If a bank previously closed your account due to significant fees or you were previously incarcerated, you may struggle to open a new bank account at some financial institutions because of your history.
Select financial institutions, however, provide second chance bank accounts so you still have access to banking services regardless of your what happened in your past. You may open a second chance bank account to improve your banking history and have access to more financial opportunities in the future. We’ve reviewed over a dozen institutions and here are our top picks among second chance bank accounts.
Compare the best second chance bank accounts
Chime Checking Account
Why both stand out: Chime Checking Account and Chime Savings Account do not require a credit check or review by ChexSystems.
Chime also stands out because it doesn’t charge monthly service fees, and you may open an online account from anywhere in the US.
What to look out for: Before you open a savings account, you’re required to open a checking account. This is also an online-only account, so you’ll have to be comfortable with online banking.
Dora Financial Everyday Checking Account
Why it stands out: The Dora Financial Everyday Checking Account is Bank On certified, which means it meets the program’s requirements of low costs and low fees. It’s a great option if you’d like to open an online account with a $0.
Dora Financial may also stand out if you primarily speak Spanish. The platform’s mobile app is available in English and Spanish.
What to look out for: Customer support may be limited since it’s only available through the platform’s mobile app or email. If you prefer telephone customer support, you might consider other accounts.
Dave Spending Account
Why it stands out: Dave is a mobile fintech platform with a bank account and financial tools for building your credit and financial history.
You might like the Dave Spending Account if you’re searching for a banking option with budgeting features and rewards. You may set up individual personal finance goals or keep track of how much you spend in a specific category by creating a budget. Dave also has a unique feature called Dave Side Hustle. You can find remote work opportunities by setting up a profile through the app.
What to look out for: There’s a $1 monthly membership fee to use the Dave mobile app. If you don’t want to deal with monthly fees, you might consider choosing one of our other top picks.
The First Bank First Aid Checking Account
Why it stands out: The First Bank is one of the largest community development financial institutions (CDFIs) to offer a second chance bank account in multiple states. The First Bank First Aid Checking Account might be ideal if you’d like to open an account with a brick-and-mortar bank.
Compared to other second chance bank accounts at brick-and-mortar financial institutions, it has a low monthly service fee.
What to look out for: The First Bank only serves residents in Alabama, Georgia, Illinois, Mississippi, and Louisiana. The account also doesn’t include checks. You’ll need to upgrade to a traditional checking account after six months to have access to check writing.
Other second chance bank accounts that didn’t make the cut
Carver State Bank: Carver State Bank is a Black-owned bank with a second chance checking account and a first-time checking account. However, the bank only serves residents in Savannah, Georgia.Citizens National Bank: Citizens National Bank is a community development financial institution. The bank’s CleanSlate Program lets you open a second chance checking and savings account, but you’re eligible only if you live in Mississippi. Commonwealth National Bank: This Black-owned bank might be a good option if you live in Mobile, Alabama. There’s an $8.95 monthly service fee on the second chance checking account that can’t be waived, though. First Independence Bank: First Independence Bank is a Black-owned bank in Michigan. The bank’s second chance checking account is only accessible if you live in Detroit and Clinton Township.First Imperial Credit Union: The Hispanic American-led credit union’s Opportunity Checking Account is available to anyone who struggles to open a traditional checking account. You’ll be eligible for the account if you or a family member live in specific areas in Southern California.GECU: GECU is a Hispanic American-led credit union with 12 branches in El Paso, Texas. You may like the bank’s second chance checking account if you’d like an account with a low minimum opening deposit, but bear in mind the second chance checking account has a $15 monthly service fee.Guadalupe Credit Union: This Hispanic American-led bank might be worthwhile if you want to open a second chance checking account with zero minimum balance requirements. To qualify for membership at Guadalupe Credit Union, you or a family member must live in a specific New Mexico county. Hope Credit Union: Hope Credit Union is a Black-owned credit union, and it might be worth looking into if you live in Alabama, Arkansas, Louisiana, Mississippi, and Tennessee. There’s a $9.95 monthly service fee with the bank’s second chance checking account, though. OneUnited Bank: OneUnited Bank is the largest Black-owned bank in the US and it offers online accounts. The bank’s second chance checking account has a low minimum opening deposit, but there’s a monthly service fee of over $5 if you don’t meet certain requirements. Rio Bank: Rio Bank is a Hispanic American-led bank in Texas. It only serves a few cities in Texas, while some of our top picks are more available in more areas. River City Federal Credit Union: This Hispanic American-led credit union could be a decent choice if you’d like to open a second chance checking account with a debit card. To qualify for the credit union, you must live, work, or go to school in Bexar County, Texas.St. Louis Community Credit Union: St. Louis Community Credit Union is a Black-led financial institution with 17 branches in Missouri. You might find the bank’s second chance checking account appealing if you’d like a bank account with checks and a debit card. To open an account, you must meet the bank’s membership requirements. Sun Community Federal Credit Union: You might like Sun Community Credit Union if you’d like to open a second chance bank account and live, work, or volunteer in Imperial or Coachella Valley, California. If you don’t live in the area, you can’t become a member of the credit union. Transit Employees Federal Credit Union: TEFCU is a minority-led credit union that might be worth exploring if you live in Virginia and Washington, DC. You’ll need to meet the credit union’s membership requirements to open a second chance bank account, though.Wells Fargo: Wells Fargo has the most branches in most US states, but its trustworthiness rating is lower than some of our top picks. The bank’s second chance checking account also requires a $5 monthly service fee.Woodforest: Woodforest has 17 branches on the East Coast. The bank’s second chance checking account has a low minimum opening deposit, but there’s a $9.95 to $11.95 monthly service fee, depending on whether you receive a monthly direct deposit or not.
