Most banks charge nothing to open a checking or savings account, but many charge monthly fees if you don't meet their requirements
Opening a bank account itself is free at nearly every bank in the United States. The bank does not ask for money upfront to create the account. However, once the account is open, many banks charge a monthly maintenance fee — typically $5 to $15 per month — unless you meet certain conditions. Those conditions vary widely: some banks waive the fee if you keep a minimum balance, others if you set up direct deposit, and some if you maintain a certain number of transactions per month.
The cost of keeping an account depends entirely on which bank you choose and whether you can meet their fee waiver requirements. A bank with no monthly fee costs nothing. A bank with a $12 monthly fee that you cannot waive costs $144 per year. The difference between banks can be substantial over time, which is why understanding what each bank charges — before you open — matters.
Key Takeaways
- Opening an account is free, but many banks charge $5 to $15 per month to keep it open unless you meet fee waiver requirements.
- Common fee waivers include maintaining a minimum balance (often $500 to $2,500), setting up direct deposit, or making a certain number of debit card transactions per month.
- Online banks and credit unions often charge no monthly maintenance fees at all, making them cheaper long-term than traditional banks.
- Overdraft fees, ATM fees, and wire transfer fees are separate from monthly maintenance and can add up quickly if you use those services.
Monthly maintenance fees and how to avoid them
A monthly maintenance fee is charged by the bank for keeping your account active. It is not a penalty — it is simply the bank's standard charge for the service. At large national banks like Chase, Bank of America, and Wells Fargo, checking accounts typically carry a monthly fee of $12 to $15. Savings accounts usually cost less or nothing.
Most banks offer at least one way to waive the monthly fee. The most common methods are:
- Maintaining a minimum balance in the account (ranges from $500 to $2,500 depending on the bank)
- Setting up direct deposit of your paycheck or other regular income
- Making a minimum number of debit card purchases or transfers per month (often 10 to 15)
- Maintaining a linked savings account or other product with the bank
If you cannot meet any of these requirements, you will pay the monthly fee. If you can meet one, the account costs nothing. Before opening an account, ask the bank which fee waivers are available and which one you can realistically maintain.
Banks and credit unions with no monthly fees
Many banks charge no monthly maintenance fee regardless of balance or activity. Online banks — those with no physical branches — almost never charge monthly fees because their operating costs are lower. Examples include Ally Bank, Charles Schwab Bank, and Discover Bank. Credit unions, which are member-owned rather than for-profit, also typically charge no monthly fee.
The trade-off with no-fee banks is often fewer physical locations and less in-person service. If you need to deposit cash or speak to someone in person regularly, a no-fee online bank may not work for you. If you rarely need those services, a no-fee bank can save you $100 to $200 per year compared to a traditional bank with monthly fees. Some online banks partner with ATM networks or retail locations to make cash deposits easier, so ask before assuming you cannot access cash.
Other costs beyond the monthly fee
Monthly maintenance is only one cost. Banks also charge for specific actions or mistakes:
- Overdraft fees: Charged when you spend more than your balance. Typically $25 to $35 per overdraft. Some banks charge multiple overdraft fees in a single day.
- Out-of-network ATM fees: Charged when you withdraw cash from an ATM that is not owned by your bank. Usually $2 to $3 per withdrawal, plus a fee from the ATM operator.
- Wire transfer fees: Charged to send money to another bank. Typically $15 to $30 per wire.
- Returned deposit fees: Charged if a check or electronic deposit bounces. Usually $5 to $15.
- Account closure fees: Some banks charge $25 to $50 if you close the account within a certain period (often 90 days to one year).
These fees are separate from monthly maintenance and can add up quickly if you use these services frequently. Overdraft fees are the most common surprise cost — a single mistake can cost $25 to $35, and some people incur multiple overdraft fees in one day if the bank processes transactions in a certain order. Before opening an account, ask whether the bank charges for these services and what the amounts are.
Minimum balance requirements and how they work
If your bank waives the monthly fee for maintaining a minimum balance, that balance must stay in the account at all times. If your balance drops below the minimum even once, you will be charged the monthly fee for that month. Some banks check the balance daily; others check it at the end of the month. Ask your bank which method they use, because the difference matters — a daily check means you cannot dip below the minimum even temporarily.
A minimum balance requirement can be a hidden cost if you cannot comfortably keep that much money sitting in the account. If the minimum is $1,500 and you keep exactly $1,500 in the account to avoid the fee, that money is not earning interest (or earning very little), and you cannot use it for other purposes. For some people, paying the $12 monthly fee is cheaper than tying up $1,500 that could be used elsewhere or kept in a higher-interest savings account.
Comparing total cost across different banks
| Bank Type | Monthly Fee | Common Fee Waiver | Annual Cost (if fee applies) |
|---|---|---|---|
| Large national bank (Chase, Bank of America, Wells Fargo) | $12–$15 | Direct deposit or $1,500+ balance | $144–$180 |
| Regional bank | $5–$10 | Varies; often lower minimums | $60–$120 |
| Online bank | $0 | None needed | $0 |
| Credit union | $0–$5 | Varies; often membership-based | $0–$60 |
The actual cost to you depends on which bank you choose and whether you can meet their fee waiver requirements. An online bank with no monthly fee costs nothing per year. A large national bank with a $12 monthly fee that you cannot waive costs $144 per year. Over five years, that difference is $720.
When comparing banks, add up all the fees you are likely to pay, not just the monthly maintenance. If you overdraft twice a year and use out-of-network ATMs weekly, those fees may exceed the monthly maintenance fee. A bank that charges $15 per month but has no overdraft fees might cost less overall than a bank with no monthly fee but $35 overdraft fees.
Frequently Asked Questions
Do I have to pay to open a bank account?
No. Banks do not charge an upfront fee to open a checking or savings account. You can walk into a branch or open an account online at no cost. The monthly fee, if any, starts after the account is open.
What happens if I cannot meet the fee waiver requirement?
You will be charged the monthly maintenance fee. If the bank requires a $1,500 minimum balance and your balance drops to $1,400, you will typically be charged the fee for that month. You can close the account and move to a bank with no fee or lower requirements instead.
Can I avoid overdraft fees?
Yes. Do not spend more than your balance. Some banks offer overdraft protection, which links your checking account to a savings account or credit line and automatically transfers money if you overdraw. This usually costs less than an overdraft fee, but ask your bank what they charge for this service.
Are savings accounts cheaper than checking accounts?
Usually. Savings accounts often have no monthly fee or a lower fee than checking accounts. However, savings accounts have limits on how many times per month you can withdraw money (federal rules allow six per month, though this varies by bank). If you need frequent access to your money, a checking account is more practical even if it costs slightly more.
Should I choose a bank based on monthly fees alone?
No. Consider the total cost, including overdraft fees, ATM fees, and whether you can realistically meet fee waiver requirements. Also consider whether you need in-person service, customer support quality, and whether the bank offers the products you need (like savings accounts, credit cards, or loans). A bank with a $12 monthly fee but excellent customer service and no overdraft fees may cost less overall than a no-fee bank that charges $35 per overdraft.