Most banks charge nothing to open an account, but some charge monthly fees once it's open
Opening a bank account itself is free at nearly every bank in the United States. The account opening process — filling out forms, providing ID, giving your Social Security number — costs you nothing. What matters is what happens after: many banks charge a monthly maintenance fee to keep the account active, and that fee varies widely depending on the bank and the type of account you choose.
The real cost question is not "how much to open" but "how much to keep open." A checking account at one bank might cost $12 a month, while the same type of account at another bank costs nothing. Some banks waive their monthly fee if you maintain a minimum balance, set up direct deposit, or meet other conditions. Others charge the fee no matter what.
Key Takeaways
- Opening an account is free, but monthly maintenance fees range from $0 to $15 depending on the bank and account type.
- Many banks waive their monthly fee if you keep a minimum balance (often $500 to $2,500) or set up direct deposit.
- Online banks typically charge no monthly fee because they have lower operating costs than physical branches.
- Overdraft fees, ATM fees, and wire transfer fees are separate from monthly maintenance and can add up quickly if you use those services.
- Credit unions often charge lower or no monthly fees, but membership requirements vary by location and employer.
Monthly maintenance fees and what waives them
A monthly maintenance fee is what the bank charges you to keep the account open and active. This is not a penalty — it is a regular charge, usually between $5 and $15 per month, though some accounts charge more. Chase, Bank of America, Wells Fargo, and Citibank all charge monthly fees on their standard checking accounts, typically $12 to $15.
Most banks let you avoid this fee by meeting one condition. The most common are: keeping a minimum balance (usually $500 to $2,500), setting up direct deposit, or maintaining a certain number of debit card transactions per month. Some banks require you to meet just one condition; others require two or three. Read the account terms carefully, because the condition that works for you depends on your situation. If you get paid by direct deposit, that alone might waive the fee. If you do not, you may need to keep a higher balance instead.
Online banks — Ally, Charles Schwab, Discover, and others — typically charge no monthly maintenance fee at all. They can afford to do this because they have no physical branches and lower operating costs. The tradeoff is that you cannot walk into a location to deposit cash or speak to someone in person, though most online banks let you deposit checks by phone camera and offer 24/7 customer service.
Overdraft fees and other per-transaction costs
Beyond the monthly fee, banks charge for specific actions. An overdraft fee is charged when you spend more money than you have in the account. This fee ranges from $25 to $35 per overdraft at most banks, and you can be charged multiple times in a single day if you make multiple transactions that overdraw the account. Some banks charge a second fee if the overdraft is not covered within a few days.
Other common fees include: ATM fees (usually $2 to $3 if you use an ATM outside your bank's network), wire transfer fees ($15 to $30 to send money to another bank), and fees for stopping a check payment ($25 to $35). Many banks do not charge for basic services like transfers between your own accounts, bill pay, or receiving wire transfers, but this varies.
The monthly maintenance fee is predictable, but overdraft and ATM fees are not — they depend on how you use the account. Someone who never overdrafts and uses only in-network ATMs will never pay these fees. Someone who overdrafts frequently or travels and uses unfamiliar ATMs could pay hundreds of dollars per year in fees that have nothing to do with the monthly maintenance charge.
Minimum balance requirements and how they work
When a bank says "maintain a $1,500 minimum balance to waive the monthly fee," they mean the balance in your account must not drop below $1,500 at any point during the month. Some banks measure this as a daily balance (the lowest amount you held on any single day), while others measure it as an average balance across the month. This matters: if you are paid $3,000 on the first of the month and spend it all by the 15th, a daily-balance requirement means you failed to maintain the minimum, even though your average for the month was $1,500.
The minimum balance is money you have to keep in the account and cannot spend freely. If you have $1,500 tied up to waive a $12 monthly fee, you are paying an invisible cost: the interest you could have earned if that money were in a savings account instead. At current savings rates (around 4 to 5 percent annually), $1,500 earning interest in a savings account would generate roughly $60 to $75 per year. Keeping it locked in a checking account to avoid a $144 annual fee might still make sense, but it is worth knowing the tradeoff.
Student accounts, senior accounts, and special programs
Many banks offer accounts with no monthly fee for specific groups. Student checking accounts (usually available to anyone under 25 with a valid student ID) typically have no monthly maintenance fee and no minimum balance requirement. These accounts often come with a debit card, online banking, and mobile check deposit at no cost.
