What we verified in “No-overdraft-fee bank accounts: what Bank On means”

Statements and where we checked them

The statements with rules, figures or dates, with the exact place in the source and the date we checked them.

1. According to the FDIC, having a deposit account with a bank can save you check-cashing fees; depositing checks is free in a bank and paying bills can be cheaper without money orders; and establishing a relationship with a bank through a deposit account can be a first step that leads to other financial products.

   Sources 1 · #GetBanked, Why bank?: 'Having a deposit account with a bank can offer you savings from check-cashing fees'; 'Depositing checks is free in a bank'; 'Paying bills can be cheaper without money orders'; 'Establishing a relationship with a bank through a deposit account can be a first step that can lead to other financial products' · Checked October 17, 2026

2. The FDIC explains that certified Bank On accounts have low and transparent costs and do not allow overdraft or insufficient fund fees; that Bank On is one of the organizations with lists of banks where you can open an account online with a low opening deposit; and that many banks let you open an account even if you are not a U.S. citizen, with other forms of identification such as a foreign passport, a consular ID or an ITIN.

   Sources 1 · #GetBanked, Frequently asked questions and Find a bank: 'have low and transparent costs'; 'allow overdraft or insufficient fund fees'; 'These organizations also have lists of banks where you can open an account online with a low opening deposit'; 'many banks allow you to open an account even if you'; 'like a foreign passport, a consular ID, or Individual Taxpayer' · Checked October 17, 2026

3. FDIC deposit insurance covers $250,000 per depositor, per FDIC-insured bank, for each account ownership category (for example, single or joint); it covers checking, savings and money market deposit accounts and certificates of deposit, but not stocks, bonds, mutual funds, annuities or crypto assets, even when an insured bank sells them; it only covers deposits, and only if the bank is FDIC-insured, which you can check with the BankFind Suite tool.

   Sources 2 · Understanding Deposit Insurance (last updated April 1, 2024): 'FDIC deposit insurance covers $250,000 per depositor, per FDIC-insured bank, for each account ownership category'; 'Single Accounts'; 'Joint Accounts'; 'Checking accounts'; 'Savings accounts'; 'Money market deposit accounts'; 'Time deposits such as certificates of deposit'; 'Stock investments'; 'Bond investments'; 'Mutual funds'; 'Annuities'; 'Crypto assets'; 'it does not cover non-deposit investment products, even those offered by FDIC-insured banks'; 'FDIC deposit insurance only covers deposits, and only if your bank is FDIC-insured'; 'using the BankFind Suite search tool' · Checked October 17, 2026

4. Bank On is the Cities for Financial Empowerment Fund's (CFE Fund) national platform supporting local coalitions and financial institutions in connecting consumers to safe, affordable bank accounts; the CFE Fund developed the Bank On National Account Standards, inspired by the FDIC's Model Safe Accounts Template, and institutions whose accounts meet them can apply free for national certification.

   Sources 3 · About: 'supports local coalition and financial institution efforts to connect consumers to safe, affordable bank accounts'; 'develop the Bank On National Account Standards'; 'Inspired by the Federal Deposit Insurance Corporation'; 'Model Safe Accounts Template'; 'can apply free for national certification' · Checked October 17, 2026

5. The 2025–2026 Bank On National Account Standards set these core features: a checking account (including checkless checking) or prepaid account offered directly by the financial institution; a minimum opening deposit of $25 or less; a monthly fee of $5 or less if it cannot be waived, or $10 or less if it can, with at least two options to waive it entirely with a single transaction (for example, direct deposit with no minimum, online bill pay or a debit card purchase); no overdraft or non-sufficient funds fees; no activation, closure, dormancy, inactivity or low balance fees; free in-network ATMs and an out-of-network fee of $2.50 or less (or up to $3.00 with free access to a partner network); free cash and check deposits in branch and at the ATM (when available) and free direct deposit; free electronic monthly statements and paper ones for $2 or less (if offered); and deposits insured by the FDIC, the NCUSIF or a regulator-sanctioned equivalent.

