Most banks charge nothing to open a checking account, but some charge monthly fees once it's open
Opening a checking account itself is free at nearly every bank, credit union, and online bank in the United States. You walk in, fill out paperwork (or click through an online form), and the account opens. No opening fee. The cost comes later — in monthly maintenance fees that some banks charge to keep the account active, and in overdraft fees if you spend more than you have.
The monthly fee varies wildly. Some banks charge nothing. Others charge $5 to $15 per month. A few charge $25 or more. The fee often disappears if you meet a condition — keeping a minimum balance, setting up direct deposit, or maintaining a certain number of debit card transactions per month. Understanding what you'll actually pay means knowing both the stated fee and what it takes to waive it.
Key Takeaways
- Opening a checking account costs nothing at banks, credit unions, and online banks — the account creation itself has no fee.
- Monthly maintenance fees range from $0 to $25 or more, depending on the bank and the type of account you choose.
- Most banks waive their monthly fee if you meet one condition, such as keeping $500 in the account or receiving a direct deposit each month.
- Overdraft fees ($25 to $35 per transaction) are the largest hidden cost and apply when you spend more than your balance.
- Credit unions and online banks typically charge lower or no monthly fees compared to large national banks.
Monthly maintenance fees and how to avoid them
A monthly maintenance fee is what the bank charges you to hold the account open. It's separate from any overdraft or transaction fees. Chase, Bank of America, Wells Fargo, and other large national banks typically charge $12 to $15 per month on their basic checking accounts — but they waive the fee if you meet their conditions.
The most common waiver conditions are: keep a minimum balance (often $500 to $1,500), set up direct deposit, maintain a certain number of debit card transactions per month (usually 10 or more), or link a savings account. Some banks let you pick one; others require you to meet multiple conditions. Online banks like Ally, Charles Schwab, and Discover typically charge no monthly fee at all, with no conditions attached.
Credit unions usually charge lower fees than national banks. Many credit unions charge $0 monthly maintenance, or charge $5 to $10 and waive it easily. The trade-off is that credit unions have fewer branches and ATMs than national banks, so they work best if you do most of your banking online or by phone.
Overdraft fees — the cost that catches people off guard
An overdraft fee is what the bank charges when you spend more money than you have in your account. Most banks charge $25 to $35 per overdraft transaction. If you overdraft three times in one week, you pay the fee three times. Some banks charge a second fee if your account stays negative for more than a few days.
You can avoid overdraft fees by linking a savings account to your checking account — the bank will transfer money automatically if you run short. You can also turn off overdraft protection entirely, which means your debit card will simply decline if you don't have enough money. Many banks now offer this as the default, though some still turn overdraft protection on automatically.
Other fees that add up
Beyond monthly maintenance and overdraft fees, banks charge for specific actions. Asking for a cashier's check costs $5 to $10. Stopping payment on a check costs $25 to $35. Requesting a paper statement (instead of online-only) costs $1 to $5 per month at some banks. Wire transfers cost $15 to $30. ATM fees apply if you use an out-of-network machine — typically $2 to $3 per withdrawal, charged by the ATM operator's bank.
The fees that matter most depend on how you use your account. If you never overdraft, never wire money, and use your bank's ATM network, you'll only pay the monthly maintenance fee (if any). If you overdraft twice a month and use out-of-network ATMs regularly, you could pay $100 or more per month in fees alone.
Comparing costs across account types
| Bank Type | Typical Monthly Fee | Common Waiver Condition | Overdraft Fee |
|---|---|---|---|
| Large national bank (Chase, Bank of America, Wells Fargo) | $12–$15 | $500+ minimum balance or direct deposit | $25–$35 |
| Online bank (Ally, Charles Schwab, Discover) | $0 | None | $0–$25 |
| Credit union | $0–$10 | Membership or low balance requirement | $20–$30 |
| Second-chance bank (ChexSystems alternative) | $10–$25 | Direct deposit or balance requirement | $25–$35 |
How to find the lowest-cost account for your situation
The cheapest account depends on how you plan to use it. If you receive a paycheck by direct deposit and keep at least $500 in the account, a large national bank's basic checking account will cost you nothing per month. If you rarely maintain a balance and don't receive direct deposit, an online bank charges $0 and has no conditions.
Before opening an account, check the bank's fee schedule — it's usually on their website under "Pricing" or "Fees." Look specifically for the monthly maintenance fee, the conditions to waive it, and the overdraft fee. Call the bank if the website isn't clear; a representative can tell you exactly what you'll pay based on your situation.
If you have a history of overdrafting or bounced checks, look for banks that don't use ChexSystems or that offer second-chance accounts. These accounts often charge higher monthly fees ($15 to $25) but will open for you even if you've had problems in the past.
What happens if you can't meet the waiver conditions
If you can't keep a minimum balance or set up direct deposit, you'll pay the monthly fee. At a large national bank charging $12 per month, that's $144 per year. An online bank charges $0, so switching saves you that money with no trade-off. Credit unions often waive fees for members who simply maintain membership, regardless of balance.
Some banks offer a "basic" or "student" checking account with no monthly fee but fewer features — no check writing, limited debit card use, or fewer ATM withdrawals per month. These accounts work if you only need a place to deposit paychecks and withdraw cash. Read the restrictions carefully before opening one.
Frequently Asked Questions
Do I have to pay anything to open a checking account?
No. Opening a checking account is free at all banks, credit unions, and online banks. You pay nothing to create the account. Monthly fees and overdraft fees come later, only if you use the account in certain ways or fail to meet the bank's conditions.
What's the difference between a monthly fee and an overdraft fee?
A monthly maintenance fee is what the bank charges just to keep your account open, whether you use it or not. An overdraft fee is charged only when you spend more money than you have. You can avoid overdraft fees by not overdrafting; you can avoid monthly fees by meeting the bank's conditions or choosing a bank with no monthly fee.
Can I avoid all fees?
Yes. Online banks like Ally, Charles Schwab, and Discover charge no monthly maintenance fee and no overdraft fee (or a low one). Credit unions often charge nothing as well. The trade-off is fewer physical branches and ATMs. If you bank online and don't overdraft, you can have a completely free checking account.
What if I can't keep a minimum balance?
Choose a bank with no monthly fee requirement. Online banks and many credit unions don't require a minimum balance. If you prefer a national bank with branches, ask whether they offer a basic checking account with no monthly fee but fewer features, or whether they waive the fee for direct deposit alone.
How much do overdraft fees really cost?
Each overdraft costs $25 to $35. If you overdraft twice a month, that's $50 to $70 per month, or $600 to $840 per year. Linking a savings account to prevent overdrafts, or turning off overdraft protection so your card declines instead, eliminates this cost entirely.