TD Bank's main checking account has a monthly fee, but you can avoid it

TD Bank's most common checking account, called the TD Bank Checking, costs $15 per month. However, you can waive this fee if you keep a minimum balance — the smallest amount of money the bank requires you to hold in the account at all times. At TD Bank, you can avoid the $15 monthly fee by maintaining a balance of $500 or more.

If $500 feels out of reach right now, TD Bank also offers the TD Bank Checking with Choice, which has the same $15 monthly fee but gives you the option to waive it by setting up a direct deposit of at least $250 per pay period. This means your paycheck (or other regular income) flows directly into the account from your employer or benefits provider.

The fee structure matters because it affects how much money you actually keep. A $15 monthly fee adds up to $180 per year if you do not meet the waiver requirement. Understanding which waiver option fits your situation — maintaining a balance or receiving direct deposits — helps you choose the account that costs you nothing.

Key Takeaways

  • TD Bank Checking costs $15 per month unless you maintain a $500 minimum balance or set up a direct deposit of at least $250 per pay period.
  • The minimum balance requirement means you must keep that amount in the account at all times; if your balance drops below $500, the monthly fee applies.
  • Direct deposit is often easier to maintain than a minimum balance if you receive regular paychecks or government benefits.
  • Other banks offer checking accounts with no monthly fee and no minimum balance, so comparing options before opening an account can save you money.

How the minimum balance waiver works

The $500 minimum balance is calculated as an average daily balance over the month. This means the bank adds up your balance at the end of each day and divides by the number of days in the month. You do not need to have exactly $500 in the account every single day — some days it can be higher, some days lower — as long as the average comes out to $500 or more.

For example, if your balance is $600 on most days but drops to $300 on payday before your paycheck deposits, the average might still reach $500 depending on how many days it stayed at each level. The bank will tell you your average daily balance on your monthly statement, so you can see whether you met the requirement.

If your balance falls below the average needed, the $15 fee posts to your account automatically. You do not receive a warning — the fee straightforward appears on your statement at the end of the month.

How the direct deposit waiver works

Direct deposit means your employer or benefits provider sends your paycheck or income electronically straight into your TD Bank account. You do not have to go to the bank or deposit a check yourself. To waive the monthly fee this way, you need at least $250 per deposit, and it must happen regularly — typically once per pay period.

Setting up direct deposit usually takes a few minutes. You give your employer or benefits administrator your TD Bank account number and routing number (both printed on the bottom of your checks, or available through TD Bank's website or app). They handle the rest.

The direct deposit waiver is often simpler than maintaining a minimum balance because it does not depend on how much money you have at any given moment. As long as the deposits keep coming, the fee stays waived, even if your balance drops to $50 between paychecks.

Other fees to know about

The monthly maintenance fee is not the only cost. TD Bank also charges for certain transactions and services. For example, if you overdraw your account — spend more than you have — you may face an overdraft fee, typically around $35 per transaction, though this varies. Some banks offer overdraft protection, which links your checking account to a savings account or credit line to cover overdrafts automatically.

Out-of-network ATM withdrawals may also carry a fee. TD Bank has its own ATM network, but if you use an ATM from a different bank, you might pay $2 to $3 per withdrawal. Some checking accounts include a certain number of free out-of-network ATM withdrawals per month, so check the account details.

Wire transfers, cashier's checks, and stop-payment requests on checks also typically cost money at TD Bank. These are less common transactions, but they are worth knowing about if you think you might need them.

Comparing TD Bank to other options

Many banks and credit unions offer checking accounts with no monthly fee and no minimum balance requirement. Online banks like Ally, Charles Schwab, and others often have zero-fee checking because they do not operate physical branches, which reduces their costs. Local credit unions may also offer free checking to members, sometimes with even fewer restrictions than large banks.

If you value having a physical branch location where you can walk in and speak to someone, TD Bank's $15 fee might be worth it to you. If you are comfortable banking online or by phone, a free account elsewhere could save you $180 per year. The choice depends on what matters most to you — convenience, branch access, customer service, or cost.

Before opening any account, compare the monthly fees, minimum balance requirements, direct deposit options, overdraft policies, and ATM access across a few banks. A few minutes of comparison can reveal which account truly costs you nothing and fits how you actually bank.

What happens if you cannot meet the waiver requirement

If you cannot maintain a $500 balance and do not have direct deposit set up, the $15 monthly fee will post to your account. This fee comes out of your balance, which can make it harder to stay above $500 the next month — a cycle that is straightforward to get stuck in.

If this happens, you have options. You can contact TD Bank and ask about other account types they offer, or you can switch to a different bank that does not charge a monthly fee. Switching is free — you straightforward open a new account elsewhere and ask your employer to change your direct deposit, or transfer your money over yourself.

Some people keep a small TD Bank account for specific reasons (like accessing a branch) while using a free checking account at another bank for everyday spending. There is no rule against having accounts at multiple banks.

Frequently Asked Questions

Can I waive the fee with both a minimum balance and direct deposit?

Yes. If you have both a $500 average daily balance and direct deposits of $250 or more, you meet the requirement either way. You only need one waiver method to work — you do not need both.

Does the $500 minimum balance include money in savings accounts?

No. The minimum balance requirement applies only to your checking account balance. Money in a separate savings account does not count toward the $500 threshold for the checking account fee waiver.

What if my direct deposit stops — do I owe the fee when ready?

The fee applies starting the month after your direct deposits stop, assuming your checking balance is also below $500. You will not be charged retroactively for months you did not meet the requirement.

Is there a TD Bank checking account with no monthly fee at all?

TD Bank's standard checking accounts all carry a $15 monthly fee unless you meet one of the waiver requirements. If you want truly free checking with no conditions, you would need to open an account at a different bank.

How do I know if my direct deposit is set up correctly?

Your first direct deposit should appear in your account within one to two business days of your employer sending it. If it does not show up after that time, contact your employer's payroll department to confirm they have the correct account and routing number.