If you’re unable to open a checking account due to ChexSystems or Early Warning Services (EWS) records, we compiled a list of second chance banks in California that offer an opportunity to build a new banking history. Keep in mind there may be a monthly service fee associated with second chance banking accounts.
Top Online Second Chance Checking Accounts in California
Upgrade Rewards Checking Plus
The Upgrade Rewards Checking Plus is best for debit card spending. Customers get up to 2% cash back on common everyday expenses for active accounts with a monthly $1,000 direct deposit 1 plus many features including the following:
- $0 Minimum Opening Deposit.
- Up to 2% cash back on common everyday expenses for active accounts with monthly $1,000 direct deposit, and up to 1% cash back for other purchases2.
- Optional savings account that earns 5.21% APY3.
- Customers with direct deposit can get paid up to two days early4.
- No monthly fees, no overdraft fees5, and get reimbursed for ATM fees with an active account.
- FDIC-Insured Up to $250,000.
Upgrade is a financial technology company, not a bank. Checking and savings accounts provided by Cross River Bank, Member FDIC.
OneUnited Bank
OneUnited Bank’s Online Checking Account is a free checking available to people in ALL STATES. OneUnited Bank is a Black-Owned Bank that offers the Black Wall Street Checking account with no monthly fee. If you’re looking for second chance banking options, OneUnited Bank’s U2 E-Checking Account is available but it has a monthly fee of $12. With OneUnited Bank customers can add cash to the OneUnited Bank Debit Card at over 90,000 locations across the country through a partnership with Green Dot®.
Here are the checking account features:
- $25 minimum opening deposit
- No monthly fee.
- Get paid up to 2 days early with early direct deposit.
- Free Online & Mobile Banking.
- Obtain Cash, Surcharge Free at Over 35,000 ATMs Nationwide.
- Deposit checks through the mobile app.
- Free Bill Pay
SoFi Bank
SoFi Bank is a bank headquartered in California with membership open to anyone regardless of where they live or work. Financial products and services include checking, savings, personal, student and mortgage loans, investments and retirement planning. The monthly free checking account is combined with savings account with the following features:
- $100 Minimum opening deposit.
- Welcome Bonus up to $250 when you set up direct deposit.
- Get paid up to 2 days early with direct deposit.
- 55,000+ fee-free ATMs within the Allpoint® Network.
- Members with direct deposit can earn 4.50% APY on their savings and Vaults balances, and 1.20% APY on their checking balances.
- Deposits are insured up to $2M through a network of participating banks.
Second Chance Banks in California
American Riviera Bank
The Simply Checking account requires a $25 minimum to open with a monthly fee of $5.
Armed Forces Bank
The Safe Spending Account requires a $25 opening deposit and a $5 monthly service fee. You’ll have free access to online banking, mobile deposit, bill pay and account alerts.
Bank of America
The Advantage SafeBalance Banking Account requires a $25 opening deposit and a $4.95 monthly service fee. You’ll have free access to online banking, mobile deposit1, bill pay and account alerts.
California Bank & Trust
OnBudget® Banking requires a $5 opening deposit and a $5 monthly service fee. You’ll have free access to online banking, mobile deposit, bill pay and account alerts.
Chase
The Chase Secure BankingSM requires no minimum opening deposit and has a $4.95 monthly service fee. You’ll have free access to online banking, mobile deposit, bill pay and account alerts.
California Bank & Trust
OnBudget® Banking requires a $5 opening deposit and a $5 monthly service fee. You’ll have free access to online banking, mobile deposit, bill pay and account alerts.
Homestreet Bank
The Bank-On Checking Account requires a $25 opening deposit and a $5 monthly service fee.
Premier Valley Bank
Check Free Banking requires a $25 opening deposit and a $5 monthly service fee. The account has no overdraft or non-sufficient funds fees, and includes mobile budgeting apps.
Tri Counties Bank
Money Smart Checking requires a $25 opening deposit and a $5 monthly service fee. Checks are not provided with this account and is not eligible for Online Bill Pay or Overdraft Services.
US Bank
Safe Debit Account requires a $25 opening deposit and a $4.95 monthly service fee. You’ll have free access to online banking, mobile deposit, bill pay and account alerts.
Second Chance Credit Unions in California
There are multiple credit unions in California that offer second chance checking accounts. But unlike banks, credit unions may have restrictions on membership. Potential members have to meet membership requirements that vary depending on the credit union’s objective.
American United Federal Credit Union
The Fresh Start Checking account requires a small fee to open and a small monthly fee. The account features free online banking and online bill pay, free mobile banking, direct deposit and a Visa debit card.
Kern Federal Credit Union
Fresh Start Checking gives Kern members who qualify a chance to establish a solid checking history. After 12 months of good account management you may be eligible for the Free Checking Account. There is a $25 minimum deposit to open and a $10 monthly fee.
Premier America Credit Union
Premier America Credit Union offers a Fresh Start Checking Account for people with past ChexSystems records. The minimum deposit required to open an account is $25. There is a monthly service fee of $13 but it can be reduced to $10 with minimum of $200 monthly direct deposit.
Alta Vista Credit Union
Second chance banking at Alta Vista Credit Union comes in the account called “Opportunity Checking.” With the opportunity checking account past checking mistakes are forgiven. The monthly service fee is $20.00 can be waived under certain requirements.
Credit Union of Southern California
Get a second chance with the Aspire Checking account. The monthly service fee is $15 cut can be reduced to $5 per month fee with $500 monthly direct deposit, or if you use – or swipe – your CU SoCal Debit Card at least 20 times per month and have opted in for eDocuments.
