejected for an account if the bank thinks there are too many red flags.
Features to Look for in a No ChexSystems Bank
If you’re hoping to avoid a bank that uses ChexSystems, it’s important to look for various features. In some cases, banks that don’t use this reporting system have limited services or might charge fees.
When evaluating no ChexSystems banks, compare fees and features. Carefully consider what features you need from a bank. If you just need basic functionality, you might be able to find a bank with low (or no) fees. Also, pay attention to see if the bank has a way for you to waive the fee by maintaining a minimum balance.
Which No ChexSystems Bank Is Best for You?
The no ChexSystems bank likely to work best for you depends on your situation and priorities. If you’re hoping for a full-service banking experience, you might have to work with a bank that uses a different reporting system, like Early Warning Services. However, if you don’t need a more traditional experience, there are other options, like Chime and Netspend, that can help you access banking online.
Carefully consider what’s most important to you. There are ways to avoid fees while getting access to different services, including getting a checking account that matches well with your brokerage account.
How Does ChexSystems Work?
ChexSystems works like a reporting agency for deposit accounts, usually with banks and credit unions. Participating institutions report on your account activity, including reasons your account was closed, overdrafts, and other issues. These items are included in your ChexSystems report, which can be accessed when you apply for a bank or credit union account.
Does ChexSystems Affect Your Credit Score?
Your banking report isn’t included in your credit score, so your ChexSystems record won’t directly impact your credit score.
How Long Does a Closed Account Stay on a ChexSystems File?
According to ChexSystems, reported information remains active in your file for up to five years.
Do Banks Have to Use ChexSystems?
Banks aren’t required to use ChexSystems, although many do. Additionally, even if a bank does use ChexSystems, it’s possible for the bank to decide to provide you with an account even if you have negative items. ChexSystems doesn’t dictate what banks do. Instead, banks set their own policies and can use ChexSystems to determine whether to approve your account.
Depending on where you apply for an account, you might be subject to a banking report. A bank might use a reporting agency like ChexSystems to review your transactions and use that information to determine whether or not to allow you to open an account with the bank. If a ChexSystems report shows negative items, you might not be able to open a bank account.
If you’re concerned about what your ChexSystems report shows, you can consider opening an account at an institution that doesn’t use ChexSystems.