Best Checking Accounts in South Dakota for 2024
Are you looking for a checking account? Have you been banking with a large national bank and are thinking about options based in your community?
If so, continue reading this page. We look at the best checking accounts in South Dakota to give you an idea of what they have to offer.
Also, we provide information about online checking accounts so you can compare virtual and traditional options.
Compare South Dakota and Online Checking Accounts
Finding the right bank in South Dakota is not something to be taken lightly. Traditional banks are good for consumers with certain needs, while online banks are better for others.
The comparison below will give you an idea of what you can expect from both online and brick-and-mortar financial institutions.
Convenience and Service
- Online banks: Convenience is a major reason why people choose online banks. You can easily do transactions virtually, such as making transfers from one account to another, through a website or mobile app. Customer service can be conveniently reached through online chat or by phone. In some cases, customer service may be available 24 hours a day.
- Physical banks: Physical banks are not necessarily as convenient as you would like. Although you can easily do transactions online through a traditional bank’s website or mobile app, you may not be able to reach customer service easily. Traditional banks don’t have customer service hours that are as long as online banks, so it may be challenging to speak to someone about your account, especially on workdays. However, if you prefer in-person customer service, the shorter hours may be a tradeoff that you’re willing to make.
Fees
- Online banks: Since online banks don’t have the expense of maintaining physical locations, they are able to pass savings onto their customers, and one way they do this is by charging low fees. In some cases, you may not be charged fees at all.
- Physical banks: Physical banks may charge high fees. However, in some cases, you may be able to have certain charges waived, such as monthly maintenance and ATM fees.
Interest Rates
- Online banks: Interest rates are another area where online banks use their lower overhead to benefit customers. As a result, you may enjoy a more attractive interest rate when you have an account at an online bank.
- Physical banks: The interest rates at physical banks tend to be low, though you may be able to find some companies that offer higher rates than others.
Withdrawals and Deposits
- Online banks: Online banks allow you to deposit electronically. You can make withdrawals at ATMs.
- Physical banks: You can make withdrawals and deposits at ATMs and a branch. You can also make online transfers into your bank account.
Best Checking Accounts in South Dakota
What are the best checking accounts in South Dakota?
Although community banks may offer checking accounts, there are some differences between them. Below, we look at three banks to give you an idea of how local banks offering checking accounts may differ.
Dacotah Bank
Dacotah Bank has a variety of checking accounts for consumers to choose from. The Free Checking and Debit account comes with a Visa debit card, online and mobile banking, 24/7 phone banking, and 12 free bill payments each month.
If you want a more environmentally friendly option, the Green Checking and Debit account allows customers to have a checkless banking experience by making digital and debit card payments. This account also allows people to earn up to $5 per month in rewards on debit card transactions and direct deposits.
First Dakota National Bank
The FirstPartners Checking account from First Dakota National Bank offers unlimited check writing and free checks and images included in monthly statements. Customers can also get bonus rates on CDs, a discount on notary services, and a safe deposit box. However, there is a $25 monthly service charge for those who don’t maintain a $25,000 balance among all of their bank accounts.
Students 23 years old and younger can get the bank’s FirstChoice Checking account, which provides unlimited check writing and debit card purchases. Customers are not required to maintain a minimum balance and are not charged a monthly fee.
Reliabank
Reliabank offers a Free Checking account that provides unlimited check writing. Also, there are no monthly maintenance charges or minimum balance requirements. If you want a little bit more, the bank’s Premium Checking account, which can be opened with a $3,000 deposit, has competitive tiered interest rates. There is a $12 monthly maintenance fee if the balance drops under $3,000.
Easily Compare the Best Checking Accounts Online
Compare rates, fees, accessibility, customer service, and more to find the best checking account for your needs.
Pros & Cons of Local Banks
Now that you’ve looked at some local South Dakota banks, you may want to open an account.
We will discuss the pros and cons of local banks below to help ensure that you make an informed decision.
Pros
- Community-focused: Services are tailored to meet the specific needs of the local community.
- Low Employee Turnover allows for building long-term relationships with staff who understand your needs.
Cons
- Limited Product Offerings: Fewer account types and financial products compared to national banks.
- Potential Lack of Innovation: May not always keep up with the latest banking trends.
Online Checking for South Dakota Residents
Online banking is becoming increasingly common, so you may be wondering if it’s right for you. Below are the online checking accounts for South Dakota residents to find out what these banks offer.
Schwab Bank Investor Checking™
The Charles Schwab Bank High Yield Investor Checking Account stands out for its strong features, particularly appealing to frequent travelers. One of its most notable perks is unlimited ATM fee reimbursements worldwide, making it an excellent choice for those who frequently withdraw cash abroad. The account has no monthly service fees or minimum balance requirements, enhancing accessibility for various users.
