4 Best Second Chance Banks of June 2023

Our experts answer readers’ banking questions and write unbiased product reviews (here’s how we assess banking products). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.

If a bank previously closed your account due to a negative bank account history, you might not be able to open a bank account at some financial institutions.

Select financial institutions, however, provide second chance bank accounts so you still have access to banking services regardless of what happened in your past. We’ve reviewed over a dozen institutions and here are our picks for the best checking accounts for people who have a negative banking history.

4 Best Second Chance Banks

• Chime Savings Account
• Dora Financial Everyday Checking Account
• Dave Spending Account
• TheFirst Step Checking

All of the financial institutions on our list are protected by FDIC or NCUA insurance. Although First Republic Bank was recently shut down, bear in mind your money is safe at a federally insured financial institution. When a financial institution is federally insured, up to $250,000 per depositor is secure in a bank account.

Compare Second Chance Bank Accounts

Expert Advice on Choosing the Best Bank Account

To learn more about what makes a good bank or credit union and how to choose the best fit, four experts weighed in:

How can someone determine whether a bank is the right fit for them?

Mykail James, MBA, certified financial education instructor, BoujieBudgets.com:

“The No. 1 thing about a checking account is you should know what provider the debit card is coming from. And a lot of people don’t think about that, because there are places that don’t accept MasterCard or don’t accept an Amex.”

Tania Brown, certified financial planner at SaverLife:

“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.”

What should someone look for in an online bank?

Tania Brown, CFP:

“With an online bank, absolutely online customer service, because you do not have the advantage of walking inside and talking to a human being. How often are you able to get them? What are their hours?”

Roger Ma, certified financial planner with lifelaidout® and author of “Work Your Money, Not Your Life”:

“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?”

What should someone look for in a second chance bank account? 

Sophia Acevedo, CEPF:

“Some second chance bank accounts may not have checks or a debit card so you can avoid overdrawing from an account. I would also check to see if the bank lets you upgrade to a regular bank account for maintaining a positive balance on a second chance bank account for a certain period of time.”

Methodology: How Did We Choose the Best Second Chance Bank Accounts?

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.

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 2023 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.

See our full ratings methodology for checking, business checking, savings, and money market accounts »

Second Chance Bank Accounts: Frequently Asked Questions

Chime Checking and Savings Account

Why both stand out: Chime checking accounts and savings accounts 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 Everday 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 Step Checking 

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. TheFirst Step Checking 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, Mississippi, Florida, 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.

Bank Trustworthiness and BBB Ratings

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. 

Dora Financial, Chime, and Dave have the lowest grades.

The BBB cites the number of customer complaints filed against the business as the reason for the three companies’ 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.