Most checking accounts don't require a monthly fee, but some banks charge one unless you meet certain conditions
Whether you pay a monthly fee depends on the bank and the account type you choose. Many banks offer free checking accounts with no monthly charge at all. Others charge a fee—typically $5 to $15 per month—but waive it if you meet requirements like keeping a minimum balance, setting up direct deposit, or maintaining a certain number of debit card transactions each month.
The fee structure varies widely. A bank might charge $12 a month unless you have $1,500 in the account at all times, or unless you receive at least one direct deposit per month. Some banks charge nothing regardless of balance or activity. Online banks and credit unions often have lower or no monthly fees compared to large national banks.
Before opening an account, you should know exactly what the fee is, when it's charged, and what would waive it. This information is in the account's fee schedule, which banks must provide before you open the account.
Key Takeaways
- Free checking accounts exist at many banks and credit unions, with no monthly fee under any circumstance.
- Banks that charge monthly fees often waive them if you maintain a minimum balance, set up direct deposit, or meet a transaction threshold.
- The fee schedule is a document the bank must give you before you open the account, and it lists every fee and the conditions that waive it.
- Online banks and credit unions tend to have lower monthly fees or no fees at all compared to large national banks.
- If your account starts charging a fee after you open it, the bank must notify you in writing at least 30 days before the change takes effect.
How monthly fees work and what waives them
A monthly maintenance fee is charged on a set day each month—usually the first or the last day. The bank deducts it directly from your account balance. The amount ranges from $5 to $15 at most banks, though some specialty accounts charge more.
Most banks that charge a fee offer at least one way to avoid it. Common waivers include:
- Maintaining a minimum balance (often $500 to $2,500)
- Receiving at least one direct deposit per month
- Making a certain number of debit card purchases or transfers each month (often 10 or more)
- Keeping a linked savings account open at the same bank
- Being a student, senior, or military member (age or status-based waivers)
If you meet even one of these conditions, the fee is waived that month. You don't have to meet all of them. The bank's fee schedule will list which waivers apply to your specific account type.
Free checking accounts: where to find them
Many banks and credit unions offer checking accounts with no monthly fee and no minimum balance requirement. These accounts charge nothing regardless of how much money you keep in them or how often you use the account.
Online banks are particularly likely to offer free checking. Banks like Ally, Charles Schwab, and Discover have no monthly fees and no minimum balance. Credit unions also frequently offer free checking to members. Large national banks like Chase, Bank of America, and Wells Fargo do charge monthly fees on most accounts, but they often have a free option if you meet their conditions.
To find free checking, search for "free checking account" plus your state or region, or call local credit unions to ask what they offer. Compare the fee schedules of at least two or three banks before deciding.
Other fees beyond the monthly charge
The monthly fee is separate from other charges you might encounter. Banks also charge fees for overdrafts (spending more than your balance), ATM withdrawals at out-of-network machines, wire transfers, and returned checks. These are one-time fees, not monthly charges.
The fee schedule will list all of these separately. A free checking account might have no monthly fee but still charge $35 for an overdraft. Conversely, an account with a $10 monthly fee might have lower overdraft fees or no overdraft fees at all. Read the entire fee schedule, not just the monthly charge line.
What happens if a bank adds or changes a monthly fee
Banks can change their fees, but they must notify you in writing at least 30 days before the change takes effect. The notice will come by mail or email, depending on how you receive statements. It will explain the new fee, when it starts, and any conditions that waive it.
If you disagree with the new fee, you have options. You can close the account and move to a different bank before the fee takes effect. You can also contact the bank and ask whether you may have access to for a waiver based on your account activity or balance. Some banks will negotiate or grandfather existing customers into the old terms.
How to read a fee schedule
The fee schedule is a one- or two-page document that lists every charge the bank can impose on your account. It's organized by category: monthly maintenance, overdrafts, ATM fees, wire transfers, and so on. Each fee has a dollar amount and, if applicable, the conditions that waive it.
When you're comparing accounts, pull up the fee schedule for each one and look for the line labeled "Monthly Maintenance Fee" or "Account Maintenance Fee." Check whether it's $0 or a dollar amount. If it's not $0, read the next line or section to see what waives it. If the waiver conditions don't apply to your situation—for example, you don't receive direct deposit and can't maintain a $2,000 balance—then you will pay that fee every month.
You can request a fee schedule before opening an account. Banks are required to provide one, and most post it on their website. If you can't find it online, call the bank and ask them to email or mail it to you.
Checking accounts at credit unions vs. banks
Credit unions are nonprofit organizations owned by their members. They often charge lower fees than banks because they don't need to generate profit for shareholders. Many credit unions offer free checking with no monthly fee and no minimum balance.
To join a credit union, you typically need to live or work in a certain area, belong to a specific employer or organization, or meet another membership requirement. Once you're a member, you can open a checking account. Credit unions also tend to have lower overdraft fees and fewer restrictions on account features.
If you're not currently a member of a credit union, search online for "credit unions near me" or visit CO-OP.org to find one you might be able to join. Many credit unions have reciprocal agreements that let you use other credit unions' ATMs without a fee.
Frequently Asked Questions
Can a bank charge a monthly fee if I don't use the account?
Yes. Most banks charge the monthly fee regardless of whether you make any transactions. The fee is based on account maintenance, not activity. However, many banks waive the fee if you maintain a minimum balance, so if you keep money in the account, you won't be charged even if you never use it.
What if I can't meet the waiver conditions?
If you can't maintain the minimum balance or don't receive direct deposit, you will pay the monthly fee. In that case, look for a bank or credit union that offers free checking with no conditions. Many do, and switching accounts is free.
Do online banks charge monthly fees?
Most online banks do not charge monthly fees. Because they have lower operating costs than brick-and-mortar banks, they can offer free checking. However, always check the fee schedule before opening an account, as policies vary.
If I close my account, do I owe the monthly fee?
No. Once you close the account, the bank stops charging fees. If you close the account before the monthly fee is charged, you won't owe it. If the fee was already charged that month, you keep the money in the account until you withdraw it.
Can I negotiate a monthly fee waiver?
Sometimes. If you have a long history with the bank or maintain a large balance, you can call and ask whether they'll waive the fee. Banks are more likely to negotiate with customers who have multiple accounts or significant deposits. It doesn't hurt to ask, but there's no may provide.