Most banks charge nothing to open a checking or savings account

You will not pay an upfront fee to open an account at most banks and credit unions. The account itself is free — you hand over your ID and Social Security number, sign some forms, and you are done. No charge appears on your first statement.

What you might pay for instead are the things that happen after you open it: monthly maintenance fees if you do not keep a minimum balance, overdraft fees if you spend more than you have, ATM fees if you use another bank's machine, or fees to wire money or get a cashier's check. These are separate from opening the account and depend on how you use it.

Some banks do charge to open an account, but this is rare and usually only happens at banks that cater to people with poor credit or no credit history. Even then, the fee is typically between $25 and $100, and some of that may be credited back to your account as an initial deposit.

Key Takeaways

  • Opening a checking or savings account costs nothing at most banks and credit unions.
  • Monthly maintenance fees, overdraft fees, and ATM fees are separate charges that depend on how you use the account, not on opening it.
  • Banks that do charge to open an account usually serve people rebuilding credit, and the fee is typically $25 to $100.
  • Credit unions often have lower fees overall than traditional banks, even if they charge a small membership fee upfront.
  • You can compare what each bank charges by asking directly or reading their fee schedule before you open an account.

What "free" actually means when opening an account

When a bank says opening an account is free, it means you do not pay to create the account itself. You walk in or go online, provide identification and your Social Security number, and the account is ready to use. No bill arrives for this step.

The word "free" does not mean the account will never cost you anything. It means the opening process has no charge. After that, fees depend on what you do with the account. If you never overdraw, never use an out-of-network ATM, and keep the minimum balance the bank requires, you may never pay a fee. If you do those things, you will.

Read the bank's fee schedule before you open the account — this is a document that lists every charge the bank can impose. Most banks post this online, and you can ask for a printed copy in person. The fee schedule tells you exactly what costs you might face.

Monthly maintenance fees and how to avoid them

A monthly maintenance fee is a charge the bank takes from your account each month just for having the account open. It is usually $5 to $15, though some banks charge more. Not all banks charge this fee, and many waive it if you meet certain conditions.

The most common way to avoid a monthly maintenance fee is to keep a minimum balance — a set amount of money that must stay in your account at all times. For example, a bank might charge $10 per month unless you keep at least $500 in the account. If your balance drops below $500, the fee kicks in that month. Different banks set different minimums; some require $100, others $1,000 or more.

Other banks waive the fee if you set up direct deposit — having your paycheck automatically sent to the account each pay period. Some waive it if you maintain a certain number of debit card transactions per month, or if you have another account with the bank. Ask the bank what conditions would waive the fee before you open the account.

Overdraft fees and what triggers them

An overdraft fee is a charge you pay 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 charge you an overdraft fee — typically $25 to $35 per transaction. Some banks charge multiple overdraft fees in a single day if you overdraw several times.

You can prevent overdraft fees by keeping track of your balance and not spending more than you have. Many banks let you turn off overdraft protection, which means a transaction will be declined if you do not have enough money, rather than going through and charging you a fee. This is usually the safer choice if you are new to banking.

Some banks offer overdraft protection that links your checking account to a savings account or credit line. If you overdraw, the bank automatically transfers money from the linked account to cover it, and you pay a smaller fee (often $5 to $10) instead of the full overdraft fee. Ask whether this option is available and whether it costs anything to set up.

ATM fees and out-of-network charges

An ATM fee is a charge you pay when you withdraw cash from an ATM that does not belong to your bank. If your bank is Chase and you use a Bank of America ATM, Bank of America may charge you $2 to $3 for the withdrawal. Your own bank may charge an additional fee on top of that.

The easiest way to avoid ATM fees is to use only ATMs owned by your bank. Before you open an account, check how many ATMs your bank has in places you go regularly — work, home, grocery stores. If the bank has very few ATMs near you, you will end up paying fees regularly, so choose a bank with more locations or one that reimburses ATM fees.

Some banks, especially online banks and credit unions, reimburse all ATM fees or partner with networks of ATMs you can use for free. If you do not have a car and cannot easily reach your bank's ATMs, this matters more than the monthly maintenance fee.

Credit unions versus traditional banks

Credit unions are nonprofit organizations that work like banks but often charge lower fees. Many credit unions charge nothing to open an account and have no monthly maintenance fee at all. They also tend to charge lower overdraft fees and reimburse ATM fees more often than traditional banks do.

The catch is that credit unions usually require you to be a member, and membership sometimes costs a small fee — often $5 to $25, paid once when you join. After that, you use the credit union like a bank. Some credit unions waive the membership fee or credit it toward your first deposit.

Credit unions also have fewer ATMs and branches than large banks, so if you need ATM access everywhere you go, a traditional bank might be more practical. But if you have a credit union near your home or work, it is worth asking about their fees before you choose a bank.

Banks that charge to open an account

Some banks do charge an upfront fee to open an account, usually between $25 and $100. These are often banks that specialize in serving people with poor credit or no credit history, or banks that offer second-chance checking accounts. The fee exists because these banks take on more risk — they serve customers who are more likely to overdraw or default.

Even when a bank charges to open an account, part of that fee is sometimes credited to your account as an initial deposit. For example, a bank might charge $50 to open an account but credit $25 of that back to you, so your net cost is $25. Ask the bank how much of the opening fee, if any, goes into your account.

If you have poor credit or no banking history, a second-chance account may be your only option at some banks. In that case, the opening fee is a cost of entry. But compare it to other banks that serve people in your situation — not all of them charge, and those that do may charge different amounts.

How to compare fees before you open

Before you open an account, ask the bank or credit union for their fee schedule, or find it on their website. The schedule lists every fee the bank charges and the conditions that trigger each one. Read it carefully and note which fees you are most likely to pay based on how you plan to use the account.

Ask specific questions: Does the account have a monthly maintenance fee? What is the minimum balance to waive it? What is the overdraft fee? Can I turn off overdraft protection? Does the bank reimburse ATM fees? How many ATMs does the bank have near me? Write down the answers so you can compare banks side by side.

You do not need to choose the bank with the lowest fees overall — you need to choose the bank with the lowest fees for how you will use it. If you will never overdraw, overdraft fees do not matter. If you will use ATMs constantly, ATM access matters more than monthly maintenance fees. Think about your own habits and choose based on that.

Frequently Asked Questions

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

No, most banks and credit unions charge nothing to open a checking or savings account. Some banks that serve people with poor credit do charge $25 to $100, but this is uncommon. The opening process itself is free at the vast majority of banks.

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

Look for a bank that does not require a minimum balance, or one that waives the fee through direct deposit or debit card transactions instead. Many online banks and credit unions have no minimum balance requirement at all. You can also ask the bank whether they offer a lower-tier account with a smaller minimum.

Can I get overdraft fees refunded if I call the bank?

Some banks will refund one or two overdraft fees if you call and ask, especially if you have been a customer for a while and it is your first time overdrawing. There is no may provide, but it is worth asking. The worst they can say is no. Turning off overdraft protection prevents future fees from happening in the first place.

Is it better to open an account at a big bank or a small one?

Big banks have more ATMs and branches, which is useful if you travel or move often. Small banks and credit unions often charge lower fees and offer more personal service. Choose based on what matters to you: convenience and ATM access, or lower fees and personal attention.

What documents do I need to open an account?

You will need a government-issued ID (driver's license, passport, or state ID) and your Social Security number. Some banks also ask for proof of address, like a utility bill or lease. Call the bank before you go in and ask what documents to bring so you are not turned away.