It offers a competitive 0.45% APY (as of November 2024) on balances, though this is modest compared to dedicated savings accounts. The account is seamlessly linked to a Schwab brokerage account, which is mandatory to open, providing added convenience for investors but potentially unnecessary for non-investors.
Online and mobile banking tools, including mobile check deposit and intuitive account management, are robust. However, it lacks physical branches for in-person banking needs. Overall, this account is ideal for travelers and investors seeking fee-free convenience and integration with Schwab’s investment platform.
Quontic Bank Checking
The Quontic Bank High Interest checking account is a unique option for those seeking to earn rewards on their checking balances. It offers a competitive interest rate of up to 1.10% APY (as of November 2024) on balances up to $150,000, provided you make 10 qualifying debit card transactions of $10 or more per statement cycle.
The account has no monthly maintenance fees, making it accessible for budget-conscious users. Additionally, it features reimbursement for out-of-network ATM fees up to a monthly limit, enhancing convenience for those frequently on the go.
Quontic is a digital-first bank, so while it lacks physical branches, it offers robust online and mobile banking tools, including mobile check deposit and instant transfers. However, some users may find the debit card transaction requirement restrictive. This account is an excellent choice for tech-savvy customers prioritizing rewards and fee-free banking.
Axos One Checking
The Axos Bank One Checking Account offers a flexible, fee-free option for those who value convenience and rewards. It features no monthly maintenance fees or minimum balance requirements, making it accessible to a wide range of customers.
One of its standout features is its tiered interest rate structure, offering up to 0.50% APY (as of November 2024), depending on account balance levels. This makes it a good choice for customers who maintain higher balances. Additionally, the account includes unlimited domestic ATM fee reimbursements, providing convenience for frequent ATM users.
Axos is a digital bank, so while it lacks physical branches, its robust online and mobile banking services include tools like bill pay, mobile check deposit, and seamless account management. A small drawback is the $250 minimum deposit required to open the account. Axos One Checking is an excellent choice for tech-savvy users seeking interest rewards and fee-free banking.
Pros & Cons of Online Checking Accounts
Online banks do offer benefits, but there can also be drawbacks when working with them. For example, if doing business in person is important to you, an online bank won’t be a good choice because they have no branches. Also, online banks don’t have a local presence, so if doing business with companies that have a stake in the community is something you care about, they won’t fit the bill.
However, there are some positives about doing business with online banks. If you’re not concerned about getting service in person, online banks have customer service available virtually and via phone. In fact, the hours tend to be longer, so it can be much more convenient to get the answers you need about your account. Also, online banks tend to have higher interest rates and lower fees than their brick-and-mortar counterparts.
Pros
- Higher Interest Rates: Typically offer better rates than traditional banks.
- Lower Fees: Often have fewer and lower fees compared to brick-and-mortar banks.
- Extended Customer Service Hours: Virtual and phone support is often available beyond standard banking hours.
Cons
- No Physical Branches: In-person banking services are not available.
- Lack of Local Presence: May not contribute to or have a stake in the local community.
What to Look for When Choosing a Checking Account in South Dakota
As you can see from the overviews of online and community banks on this page, different organizations provide different services and perks. To explore more of these differences, consider some of the qualities you should look for when deciding where to open a checking account.
Monthly Fees
Monthly fees may be high depending on which bank you choose. However, in some cases, banks will waive these charges if you maintain a certain balance in your account. However, the best checking accounts in South Dakota don’t charge monthly fees at all.
Other Fees
Other bank fees charged may include ATM, overdraft, international transaction, and bounced check fees. The best banks will charge no fees or allow you to waive them. For example, if you make withdrawals at out-of-network ATMs, some banks will waive a certain number of fees every month.
ATM and Branch Access
A large network of ATMs is not only convenient, but it can also help you avoid being charged fees. Checking accounts with the most ATMs and branches give you the most convenient access to your funds and provide the most favorable customer experience.
Interest Rates or Bonuses
Interest is generally not offered for checking accounts, so when you find a bank that offers this benefit, it’s worth looking at. You can maximize your account by finding a bank that offers the highest interest rates and perks. For example, some banks allow you to earn rewards on your debit card purchases.
Mobile Banking Apps
Mobile banking access can further make your banking experience more convenient. Banks that offer apps may provide various levels of convenience, however. In some cases, banks may have a basic app that only allows you to check your balance or transfer from one account to another. In other cases, you may be able to take advantage of personal finance tools within a bank’s app, so you can do more to reach your financial goals.
What to Know About South Dakota Checking Accounts
- In South Dakota, a bank can pay out on a check that has been post-dated before the date written on the check.
- Banks are not obligated to pay more than six months old checks.
- It is a misdemeanor for a bank employee to certify a check if the customer doesn’t have the funds in their account to cover it.
