Where to find accounts with no monthly maintenance charge
Most large banks charge a monthly fee to hold a checking or savings account—typically $10 to $15—but you can avoid this entirely by moving to a bank or credit union that does not charge one. The banks that offer no-fee accounts fall into three groups: online-only banks (which have lower overhead and pass the savings to you), credit unions (which are member-owned and often waive fees), and a smaller number of traditional brick-and-mortar banks that use other revenue streams.
The catch is that "no monthly fee" does not mean "no fees at all." You may still pay for overdrafts, wire transfers, ATM use outside the network, or paper statements. Some accounts waive the monthly fee only if you meet a minimum balance or set up direct deposit. Reading the fee schedule before you open an account takes 10 minutes and saves you hundreds of dollars a year.
Key Takeaways
- Online banks like Ally, Charles Schwab, and Discover typically charge no monthly fee and no minimum balance, because they have no physical branches to maintain.
- Credit unions often waive monthly fees for members, though you must live or work in their service area or meet other membership rules.
- Some traditional banks waive the monthly fee if you maintain a minimum balance (often $500 to $2,500) or set up direct deposit.
- No monthly fee does not protect you from overdraft fees, out-of-network ATM charges, or wire transfer fees—check the full fee schedule before opening an account.
- If you carry a low balance or make frequent transfers, an online bank or credit union usually costs less than a traditional bank even with a monthly fee waived.
Online banks with no monthly fees
Online-only banks have no physical locations, so they do not pay for tellers, buildings, or branch staff. They pass this savings to customers by charging no monthly maintenance fee and often no minimum balance. Most also reimburse ATM fees nationwide or offer access to a large surcharge-free network.
Ally Bank, Charles Schwab Bank, Discover Bank, and Marcus by Goldman Sachs are the largest online banks offering no-fee checking. Each has a different feature set: Schwab reimburses all ATM fees worldwide, Marcus focuses on savings accounts, and Ally offers both checking and savings with no minimums. Smaller online banks like Varo and Chime also charge no monthly fee, though Chime is technically a fintech company partnered with a bank rather than a bank itself.
The trade-off is that you cannot walk into a branch to deposit cash or speak to someone in person. Most online banks let you deposit checks by phone camera, and they partner with ATM networks so you can withdraw cash. If you never need to hand a teller a check or cash, an online bank is usually the cheapest option.
Credit unions with no monthly fees
Credit unions are nonprofit organizations owned by their members. Because they do not answer to shareholders, many waive monthly maintenance fees entirely. You must be a member to open an account, and membership rules vary: some credit unions serve only employees of a specific company, others serve people who live in a certain county, and some have opened membership to anyone.
The largest credit unions with open or broad membership include Navy Federal Credit Union (open to military members and their families), Alliant Credit Union (open to anyone who joins a partner organization or donates to a charity), and Connexus Credit Union (open to anyone). Smaller local credit unions often have no monthly fee and may offer better customer service than large banks, though their ATM networks are smaller.
To find a credit union near you, search the CO-OP Network or Shared Branch locator on the Credit Union National Association website. These networks let you use ATMs and branches at other credit unions without a surcharge, which partly makes up for the smaller number of locations compared to a national bank.
Traditional banks that waive monthly fees
Some large banks—including Bank of America, Wells Fargo, and Chase—offer checking accounts with no monthly fee, but usually only if you meet a condition. The most common conditions are maintaining a minimum balance (ranging from $500 to $2,500), setting up direct deposit, or keeping a linked savings account open.
Bank of America waives the monthly fee on its basic checking account if you maintain a $500 minimum balance or set up direct deposit. Wells Fargo waives fees on its basic checking if you link a savings account or have a direct deposit. Chase's basic checking has no monthly fee with no conditions, but the account comes with fewer perks than their premium accounts.
If you already bank at a large institution and want to avoid the monthly fee, call and ask what conditions apply to your account type. Many banks will waive the fee if you ask, especially if you have been a customer for years or if you maintain other accounts with them.
What "no monthly fee" does not cover
A bank that charges no monthly maintenance fee may still charge you for specific actions. Overdraft fees (typically $25 to $35 per overdraft) are the most common surprise. Some banks charge a fee to use an ATM outside their network, to wire money, to close an account early, or to order a replacement debit card.
Before opening an account, download or request the fee schedule and search for "overdraft," "ATM," and "wire." If the bank offers overdraft protection (linking your checking to savings so a transfer happens instead of a fee), ask whether that transfer itself costs money. Some banks charge $1 to $3 per transfer, which can add up if you overdraft frequently.
Comparing online banks, credit unions, and traditional banks
| Type | Monthly Fee | Minimum Balance | ATM Access | Best For |
|---|---|---|---|---|
| Online bank (Ally, Schwab, Discover) | None | None | Nationwide network or reimbursed | People who do not need in-person service |
| Credit union | Often none | Often $25–$100 | CO-OP or Shared Branch network | People who may have access to for membership and want local service |
| Traditional bank (with conditions) | Waived if conditions met | $500–$2,500 or direct deposit required | Large branch network | People who need in-person service and can meet balance or deposit requirements |
Steps to switch to a no-fee account
If you currently pay a monthly fee and want to move, start by opening the new account before you close the old one. This prevents a gap in service if something goes wrong. Most banks let you open an account online in 10 to 15 minutes using your Social Security number, driver's license, and initial deposit (often $0 to $25).
Next, update your direct deposits and automatic payments. Contact your employer's payroll department to change where your paycheck goes, and log into each bill you pay automatically (utilities, insurance, subscriptions) to update the account number. This usually takes a few days to take effect, so do it at least a week before you close the old account.
Once all deposits and payments have moved, close the old account by calling the bank or visiting a branch. Ask the bank to confirm the account is closed and to send you a final statement. Keep that statement for your records in case a payment bounces or a charge appears after closure.
Frequently Asked Questions
Can I have a no-fee account if I do not have direct deposit?
Yes. Online banks and many credit unions charge no monthly fee regardless of direct deposit. Some traditional banks require direct deposit to waive the fee, but you can find no-fee accounts elsewhere if your employer does not offer it.
Do online banks have FDIC insurance?
Yes. Online banks are FDIC-insured just like traditional banks. Your deposits are protected up to $250,000 per account type (checking, savings, money market) at each bank. Credit unions carry similar protection through the National Credit Union Administration (NCUA).
What if I need to deposit cash?
Most online banks do not accept cash deposits directly. Some partner with retail locations like CVS or Walgreens where you can deposit cash for a small fee. Others let you transfer money from another bank account. If you deposit cash frequently, a credit union or traditional bank with branches may be more practical.
Can I switch banks without closing my old account?
Yes. You can keep both accounts open while you test the new one. Once you are sure everything is working, close the old account. Some people keep a no-fee account at a traditional bank as a backup even after switching to an online bank.
What happens if I do not meet the minimum balance requirement?
The monthly fee kicks in. If a bank requires a $1,000 minimum and your balance drops to $800, you will be charged the monthly maintenance fee that month. Some banks charge the fee immediately; others charge it at the end of the month if the balance was below the minimum for any part of the period.