Most banks charge nothing to open a checking or savings account
Opening a basic checking or savings account at most banks costs zero dollars. You walk in, provide identification and proof of address, sign paperwork, and leave with an account number. No opening fee, no setup charge, no hidden cost to create the account itself.
What varies is what happens after. Some banks charge monthly maintenance fees if your balance drops below a minimum, if you don't set up direct deposit, or if you don't meet other conditions. Some charge per transaction once you exceed a limit. Some charge nothing at all, regardless of how you use the account. The cost depends on the bank's rules and which account type you choose.
Key Takeaways
- Opening a bank account itself is free at most banks; the cost comes from monthly maintenance fees or transaction charges after you open it.
- Monthly maintenance fees range from zero to $15 per month at traditional banks, depending on the account type and whether you meet conditions like minimum balance or direct deposit.
- Online banks and credit unions often charge no monthly fee and have no minimum balance requirement, making them cheaper long-term than brick-and-mortar banks.
- Overdraft fees, ATM fees, and foreign transaction fees can add up quickly and are separate from the account opening cost.
- You need a government-issued ID and proof of address to open an account; some banks accept a utility bill or lease, while others require a specific document.
Monthly maintenance fees: what they are and when you pay them
A monthly maintenance fee is a charge the bank takes from your account each month just for having the account open. At traditional banks like Chase, Bank of America, or Wells Fargo, these fees typically range from $5 to $15 per month. Credit unions often charge $0 to $5. Online banks like Ally, Charles Schwab, or Discover usually charge nothing.
Most banks waive the monthly fee if you meet one or more conditions. Common conditions include: keeping a minimum balance (often $500 to $1,500), setting up direct deposit, making a certain number of debit card transactions per month, or maintaining a linked savings account. Read the account agreement before you open the account to see which conditions apply to you and whether you can meet them.
If you do not meet the conditions and do not waive the fee, the bank deducts it automatically each month. Over a year, a $10 monthly fee costs $120. If you plan to keep a low balance or rarely use the account, an online bank or credit union with no monthly fee will cost you less.
Overdraft fees and other charges that add up
The account itself may be free, but using it can trigger fees. An overdraft fee is charged when you spend more money than you have in your account. Most banks charge $25 to $35 per overdraft, and some charge multiple fees if you overdraft multiple times in one day. A single mistake—a check that clears before a deposit, or a debit card charge you forgot about—can cost $25 to $70 depending on how many overdrafts stack up.
ATM fees are charged when you use an ATM that does not belong to your bank's network. If your bank charges $2.50 per out-of-network ATM use and you withdraw cash twice a week, that is $20 per month. Some banks reimburse out-of-network ATM fees if you maintain a high balance or pay a premium account fee. Online banks often reimburse all ATM fees nationwide, which can save money if you travel or live far from branches.
Foreign transaction fees apply if you use your debit card outside the United States. Most banks charge 1% to 3% of the transaction amount. If you travel internationally or send money abroad regularly, this cost adds up fast. Some online banks and credit unions charge no foreign transaction fee.
What you need to bring to open an account
You need two things: a government-issued photo ID and proof of your current address. A driver's license or passport works for ID. For proof of address, banks accept a utility bill, lease agreement, mortgage statement, or recent bank statement dated within the last 60 days. Some banks also accept a government benefits statement or tax return.
Bring the originals or certified copies, not photos. If you do not have proof of address in your name, some banks will accept a letter from a government agency, employer, or utility company on official letterhead. Call the bank before you go in if you are unsure whether your documents will work.
If you do not have a government-issued ID, some banks and credit unions will open an account using an ITIN (Individual Taxpayer Identification Number) and other documents. This process takes longer and may require a manager's approval, but it is possible. Ask the bank directly whether they offer this option.
Online banks versus brick-and-mortar banks: cost differences
Online banks (Ally, Charles Schwab, Discover, Chime) typically charge no monthly maintenance fee, no minimum balance, and no overdraft fees. They make money from interest on loans and investments, not from account fees. The trade-off is that you cannot walk into a physical branch to deposit cash or speak to someone in person. Most online banks let you deposit checks by phone camera and offer ATM networks you can use for free.
Brick-and-mortar banks (Chase, Bank of America, Wells Fargo, regional banks) charge monthly fees unless you meet conditions, but they offer physical branches where you can deposit cash, speak to a person, and get a cashier's check. If you rarely use branches and do not need cash deposits, an online bank will cost you less. If you deposit cash regularly or prefer in-person service, a brick-and-mortar bank may be worth the monthly fee.
Credit unions are member-owned nonprofits that typically charge lower fees than traditional banks and often have no monthly maintenance fee. You must be a member to open an account, which usually means living or working in a certain area, working for a specific employer, or belonging to a specific organization. If you are a member, a credit union is often the cheapest option.
Minimum balance requirements and when they matter
Some banks require you to keep a minimum balance in your account to avoid the monthly maintenance fee. Minimum balances range from $500 to $2,500 depending on the bank and account type. If your balance drops below the minimum, the bank charges the monthly fee that month.
If you have steady income and can keep that balance, a minimum balance requirement costs you nothing—you are just keeping money in the account anyway. If you live paycheck to paycheck or have irregular income, a minimum balance requirement is a trap. You might dip below it in a slow month and get charged $10 or $15 for the privilege of being poor. In that case, choose a bank with no minimum balance.
Some banks offer tiered accounts: a basic account with no minimum and no fee, and a premium account with a higher minimum balance but more perks like higher interest rates or waived fees. Read the fine print to see which tier fits your situation.
Special account types: savings, money market, and certificates of deposit
A savings account usually has no monthly fee or a lower fee than checking. A money market account (a hybrid of checking and savings) may have a higher minimum balance and a monthly fee of $5 to $15. A certificate of deposit (CD) has no monthly fee because you lock your money away for a set time period (3 months to 5 years) and cannot withdraw it without a penalty.
If you are opening a savings account to build an emergency fund, most online banks charge no fee and pay higher interest than brick-and-mortar banks. If you are opening a CD, the cost is zero, but you lose access to your money for the term. Read the early withdrawal penalty before you open a CD—some charge a month of interest, others charge a percentage of the balance.
Frequently Asked Questions
Do I have to pay to close a bank account?
No. Banks cannot charge you to close an account. If a bank tells you there is a closing fee, that is illegal. You can close an account anytime by calling the bank or visiting a branch. Make sure your balance is zero or ask the bank to send you a check for any remaining balance.
What if I cannot meet the minimum balance requirement?
Choose a bank with no minimum balance. Online banks like Ally, Discover, and Charles Schwab have no minimum. Credit unions often have no minimum. If you prefer a brick-and-mortar bank, ask whether they offer a basic checking account with no minimum and no monthly fee—many do, though you may need to set up direct deposit or make a certain number of transactions per month.
Can I open a bank account with no address?
Most banks require proof of address. If you are homeless or do not have a lease, some banks accept mail from a government agency, shelter, or social services office as proof of address. Call ahead and ask what documents they will accept. Credit unions and online banks sometimes have more flexible requirements than traditional banks.
Do I pay to link a savings account to my checking account?
No. Linking accounts is free. You can transfer money between your own accounts at the same bank with no fee. Transfers between accounts at different banks may take one to three business days and are free, though some banks charge a fee for expedited transfers.
What happens if I do not use my account?
Nothing, as long as you keep the account open. Banks do not charge you for inactivity. However, if you do not use the account for a very long time (usually several years) and do not respond to mail from the bank, the account may be turned over to your state's unclaimed property program. You can still recover the money, but you have to file a claim with the state.