   Sources 4 · Bank On National Account Standards (2025 – 2026), Core Features: 'Checking account (including checkless checking) or prepaid account'; 'directly offered by financial institution'; 'Minimum Opening Deposit $25 or less'; 'If not waivable: $5 or less'; 'If waivable: $10 or less; offer at least two options to waive fee entirely with a single transaction'; 'direct deposit with no minimum deposit'; 'online bill pay, or debit card purchase'; 'Overdraft or Non-Sufficient Funds (NSF) Fees None'; 'Account Activation, Closure, Dormancy, Inactivity'; 'Low Balance Fees'; 'Free and unrestricted in network'; '$2.50 or less out-of-network fee, or up to $3.00 if also provide free access'; 'Free cash and check deposits in branch and at ATM'; 'free direct deposit'; 'Free electronic; $2 or less for mailed paper'; 'Insured by FDIC, NCUSIF, or regulator-sanctioned equivalent' · Checked October 17, 2026

6. Beyond the core features, the same standards list 'strongly recommended' features: accepting ITINs and government-issued IDs (municipal, consular or other) as primary documentation for opening the account; denying new customers only for past incidents of actual fraud; and giving Bank On account holders access to free savings accounts, reasonably priced small-dollar loans, credit-building products and remittance services.

   Sources 4 · Bank On National Account Standards (2025 – 2026): 'Strongly Recommended Features'; 'Accept ITINs and government-issued IDs (e.g., municipal, consular, other'; 'as primary documentation for account opening'; 'Only deny new customers for past incidences of actual fraud'; 'Offer free savings accounts and reasonably priced small dollar loans'; 'credit building products, and remittance services' · Checked October 17, 2026

7. The Bank On website publishes the list of certified bank and credit union accounts, arranged by state.

   Sources 5 · Accounts: 'Banks and credit unions across the country are joining the Bank On movement'; 'Certified accounts'; 'Branches with certified accounts'; the list runs state by state (Alabama, Alaska…) · Checked October 17, 2026

8. According to the NCUA, a credit union is a not-for-profit financial institution that accepts deposits, makes loans and offers other financial services; it is owned and controlled by its members; members share a common bond, and you may be able to join through your employer, your family, where you live, work, worship or attend school, or a group you belong to; on average, credit unions offer higher savings rates and lower loan rates, and they tend to charge lower fees and require lower deposit balances.

   Sources 6 · What is a Credit Union? (MyCreditUnion.gov, last modified February 4, 2025): 'A credit union is a not-for-profit financial institution that accepts deposits, make loans'; 'Credit unions are owned and controlled by their members'; 'Members of a credit union share a common bond'; 'Many employers sponsor their own credit unions'; 'families to join'; 'Many credit unions serve anyone that lives, works, worships or attends school in a particular geographic area'; 'Membership in a group, such as a place of worship, school, labor union'; 'On average, credit unions offer higher saving rates and lower loan rates'; 'Credit unions also tend to charge lower fees, require lower deposit balances' · Checked October 17, 2026

9. According to the NCUA, share insurance is automatic when you join a federally insured credit union, and each member has at least $250,000 in total coverage for share accounts; the Share Insurance Fund (NCUSIF) is backed by the full faith and credit of the United States government; some state-chartered credit unions carry private insurance without that backing; federally insured credit unions must prominently display the official NCUA insurance sign; and the Find a Credit Union tool lets you search for credit unions and check whether one is federally insured.

   Sources 7 · Share Insurance (MyCreditUnion.gov, NCUA): 'Credit union members do not need to apply for share insurance coverage as it is provided automatically when they join a federally insured credit union'; 'Each credit union member has at least $250,000 in total coverage for share accounts held at a federally insured credit union'; 'backed by the full faith and credit of the United States government'; 'Some deposits at state-chartered credit unions are insured by private insurers'; 'not backed by the full faith and credit of the United States government'; 'Federally insured credit unions must prominently display the official NCUA insurance sign'; 'use our Find a Credit Union function' · Checked October 17, 2026

10. The CFPB's account-opening checklist says the bank or credit union verifies your name, date of birth, address and an identification number, which can be a Social Security number, an ITIN, a passport number and country of issuance, an alien identification card number or another government-issued identification number; that many banks require a U.S. or state government photo ID, and if you do not have one some banks and credit unions accept foreign passports and consular IDs such as the Matricula Consular, each with its own policy; that you generally also need a second ID (a Social Security card, a bill with your name and address, or your birth certificate); that interest is money subject to tax, so an interest-bearing account requires a Social Security number or ITIN, and without one you may only be able to open a no-interest account; and that you should ask about the minimum balance to avoid monthly fees, monthly fees, whether direct deposit waives them, per-check or transaction fees, ATM fees, the cost of online and mobile banking and bill pay, overdraft or insufficient fund fees and ways to opt out, and low balance alerts.