Are these banks trustworthy?
The Better Business Bureau assesses businesses based on responses to customer complaints, honesty in advertising, and transparency about business practices.
Below are the BBB ratings of our favorite banking options. Dora Financial is a new online banking platform that hasn’t been rated by the BBB, yet.
We used the BBB rating of USAlliance Financial for Dora Financial since the Dora Financial Everyday Checking Account is federally insured through USAlliance Financial.
InstitutionBBB ratingChimeA+Dora Financial NRDaveBThe First BankA+
Dora Financial and Dave have the lowest grades.
The BBB cites the number of customer complaints filed against the business as the reason for both company’s grades. A poor BBB grade isn’t necessarily the be-all and end-all, though. You might consider reaching out to current customers or reading online customer reviews to get a more well-rounded perspective of each bank.
Only Chime has been involved in a recent public controversy.
The platform previously used the URL “Chimebank.com” and the words “bank” and “banking” but Chime isn’t licensed as a bank. Chime is a banking platform, and is insured by a bank.
Why trust our recommendations?
At Personal Finance Insider, our goal is to create useful content that helps you make good decisions about your money. We recognize every person has distinct preferences, so we provide ample options to help you find the most suitable financial product or account.
We research extensively to make sure you know the standout features and limitations of a financial institution.
How did we choose the best second chance bank accounts?
First, we researched to find financial institutions that offered second chance bank accounts. We looked at our Hispanic American-owned banks and credit unions state guide, our Black-owned banks and credit unions state guide, best banks of 2022 guide, and CDFI reviews to compile a list of institutions to consider.
Then, we reviewed second chance bank accounts to find the most-well rounded banking options. Our top picks have low minimum opening deposits and low monthly services fees. Several of our favorite accounts can be easily opened from anywhere in the US.
Frequently asked questions
What is a second chance bank account?
A second chance bank account is a unique type of bank account that doesn’t review a person’s past banking history.
Most financial institutions use the credit reporting agency ChexSystems to evaluate a person’s trustworthiness to open a bank account. If you have a negative banking history — for instance, due to paying frequent overdraft fees or monthly service fees — you might be denied from opening up a bank account at some institutions.
Second chance bank accounts, however, allow you to have access to banking tools and services. Usually, banks only offer second chance checking accounts. A few may offer a second chance checking account and savings account, though.
Which bank has the best second chance bank account?
Second chance bank accounts are only available at some banks and credit unions. The best second chance bank account for you will depend on your preferences and where you live.
If you’d like to open a second chance bank account with a brick-and-mortar bank, you might consider looking at regional banks, CDFIs, or minority depository institutions.
If you prefer bank accounts with budgeting tools or strong mobile and online banking, some online banking platforms have second chance bank accounts.
How does a second chance bank account work?
Online institutions usually offer bank accounts that don’t allow you to overdraw from your bank account. They also may not charge any monthly service fees.
Meanwhile, second chance bank accounts at brick-and-mortar banks may have limited banking features to avoid potential bank fees. For example, some accounts will not come with checks or debit cards, so they’re a bit easier to manage.
Second chance bank accounts at brick-and-mortar banks also tend to be temporary banking options. After a certain time — anywhere from a few months to a few years — you’ll be able to open a traditional checking account with the bank.
Experts’ advice on choosing the best account
Insider
To learn more about what makes a good checking account and how to choose the best fit, four experts weighed in:
Tania Brown, certified financial planner at SaverLifeRoger Ma, certified financial planner with lifelaidout® and author of “Work Your Money, Not Your Life”Mykail James, MBA, certified financial education instructor, BoujieBudgets.comLaura Grace Tarpley, editor of banking, Personal Finance Insider
Here’s what they had to say about checking accounts. (Some text may be lightly edited for clarity.)
How can someone determine whether a bank is the right fit for them?
Tania Brown, CFP:
“Obviously, you want to make sure it’s FDIC insured. Also, your banking experience — do you like walking into a bank? Well, then you need someone local.
Do you just not care if you ever see your bank? Then you’re okay online. Do you write checks? Do you not write checks? So it’s thinking through how your experience with it is going to be before you make that decision.”
Laura Grace Tarpley, Personal Finance Insider:
“I would look for the bank that charges you the least in fees. This means either no monthly fees, or you qualify to waive the monthly fees. If you expect to travel in retirement, you may want a bank that doesn’t charge foreign transaction or ATM fees.”
What should someone look for in a brick-and-mortar bank?
Tania Brown, CFP:
“How can that bank grow with you? If you are 25, single, or newly married, and all you need is a checking account, that’s going to look very different 15 years from now when you may have had a couple of jobs, you may have an IRA roll over, or you may want a financial adviser.”
Mykail James, CFEI:
“How accessible it is. So where are the branches? And if I am to go out of town or something, how accessible is my money to me?”
What should someone look for in an online bank?
Roger Ma, CFP:
“How onerous the transfer process is, transferring money in and transferring money out. Is it same day, next day? Is it pretty easy to sync a brick-and-mortar checking account to this particular high-yield savings account?”
Mykail James, CFEI:
“When it comes to online banks, you want to be a little bit more strict about what type of interest rates they’re providing. That’s the biggest thing because online banks are supposed to have the higher interest rate because they don’t have the overhead of the brick-and-mortar. You want to make sure that it’s well above the national average.
“What types of securities do they provide? Do they have two-factor identification? If it’s an online bank, they should definitely have — at the bare minimum — two-factor authentication in how easy it is to change your passwords and things like that, because you want to be a little more hypersensitive about the cyber security for a strictly online bank.”