Advertiser Disclosure

5 Banks for an Online Checking Account No ChexSystems

  • Banking

Opening an online checking account No ChexSystems can make you bankable again.

Online-only banking is here to stay. It’s convenient, hassle-free and safe. Plus, most online banks can offer higher savings interest rates and lower fees because they save tons of money by not having physical branches.

Many people shut out of banking are familiar with ChexSystems or Early Warning Services. Over 80% of banks use ChexSystems or Early Warning Services when deciding to open customer accounts. Having a negative banking history can be detrimental to financial growth.

The problems with ChexSystems reports

It goes without question that banks and credit unions must have a way to screen new customers for risk potential. But for some financial institutions, a negative account screening report results in an automatic denial of any account without considering the bigger picture.

Unlike a credit report, ChexSystems and EWS do not contain positive information on a consumer’s banking history that could possibly balance out negative information.

Benefits of Online Checking Accounts

Benefits of an online checking account no ChexSystems ispretty much the same benefits of in-branch checking account. Just about everything you can do with a checking account in bank branches, you can do with an online checking account.

Here are several benefits:

  • An online checking account can help consumers in ChexSystems because online management tools allow customers to see full account details at any time. With instant alerts and updates it is easier to keep up with transactions and avoid mishaps that may land consumers in ChexSystems.
  • Not having to maintain a large network of branches means banks can pass the savings onto customers. Other perks are often also available, like ATM reimbursements.
  • Online banks’ checking and savings accounts come with higher interest rates and fewer fees than those at traditional banks.

5 Banks to Consider for Online Checking Account No ChexSystems

1. Oxygen Personal Account



Oxygen makes it easier for individuals to open an online checking account, no ChexSystems, with an application that takes less than 10 minutes to complete. Oxygen is a fintech company that offers personal or business checking accounts that don’t use ChexSystems through its banking partner, FDIC-Insured Bancorp Bank.

Oxgen Account Features

  • No monthly fees, no minimum opening deposit, no minimum balance requirements.
  • Savings 0.25% APY.
  • Unlimited fee-free transactions.
  • 40K Fee Free Allpoint® Network ATMs Nationwide.
  • 2 Day Early Direct Deposit.
  • Earn cashback on everyday purchases at approved merchants.
  • Enjoy the power to create single-use or merchant-locked cards that mask your card details. Even send money to friends.
  • Cell Phone Protection.
  • Extended Warranty Protection.
  • Hotel Theft Protection
  • Auto Rental Collision Damage Waiver.
  • Lost Luggage Protection.

2. Acorns Spend Account


The Acorns Spend Account is the first checking account with a debit card that saves, invests, and earns for you. Since the COVID-19 crisis, more Americans are committed to saving and investing for emergencies. Acorns is designed to get you saving on an automatic basis.

With the Acorns Spend Account customers enjoy no monthly or overdraft fees, a debit card, and free ATM access nationwide. Acorn customers benefit from the automatic savings and investing feature where purchases made using your debit card are rounded up to the nearest dollar with the excess change being invested. There is a $3 monthly fee for the Acorns Spend Account but the unlimited ATM fee rebates will more than compensate for the monthly fee. Plus, the debit card is made with an impressive heavy metal, just like premium credit cards.

Acorns Spend Account Features

  • No minimum balance fees. You don’t have to fund an Acorns Spend account to open it
  • No overdraft fees
  • Unlimited free or fee-reimbursed ATM withdrawals nationwide
  • Rounds up your purchases and invests the spare change for you
  • Digital direct deposit and mobile check deposit and check sending
  • Free bank-to-bank transfers
  • Automated bill pay
  • FDIC-protected checking account up to $250,000 plus fraud protection

3. Chime

Chime spending account is free with no monthly fees, no overdraft fees, and no minimum balance requirements, and it does not take your ChexSystems information into consideration.

Account management is made simple with daily balance updates, instant transaction alerts, and automated bill paying, where the bank creates and mails a check at no extra cost.

Account Features:

  • No monthly or overdraft fees
  • No minimum balance requirements
  • Daily balance updates
  • Instant transaction alerts
  • Get paid up to two days early with direct deposit ²
  • Visa debit card

4. M1 Finance – Spend Account

M1 Finance is an online investment brokerage firm that allows customers to invest in stocks on a fractional basis. For instance, if you’re buying a single stock and its share price is $50, but you only have $25 to spend, you can buy $25 worth of that stock.

M1 Finance offers the M1 Spend Checking Account and is completely free. M1 Spend is an FDIC-insured checking account and debit card. Two Spend Checking accounts are available.

M1 Spending Account Features

  • No minimum balance requirements.
  • M1 doesn’t charge any fees for monthly maintenance.
  • Direct deposit available.
  • Bill payment.
  • Limited ATM fee reimbursements.

M1 Plus Spending Account Features

  • No minimum balance requirements.
  • M1 doesn’t charge any fees for monthly maintenance.
  • M1 Plus members earns 1% APY on their total account balance and 1% cash back on debit card purchases.
  • Limited ATM fee reimbursements.
  • $125 fee to open the account.
  • Direct deposit available.
  • Bill payment.

What we like about M1 Finance is the investment feature. Customers can build an investment portfolio with commission-free trades. If you are new to investing M1 Finance offers over 80 customized portfolios. You only have to invest a fractional share in stocks. Another great feature of the M1 Plus Spend Account is the 0.50% APY earned on all balances. Compare that to the National Savings Rate of 0.06% offered at most large banks.


5. Peoples Bank

If you have been denied a checking account because of past problems with ChexSystems or TeleCheck, this account may be for you. Requires a $30 opening deposit.

Account Features:

  • NO minimum balance
  • NO transaction fees for check writing or deposits
  • FREE Online Banking, Bill Pay, and Mobile Banking
  • ATM/MasterCard Debit Card eligibility

Banks can cause multiple overdrafts

Checking account reports mainly reflect account overdrafts or NSF transactions which make up the vast majority of account closures reported. Researchers in a study by Harvard Business School, estimated that only 2.5% of account closures are due to fraudulent activities; the remaining 97.5% are caused by overdrafts.

The problem with overdrafts is that the bank may hold some responsibility in causing multiple overdrafts based on one transaction. A report by the Pew Charitable Trusts found that 40% of the biggest U.S. banks surveyed, order transactions in a way that leads to increased overdrafts.

The overdraft fees were caused by the order in which the banks processed debit transactions — purchases, payments and withdrawals — in order from the highest amount to the lowest. Instead of processing transactions in the order that your bank receives them, banks can choose to process the biggest first, which brings your account balance down more quickly, leading to more overdraft fees. It’s unfortunate that a customer could end up with a ChexSystems or EWS record that was caused by the bank.

You deserve a new account.

Leave a Reply

Your email address will not be published. Required fields are marked *