Most checking accounts do not require you to keep a minimum balance, but some do
Whether a checking account needs a minimum balance depends entirely on the bank and the specific account type you choose. Some banks offer checking accounts with no minimum balance requirement at all. Others require you to maintain a set amount—commonly $500, $1,000, or $2,500—to avoid monthly fees or to earn interest. A few banks tie the minimum to other conditions, like setting up direct deposit or maintaining a linked savings account.
The key is that you have options. If a bank's minimum balance requirement does not fit your situation, you can open an account elsewhere. No law requires checking accounts to have minimums, and competition among banks means plenty of accounts exist without them.
Key Takeaways
- No federal law requires checking accounts to have a minimum balance; the requirement is set by each individual bank.
- Banks that do require minimums typically charge a monthly fee if your balance drops below the stated amount, usually between $10 and $15.
- Online banks and credit unions are more likely to offer checking accounts with no minimum balance than traditional brick-and-mortar banks.
- Some banks waive their minimum balance requirement if you set up direct deposit or keep a linked savings account above a certain balance.
How banks use minimum balance requirements
Banks impose minimum balance requirements for one reason: to offset the cost of maintaining your account. Every account costs the bank money to operate—they process transactions, maintain servers, and staff customer service. A minimum balance requirement is their way of saying you must keep enough money on deposit to justify that cost, or pay a fee instead.
The minimum itself is arbitrary. A bank might set it at $500, $1,000, or $5,000 depending on what they think will cover their costs and still attract customers. Larger minimums are more common at traditional banks; smaller or zero minimums are more common at online banks, which have lower overhead costs.
If your balance falls below the minimum, the bank typically charges a monthly maintenance fee—usually $10 to $15, though some charge more. This fee is separate from overdraft fees or other charges. It simply appears on your statement each month until your balance rises above the minimum again.
Types of accounts with and without minimums
Basic checking accounts at large national banks often have no minimum balance requirement, but they may charge a monthly fee unless you meet other conditions—like setting up direct deposit or maintaining a linked savings account. These accounts are designed for everyday use and are the most common type.
Premium or tiered checking accounts frequently require a minimum balance in exchange for higher interest rates, fee waivers, or other perks. If you maintain the balance, you pay no monthly fee and may earn a small amount of interest. If your balance drops below the minimum, you either pay a fee or your account converts to a basic checking account.
Online checking accounts almost never require a minimum balance because online banks have much lower operating costs than branches. They pass those savings to customers by eliminating minimums and monthly fees entirely.
Credit union checking accounts vary by institution, but many credit unions also offer no-minimum checking. Some require membership fees instead, which you pay once or annually rather than monthly.
What happens if your balance drops below the minimum
If your account has a minimum balance requirement and your balance falls below it, the bank will charge you a monthly maintenance fee. This fee is automatic—you do not have to do anything to trigger it. The fee simply appears on your statement.
The fee does not bring your balance back up to the minimum; it makes the problem worse. If you had $400 in an account with a $500 minimum and a $12 monthly fee, after one month you would have $388. After two months, $376. The fees compound until you deposit more money or close the account.
Some banks offer a grace period—usually a few days—before they charge the fee, giving you time to deposit money if your balance dips temporarily. Check your account agreement to see if yours does.
How to find a checking account that matches your situation
Start by deciding what you actually need from a checking account. If you rarely carry a large balance and want to avoid fees, look for accounts with no minimum requirement. If you have money sitting in savings and want to earn interest, a tiered account with a minimum might make sense.
Online banks are the fastest route to a no-minimum account. Banks like Ally, Charles Schwab, and Discover all offer checking with no minimum balance and no monthly fees. Credit unions often do the same, though you may need to join first.
If you prefer a traditional bank with branches, call or visit their website and ask directly about minimum balance requirements for their basic checking account. Many large banks now offer basic checking with no minimum, though they may push you toward premium accounts that do require one.
Read the account agreement before you open anything. The agreement will state the minimum balance requirement, the monthly fee if you fall below it, and any conditions that waive the fee—like direct deposit or a linked savings account.
Waiving the minimum balance requirement
Many banks will waive their minimum balance requirement if you meet certain conditions. The most common are:
- Setting up direct deposit of your paycheck or other regular income
- Maintaining a linked savings account above a certain balance
- Making a minimum number of debit card transactions per month
- Keeping a credit card with the same bank
- Maintaining a certain total balance across all your accounts at that bank
These waivers exist because banks want to keep your money and your business. If you have direct deposit coming in, they know you are actively using the account. If you have a savings account with them, they have more of your money to lend out. Either way, the bank benefits, so they waive the minimum fee.
Ask about waivers when you open your account. If you can meet one of the conditions, you may be able to use an account that would otherwise charge you a monthly fee.
Comparing accounts side by side
| Account Type | Typical Minimum Balance | Monthly Fee if Below Minimum | Common Waivers |
|---|---|---|---|
| Basic checking (large bank) | $0–$500 | $0–$15 | Direct deposit, linked savings |
| Premium checking (large bank) | $1,000–$5,000 | $20–$35 | None; minimum required |
| Online checking | $0 | $0 | N/A |
| Credit union checking | $0–$500 | $0–$12 | Membership, direct deposit |
Frequently Asked Questions
Can a bank close my account if I do not maintain the minimum balance?
No. A bank can charge you a monthly fee if you fall below the minimum, but they cannot close your account simply because of a low balance. However, if your account remains inactive or overdrawn for an extended period—usually several months—the bank may close it. Check your account agreement for the bank's specific policy on inactive accounts.
What if I cannot afford to keep a minimum balance right now?
Open an account with no minimum requirement. Online banks and many credit unions offer checking accounts with zero minimums and no monthly fees. You can always move to a different account later if your situation changes.
Does a savings account have the same minimum balance rules as checking?
Savings accounts often have different minimum requirements than checking accounts at the same bank. Some savings accounts require a minimum to earn interest, while others do not. Check with your bank about their specific requirements for each account type.
If I have multiple accounts at the same bank, do they count toward the minimum together?
Some banks allow you to link your checking and savings accounts so the total balance across both counts toward the minimum. Others require the minimum to be in the checking account alone. Ask your bank whether they offer linked account minimums before you open your accounts.
Will closing an account hurt my credit score?
Closing a checking account does not affect your credit score because checking accounts do not appear on your credit report. Your credit score is based on credit accounts like credit cards and loans, not deposit accounts. You can close a checking account without any impact on your credit.