Most checking accounts do charge monthly fees, but many banks let you avoid them
Whether your checking account costs money each month depends on the bank and the account type. Some banks charge a flat monthly fee—typically $5 to $15—just to keep the account open. Others charge nothing at all. The key is that most banks give you ways to waive the fee if you meet certain conditions, like keeping a minimum balance or setting up direct deposit.
The fee itself is called a maintenance fee or monthly service charge. It appears on your statement once a month, usually on the same date. If you do not meet the bank's waiver conditions, the fee comes out of your account automatically.
Key Takeaways
- Monthly maintenance fees range from $5 to $15 at most traditional banks, but many accounts waive the fee if you maintain a minimum balance or receive direct deposit.
- Online banks and credit unions often charge no monthly fee at all, making them cheaper than brick-and-mortar banks for basic checking.
- The waiver conditions vary by bank—some require $500 in the account, others require $1,500, and some only need one direct deposit per month.
- If you fall below the minimum balance or miss a direct deposit requirement, the fee will charge even if you had the fee waived the previous month.
How banks structure monthly checking fees
A maintenance fee is a charge the bank takes for maintaining your account. It is separate from overdraft fees, ATM fees, or other charges you might incur by using the account in a certain way. The maintenance fee straightforward exists because you have the account open.
Banks publish their fee schedules in a document called a fee schedule or pricing guide, usually available on their website or in a printed brochure at the branch. This document lists the monthly fee amount and the exact conditions under which the bank will waive it. Read this before opening an account, because the waiver conditions matter more than the fee amount itself.
Some banks charge the fee on the first of the month, others on the last day of the statement cycle. The timing does not change the total cost, but it affects when the money leaves your account.
Common ways to avoid the monthly fee
Banks offer several paths to waive the maintenance fee. You typically only need to meet one condition, not all of them. The most common are:
- Minimum balance: Keep a set amount in the account at all times—often $500, $1,000, or $1,500. Some banks check the balance on the last day of the month; others check the daily average across the entire month. If you drop below the threshold even once, you may be charged the fee.
- Direct deposit: Receive at least one direct deposit per month, usually from an employer or government benefit. The deposit amount varies by bank—some require $500 or more, others accept any amount. This is the easiest waiver for people who are employed or receive regular benefits.
- Monthly transactions: Complete a certain number of debit card purchases or transfers each month, typically 10 or more. This is less common than the other two but still appears at some banks.
- Account type: Some banks waive fees for students, seniors, or people under 25. Others waive fees on accounts linked to a savings account or investment account at the same bank.
If you meet any one of these conditions, the fee does not charge that month. If you stop meeting the condition—your balance drops, your direct deposit stops, or you do not make enough transactions—the fee will charge the next month.
Banks and institutions with no monthly fee
Online banks typically charge no monthly maintenance fee at all. Banks like Ally, Charles Schwab, and Discover have no monthly fee and no minimum balance requirement. The trade-off is that they have no physical branches—you bank entirely online or by phone.
Credit unions often charge no monthly fee either, though this varies by institution. Credit unions are member-owned, not for-profit, so they tend to charge fewer fees overall. You must be a member to open an account, which usually means living or working in a certain area or belonging to a specific group.
Traditional banks with physical branches—Chase, Bank of America, Wells Fargo, and others—almost always charge a monthly fee on their basic checking accounts, though they offer ways to waive it. The fee helps pay for the cost of maintaining branches and staffing.
What happens if you do not meet the waiver condition
If you fail to meet the waiver condition in a given month, the maintenance fee charges automatically. For example, if your bank requires a $1,000 minimum balance and you drop to $950 on the last day of the month, the fee charges. If your bank requires one direct deposit per month and you miss a paycheck, the fee charges.
The fee comes out of your account on the scheduled date, reducing your balance further. If your balance is already low, the fee can push you into overdraft, which then triggers an overdraft fee on top of the maintenance fee. This is why the waiver condition matters so much—it determines whether you actually pay anything.
Some banks offer a grace period or will reverse one fee per year if you call and ask, but this is not may provide. It is better to choose an account with a waiver condition you can reliably meet, or choose a bank with no monthly fee.
Comparing checking accounts by fee structure
| Account Type | Typical Monthly Fee | Common Waiver Conditions | Best For |
|---|---|---|---|
| Traditional bank checking | $5–$15 | Minimum balance, direct deposit, or linked savings | People who want a physical branch and can meet one condition |
| Online bank checking | $0 | None | People comfortable banking online with no branch access |
| Credit union checking | $0–$5 | Varies; often none or a low minimum balance | Credit union members who want low fees and local service |
| Student checking | $0 | Enrollment status; usually waived until graduation | Full-time students at accredited schools |
How to find the actual fee before opening an account
Before you open a checking account, ask the bank or credit union for their fee schedule in writing. Do not rely on what a teller or website summary says—the full fee schedule is the legal document that governs what you will actually pay.
Look for the line item that says "monthly maintenance fee" or "monthly service charge." Read the waiver conditions carefully. If the condition is "minimum balance," find out whether the bank checks the balance on a specific day or uses a daily average. If the condition is "direct deposit," find out the minimum deposit amount and whether it has to be from an employer or if government benefits count.
Ask what happens if you miss the waiver condition one month. Some banks charge the fee when ready; others give you a grace period. Knowing this in advance helps you decide whether the account is right for you.
Frequently Asked Questions
Can a bank charge a monthly fee even if I have direct deposit?
Only if your bank's fee schedule says direct deposit waives the fee and you did not receive one that month. If you received direct deposit, the fee should not charge. If it did, contact the bank—it may be an error. Keep your pay stub or bank statement showing the deposit as proof.
What is the difference between a maintenance fee and an overdraft fee?
A maintenance fee charges just for having the account open, regardless of how you use it. An overdraft fee charges when you spend more money than you have in the account. You can have both in the same month if you fall below the minimum balance and also overdraw.
Do savings accounts charge monthly fees too?
Some do, but most do not. Savings accounts are less common to charge monthly fees than checking accounts. If a savings account does charge a fee, it is usually waived by maintaining a higher minimum balance than a checking account would require.
If I switch banks, do I have to pay a fee to close my old account?
Most banks do not charge a fee to close a checking account. However, some banks charge a fee if you close the account within a certain period—often 90 days to six months—of opening it. Check the fee schedule before opening to see if an early closure fee exists.
Can I avoid the monthly fee by keeping my account at zero balance?
No. If your bank requires a minimum balance to waive the fee and you do not meet it, the fee charges regardless of whether your balance is zero or negative. The fee will then overdraw your account if there is no money to cover it.