Which banks have the lowest or no minimum balance requirements

Most large national banks require a minimum balance between $500 and $2,500 to avoid monthly fees. However, many smaller banks and credit unions have no minimum balance requirement at all, and some national banks offer checking accounts with zero minimums if you meet other conditions—like setting up direct deposit or using their debit card a certain number of times per month.

The banks with genuinely low or no minimums fall into three categories: online-only banks (which have the lowest overhead and often charge no fees regardless of balance), credit unions (which typically have no minimums for members), and a handful of national banks that waive minimums for specific account types or customer behaviors. The catch is that "no minimum" does not always mean "no fees"—some accounts charge monthly maintenance fees unless you meet other requirements, so you need to read the full fee schedule, not just the minimum balance line.

Your best move is to check the current requirements directly with the bank or credit union, because these change frequently and vary by account type. A bank's website should list the minimum balance requirement and any conditions that waive it in the account details section.

Key Takeaways

  • Online-only banks like Ally, Charles Schwab, and Discover typically have no minimum balance requirements and no monthly maintenance fees.
  • Credit unions usually have no minimum balance requirements for checking accounts, though you must be a member (membership often requires living or working in a specific area or belonging to a particular group).
  • Some national banks waive their minimum balance requirement if you set up direct deposit, maintain a linked savings account, or use your debit card a set number of times per month.
  • A bank with no minimum balance may still charge monthly fees for other reasons, so always check the full fee schedule before opening an account.

Online banks with no minimum balance

Online-only banks have no physical branches, which means lower operating costs and fewer reasons to charge you. Most do not impose a minimum balance requirement and do not charge monthly maintenance fees on checking accounts. Ally Bank, Charles Schwab Bank, Discover Bank, and LendingClub all offer checking accounts with zero minimum balance and zero monthly fees. These banks make money from interest on loans and investments, not from account fees, so they can afford to be permissive about how much you keep on deposit.

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 photographing them with your phone, and they reimburse ATM fees charged by other banks, so you can withdraw cash almost anywhere. If you rarely need to deposit cash or talk to a human, an online bank is usually the cheapest option available.

Credit unions and their membership requirements

Credit unions are member-owned cooperatives and typically have no minimum balance requirement for checking accounts. They also tend to charge lower fees overall and offer better interest rates on savings than traditional banks. The obstacle is membership: you can only open an account if you meet the union's membership criteria, which varies by credit union.

Some credit unions are open to anyone who lives or works in a specific county or region. Others require you to work for a particular employer, belong to a professional organization, or be related to an existing member. A few credit unions, like Connexus Credit Union and Pentagon Federal Credit Union, have relaxed membership rules and are open to people across the country. You can search for credit unions in your area using the CO-OP Network locator or the Alliant Credit Union website, which lists unions that accept members nationwide.

National banks that waive minimums under certain conditions

Some large banks—including Bank of America, Wells Fargo, and Chase—offer checking accounts with no minimum balance requirement, but only if you meet a secondary condition. Bank of America's Advantage SafePass checking account has no minimum if you set up direct deposit or maintain a linked savings account with at least $500. Wells Fargo's Way2Save savings account has no minimum, though it is a savings account, not checking. Chase's Total Checking has a $500 minimum unless you maintain a linked savings account or set up direct deposit.

These conditional waivers are useful if you already use the bank for other services or if you receive regular paychecks via direct deposit. However, if you do not meet the condition, the monthly maintenance fee (typically $10 to $15) kicks in, so read the fine print before you open the account. The fee schedule should clearly state what waives the minimum and what happens if you do not meet the condition.

What happens if you fall below the minimum

If your account has a minimum balance requirement and your balance drops below it, the bank charges a monthly maintenance fee—usually $10 to $15, though it varies. This fee is separate from overdraft fees and is charged simply for keeping the account open while under the minimum. Some banks charge the fee once per month; others charge it every day you are below the minimum, which can add up quickly if you stay under for several weeks.

A few banks will waive one or two monthly fees per year if you ask, but this is not may provide and depends on your history with the bank. The safest approach is to choose an account with no minimum requirement in the first place, rather than counting on the bank to forgive fees later.

How to compare accounts beyond the minimum

Minimum balance is only one part of the fee picture. Before opening an account, check the full fee schedule for overdraft fees (charged when you spend more than you have), out-of-network ATM fees, wire transfer fees, and monthly maintenance fees. Some banks charge $30 or more per overdraft; others charge nothing. Some reimburse ATM fees nationwide; others charge $2 to $3 per out-of-network withdrawal.

Also check whether the account earns interest on your checking balance. Most checking accounts earn nothing, but a few online banks and credit unions pay a small amount of interest (usually 0.01% to 0.05% annually, though this varies). If you keep a large balance, even a tiny interest rate is better than zero. The bank's website should list all of this in the account details or fee schedule section.

Frequently Asked Questions

Can I avoid the minimum balance requirement by using direct deposit?

Some banks waive the minimum if you set up direct deposit, but not all. Bank of America and Chase both offer this option on certain accounts. Check the specific account's terms before opening it, because the requirement varies by account type and bank.

Do credit unions charge monthly fees if I have no minimum balance?

Most credit unions charge no monthly maintenance fee on checking accounts, even with zero balance. However, some credit unions do charge fees for other reasons—like excessive withdrawals from savings or using out-of-network ATMs. Always ask about the full fee schedule when you join.

What is the difference between a minimum balance and a monthly maintenance fee?

A minimum balance is the lowest amount you must keep in the account to avoid fees. A monthly maintenance fee is the charge you pay if you fall below that minimum. Some accounts have a monthly fee regardless of balance; others waive it if you meet certain conditions like direct deposit or a linked account.

Can I use an online bank if I need to deposit cash?

Most online banks do not accept cash deposits directly, but many let you deposit checks by phone and reimburse ATM fees, so you can withdraw cash anywhere. If you frequently deposit cash, a local credit union or bank with branches is a better fit.

Do I need to keep a minimum balance in a linked savings account to waive checking fees?

It depends on the bank. Some banks require a minimum in the linked savings account; others just require that the account exist and be open. Read the account terms carefully, because the requirement is specific to each bank and account type.