A maintenance fee is a monthly charge your bank takes from your account just for having it open
Most banks call it a "monthly maintenance fee," "account fee," or "service charge." It is a flat amount—usually between $5 and $15 per month—that the bank deducts automatically, whether you use the account or not. Some banks waive it if you meet certain conditions, like keeping a minimum balance, setting up direct deposit, or maintaining a linked savings account. Others charge it no matter what.
The fee goes straight to the bank as revenue. It is not a penalty for doing something wrong; it is simply the bank's way of charging for the account itself. The amount and the conditions to avoid it vary widely between banks, so two accounts at different institutions can have completely different fee structures.
Key Takeaways
- A maintenance fee is a monthly charge deducted from your checking account balance, typically $5 to $15, just for keeping the account open.
- Many banks waive the fee if you maintain a minimum balance, set up direct deposit, or meet other specific conditions—check your account agreement to see what applies to you.
- The fee is taken automatically each month, so if you do not notice it, your balance can drop faster than you expect.
- Online banks and credit unions often charge no maintenance fee at all, making them worth comparing if your current bank charges one.
How the fee appears on your statement
The maintenance fee shows up as a line item on your monthly statement, usually labeled "Monthly Service Charge," "Account Maintenance Fee," or something similar. It is deducted on a set day each month—often the last day or the first business day of the month. The exact timing depends on your bank's policy.
If your account balance is low when the fee hits, it can push you into overdraft territory. For example, if you have $12 in your account and a $10 maintenance fee is charged, you now have $2 left. If you then make a purchase or withdrawal, you may trigger an overdraft fee on top of the maintenance fee. This is why tracking the fee matters, especially if you are living paycheck to paycheck.
Common conditions that waive the fee
Banks use maintenance fees as a way to encourage certain behaviors. If you meet one or more of these conditions, the fee is typically waived:
- Minimum balance: Keep a set amount in the account at all times—often $500 to $2,500, depending on the bank and account type.
- Direct deposit: Have your paycheck or government benefits deposited directly into the account each month.
- Linked savings account: Maintain an active savings account at the same bank.
- Debit card activity: Use the debit card a certain number of times per month—often 10 or more transactions.
- Account type: Some banks charge no fee on student accounts, senior accounts, or accounts for people under a certain age.
Your account agreement or the bank's website will list which conditions apply to your specific account. If you are unsure, call the bank or visit a branch and ask directly what you need to do to avoid the fee.
Banks that charge versus banks that do not
Traditional banks—Chase, Bank of America, Wells Fargo, and regional banks—typically charge maintenance fees on standard checking accounts. However, they often waive the fee if you meet their conditions, which many people do through direct deposit alone.
Online banks like Ally, Charles Schwab, and Discover generally charge no maintenance fee at all, regardless of balance or activity. Credit unions also tend to charge lower or no maintenance fees, though this varies by institution. If you are paying a maintenance fee every month and not meeting any waiver conditions, switching to an online bank or credit union could save you $60 to $180 per year.
What happens if you do not pay the fee
You cannot refuse to pay a maintenance fee—the bank simply deducts it from your balance. If your account does not have enough money to cover the fee, two things can happen: the bank may charge an overdraft fee on top of the maintenance fee, or the account may go negative and you will owe the bank money.
If your account stays negative, the bank may eventually close it and report you to ChexSystems, a checking account history database. Future banks may refuse to open an account for you, or they may require you to pay a higher fee or maintain a larger minimum balance. Paying the fee when it is due is simpler than dealing with the fallout of a closed account.
How to avoid or reduce the fee
Start by reviewing your account agreement or calling your bank to find out exactly what waives your maintenance fee. If you have direct deposit, you may already may have access to for a waiver and not realize it—the fee might be charging because the bank never received notification of your direct deposit setup.
If you do not have direct deposit and cannot meet the other conditions, consider switching banks. Online banks and credit unions are worth comparing, especially if you are paying $10 or more per month. Over a year, that adds up to $120 or more—money that could go toward savings instead.
If you want to stay with your current bank, ask whether a different account type has lower or no fees. Some banks offer a basic checking account with fewer features but no maintenance charge, or a premium account with a fee that is waived if you maintain a higher balance or have multiple accounts.
Frequently Asked Questions
Can a bank charge a maintenance fee if I have no money in the account?
Yes. The bank will deduct the fee even if it pushes your balance negative. You will then owe the bank the overdraft amount plus any overdraft fees that follow. This is why it is important to keep track of when the fee is charged and ensure you have enough in the account to cover it.
Is a maintenance fee the same as an overdraft fee?
No. A maintenance fee is charged automatically every month just for having the account open. An overdraft fee is charged only when you spend more money than you have in the account. You can be charged both in the same month if the maintenance fee pushes you into overdraft.
What if my bank charges a maintenance fee but I meet the waiver conditions?
Contact your bank and ask them to verify that your account qualifies for the waiver. Sometimes the bank does not receive notification of direct deposit setup, or the system does not recognize that you meet the minimum balance requirement. A quick call can often get the fee reversed and prevent future charges.
Do online banks ever charge maintenance fees?
Most major online banks do not charge maintenance fees on checking accounts. However, some may charge fees for specific services like wire transfers, expedited delivery of checks, or account closure. Read the fee schedule before opening an account to know what you are signing up for.