Most bank accounts cost nothing to open

Opening a basic checking or savings account at a bank or credit union does not charge you an upfront fee. You walk in, provide identification and proof of address, sign paperwork, and the account is active — no cost at all. The same is true for online banks: you create an account on their website or app, verify your identity, and you are done.

Where costs appear is not in opening the account, but in keeping it open or using it in certain ways. A bank might charge a monthly maintenance fee, overdraft fees when you spend more than you have, ATM fees if you use an out-of-network machine, or fees for services like wire transfers or cashier's checks. These are separate from the act of opening the account itself.

Key Takeaways

  • Opening a checking or savings account is free at banks, credit unions, and online banks — no fee is charged when you create the account.
  • Monthly maintenance fees vary by bank and account type; many banks waive them if you keep a minimum balance or set up direct deposit.
  • Overdraft fees, ATM fees, and transaction fees are the most common charges you will encounter after opening, not during the opening process.
  • Credit unions often have lower or no monthly fees compared to large banks, and they do not charge overdraft fees in the same way.
  • Reading the fee schedule before you open an account tells you what charges might apply once the account is active.

Monthly maintenance fees and how to avoid them

Many banks charge a monthly maintenance fee — typically $5 to $15 per month — just for keeping the account open. This fee is separate from opening the account and is charged after the account exists. However, most banks waive this fee if you meet one of several conditions: maintaining a minimum balance (often $500 to $1,500), setting up direct deposit of your paycheck, or making a certain number of debit card transactions per month.

Online banks and credit unions are more likely to have no monthly maintenance fee at all, regardless of balance or activity. If you are comparing accounts, check the fee schedule on the bank's website or ask a teller directly: "Does this account have a monthly maintenance fee, and if so, how do I waive it?" The answer will tell you whether the account will cost you money once it is open.

Overdraft fees and what triggers them

An overdraft fee is charged when you spend more money than you have in your account. If your balance is $50 and you swipe your debit card for $75, the bank may let the transaction go through and then charge you an overdraft fee — usually $25 to $35 per transaction. Some banks charge multiple overdraft fees in a single day if you make several purchases that overdraw your account.

You can avoid overdraft fees by linking a savings account to your checking account so the bank transfers money automatically when you run low, by opting out of overdraft protection (which means transactions will be declined instead of charged a fee), or simply by monitoring your balance before you spend. Many banks now offer overdraft protection at no cost, and some have removed overdraft fees entirely.

ATM fees and out-of-network charges

Using an ATM that does not belong to your bank or credit union often costs $2 to $3 per withdrawal. If your bank is a large national chain, you likely have access to thousands of ATMs at no cost. If your bank is smaller or online-only, you may have fewer free ATM options and will need to plan where you withdraw cash.

Credit unions often participate in shared branching networks, which means you can withdraw cash at other credit unions' ATMs for free. Online banks sometimes reimburse ATM fees charged by other banks, so check the account details. If you withdraw cash frequently, this can add up — $3 per withdrawal twice a week is over $300 per year — so it is worth factoring into your choice of bank.

Other fees that appear after opening

Wire transfers (sending money to another bank) typically cost $15 to $30. Cashier's checks cost $5 to $15 each. Requesting a paper statement instead of using online banking may cost $1 to $5 per month. Closing an account within a short time after opening (usually 90 to 180 days) can trigger an early closure fee of $25 to $50 at some banks.

These fees are not charged when you open the account — they are charged only if you use these services. When you are comparing banks, ask about the services you actually plan to use. If you never wire money, wire transfer fees do not matter to you. If you do not plan to close the account soon, early closure fees are irrelevant.

Credit unions versus banks: fee differences

Credit unions are member-owned and often charge lower fees than banks. Many credit unions have no monthly maintenance fee, no overdraft fees, and no ATM fees within their network. Some credit unions charge overdraft fees only if you overdraw by more than a certain amount (like $5 or $10), rather than charging for every overdraft.

Large national banks tend to have more fees but also more ATM locations and branches. Smaller regional banks and online banks fall somewhere in between. The trade-off is often convenience versus cost: a big bank might charge more in fees but have an ATM on every corner, while a credit union might charge less but have fewer physical locations.

What to check before you open

Before you open an account, ask the bank or credit union for their fee schedule in writing or find it on their website. Look specifically for: monthly maintenance fees and how to waive them, overdraft fees, ATM fees, wire transfer fees, and any early closure fees. Ask whether the account comes with overdraft protection and whether it is automatic or something you have to opt into.

If you are opening an account online, the fee schedule should be visible before you complete the account creation. Read it. If something is unclear, call the bank's customer service line and ask. A five-minute conversation before you open the account can save you hundreds in unexpected fees later.

Frequently Asked Questions

Do I have to pay anything to open a bank account?

No. Opening a checking or savings account is free at all banks and credit unions. You do not pay a fee to create the account. Fees only appear after the account is open, and only if you use certain services or fail to meet conditions like maintaining a minimum balance.

What is the cheapest type of account to open?

Credit unions typically offer the lowest-cost accounts, often with no monthly maintenance fee and no overdraft fees. Online banks also tend to have low or no monthly fees. Compare the specific account you are interested in rather than assuming all accounts at one bank cost the same.

Can I avoid all fees after opening?

You can avoid most fees by maintaining a minimum balance, setting up direct deposit, using your bank's ATMs, and not overdrawing your account. Some banks and credit unions have accounts with no fees at all, regardless of balance or activity. Read the fee schedule to see which fees apply to the specific account you are opening.

What happens if I close my account right after opening it?

Some banks charge an early closure fee ($25 to $50) if you close an account within 90 to 180 days of opening it. Not all banks charge this fee. Check the terms before you open the account if you think you might close it soon.

Are online banks cheaper than brick-and-mortar banks?

Online banks usually have lower monthly fees and fewer ATM fees because they do not operate physical branches. However, they may have fewer ATM locations, which can cost you money if you withdraw cash frequently. Compare the total cost based on how you actually plan to use the account.