    Sources 8 · Checklist for opening a bank or credit union account (A Newcomer's Guide to Managing Money, 3/2021): 'can verify your name, date'; 'passport number and country'; 'alien identification card number'; 'other government-issued identification number'; 'Many banks require you to show a U.S. or state'; 'credit unions accept foreign passports and'; 'consular IDs, such as the Matricula Consular card'; 'each bank or credit union has its own policy on what foreign IDs it accepts'; 'A second form of identification: Your Social Security card, a bill with your name and address on it, or your birth certificate'; 'interest is money that is subject to tax'; 'to open an interest-bearing account, you need a Social Security number or ITIN'; 'without this, you may be able to open a no-interest account only'; 'Minimum balance required to avoid monthly service fees'; 'Monthly maintenance or service fees'; 'Direct deposit and whether it eliminates the monthly fee'; 'Per-check or transaction fees'; 'Fees for using automated teller machines'; 'Online and mobile access to paying bills and any costs'; 'Overdraft or insufficient fund fees and ways to opt out'; 'Low balance alert notifications' · Checked October 17, 2026

11. According to the CFPB, if you do not have a bank account you might have to pay to cash your paychecks, while a bank or credit union where you have an account generally cashes them for free; with cash you have no record of payment, which can be important for bills; and many payroll cards and prepaid cards charge fees for inactivity, purchases, ATM use, monthly fees and more.

    Sources 9 · Ways to receive your money (A Newcomer's Guide to Managing Money, 8/2022): 'you might have to pay to cash your paychecks'; 'A bank or credit union where you have an account generally cashes'; 'have a record of payment, which can be important for bills'; 'Many cards charge fees for inactivity'; 'purchases, ATM use, monthly fees, and' · Checked October 17, 2026

12. The CFPB explains that most prepaid cards charge fees to do things like maintain your account, make purchases or withdraw money, and that your employer cannot force you to use a payroll card to receive your wages.

    Sources 10 · Prepaid cards and other prepaid accounts (last modified September 25, 2026): 'Most prepaid cards charge fees to do things like maintain your account, make purchases or withdraw money'; 'your employer cannot force you to use a payroll card to receive your wages' · Checked October 17, 2026

13. According to the CFPB, its prepaid rule requires prepaid card providers to give you information about fees before you choose a card; registering the card is necessary for FDIC or NCUA insurance (if the card offers it); generally you cannot spend more money than you have loaded onto the card; and you may want to consider alternatives, such as a bank account.

    Sources 11 · Choose the right card for your situation (last modified December 12, 2024): 'prepaid rule requires prepaid card providers to give you information about fees before you choose a card'; 'Registration is also necessary for FDIC or NCUA insurance (if it is offered for your card)'; 'spend more money than you have already loaded onto your prepaid card'; 'You may want to consider alternatives, such as a bank account' · Checked October 17, 2026

14. The CFPB describes a bank or credit union account as generally considered one of the safest places to put your money; warns that cash can be stolen, lost or destroyed; and suggests saving automatically with recurring transfers through your bank or credit union.

    Sources 12 · An essential guide to building an emergency fund (last modified October 29, 2025): 'generally considered one of the safest places to put your money'; 'cash can be stolen, lost, or destroyed'; 'set up recurring transfers through your bank or credit union' · Checked October 17, 2026

15. According to Fannie Mae's Selling Guide, the lender verifies that you have sufficient funds for closing, the down payment and reserves; one way is with copies of your bank statements, which must clearly identify the financial institution and you as the account holder and include all deposits and withdrawals; for a purchase, they must cover the most recent full two-month period of account activity.

    Sources 13 · Selling Guide B3-4.2-01, Verification of Deposits and Assets (May 4, 2022): 'verify that a borrower has sufficient funds for closing, down payment, and/or financial reserves'; 'Copies of bank statements or investment portfolio statements'; 'clearly identify the financial institution'; 'clearly identify the borrower as the account holder'; 'include all deposits and withdrawal transactions'; 'The statements must cover the most recent full two-month period of account activity' · Checked October 17, 2026

16. According to the CFPB, federal law defines remittance transfers as electronic transfers of more than $15 sent by consumers in the United States to people or companies in foreign countries through a remittance transfer provider; the provider must tell you the fees and taxes it collects, the exchange rate and the amount expected to be delivered; the law generally requires it to use your language on receipts and disclosures if it uses your language in its advertising where you made the transfer; you have 180 days to report a mistake, starting from the date the provider disclosed as the date the money would be available, and the provider generally has 90 days to investigate.

