Most checking accounts have no monthly fee, but some do
You do not have to pay a monthly fee to have a checking account. Many banks and credit unions offer accounts with zero monthly charge. However, some accounts do charge a fee — usually between $5 and $15 per month — and the fee may disappear if you meet certain conditions, like keeping a minimum balance or setting up direct deposit.
The key is knowing what you are looking at before you open the account. A bank's website or a conversation with a banker will tell you the monthly fee upfront. If there is a fee, ask what would remove it. Most of the time, there is a way.
Key Takeaways
- Many banks and credit unions offer checking accounts with no monthly fee at all, so you can compare before opening.
- When a monthly fee exists, it often goes away if you keep a certain balance in the account or receive direct deposit paychecks.
- Other fees — like overdraft charges or out-of-network ATM fees — are separate from the monthly fee and can add up quickly.
- Credit unions typically charge lower fees than large national banks, though fees vary by institution.
- Reading the fee schedule before you open 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 a charge the bank takes from your account each month just for having it open. Not all banks charge this. Community banks and credit unions often do not. Large national banks sometimes do, but many of their basic checking accounts do not either.
When a monthly fee does exist, it is usually $5 to $15. The bank will waive it — meaning remove it — if you do one or more of these things: keep a minimum balance (often $500 to $1,500), set up direct deposit, or maintain a certain number of debit card transactions per month. Ask the banker which conditions explore to the account you are considering.
Other fees that are not the monthly charge
Even if your account has no monthly fee, you can still be charged for specific actions. An overdraft fee happens when you spend more money than you have in the account. This fee is usually $25 to $35 per overdraft. An out-of-network ATM fee is charged when you withdraw cash from an ATM that does not belong to your bank — typically $2 to $3 per withdrawal.
Some accounts also charge a fee if you do not use the account for a long time, or if you ask the bank to print extra checks. These fees are less common, but they exist. The fee schedule — a document the bank must give you — lists all of them. Ask for it before you open the account, or find it on the bank's website.
How to find accounts with no fees at all
Start by looking at banks and credit unions in your area. Call or visit their websites and search for "checking account" or "basic checking." Look for the words "no monthly fee" or "free checking." If you see a monthly fee listed, ask what removes it.
Online banks — banks that operate only on the internet, with no physical branches — almost always have no monthly fees. They have lower costs than brick-and-mortar banks, so they pass that savings to you. Examples include Ally, Charles Schwab, and Discover. If you are comfortable banking online and do not need to deposit cash in person, these can be a good option.
Credit unions, which are member-owned financial institutions, tend to charge lower fees overall than national banks. If you are a member of a credit union through your employer, school, or community, ask them about their checking accounts.
What to do if your account starts charging a fee
Sometimes a bank changes its fee structure or you stop meeting the condition that waived your fee. If your account suddenly has a monthly charge, contact the bank and ask why. If you no longer have direct deposit or your balance dropped below the minimum, you now know what to do to remove the fee.
If the fee is new and you did not agree to it, ask the bank to explain the change. Banks must notify you before charging a new fee, usually by mail or email. If you disagree with the fee, you can close the account and move to another bank. This is free to do, and banks expect it.
Comparing accounts side by side
| Account Type | Typical Monthly Fee | How to Remove It | Other Common Fees |
|---|---|---|---|
| Large national bank basic checking | $0–$12 | Direct deposit or minimum balance | Overdraft ($25–$35), out-of-network ATM ($2–$3) |
| Community bank checking | $0–$8 | Minimum balance or account activity | Overdraft ($20–$30), out-of-network ATM ($2–$3) |
| Credit union checking | $0–$5 | Minimum balance (often lower) | Overdraft ($15–$25), out-of-network ATM ($1–$2) |
| Online bank checking | $0 | Not applicable | Overdraft ($0–$35), out-of-network ATM ($0–$3) |
Frequently Asked Questions
Can a bank charge me a fee without telling me first?
No. Banks must notify you before charging a new fee or changing an existing one. They usually send a letter or email 30 days before the change takes effect. Read these notices carefully — they tell you when the fee starts and what you can do about it.
What happens if I do not have enough money to cover an overdraft fee?
The bank will deduct the fee from your account, which may cause another overdraft. This can create a cycle of fees. If this happens, contact the bank and ask them to reverse one or more overdraft fees. Many banks will do this once or twice, especially if you have been a customer for a while.
Do I have to use direct deposit to avoid a monthly fee?
Not always. Direct deposit is one way to waive a fee, but most banks offer other options too — like keeping a minimum balance or making a certain number of debit card purchases per month. Ask the bank which conditions explore to the account you want.
Is it cheaper to use an online bank if I need to deposit cash?
Online banks do not have branches, so you cannot deposit cash in person. However, many partner with ATM networks or allow you to deposit checks by phone camera. If you need to deposit cash regularly, a local bank or credit union may be more practical, even if the fees are slightly higher.
What should I look for in a checking account fee schedule?
Look for the monthly maintenance fee first, then overdraft fees, ATM fees, and fees for things like wire transfers or stopping a check. Compare these across two or three banks. The cheapest account is not always the best — also consider whether the bank has branches near you and whether their customer service is straightforward to reach.