Most checking accounts have no monthly fee, but some charge $10 to $15 if you don't meet balance or deposit requirements
The cost of a checking account depends almost entirely on the bank and the account type you choose. Many banks—including most online banks and credit unions—offer checking accounts with zero monthly fees, no minimum balance, and no strings attached. Other banks charge a monthly maintenance fee that ranges from $5 to $15, though you can usually waive it by keeping a minimum balance (often $500 to $1,500), setting up direct deposit, or maintaining a certain number of debit card transactions per month.
Beyond the monthly fee, you may encounter other costs: overdraft fees when you spend more than your balance (typically $25 to $35 per transaction), ATM fees if you use an out-of-network machine (usually $2 to $3), wire transfer fees ($15 to $30), and paper statement fees if you request printed statements instead of going digital. The total cost of your account depends on how you use it.
Key Takeaways
- Online banks and credit unions typically charge no monthly fee and have no minimum balance requirement, making them the lowest-cost option for most people.
- Traditional banks often charge $10 to $15 per month but waive the fee if you maintain a minimum balance, set up direct deposit, or meet transaction minimums.
- Overdraft fees ($25 to $35 per occurrence) and out-of-network ATM fees ($2 to $3) can add up quickly if you don't monitor your balance or use the bank's ATM network.
- You can avoid most fees by choosing a no-fee account, keeping enough money in the account to meet any minimum, or using the bank's own ATMs and digital statements.
Monthly maintenance fees and how to avoid them
A monthly maintenance fee is the most common cost associated with checking accounts. Banks charge this fee to cover the cost of maintaining your account, processing transactions, and providing customer service. The fee typically ranges from $5 to $15 per month, though some premium accounts charge more.
Most banks let you waive the monthly fee by meeting one or more conditions. The most common waiver options are: maintaining a minimum balance (usually $500 to $1,500), setting up direct deposit of your paycheck, making a certain number of debit card transactions per month (often 10 or more), or maintaining a linked savings account with a minimum balance. Some banks waive the fee for customers over 65 or under 18. Read the account terms carefully—the waiver conditions vary significantly between banks.
If you cannot meet the waiver requirements, switching to an online bank or credit union is usually cheaper than paying the monthly fee. Online banks operate with lower overhead costs and pass those savings to customers by offering no-fee accounts.
Overdraft fees and how they work
An overdraft fee is charged when you spend more money than you have in your account. Most banks charge between $25 and $35 per overdraft transaction, and the fee is applied when ready even if the transaction is later declined. Some banks charge multiple overdraft fees in a single day if you make several transactions that overdraw your account.
You can reduce overdraft fees in several ways. First, link a savings account to your checking account so that the bank automatically transfers money to cover the shortfall—this is called overdraft protection, and it usually costs $0 to $12 per transfer, which is cheaper than an overdraft fee. Second, opt out of overdraft coverage entirely; this means transactions will be declined if you don't have enough money, but you won't be charged a fee. Third, set up balance alerts on your phone so you know when your balance is low and can deposit money before you overspend.
ATM fees and network access
Using an ATM that does not belong to your bank's network typically costs $2 to $3 per withdrawal. If you withdraw cash frequently from out-of-network ATMs, these fees add up quickly. A person who makes four out-of-network withdrawals per month could pay $96 to $144 per year in ATM fees alone.
To avoid ATM fees, use only your bank's ATMs or ATMs in a shared network. Many credit unions participate in shared branching networks and surcharge-free ATM networks, which means you can use thousands of ATMs nationwide without paying a fee. Online banks often reimburse out-of-network ATM fees up to a certain amount per month, so check your account terms. If you rarely use cash, ATM fees may not matter to you.
Wire transfers, paper statements, and other charges
Wire transfers—moving money to another bank account—typically cost $15 to $30 per transfer. Incoming wires are often free, but outgoing wires cost money. If you send wire transfers regularly, ask your bank whether they offer a lower rate for frequent users or whether you can set up automatic transfers instead, which are usually cheaper or free.
Requesting paper statements instead of using online statements may trigger a fee of $1 to $5 per month, though many banks still provide them free. Cashier's checks, stop-payment orders, and expedited card replacement can also carry fees ranging from $5 to $15. Most of these charges are avoidable by using digital statements and planning ahead rather than requesting rush services.
Comparing account types: traditional banks vs. online banks vs. credit unions
The cost structure differs significantly across account types. Traditional brick-and-mortar banks usually charge a monthly maintenance fee ($10 to $15) but waive it if you meet balance or deposit requirements. They offer in-person service, a large ATM network, and physical branches where you can deposit cash. Online banks charge no monthly fee and have no minimum balance, but they have no physical branches and may limit how you deposit cash. Credit unions typically charge no monthly fee and offer low ATM fees through shared networks, but membership is restricted to people who meet certain criteria (employment, location, family connection).
The table below shows how these account types typically compare on cost:
| Feature | Traditional Bank | Online Bank | Credit Union |
|---|---|---|---|
| Monthly fee | $10–$15 (waivable) | $0 | $0 |
| Minimum balance | $500–$1,500 | $0 | $0–$25 |
| ATM fees | $0 (own network) | $0 (reimbursed) | $0 (shared network) |
| Overdraft fee | $25–$35 | $25–$35 | $20–$35 |
| Physical branches | Yes | No | Yes |
How to find the lowest-cost account for your situation
The cheapest account for you depends on how you use your checking account. If you receive direct deposit, maintain a balance above the minimum, and rarely overdraw, a traditional bank's account with a waived fee may cost you nothing. If you cannot meet the minimum balance requirement or prefer not to, an online bank or credit union will almost always be cheaper.
Before opening an account, ask the bank or credit union about all potential fees: monthly maintenance, overdraft, ATM, wire transfer, and statement fees. Read the account disclosure document, which lists all fees and waiver conditions. Many banks publish fee schedules online. Compare at least two or three options before deciding. The lowest-cost account is the one whose fee structure matches your actual spending and deposit habits, not the one with the lowest advertised monthly fee.
Frequently Asked Questions
Can I have a checking account with no fees at all?
Yes. Many online banks and credit unions offer checking accounts with no monthly fee, no minimum balance, and no overdraft fees if you opt out of overdraft coverage. You will still pay fees for wire transfers, expedited services, or using out-of-network ATMs, but the core account itself costs nothing.
What is overdraft protection and does it cost money?
Overdraft protection links your checking account to a savings account or credit line so the bank automatically transfers money to cover overdrafts. It typically costs $0 to $12 per transfer, which is cheaper than an overdraft fee ($25 to $35). You can request overdraft protection from your bank.
Do I have to pay overdraft fees?
No. You can opt out of overdraft coverage, which means transactions will be declined if you don't have enough money. You won't be charged a fee, but you also won't be able to spend money you don't have. Contact your bank to opt out.
Why do some banks charge a monthly fee and others don't?
Banks charge monthly fees to cover operating costs. Online banks have lower overhead because they don't maintain physical branches, so they can offer accounts without fees. Traditional banks with many branches charge fees to offset those costs, though they usually waive the fee if you meet certain conditions.
Are credit union checking accounts cheaper than bank accounts?
Usually yes. Credit unions typically charge no monthly fee, have low or no ATM fees through shared networks, and charge lower overdraft fees than banks. The trade-off is that credit union membership is restricted—you must meet may be able to access criteria like working for a specific employer or living in a certain area.