Most banks charge a monthly maintenance fee, but the amount and who pays it varies widely

Nearly every major bank in the United States charges a monthly fee to keep a checking account open. The fee typically ranges from $5 to $15 per month, though some banks charge nothing and others charge $25 or more. The fee is usually waived if you meet one condition—a minimum balance, a direct deposit, or a certain number of debit card transactions—so whether you actually pay depends on your account activity, not just which bank you use.

The banks that charge the highest fees tend to be the largest national chains. The banks that charge nothing tend to be online-only or credit unions. In between are regional banks and accounts designed for specific customer types. Knowing which banks fall into each category helps you avoid paying for something you don't need.

Key Takeaways

  • Major national banks like Chase, Bank of America, and Wells Fargo charge $10 to $15 per month, but waive the fee if you maintain a minimum balance or set up direct deposit.
  • Online banks like Ally, Charles Schwab, and Discover typically charge no monthly fee and have no minimum balance requirement.
  • Credit unions often charge lower fees or no fee at all, but membership is restricted to people who work in certain industries or live in certain areas.
  • The fee is waived at most banks if you meet just one condition, such as keeping $500 to $1,500 in the account or receiving a paycheck deposited electronically.
  • Switching banks takes a few days but costs nothing, so if you cannot meet a fee waiver condition, moving to a no-fee bank saves money over time.

What the largest national banks charge

Chase charges $12 per month for its basic checking account (Chase Total Checking), but waives the fee if you maintain a $500 minimum balance, set up direct deposit, or maintain a linked savings account with $500. Chase also offers Chase find Banking, which has no monthly fee but requires a $25 minimum opening deposit and limits you to 4 withdrawals per month.

Bank of America charges $12 per month for its standard checking account (BankAmericard Checking), waived if you maintain a $1,500 minimum balance, set up direct deposit, or maintain a linked savings or money market account with $500. Bank of America also offers SafeBalance Banking with no monthly fee, but it comes with limited features and a $25 opening deposit requirement.

Wells Fargo charges $10 per month for its basic checking account (Wells Fargo Checking), waived if you maintain a $500 minimum balance or set up direct deposit. Wells Fargo also offers Clear Access Banking with no monthly fee, but it has a $25 opening deposit and limits ATM withdrawals.

Citibank charges $10 per month for its basic checking account (Citibank Basic Checking), waived if you maintain a $1,500 minimum balance or set up direct deposit. Citibank also offers Citibank Access Account with no monthly fee but with a $25 opening deposit.

Banks that charge no monthly fee

Online banks typically charge no monthly fee because they have lower operating costs than branches. Ally Bank, Charles Schwab Bank, Discover Bank, and Axos Bank all offer checking accounts with no monthly fee and no minimum balance. These banks make money from lending and investments, not from account fees. The trade-off is that you cannot walk into a physical location to deposit cash or speak to someone in person, though most offer ATM networks or mobile deposit.

Credit unions often charge no monthly fee or charge $3 to $5 per month. Membership is usually restricted—you must work for a specific employer, live in a specific county, or belong to a specific organization. The National Credit Union Administration (NCUA) website has a tool to search credit unions by location or employer. If you are a member of a credit union, it is worth checking whether your account has a monthly fee, because many do not.

Regional and community banks vary widely. Some charge $5 to $8 per month with straightforward waiver conditions. Others charge nothing. Call your bank or check its website for the specific account you hold, because the fee depends on the account type, not just the bank name.

How to know if your bank's fee is being waived

Your bank statement shows whether a monthly fee was charged. Look for a line item labeled "Monthly Service Charge," "Maintenance Fee," or "Account Fee." If you see one, your account did not meet the waiver condition that month. If you do not see one, either your bank charges no fee or you met the waiver condition.

To find out what condition you need to meet, log into your online banking account and look for account details or account terms. Most banks also list fee information on their website under "Checking Accounts" or "Account Fees." If you cannot find it, call the bank's customer service line and ask what the monthly fee is and what waives it. Write down the answer—you may need it later if the fee appears on your statement.

When the minimum balance requirement is the problem

If your bank waives the fee only if you keep a minimum balance, and you cannot maintain that balance, you have two options: switch to a bank with no minimum balance, or switch to a bank with a lower minimum. A $500 minimum is easier to maintain than a $1,500 minimum, but $0 is easier than either.

Switching takes about three business days. You will need your new bank's routing number to set up direct deposit at your job, and you may need to update automatic bill payments if you have them. Most online banks and credit unions have no minimum balance, so if the minimum is the barrier, moving solves the problem permanently.

When direct deposit is the waiver condition

Many banks waive the monthly fee if you set up direct deposit—meaning your paycheck or benefits payment goes straight into the account electronically. If you are paid by check or in cash, or if you receive benefits by mail, you cannot use this waiver. In that case, you either need to maintain the minimum balance or switch to a no-fee bank.

Some employers and benefit programs allow you to choose how you receive payment. If yours does, setting up direct deposit takes a few minutes and waives the fee permanently. If your employer or program does not offer direct deposit, or if you are self-employed, this waiver is not available to you, and you should focus on the other options.

Regional and smaller banks worth checking

Not every bank is a national chain. Many regional banks and local credit unions charge lower fees or no fee at all. Examples include USAA (for military members and their families), Schwab Bank (no monthly fee, no minimum), and various state and local credit unions. The fee structure depends on the specific bank and account type, so you need to check each one.

If you have a relationship with a local bank or credit union, ask about their checking account fees before you assume you need to switch to a national chain. You may find that a smaller bank offers better terms and better customer service because you can walk in and speak to someone.

Frequently Asked Questions

Can I avoid the monthly fee by keeping my account open but not using it?

No. Most banks charge the monthly fee whether you use the account or not. The fee is charged straightforward for having the account open. If you want to avoid the fee, you need to either meet a waiver condition or close the account.

Do savings accounts have monthly fees too?

Some do, but most do not. Savings accounts at major banks usually have no monthly fee, though they may have a fee if you make more than a certain number of withdrawals per month (federal rules limit this, but some banks still charge). Check your bank's fee schedule for savings accounts specifically.

If I switch banks, will my old account stay open?

Only if you keep it open. When you open a new account at a new bank, your old account at your old bank remains open until you close it. You can close it when ready after your new account is set up, or you can keep it open if you want to maintain the relationship. If you keep it open and it has a monthly fee, you will continue to be charged.

What if my bank charges a fee I did not know about?

Call the bank and ask them to explain the fee and what waives it. If you met a waiver condition and were still charged, ask them to reverse the fee. Many banks will reverse one or two months of fees if you ask, especially if you have been a customer for a long time. If they refuse, you can close the account and move to a bank with no fee.

Do online banks have ATM fees?

Most online banks partner with ATM networks so you can withdraw cash without a fee. Charles Schwab, for example, reimburses ATM fees charged by other banks. Ally Bank has a network of ATMs you can use for free. Check the specific bank's ATM policy before you open an account if cash access is important to you.