Senior accounts (usually for customers 55 or older) often have similar benefits: no monthly fee, no minimum balance, and sometimes higher interest rates on savings accounts. Some banks also offer accounts with no monthly fee for customers who receive Social Security or other government benefits via direct deposit.
Credit unions — member-owned financial institutions — often charge no monthly fee or charge lower fees than banks. However, credit unions have membership requirements. You may be able to join based on where you work, where you live, what school you attend, or membership in certain organizations. Some credit unions have no membership restrictions and are open to anyone in a geographic area. Checking the CO-OP Network or Shared Branch directories will show you which credit unions you can join and what their fees are.
Comparing total cost across different banks
The true cost of an account is not just the monthly fee — it is the monthly fee plus the fees you actually pay for overdrafts, ATM use, and other services. Two accounts with the same $12 monthly fee will cost you very differently depending on your habits.
| Bank Type | Monthly Fee | Fee Waiver Condition | Overdraft Fee | Out-of-Network ATM Fee |
|---|---|---|---|---|
| Large bank (Chase, BofA, Wells Fargo) | $12–$15 | $500–$2,500 minimum balance or direct deposit | $25–$35 | $2–$3 |
| Online bank (Ally, Charles Schwab, Discover) | $0 | None | $25–$35 | Reimbursed at many ATMs |
| Credit union | $0–$10 | Varies; often none | $20–$30 | Varies; often free in shared network |
| Student/senior account | $0 | Age or enrollment status | $25–$35 | $2–$3 |
If you can meet the waiver condition (direct deposit or minimum balance), the monthly fee becomes zero and your only costs are the fees you trigger through overdrafts or ATM use. If you cannot meet the waiver condition, an online bank with no monthly fee will cost you less than a traditional bank, even if you occasionally overdraft.
Hidden costs: what banks do not advertise
Some fees are not obvious from the account terms. If you close an account within a short period (sometimes 90 days, sometimes 6 months), some banks charge an early closure fee of $25 to $50. This is rare but worth checking before opening an account you think you might close quickly.
Inactivity fees are charged if you do not use the account for a long time — usually 12 months or more of no deposits, withdrawals, or transfers. These fees are uncommon at checking accounts but more common at savings accounts. Some banks also charge fees for paper statements if you opt out of electronic statements, though this is becoming rare.
Foreign transaction fees explore if you use your debit card outside the United States. Most banks charge 1 to 3 percent of the transaction amount. If you travel internationally or send money abroad regularly, this can add up. Some online banks and credit unions charge no foreign transaction fees, which is worth considering if international use is part of your routine.
Frequently Asked Questions
Can I open a bank account with no fees at all?
Yes. Online banks like Ally, Charles Schwab, and Discover offer checking accounts with no monthly maintenance fee, no minimum balance, and no overdraft fees (though overdrafts are still charged if they occur). Many credit unions also offer accounts with no monthly fee. The tradeoff is that online banks have no physical branches, so you cannot deposit cash in person.
What happens if I cannot maintain the minimum balance?
The monthly maintenance fee will be charged. If the fee is $12 and you cannot maintain the minimum balance, you will pay $144 per year. Switching to an online bank or a credit union with no monthly fee is usually cheaper than paying this fee repeatedly.
Do I have to pay overdraft fees?
Overdraft fees are charged only if you spend more than you have in the account. You can avoid them by monitoring your balance and not spending money you do not have. Some banks offer overdraft protection, which links your checking account to a savings account or credit line and automatically transfers money if you overdraft, though this service may have its own fee.
Is there a difference between opening a checking account and a savings account?
Checking accounts are designed for frequent transactions and usually have no monthly fee or a low fee. Savings accounts are designed to hold money and earn interest, and they often have monthly fees if the balance drops below a minimum (usually $300 to $500). The monthly fee structure is similar, but savings accounts may have limits on how many withdrawals you can make per month.
Can I avoid all fees by using a credit union?
Most credit unions charge no monthly maintenance fee and lower overdraft fees than banks. However, you must be a member, and membership requirements vary. Some credit unions are open only to employees of certain companies, residents of certain areas, or members of certain organizations. Check whether you are may be able to access before assuming a credit union is an option.