Most checking accounts don't charge a monthly fee, but many banks will charge you if you don't meet their requirements
Whether you pay a monthly fee depends on the bank and the account type you choose. Some banks offer free checking with no strings attached. Others charge $10 to $15 per month unless you keep a minimum balance, set up direct deposit, or meet other conditions. A few banks charge fees no matter what you do, though these are less common now.
The real question isn't whether fees exist—it's whether you'll trigger them. That depends on what the bank requires and what you're actually able to do with your money and income.
Key Takeaways
- Many banks offer checking accounts with no monthly fee if you have no minimum balance requirement, but you need to read the account terms to know which ones do.
- Monthly maintenance fees typically range from $10 to $15 and are charged only if you fail to meet the bank's conditions, such as keeping a minimum balance or receiving direct deposits.
- Overdraft fees, ATM fees, and wire transfer fees are separate from monthly fees and can add up quickly if you're not careful about how you use the account.
- Online banks and credit unions often have lower or no monthly fees compared to large national banks, though they may have fewer physical branches.
- Reading the fee schedule before opening an account takes five minutes and can save you hundreds of dollars per year.
When banks charge a monthly maintenance fee
A monthly maintenance fee is what the bank charges just for having the account open. It's separate from overdraft fees or ATM charges. Banks use these fees to cover the cost of maintaining your account, though the actual cost to them is usually much lower than what they charge.
Banks typically waive the monthly fee if you meet at least one of these conditions: keep a minimum balance (often $500 to $2,500, depending on the bank), set up direct deposit of your paycheck, maintain a certain number of debit card transactions per month, or keep linked savings accounts. Some banks require you to meet multiple conditions. Others waive the fee for customers over 65 or under 18.
If you don't meet any of the conditions, the fee hits your account every month. It comes out automatically, just like any other charge. Over a year, a $12 monthly fee costs $144—money that could have stayed in your account.
Other fees that add up faster than monthly charges
Overdraft fees are often larger than monthly maintenance fees. When you spend more money than you have in your account, the bank can charge you $25 to $35 per overdraft transaction. If you overdraft multiple times in one day, you can be charged multiple times. Some banks charge overdraft fees even if you only go negative by a dollar.
ATM fees happen when you use an ATM that doesn't belong to your bank's network. Most banks charge $2 to $3 per out-of-network withdrawal. If you use an ATM four times a month, that's $8 to $12 in fees alone. Banks with fewer branches or no physical locations often reimburse out-of-network ATM fees, which is one reason people choose them.
Wire transfer fees typically cost $15 to $30 per wire, whether you're sending or receiving money. Returned check fees run $25 to $35 if a check you deposit bounces. Stop payment fees (when you ask the bank to cancel a check you wrote) cost $25 to $35. These aren't monthly charges, but they happen when you use certain services, and they're worth knowing about before you need them.
How to find accounts with no monthly fees
The easiest way to avoid monthly fees is to choose an account that has no minimum balance requirement and no other conditions. Many online banks offer this. Ally Bank, Charles Schwab, and Discover Bank all offer checking accounts with no monthly fee, no minimum balance, and no direct deposit requirement. You can open these accounts entirely online.
Credit unions often have lower fees than national banks. If you're a member of a credit union, ask about their checking account terms. Many credit unions waive monthly fees for any member, regardless of balance.
If you prefer a physical bank with branches, call or visit and ask to see the fee schedule for their basic checking account. The fee schedule is a document the bank is required to give you before you open an account. It lists every fee the bank charges and the conditions under which they charge it. Read it before you sign anything.
What happens if you can't meet the bank's conditions
If you can't keep a minimum balance because you live paycheck to paycheck, don't open an account that requires one. The monthly fee will drain your account faster than you can rebuild it. The same applies if you don't have a job that offers direct deposit—don't open an account that requires it.
Instead, look for accounts with no conditions at all. Online banks are your best bet here because they have lower operating costs and can afford to offer free checking. Credit unions are your second option. If you need a physical branch, ask the bank whether they have a basic checking account with no minimum balance and no direct deposit requirement.
If you're already in an account with fees you can't avoid, switching to a different bank is free. You don't have to close the old account when ready—you can keep it open while you move your direct deposits and automatic payments to the new one. Once everything has moved, close the old account.
The difference between banks, credit unions, and online banks
| Type | Monthly Fee | Minimum Balance | Physical Branches | Best For |
|---|---|---|---|---|
| Large national bank | $10–$15 (often waivable) | $500–$2,500 | Yes, many locations | People who need in-person service and can meet balance requirements |
| Online bank | $0 | $0 | No | People comfortable with online and phone support, want lowest fees |
| Credit union | $0–$5 (often waivable) | $0–$500 | Yes, limited locations | Members who want lower fees and community-focused banking |
How to read a fee schedule before you open an account
Every bank publishes a fee schedule, usually called "Pricing" or "Fees" on their website. read it or ask for a printed copy. Look for these sections: monthly maintenance fee, overdraft fee, ATM fee, wire transfer fee, and stop payment fee. Write down the numbers. If the bank has conditions for waiving the monthly fee, write those down too.
Then ask yourself: Can I meet these conditions? If the answer is no, keep looking. If the answer is yes, open the account. If you're not sure, call the bank and ask a representative to walk you through the conditions. They're required to answer honestly, and it takes ten minutes.
Frequently Asked Questions
Can a bank charge me a monthly fee even if I have money in my account?
Yes. The monthly maintenance fee is charged automatically whether your balance is $1 or $10,000. The fee comes out of your account like any other charge. If you don't want to pay it, you need to either meet the bank's waiver conditions or switch to an account or bank that has no monthly fee.
What's the difference between a monthly fee and an overdraft fee?
A monthly fee is charged just for having the account open, usually on the same day each month. An overdraft fee is charged only when you spend more money than you have. Monthly fees are predictable; overdraft fees depend on how you use the account.
If I switch banks, do I have to close my old account right away?
No. You can keep both accounts open while you move your direct deposits and automatic payments to the new bank. Once everything has moved, close the old account. This gives you time to make sure nothing gets missed. Closing an account is free and takes one phone call.
Do online banks charge fees for things that big banks don't?
Usually the opposite. Online banks charge fewer fees overall because they have lower costs. Many reimburse out-of-network ATM fees, which big banks don't. The main trade-off is that you can't walk into a branch—everything is done online or by phone.
What should I do if my bank starts charging a fee I didn't know about?
Call the bank and ask why the fee appeared. Sometimes fees are charged because you didn't meet a condition you thought you met. If the bank made a mistake, they'll refund it. If the fee is legitimate but you don't want to pay it, switch banks. You're not locked in.