Heritage Community Credit Union
The Worry Free Checking account requires a $25 minimum opening deposit and has a $5 monthly service fee.
Priority One Credit Union
The New Leaf Checking requires a minimum $25 opening deposit and has a $15 monthly service fee.
Best practices when choosing a new bank account in California
Past banking issues along with negative banking records can impact low- and middle-income households. Second chance banking will get you back on track even if you have bad credit.
A negative ChexSystems record can remain 5 years unless you successfully dispute ChexSystems to get it deleted. For consumers with an EWS record, it can last for 7 years unless you’re able to successfully dispute EWS.
Whether you choose a bank or credit union, be mindful of the type of banking relationship you desire and consider the following best practices:
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Research and compare different account options. Take the time to research and compare different checking account options from different banks or credit unions. Look at the fees, interest rates, account requirements, and other features to determine which account is the best fit for you.
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Understand the fees. Be sure to read and understand the fee schedule for the account you are considering. Look for monthly maintenance fees, ATM fees, overdraft fees, and any other fees that may apply. Choose an account with low fees or no fees if possible.
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Know the account requirements. Make sure you understand any requirements for the account, such as minimum balance requirements, direct deposit requirements, or transaction limits.
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Consider overdraft protection. Decide if you want to opt-in for overdraft protection, which can help you avoid overdraft fees but may come with its own fees.
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Set up account alerts. Many banks and credit unions offer account alerts to help you stay on top of your account balance, transactions, and other important information. Consider setting up alerts to help you manage your account and avoid fees.
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Use online banking. Take advantage of online banking features, such as mobile banking apps and online bill pay, to make it easier to manage your account and avoid fees.
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Review your account regularly. Take time to review your account regularly to ensure that you are staying within your budget and avoiding any unnecessary fees.
By following these best practices, you can open a checking account that meets your needs and manage it properly to stay clear of ChexSystems.
California Unbanked Numbers
According a Federal Deposit Insurance Corporation (FDIC) 2021 Survey, 5.0% of California residents were unbanked. It’s estimated that unbanked people pay up to 10% of their salary for check cashing services.
California fares better than the national average of unbanked or underbanked households in America, but there are still too many Californians without access to traditional banks that offer free checking accounts.
ChexSystems Resources
- Banks That Don’t Use ChexSystems – Take a look at our list of banks that do not use ChexSystems for a new checking account.
- EWS (Early Warning Services) – EWS is similar to ChexSystems and can prevent you from opening a checking account.
- Check your ChexSystems Report – Unsure what information exists in your ChexSystems report? Learn how to find out.
- ChexSystems Scores – Did you know that you have a ChexSystems score similar to a credit score? Find out how to get yours.
- Account Abuse – Find out why ChexSystems often reports customers for account abuse with no real explanation of what that notation means.
Upgrade Disclaimers
1 Active Accounts with a monthly direct deposit of $1000 are eligible for additional benefits on Rewards Checking Plus such as additional cash back rewards, ATM fee reimbursement, and more. See the Active Account page for more information.
2 Rewards Checking Plus customers who set-up monthly direct deposits of $1,000 or more earn 2% cash back on common everyday expenses at convenience stores, drugstores, restaurants and bars – including deliveries – and gas stations, as well as recurring payments on utilities and monthly subscriptions including phone, cable, TV and other streaming services, and 1% cash back on all other debit card purchases. 2% cash back is limited to $500 in rewards per calendar year; after $500, customers earn 1% cash back on all eligible debit card purchases for the remainder of the year. Rewards Checking Plus accounts with less than $1,000 in monthly direct deposits 60 days after account opening will earn 1% cash back on common everyday expenses and 0.50% cash back on all other eligible debit card purchases. Some limitations apply. Please refer to the applicable Upgrade VISA® Debit Card Agreement and Disclosures for more information.
3 The 1.5% Annual Percentage Yield (APY) for the Performance Savings account is effective as of June 1, 2023. The APY for the Performance Savings account is variable and may change at any time. Active Accounts qualify for 5.07% APY with monthly $1000 direct deposit. The APY for Active Accounts is effective as of September 1, 2023, is variable, and may change at any time. Please refer to the applicable Cross River Bank Performance Savings Deposit Account Agreement and Truth in Savings Disclosure. To earn APY, you must open and fund a Performance Savings account. Rewards Checking Plus accounts do not earn APY.
4 Early direct deposit requires set up of recurring electronic direct deposit from your employer, payroll, or benefits provider and is limited to direct deposits under $5000. Early access to direct deposit funds depends on the timing in which we receive notice of impending direct deposit, which is generally up to two days before the scheduled deposit date.
5 There are no overdraft fees or annual fees associated with Rewards Checking Plus accounts. Rewards Checking Plus charges no ATM fees, but third-party institutions may charge you a fee if you use their ATM/network or if you use your Upgrade VISA® Debit Card internationally. For Active Accounts, Upgrade will rebate ATM fees charged by another institution for debit card withdrawals in the United States, up to five times per calendar month. To be eligible to receive third-party ATM fee rebates in any calendar month for eligible ATM withdrawals made during that month on a Rewards Checking Plus account, the account must be an Active Account in the prior calendar month. See the Active Account page for more information. As a courtesy to new customers, Upgrade will provide third-party ATM fee rebates for 60 days after account opening regardless of account user status. Some limitations apply. Please refer to the applicable Cross River Bank Checking Deposit Account Agreement and Upgrade VISA® Debit Card Agreement and Disclosures for more information.
