If you’ve faced challenges opening a traditional bank account due to past financial difficulties, second chance banks in Alabama provide a valuable opportunity to rebuild your banking history and regain access to essential financial services.
With over 140,000 households in Alabama currently unbanked, many local banks and credit unions offer second chance checking accounts designed specifically for individuals with negative ChexSystems, Telecheck or Early Warning Services (EWS) records.
Whether you’re looking for a fresh start or more flexible banking options, second chance banks in Alabama are committed to giving you that opportunity.
Online Second Chance Banks in Alabama
Upgrade Rewards Checking
$0 minimum to open
Up to 2% cash back on purchases
Get paid up to two days early
More than 55,000 free ATMs
SoFi Bank
$50 minimum deposit
Welcome bonus up to $300
No monthly maintenance fees
Get paid up to two days early
55,000+ fee-free ATMs
Acorns
$25 minimum deposit
Earn 2.57% APY on Checking and 4.05% APY on Emergency Fund
Get paid up to 2 days early
Tungsten metal debit card
55,000+ fee-free ATMs
Current Banking
$0 minimum to open
4% APY on savings up to $6,000
Get paid up to two days early
Up to $750 cash advance
Credit building secured card
mph.Bank - Second Chance Fresh Account
$9.00 a month service fee
Zelle® Integration
Get paid up to two days earlier
55,000+ free AllPoint ATMs
Second Chance Banks in Alabama
Community Bank & Trust
Community Bank & Trust offers a checking account called “Second Slice.” The minimum required to open the Second Slice account is $100. You get unlimited check writing, ATM Card, access to mobile banking apps, e-statements and direct deposit is available.
Family Security Credit Union
Family Security Credit Union offers a “Give Me A Break Checking Account” designed to help members with prior checking account problems re-establish their checking account history. Members with a Give Me a Break Checking Account can apply for a regular checking account after 12 months in good standing. There is a $10 per month service fee.
First National Bank
First National Bank offers the On Us Account that comes with a free MasterCard debit card, free online banking with bill pay and semi-annual credit counseling. There is no minimum opening deposit required.
»Want to grow your money faster? Check out Highest Rates For Savings Accounts
Renasant Bank
Renasant Bank offers a wide variety of personal checking accounts, they do not use ChexSystems. All checking accounts come with Free Internet Banking; Free Online Bill Pay; Mobile Banking; and Debit Card with no monthly usage charge.
If you are looking for a Birmingham, Alabama No-ChexSystems bank this checking account may be a good fit for you. Renasant Bank also has locations in MS, TN, GA, and FL.
United Bank
United Bank offers the “Gateway Checking Account” provides individuals who have faced financial challenges in the past with a new opportunity to access top-notch banking services, rebuild their credit, and take a significant step towards unlocking further possibilities.
The Gateway Checking account features online bill pay for $4.95, mobile check deposit for $2 per deposit, telephone banking 24/7, itemized statements and e-statements and a monthly service fee of $10.
Woodforest
Woodforest offers a “Second Chance” account. The minimum opening deposit is $25.00. There is a monthly service charge which breaks down as follows:
- $9.95 with direct deposit
- $11.95 without direct deposit
- $9.00 one-time account set up fee.
Alabama Second Chance Credit Unions
Avadian Credit Union
Avadian is a credit union in Alabama that offers second chance banking with the “e-Checking” account designed to help build financial stability. You have access to your money through a Visa debit card, free online and mobile banking.
Azalea City Credit Union
The Opportunity Draft account is available to those looking for a second chance checking option. Along with a complimentary debit card, account holders can enjoy unlimited check writing, online account access, and access to a rewards program. While there is no requirement for a minimum balance, a monthly fee is charged in addition to a $5 fee for new accounts.
Family Security Credit Union
Family Security Credit Union offers a “Give Me A Break Checking Account” designed to help members with prior checking account problems re-establish their checking account history. Members with a Give Me a Break Checking Account can apply for a regular checking account after 12 months in good standing. There is a $10 per month service fee.
»Want to grow your money faster? Check out Highest Rates For Savings Accounts
GTE Financial
GTE Financial offers the Go Further account as a low-cost second chance checking account. The monthly $9.95 fee can be waived as long as you make a total deposit of $500 for the month, opt to receive eStatements and make 15 monthly transactions.
Gulf Winds Federal Credit Union
Gulf Winds Federal Credit Union offers the MyOpportunity Checking account that can be opened with a $25 minimum deposit. There is a monthly fee of $10.95.
Hope Credit Union
Hope Credit Union offers the Easy Checking account that can be opened with a $25 minimum deposit. There is a monthly fee of $9.95 that can be waived if the account balance is kept at $200 or more.
Jefferson Financial Federal Credit Union
Jefferson Financial Federal Credit Union offers a second chance checking account. There is a monthly service fee of $11.95.
Liberty Federal Credit Union
Liberty Federal Credit Union offers the Opportunity Checking account with a $7.50 monthly service fee.
Mutual Savings Credit Union
Mutual Savings Credit Union offers a second chance checking account. New members are required to open the account with a minimum $100 in addition to a monthly service fee of $16.95.
Why Alabama Has A High Amount of Unbanked Households
According to a report by the Federal Deposit Insurance Corporation (FDIC) in 2023, around 5.2% of households in Alabama were considered unbanked.
Several factors contribute to this:
Low Income and Asset Poverty: Income is the strongest predictor of being unbanked. Households with lower incomes are much less likely to have bank accounts, and Alabama’s asset poverty rate is high at 20.3%. Many residents simply lack the funds to meet banks’ minimum balance requirements.
Racial and Demographic Disparities: Unbanked rates are notably higher among Black and Hispanic households, who make up a significant portion of Alabama’s population.
Rural and Digital Access Barriers: Rural areas in Alabama often have less access to bank branches and reliable internet, making it harder for residents to open and maintain accounts.
Financial Literacy Gaps: Lower levels of financial literacy are associated with higher unbanked rates, and this is a challenge in many parts of Alabama.
Banking Requirements: Strict identification, credit checks, and minimum deposit requirements can deter people who have had negative banking experiences or lack proper documentation.
In summary, Alabama’s high unbanked rate is driven by a combination of economic hardship, demographic disparities, rural and digital access challenges, and restrictive banking practices that make it difficult for many residents to participate in the formal financial system.
