Most banks do not charge to open a checking or savings account

You can open a checking or savings account at most banks and credit unions without paying an opening fee. The account itself is free to start. However, some banks charge monthly maintenance fees once the account is open, and certain account types or circumstances may have costs attached. The key is knowing which banks charge what, and what you can do to avoid those fees.

The difference between "free to open" and "free to keep open" matters. A bank might not charge you to create the account on day one, but then charge you $10 or $15 per month if you don't meet their requirements—like keeping a minimum balance or setting up direct deposit. That cost adds up fast.

Key Takeaways

  • Opening a bank account is free at most major banks and credit unions, with no upfront fee required.
  • Monthly maintenance fees are common at traditional banks but can be waived if you meet conditions like maintaining a minimum balance or receiving direct deposit.
  • Online banks and credit unions typically charge no monthly fees at all, making them the lowest-cost option.
  • Some banks charge fees for specific services like overdrafts, wire transfers, or paper statements, even if the account itself is free.
  • You will need an ID and proof of address to open an account; these documents themselves are free to obtain.

Banks that charge monthly maintenance fees and how to avoid them

Traditional brick-and-mortar banks often charge a monthly maintenance fee—typically $5 to $15—but most waive it if you meet one or more conditions. Common ways to avoid the fee include keeping a minimum balance (often $500 to $1,500), setting up direct deposit, or maintaining a certain number of debit card transactions per month. Chase, Bank of America, Wells Fargo, and Citibank all use this model.

The catch is that not everyone can meet these conditions. If you cannot keep a minimum balance because you live paycheck to paycheck, or if you do not have an employer sending direct deposit, you may end up paying the fee every month. In that case, switching to a bank with no monthly fee makes financial sense.

Read the account terms before you open. Banks are required to give you a document called the account agreement or disclosure statement, which lists all fees and conditions. Ask for it in writing or find it on the bank's website. Do not assume the fee will be waived for you—confirm which waiver option you can actually meet.

Banks and credit unions with no monthly fees

Online banks and many credit unions charge no monthly maintenance fee, period. Banks like Ally, Charles Schwab, Discover, and Chime do not charge monthly fees on checking or savings accounts, and they do not require a minimum balance. Credit unions—which are member-owned rather than for-profit—often have no monthly fees either, though this varies by institution.

The tradeoff is that online banks have no physical branches. You deposit checks by taking a photo with your phone, and you withdraw cash at ATMs (some online banks reimburse ATM fees, others do not). If you need to walk into a branch to deposit cash or talk to someone in person, an online bank may not work for you. Credit unions often have shared branch networks, so you can use another credit union's branch even if your own has no location nearby.

If you are looking for the absolute lowest cost, start by checking whether your employer or a union you belong to has a credit union. Credit union membership is sometimes restricted to people in a certain industry or geographic area, but if you may have access to, you often get better rates and no fees.

Other costs that come after you open the account

Even if there is no monthly fee, banks charge for specific services. Overdraft fees are the most common: if you spend more than you have, the bank covers it and charges you $25 to $35 per overdraft. Some banks charge multiple overdraft fees in a single day. Wire transfer fees typically run $15 to $30 to send money out of state. Paper statement fees are $1 to $5 per month if you ask for a printed statement instead of viewing it online.

ATM fees apply if you use an out-of-network machine—usually $2 to $3 per withdrawal. Some banks charge you; some charge the ATM owner; often both do. Stopping a check costs $25 to $35. Closing an account within a short time (often 90 days) can trigger an early closure fee of $25 to $100, though this is less common now.

The best protection is to read the fee schedule before opening the account and to set up account alerts so you know your balance before you spend. Many banks now offer overdraft protection, which links your checking account to a savings account or credit line so you do not overdraft in the first place.

What you need to bring to open an account

You will need a government-issued photo ID (driver's license, passport, or state ID) and proof of your current address. Proof of address can be a utility bill, lease, mortgage statement, or bank statement dated within the last 60 days. These documents are free—you already have them or can get them at no cost.

Some banks also ask for your Social Security number to run a credit check, though this is not a hard requirement at all banks. A few banks use alternative verification methods if you do not have a Social Security number. If you are opening an account online, you may be able to upload photos of your documents instead of bringing originals to a branch.

If you do not have a current address—for example, if you are unhoused—some banks and credit unions have programs to open accounts using a shelter address or a mail forwarding service. Call ahead and ask; do not assume you are ineligible.

Accounts for people with banking history problems

If you have been denied a bank account because of a past overdraft or unpaid fee, you may still have options. Second-chance checking accounts are designed for people with banking problems in their history. They often have higher fees than standard accounts, but they let you rebuild your banking record. Chime, LendingClub, and some credit unions offer these.

You can also check ChexSystems, a banking history database that banks use to decide whether to open an account for you. If you are listed there, you have the right to see what is on your report and to dispute inaccurate information. Negative records typically fall off after five years. Some banks do not use ChexSystems at all, so if you are denied at one bank, try another.

Joint accounts and accounts for minors

Opening a joint account—where two people share ownership and access—costs the same as opening a single account: nothing. Both account holders need to bring ID and proof of address. The monthly fee rules are the same; if the account has a monthly fee, both owners are responsible for meeting the waiver conditions.

Minors (usually under 18) can open a savings account alone at some banks, but a checking account typically requires a parent or guardian to co-own it. The parent's name and ID are required. Some banks offer teen checking accounts with limited features and lower fees. There is no extra charge to add a minor to an account.

Frequently Asked Questions

Can I open a bank account online without going to a branch?

Yes. Most banks and all online banks let you open an account entirely online using your phone or computer. You upload photos of your ID and proof of address, and the account opens within hours or a few business days. You do not need to visit a branch.

What happens if I cannot keep the minimum balance to avoid the monthly fee?

You will be charged the monthly maintenance fee, usually $5 to $15. The fee is deducted from your account each month. If you cannot meet the minimum balance requirement, switch to a bank with no monthly fee instead of paying it repeatedly.

Do I need a credit card to open a bank account?

No. A bank account and a credit card are separate products. You can open a checking or savings account with just an ID and proof of address. A credit card is not required and is not part of the account opening process.

Will opening a bank account hurt my credit score?

No. Banks may check your credit when you open an account, but this is a soft inquiry and does not lower your credit score. Only hard inquiries—like when you apply for a loan or credit card—affect your score.

What if I want to close my account right after opening it?

Most banks let you close an account anytime with no penalty now, though some older accounts may have an early closure fee of $25 to $100 if closed within 90 days. Check the account agreement before opening to see if this applies. Closing an account is free at most banks today.