The 5 best second-chance checking accounts of 2024

When you open a checking account or savings account, the bank or credit union will review your information with a reporting agency that tracks banking activity, such as ChexSystems. Your ChexSystems report includes information about account openings, closings, overdrafts and more.

Negative marks on your ChexSystems report make it difficult to be approved for a new deposit account. However, second-chance accounts don’t require a ChexSystem review and are ideal for rebuilding your banking history.

Below, CNBC Select has put together the best second-chance checking accounts for you to choose from. (See our methodology for more information on how we chose these accounts.)

Who’s this for? Varo is great for those who want the convenience of mobile banking and an opportunity to earn cash back on select debit card purchases.

Standout benefits: With a Varo debit card, you can earn up to 6% cash back (up to $50 back per month) on eligible purchases with specific retailers. These offers vary, but in the past included brands such as McDonald’s, Popeyes, Macy’s, PetSmart and Forever 21.

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Who’s this for? Chase Secure Banking℠ is a second-chance account with a rare opportunity to earn a welcome bonus.

Standout benefits: New Chase Secure Banking account members can currently earn a $100 bonus after completing 10 qualifying transactions within the first 60 days after opening the account. (Offer expires 10/16/2024). Qualifying transactions include online bill payments, debit card purchases, ACH credits, Zelle transactions and Chase QuickDeposit activity.

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Who’s this for? If you do not need a bank with physical locations, Go2Bank is an easy-to-get online checking account.

Standout benefits: You can easily waive this account’s monthly fee by meeting the direct deposit requirement and you’ll have access to an extensive ATM network for fee-free withdrawals. You can also earn cashback (up to 7% back) on in-app e-gift card purchases.

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Chime is an online-only fintech company that offers banking services through The Bancorp Bank, N.A. or Stride Bank, N.A. Its Second Chance Banking option boasts no monthly fees and no credit or ChexSystems check. Although it has no physical branches, you can deposit cash for free at Walgreens locations.

Minimum balance requirement

None

Minimum opening deposit

None

Annual percentage yield (APY)

N/A

Important fees

• Overdraft fee: None
• Monthly maintenance fee: None
• Foreign transaction fee: None
• ATM fees: No transaction fees at MoneyPass ATMs at 7-Eleven locations and Allpoint or Visa Plus Alliance ATMs

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Varo is an online-only national bank. It has no monthly fees, no overdraft fees and no minimum balance requirement. Customers have access to more than 40,000 fee-free ATMs, and those with direct deposits set up can get access to their funds up to two days early.

Minimum balance requirement

None

Minimum opening deposit

None

Annual percentage yield (APY)

N/A

Important fees

• Overdraft fee: None
• Monthly maintenance fee: None
• ATM fees: No fees at U.S.-based All-Point ATMs; $3.50 fee for cash withdrawals at non-All-Point ATMs and international ATMs

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Chase Secure Banking℠ has a small monthly maintenance fee with no way to waive it, but the account’s welcome bonus can ease the sting of that fee significantly. As one of the biggest banks in the U.S., customers have access to a large ATM network and more than 4,700 physical branches.

Minimum balance requirement

None

Minimum opening deposit

None

Annual percentage yield (APY)

N/A

Important fees

• Overdraft fee: None
• Monthly maintenance fee: $4.95
• Foreign transaction fee: 3%
• ATM fees: None for Chase ATMs; $3 fee per withdrawal at a non-Chase ATM in the U.S., Puerto Rico and the U.S. Virgin Islands. Surcharge Fees from the ATM owner/network still apply. $5 fee per withdrawal at a non-Chase ATM outside of the U.S., Puerto Rico and the U.S. Virgin Islands. Surcharge Fees from the ATM owner/network still apply.

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Wells Fargo Clear Access Banking offers a clear path to eventually to a standard bank account. After 365 days, customers can convert into any Wells Fargo consumer checking account available. Although the account has a low monthly fee, there are several ways to avoid it.

Minimum balance requirement

None

Minimum opening deposit

$25

Annual percentage yield (APY)

N/A

Important fees

• Overdraft fee: N/A
• Monthly maintenance fee: $5, can be waived by meeting certain requirements
• Foreign transaction fee: 3%
• ATM fees: $0 at Wells Fargo ATMs; $2.50 at non-Wells Fargo U.S. ATMs (including U.S. territories); Up to $5 at non-Wells Fargo ATMs outside the U.S.

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Go2bank is an online bank account offered by the fintech company Green Dot. This account doesn’t require a ChexSystems review and has no opening deposit or balance requirement, so it’s easy to open. There is a monthly fee that can be waived with direct deposit and an overdraft fee that only applies if you qualify for and authorize these payments, otherwise, overdrafts are automatically declined.

Minimum balance requirement

None

Minimum opening deposit

$0

Annual percentage yield (APY)

N/A

Important fees

• Overdraft fee: A $15 fee may apply if you don’t repay the transaction within 24 hours of the overdraw
• Monthly maintenance fee: $5, can be waived with a payroll or government benefits direct deposit
• Foreign transaction fee: 3%
• ATM withdrawal fees: $0 at in-network ATMs; $3 at out-of-network ATMs

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Banks typically review your banking history when you apply for a savings or checking account. They’ll review the information collected by reporting agencies such as ChexSystems or Early Warning Services. If you have blemishes in your banking history, such as unpaid fees, involuntary account closures or a history of overdrafts, you may have trouble getting approved for a new bank account.

Second-chance bank accounts are designed for anyone unable to qualify for a standard checking account. These accounts tend to have fewer benefits, higher fees or additional requirements compared to the best checking accounts. However, just like with a secured credit card, a second-chance checking account may offer a chance to qualify for an upgrade to a standard account after you successfully manage your account for a certain amount of time.

Second-chance accounts offer financial services for anyone unable to open a standard bank account. This can give you access to lower-cost services and help you improve your banking history.

However, these accounts aren’t the best long-term solutions. You’ll usually have fewer features and could pay higher fees with a second-chance checking account.

Pros

• Second-chance bank accounts can be much cheaper to use than checking cashing services
• Can help you rebuild your banking history and qualify for cheaper or more rewarding accounts in the future
• Your account balance is usually insured by the Federal Deposit Insurance Corporation or National Credit Union Administration

Cons

• Second-chance checking accounts tend to have higher fees compared to typical checking accounts and you may not be able to waive the fees by meeting certain requirements
• You’ll usually have fewer features with a second chance checking account, you may not receive free ATM access or overdraft protection
• Many second-chance accounts have additional constraints, such as direct deposit and higher opening deposit or minimum balance requirements

If you struggled with overdraft charges, bounced checks or negative bank account balances, you’re likely to have a hard time getting approved for a new bank account. However, second-chance accounts provide an opportunity for a fresh start. There are even second-chance checking accounts available with no overdraft fees, no monthly fees and no minimum balance requirements.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every bank account review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of banking products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best second-chance checking accounts.

All of the accounts included on this list are covered by the Federal Deposit Insurance Corporation (FDIC) and insured up to $250,000. This insurance protects and reimburses you up to your balance and the legal limit in the event your financial institution fails.

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*Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted.