Most banks charge nothing to open a checking account
The opening fee itself is free at nearly every bank and credit union in the United States. You will not pay to create the account, and you will not pay to receive the debit card that comes with it. The cost comes later — in monthly maintenance fees, overdraft charges, or minimum balance requirements — not at the moment you sign up.
Some banks waive those ongoing fees if you meet certain conditions: direct deposit, a minimum balance, or a certain number of debit card transactions per month. Others charge a flat monthly fee regardless. A few charge nothing at all, ever. The difference between free and expensive is not whether you open the account, but what happens after.
Key Takeaways
- Opening a checking account costs nothing at the bank or credit union itself — no application fee, no setup charge.
- Monthly maintenance fees range from zero to $15 or more, depending on the bank and whether you meet their waiver conditions.
- Overdraft fees, if you go negative, typically cost $25 to $35 per transaction and are the largest hidden cost of checking accounts.
- Credit unions often charge less in monthly fees and overdraft fees than large national banks.
- You can avoid most fees by choosing a bank with no monthly charge, maintaining a minimum balance, or setting up direct deposit.
Monthly maintenance fees and how to avoid them
Monthly maintenance fees are the ongoing cost of keeping the account open. They range from zero to $15 per month at most banks, though some charge more. Chase, Bank of America, and Wells Fargo all charge between $10 and $15 for their basic checking accounts — but all three waive the fee if you maintain a minimum balance (usually $500 to $1,500) or set up direct deposit.
Credit unions typically charge $0 to $5 per month, and many waive the fee entirely if you maintain even a small balance or use your debit card a few times each month. Online banks like Ally, Charles Schwab, and Discover charge no monthly fee at all, regardless of balance or activity.
Before you open an account, ask the bank or credit union directly what the monthly fee is and what conditions waive it. The fee structure is not always obvious from the website, and it changes by account type.
Overdraft fees are the real cost
If you spend more money than you have in the account, the bank will either decline the transaction or cover it and charge you an overdraft fee. That fee is typically $25 to $35 per transaction, and it can happen multiple times in a single day. If you overdraft five times in one week, you could pay $125 to $175 in fees alone.
Some banks charge a smaller fee ($5 to $10) for going slightly negative, then a larger fee if you stay negative for more than a day. Others charge the full amount the first time. A few banks, including Ally and Charles Schwab, do not charge overdraft fees at all — they simply decline the transaction instead.
Overdraft protection, which links your checking account to a savings account or credit line, can prevent these fees but may charge a transfer fee ($1 to $3) instead. It is worth setting up if you tend to run close to zero.
Minimum balance requirements
Some banks require you to keep a certain amount in the account at all times to avoid the monthly fee. Chase requires $500 for most of its checking accounts; Bank of America requires $1,500 for its basic account. If your balance drops below that threshold, even for one day, you may be charged the monthly fee.
Credit unions and online banks often have no minimum balance requirement at all, or a very low one ($25 to $100). If you do not have several hundred dollars to keep sitting in the account, a bank with no minimum requirement will cost you less.
ATM fees and out-of-network charges
Using an ATM that does not belong to your bank typically costs $2 to $3 per withdrawal. If you withdraw cash twice a week from an out-of-network ATM, that is $16 to $24 per month in fees alone. Some banks reimburse out-of-network ATM fees if you maintain a high balance or pay a premium monthly fee; others do not.
Credit unions often belong to shared branching networks that let you use ATMs at other credit unions for free. Online banks typically reimburse all ATM fees, regardless of which machine you use. If you do not live near your bank's branches, this matters.
Wire transfer and check fees
Sending money by wire transfer usually costs $15 to $30 per wire. Receiving a wire is often free, but some banks charge $10 to $15. Ordering checks from the bank costs $10 to $25 per box, though you can order them cheaper from third-party printers like Deluxe or Costco.
Most people do not send wires or order checks often enough for this to be a major cost. But if you run a small business or pay bills to many different places, these fees add up. Some banks include a certain number of free wires or checks per month; others charge for every one.
Comparing total cost across banks
| Bank Type | Monthly Fee | Overdraft Fee | Minimum Balance | ATM Network |
|---|---|---|---|---|
| Large national bank (Chase, Bank of America, Wells Fargo) | $10–$15 (waived with direct deposit or minimum balance) | $25–$35 per transaction | $500–$1,500 | Limited; out-of-network fees apply |
| Credit union | $0–$5 (often waived) | $15–$25 per transaction | $0–$100 | Shared branching; free at many ATMs |
| Online bank (Ally, Charles Schwab, Discover) | $0 | $0 (transactions declined instead) | $0 | Free ATM reimbursement nationwide |
The cheapest option depends on your habits. If you receive direct deposit and rarely overdraft, a large bank's account is fine — the fee is waived and you pay nothing. If you do not have direct deposit or you overdraft occasionally, an online bank or credit union will cost less over time.
Frequently Asked Questions
Do I need money in the account to open it?
No. You can open a checking account with zero dollars. However, some banks require an initial deposit of $25 to $100 to activate the account. Ask before you go in. If the bank requires a deposit and you do not have it, choose a different bank.
What if I cannot maintain the minimum balance?
Choose a bank with no minimum balance requirement. Online banks and most credit unions do not require one. If you are already at a bank that does, you can switch to a different account type or move to a different bank without penalty.
Can I avoid overdraft fees?
Yes. Use a bank that does not charge them (Ally, Charles Schwab, Discover) and they will decline transactions instead. Or set up overdraft protection linked to a savings account. Or simply check your balance before you spend. The fee exists only if you spend money you do not have.
Are credit unions cheaper than banks?
Usually, yes. Credit unions charge lower monthly fees, lower overdraft fees, and often have no minimum balance. But you have to be a member, which typically means living or working in a certain area or belonging to a specific employer or organization. Check whether you are may be able to access for a credit union near you.
What happens if I close the account right after opening it?
Nothing. There is no penalty for closing a checking account. If you opened it and realized it is not right for you, close it and move to a different bank. Keep the account open long enough to receive your debit card and test that deposits work the way you expect.