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.
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
BBVA offers an online checking account that does not use ChexSystems. Customers enjoy Free ATMs at 55,000 AllPoint® Networks and BBVA ATMs where you can make check or cash deposits. Online banking is made easy with mobile check deposits, bill payment, money transfer tools and account alerts — all directly from your smartphone, computer or tablet.
Plus, online customers get access to a dedicated team of professionals available via phone, email and text. The ClearConnect Checking Account is free but make sure you deactivate the paper statements and opt-in to online statements to avoid the $3.00 per month fee. There is a $25 minimum deposit required to open the account that can be funded with a debit or credit card.
- Apply with only $25 opening deposit
- No Monthly Service Fee
- Complimentary Online Banking and Mobile Banking, Bill Pay and Online Statements
- No ATM withdrawal fees at any BBVA or Allpoint® ATM
- BBVA USA, Member FDIC
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. Any U.S. citizen at least 18-years old can open a Chime account.
- No monthly or overdraft fees
- No minimum balance requirements
- Daily balance updates
- Instant transaction alerts
- Get paid 2 days early with direct deposit setup
- Visa debit card
MemoryBank is an online checking account. They offer a Second Chance Account called the Memory Builder Checking Account. The second chance checking account gives you the opportunity to help rebuild your banking privileges.
The account is designed for customers who have been unable to open a checking account due to their prior banking history. The monthly fee is $8.99 that can be reduced to $6.95 per month if you get your statements online and use your debit card for at least 15 in-person or online purchases.
- Access to over 85,000 surcharge-free ATMs** with your MemoryBank MasterCard® debit card.
- 24/7 access to online and mobile banking
- MemoryAlert balance and activity notifications, configured when and how you want them.
- Live customer support through online chat, phone and email.
The Essential Checking Account designed to help you manage your money with online banking tools. Radius Bank is a Boston-based bank with one full-service branch. People across the country can open an account and manage it with online and mobile banking technology. There is a $10 minimum required opening deposit and a $9.00 monthly service fee.
- No minimum balance requirement
- $9.00 Monthly Fee
- Radius Mobile app with mobile check deposit
- Direct deposit your paycheck or other income
- Free Bill Pay and eStatements
- Customized alerts
- Open the account with $10.00 or more
- Upgrade to Radius Checking after 12 months of positive banking history2
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.
- 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.