Frost Bank's Checking Account Fees
Frost Bank does charge monthly maintenance fees on most of its checking accounts, but the amount depends on which account you open and whether you meet certain conditions. The most common Frost checking account, called the Frost Checking account, carries a $10 monthly fee that you can waive by maintaining a minimum daily balance of $500 or by setting up direct deposit.
Frost also offers the Frost Premium Checking account, which has a $25 monthly maintenance fee. This account waives the fee if you keep a $2,500 minimum daily balance or maintain $50,000 in combined Frost deposits and investments. The Frost Student Checking account is free for students under 25 and has no monthly maintenance fee, though this benefit ends when you turn 25 or graduate, whichever comes first.
Beyond the monthly maintenance fee, Frost charges for specific transactions and services. Out-of-network ATM withdrawals cost $2.50 per transaction, overdraft fees run $35 per occurrence, and wire transfers cost $15 for domestic wires and $45 for international ones. Cashier's checks are $5 each, and stop payment requests are $30.
Key Takeaways
- Frost Checking charges $10 per month but waives the fee if you keep $500 in your account or set up direct deposit.
- Frost Premium Checking costs $25 monthly and requires either a $2,500 balance or $50,000 in combined Frost accounts to avoid the fee.
- Frost Student Checking is free until you turn 25 or graduate, then converts to a standard account with regular fees.
- Out-of-network ATM withdrawals, overdrafts, wire transfers, and other services carry separate charges beyond the monthly maintenance fee.
- You can avoid most fees by meeting balance requirements or using Frost's in-network ATMs and direct deposit services.
How to Waive Frost's Monthly Checking Fee
The easiest way to avoid Frost's $10 monthly fee on Frost Checking is to set up direct deposit. This means having your employer or another source (like Social Security or a pension) deposit money directly into your Frost account. You do not need a minimum amount deposited—even a small direct deposit counts toward waiving the fee.
If direct deposit is not an option, you can waive the fee by maintaining a $500 minimum daily balance. This means your account balance must stay at or above $500 every day of the month. If your balance dips below $500 on even one day, the monthly fee applies. For Frost Premium Checking, the threshold is $2,500 daily, or you can meet the fee waiver by holding $50,000 across all your Frost accounts combined.
Some customers find it simpler to just pay the $10 monthly fee rather than manage a balance requirement. The choice depends on your spending habits and how much you typically keep in checking.
Other Frost Checking Fees to Watch For
Frost charges $35 each time your account overdraws—that is, when you spend more than your balance and Frost covers the difference. Multiple overdrafts in one day can each trigger a separate $35 fee. Frost does offer overdraft protection, which links your checking account to a savings account or credit line, but you pay a fee for that service as well.
Using an ATM outside Frost's network costs $2.50 per withdrawal. Frost has a large ATM network across Texas and some other states, so you may be able to avoid this fee by finding a Frost ATM. If you need cash from a non-Frost ATM, the other bank may also charge you a fee on top of Frost's $2.50.
Wire transfers, cashier's checks, and stop payment requests each carry their own fees. If you need to send money to another bank account, a domestic wire costs $15 and an international wire costs $45. Requesting a cashier's check is $5, and asking Frost to stop payment on a check you wrote is $30.
Comparing Frost Checking to Other Banks
Frost's $10 monthly fee is higher than some national banks offer. Many online banks and credit unions have no monthly maintenance fee at all, though they may charge for overdrafts or out-of-network ATM use just as Frost does. If you live in Texas or another state where Frost operates, the trade-off is access to physical branches and a large ATM network, which online banks do not provide.
If you can meet Frost's direct deposit or balance requirement, the $10 fee disappears, making Frost competitive with banks that charge nothing upfront. The Premium Checking account at $25 monthly is harder to justify unless you use the extra benefits it includes, such as higher interest rates on savings or discounts on other Frost products.
Before opening a Frost account, compare the total cost of fees you expect to pay—monthly maintenance, overdrafts, ATM use, and any services you plan to use regularly—against what other banks in your area charge for the same services.
How Frost Calculates Your Daily Balance
Frost uses the daily balance method to determine whether you meet the minimum balance requirement to waive your monthly fee. This means the bank looks at your account balance at the end of each day of the month. If your balance stays at or above $500 every single day, you waive the $10 fee. If it drops below $500 on even one day, you owe the full monthly fee.
This matters because a large deposit late in the month does not help you if your balance was low earlier. For example, if you receive your paycheck on the 28th and your balance was $300 on the 27th, you still owe the $10 fee for that month. You would need to keep the balance above $500 from the first day of the month forward.
Direct deposit is simpler because it does not depend on maintaining a balance. Once you set it up, the fee waiver applies automatically each month, regardless of how much money you have in the account.
What Happens If You Cannot Meet Balance Requirements
If you cannot maintain a $500 balance and do not have direct deposit, you will pay $10 per month for Frost Checking. Over a year, that adds up to $120. For some people, this is an acceptable cost for having a physical bank location and access to Frost's ATM network.
If the monthly fee is a problem, consider whether Frost Student Checking fits your situation. If you are under 25, this account is free and has no balance requirement. Once you turn 25 or graduate, it converts to regular Frost Checking with the $10 fee.
Another option is to look for a credit union in your area. Many credit unions have no monthly checking fees and may offer better ATM access through shared branching networks. Credit unions typically require membership, but membership is often free or very low-cost.
Frequently Asked Questions
Can I waive Frost's $10 checking fee without direct deposit?
Yes. Keep a $500 minimum daily balance in your Frost Checking account, and the monthly fee is waived. The balance must stay at or above $500 every day of the month. If it drops below $500 on any day, you owe the $10 fee for that month.
Does Frost charge for overdrafts?
Yes. Each overdraft costs $35. If your account overdraws multiple times in one day, each overdraft may trigger a separate $35 fee. Frost offers overdraft protection by linking your checking to a savings account or credit line, but this service also carries a fee.
What is the difference between Frost Checking and Frost Premium Checking?
Frost Premium Checking costs $25 per month instead of $10 and requires a $2,500 daily balance or $50,000 in combined Frost accounts to waive the fee. It typically includes higher interest rates on savings and other perks. Most people do not need Premium Checking unless they maintain large balances or use multiple Frost products.
Do I have to pay to use Frost ATMs?
No. Using a Frost ATM is free. You only pay $2.50 if you withdraw cash from an ATM that is not part of Frost's network. Frost has a large ATM network across Texas and other states, so you may be able to avoid this fee by finding a Frost location.
Is Frost Student Checking really free?
Yes, Frost Student Checking has no monthly maintenance fee and no balance requirement. This benefit lasts until you turn 25 or graduate, whichever comes first. After that, your account converts to regular Frost Checking with the $10 monthly fee unless you meet a waiver condition.