    Sources 14 · What is a remittance transfer and what are my rights? (last reviewed October 3, 2024): 'electronic transfers of more than $15, sent by consumers in the United States to people or companies in foreign countries'; 'Fees and taxes they collect from you'; 'The exchange rate that applies to the transfer'; 'The amount of money expected to be delivered'; 'use your language on receipts and other disclosures if it uses your language in its advertising, sales, or marketing materials where you made the transfer'; 'You have 180 days to notify the remittance provider of a mistake'; 'starting from the date disclosed by the remittance transfer provider as the date when the money will be available'; 'generally have 90 days to investigate the matter' · Checked October 17, 2026

17. Under Regulation E, the remittance provider generally gives you in writing, when you ask for the transfer and before you pay, a disclosure of the amount transferred, the fees and taxes it collects, the total, the exchange rate and the amount the recipient will receive; and when you pay, a receipt with that information plus the date the money will be available and your rights on errors and cancellation.

    Sources 15 · 12 CFR §1005.31(a)(2), (b)(1), (b)(2) and (e): 'generally must be provided to the sender in writing'; 'Pre-payment disclosure'; 'The amount that will be transferred to the designated recipient'; 'Any fees imposed and any taxes collected on the remittance transfer by the provider'; 'The total amount of the transaction'; 'The exchange rate used by the provider for the remittance transfer'; 'The amount that will be received by the designated recipient'; 'The date in the foreign country on which funds will be available to the designated recipient'; 'A statement about the rights of the sender regarding the resolution of errors and cancellation'; 'must be provided to the sender when the sender requests the remittance transfer, but prior to payment for the transfer'; 'generally must be provided to the sender when payment is made for the remittance transfer' · Checked October 17, 2026

18. Under Regulation E, if you ask to cancel a remittance no later than 30 minutes after you pay, with details that let the provider identify you and the transfer, and the money has not been picked up or deposited into the recipient's account, the provider must refund, at no additional cost, everything you paid, fees included, within three business days; transfers scheduled in advance follow a separate rule.

    Sources 16 · 12 CFR §1005.34(a) and (b): 'Except as provided in'; 'no later than 30 minutes after the sender makes payment in connection with the remittance transfer'; 'enables the provider to identify the sender'; 'The transferred funds have not been picked up by the designated recipient or deposited into an account of the designated recipient'; 'shall refund, at no additional cost to the sender, the total amount of funds provided by the sender'; 'including any fees'; 'within three business days of receiving a sender' · Checked October 17, 2026

19. The CFPB explains that because you receive the cost information before you send the money, you can shop around and compare costs with other companies; that if you have a problem with a transfer you should contact the company right away; and that if you already tried and it was not resolved, you can submit a complaint with the CFPB.

    Sources 17 · Problems sending money to another country? (last modified December 12, 2024): 'Since you receive this information before you send the money, you can shop around and compare costs with other companies'; 'If you are having a problem with a money transfer, contact the company right away'; 'you can submit a complaint with the CFPB' · Checked October 17, 2026

20. By federal law, remittance transfers made after December 31, 2025 carry a tax of 1% of the amount, paid by the sender, but only when the sender gives the provider cash, a money order, a cashier's check or another similar physical instrument; the tax does not apply when the funds are withdrawn from an account at a financial institution the law lists, or when the transfer is funded with a debit or credit card issued in the United States.

    Sources 18 · 26 U.S.C. §4475(a)–(d) and effective-date note (Pub. L. 119-21, §70604(c)): 'There is hereby imposed on any remittance transfer a tax equal to 1 percent of the amount of such transfer'; 'shall be paid by the sender'; 'shall apply only to any remittance transfer for which the sender provides cash, a money order'; 'or any other similar physical instrument'; 'withdrawn from an account held in or by a financial institution'; 'funded with a debit card or a credit card which is issued in the United States'; 'shall apply to transfers made after December 31, 2025' · Checked October 17, 2026

21. The list of financial institutions that the law points to includes FDIC-insured banks and any credit union.

    Sources 19 · 31 U.S.C. §5312(a)(2)(A) and (E): 'an insured bank (as defined in section 3(h) of the Federal Deposit Insurance Act'; 'any credit union' · Checked October 17, 2026

22. HUD-approved housing counselors provide independent advice on buying a home, renting, defaults and credit issues, often free or at low cost.

    Sources 20 · Find a Housing Counselor: 'advice on buying a home, renting, defaults, forbearances, foreclosures, and credit issues'; 'often at little or no cost to you' · Checked October 17, 2026