Most checking accounts do charge fees, but the amount and type depend on the bank and the account you choose

You will not automatically pay just for having a checking account open. However, most banks do charge at least one type of fee — and some charge several. The fees vary widely: one bank might charge nothing, while another charges $15 a month. The key is understanding which fees explore to the account you are considering, and whether you can avoid them by meeting certain conditions.

Banks use fees to make money on accounts that do not generate much profit otherwise. A checking account where you keep a small balance and rarely use services like overdraft protection does not earn the bank interest the way a savings account does. Fees are how they offset that cost. The good news is that many banks offer accounts with no monthly fee at all, and others waive their fees if you meet straightforward requirements like keeping a minimum balance or setting up direct deposit.

Key Takeaways

  • Monthly maintenance fees are the most common charge, ranging from zero to $15 or more depending on the bank, but many accounts waive this fee if you meet conditions like direct deposit or a minimum balance.
  • Overdraft fees occur when you spend more money than you have in your account, and they typically cost $25 to $35 per transaction, though some banks charge less or offer overdraft protection for a flat fee.
  • ATM fees explore when you withdraw cash from an ATM that does not belong to your bank's network, and they usually cost $2 to $3 per withdrawal.
  • Banks must disclose all fees in writing before you open an account, so you can compare the fee schedule of different banks before deciding.

Monthly maintenance fees and how to avoid them

A monthly maintenance fee (also called a service charge) is what the bank charges just to keep your account open. This is the most common fee, and it typically ranges from $5 to $15 per month, though some banks charge more and some charge nothing. If you are charged this fee every month for a year, it adds up quickly — $10 a month becomes $120 a year.

The good news is that most banks let you avoid this fee by meeting one or more conditions. The most common ways to waive a monthly fee are: setting up direct deposit (having your paycheck or benefits automatically sent to your account), keeping a minimum balance (often $500 to $1,500, depending on the bank), or maintaining a certain number of debit card transactions per month. Some banks waive the fee for customers over 55 or under 18. A few banks, particularly online-only banks, charge no monthly fee at all, with no conditions attached.

Before you open an account, ask the bank or check their website for the fee schedule. Look specifically for the monthly maintenance fee and what conditions waive it. If you know you will not meet those conditions — for example, if you cannot set up direct deposit and do not have $1,500 to keep in the account — choose a different bank or account type.

Overdraft fees and overdraft protection

An overdraft happens when you spend more money than you have in your account. If your balance is $50 and you swipe your debit card for $75, you are overdrawn by $25. Banks handle this in different ways, and the fees can be steep.

If your bank allows the transaction to go through, they will charge you an overdraft fee, typically $25 to $35 per transaction. If you overdraft multiple times in one day — say, four small purchases that each overdraw your account — you could be charged four separate overdraft fees, totaling $100 or more. This is one of the most expensive fees a checking account can charge, and it happens quickly if you are not careful about your balance.

Some banks offer overdraft protection, which is a way to avoid overdraft fees. With overdraft protection, the bank automatically transfers money from another account (usually a savings account you have with them) to cover the overdraft. This service usually costs a flat fee of $5 to $10 per transfer, which is much cheaper than an overdraft fee. Other banks straightforward decline the transaction if you do not have enough money, which costs nothing but means your card will not work. Ask your bank what happens if you overdraft, and whether overdraft protection is available.

ATM fees for out-of-network withdrawals

An ATM fee is charged when you withdraw cash from an ATM that does not belong to your bank. If your bank is a regional bank with branches only in your state, and you travel to another state and use a different bank's ATM, you will likely pay a fee. The fee is usually $2 to $3 per withdrawal, charged by the ATM owner's bank. Some banks also charge you a small fee (often $1 to $2) on top of that.

You can avoid ATM fees by using only ATMs owned by your bank or by banks in your bank's network. Many banks belong to shared networks — for example, credit unions often belong to a network called CO-OP or Allpoint, which means you can use thousands of ATMs nationwide without paying a fee. When you are choosing a bank, ask about their ATM network and whether there are ATMs near your home, work, and places you travel to regularly.

Other fees you might encounter

Banks charge fees for other services beyond the basics. A wire transfer fee (usually $15 to $30) is charged when you send money electronically to another bank. A stop payment fee (usually $25 to $35) is charged if you ask the bank to stop a check you wrote. A returned check fee or NSF fee (non-sufficient funds) is charged if a check you deposit bounces because the other person did not have enough money — this can cost $10 to $20.

Some banks charge fees for things like ordering checks, closing your account early, or requesting a paper statement instead of online statements. These fees are less common than monthly maintenance or overdraft fees, but they do exist. The fee schedule your bank provides will list all of them. Read through the whole list before you open an account, so you understand what you might be charged for.

How to find the fee schedule before you open an account

Banks are required by law to give you a document called a fee schedule or pricing guide before you open an account. This document lists every fee the bank charges, what triggers it, and how much it costs. You can usually find this on the bank's website, or you can ask for it in person or by phone.

When you are comparing banks, get the fee schedule from at least two or three of them and lay them side by side. Look at the monthly maintenance fee first, then the overdraft fee, then ATM fees. Think about your own habits: Do you travel a lot and need ATM access? Do you think you might overdraft sometimes? Will you be able to set up direct deposit? Your answers will tell you which bank's fees matter most to you.

If a bank's website does not clearly show the fee schedule, that is a red flag. A bank that makes it hard to find their fees is not being transparent with you. Choose a bank that makes their fees straightforward to find and understand.

Frequently Asked Questions

Can I negotiate fees with my bank?

You can ask, especially if you have been a customer for a long time or if you keep a large balance. Some banks will waive a one-time fee as a courtesy, or they may lower a monthly fee if you ask. It never hurts to call and ask, but do not expect the bank to change their standard fees just because you request it.

What if I get charged a fee by mistake?

Call your bank and explain the situation. If the fee was truly an error — for example, you were charged a monthly fee even though you met the waiver conditions — the bank should reverse it. If you were charged correctly but think the fee is unfair, you can ask the bank to waive it as a one-time courtesy, though they are not required to.

Do online banks charge fewer fees than traditional banks?

Many online banks charge no monthly maintenance fee and no ATM fees (because they reimburse out-of-network ATM charges). However, they may still charge overdraft fees and wire transfer fees. Online banks can afford lower fees because they have fewer physical branches to maintain. Compare fee schedules regardless of whether the bank is online or traditional.

Will I be charged if I close my account?

Most banks do not charge a fee to close a checking account. However, some banks charge an early closure fee if you close the account within a certain time period (often 90 days to a year). Check the fee schedule to see if your bank charges this fee before you open the account.

What is the difference between a checking account fee and a transaction fee?

A monthly checking account fee is charged just for having the account open. A transaction fee is charged for a specific action, like withdrawing cash from an out-of-network ATM or sending a wire transfer. Some accounts limit the number of transactions you can make per month before charging a fee, though this is less common now.