Most checking accounts cost nothing monthly, but some charge $10 to $15

The monthly cost of a checking account depends entirely on which bank you choose and what type of account you open. Many banks offer checking accounts with no monthly fee at all. Others charge a monthly maintenance fee — typically between $10 and $15 — but waive it if you meet certain conditions, like keeping a minimum balance or setting up direct deposit.

The key is understanding what triggers a fee at the bank you're considering, and whether you can meet those conditions. A fee that seems unavoidable for one person might be straightforward to avoid for another, depending on how you use the account.

Key Takeaways

  • Many banks charge no monthly fee for basic checking accounts, while others charge $10 to $15 but waive the fee if you meet conditions like direct deposit or a minimum balance.
  • The most common fee-waiver conditions are setting up direct deposit, maintaining a minimum daily balance (often $500 to $1,500), or maintaining a minimum monthly balance.
  • Online banks and credit unions typically charge lower or no monthly fees than traditional brick-and-mortar banks.
  • Some accounts charge fees only if your balance drops below a certain amount, so the fee is not automatic — it depends on your account activity.
  • Overdraft fees, ATM fees, and foreign transaction fees are separate from monthly maintenance fees and can add up quickly if you do not know your bank's policies.

Banks that charge no monthly fee

Many banks do not charge a monthly maintenance fee on any checking account. These include most online banks (like Ally, Charles Schwab, and Discover), many credit unions, and some traditional banks that compete on low fees. If you open an account at one of these institutions, you will not see a monthly charge on your statement, regardless of your balance or how often you use the account.

The trade-off is usually that these banks have fewer physical branches. If you need to deposit cash or speak to someone in person regularly, an online bank may not be convenient. Credit unions often have shared branch networks that let you use other credit unions' ATMs and branches, which can help if you travel or move.

Banks that charge a monthly fee but waive it

Many traditional banks — including Chase, Bank of America, and Wells Fargo — charge a monthly maintenance fee on their basic checking accounts, but they waive it if you meet one or more conditions. The most common conditions are:

  • Setting up direct deposit (your paycheck or benefits deposited automatically into the account)
  • Maintaining a minimum daily balance — usually $500 to $1,500, depending on the bank and account type
  • Maintaining a minimum monthly balance — often $1,000 to $2,500
  • Setting up a certain number of debit card transactions per month (usually 10 or more)
  • Having a linked savings account or other product with the same bank

If you meet even one of these conditions, the monthly fee disappears. For example, if your employer uses direct deposit, you will not pay the fee even if your balance drops to $50. If you do not have direct deposit but can keep $1,000 in the account at all times, the fee is waived that way instead.

What happens if you do not meet the waiver conditions

If your bank charges a monthly fee and you do not meet any of the waiver conditions, the fee comes out of your account automatically each month. At a $12 monthly fee, that adds up to $144 per year. Some banks charge more — up to $15 or even $20 per month for premium accounts.

The fee is usually deducted on the same day each month, often the first or the last day. You will see it listed on your statement as "monthly maintenance fee" or "account maintenance fee." It counts as a withdrawal, so if your balance is low, the fee could push you into overdraft and trigger an additional overdraft fee on top of it.

Fees separate from the monthly charge

Even if your checking account has no monthly fee, you may pay other charges depending on how you use it. These are not monthly fees — they happen only when you do a specific thing:

  • Overdraft fees: Charged when you spend more money than you have in the account. Usually $25 to $35 per overdraft.
  • ATM fees: Charged when you withdraw cash from an ATM that does not belong to your bank. Usually $2 to $3 per withdrawal.
  • Foreign transaction fees: Charged when you use your debit card outside the United States. Usually 1% to 3% of the transaction amount.
  • Wire transfer fees: Charged when you send money to another bank. Usually $15 to $30.
  • Returned check fees: Charged if a check you deposit bounces or if a check you write bounces. Usually $10 to $25.

These fees do not appear every month — only when the situation occurs. But they can add up. If you regularly use out-of-network ATMs, you could pay $50 or more per year in ATM fees alone, which is more than many monthly maintenance fees.

How to find the lowest-cost account for your situation

Start by listing what you actually do with your checking account. Do you receive direct deposit? How much do you usually keep in the account? Do you need to visit a branch in person? Do you travel internationally? Do you use ATMs frequently?

Then look at the fee schedules of banks you are considering. Most banks post their fee schedules online, usually under "Pricing" or "Disclosures." Compare not just the monthly fee, but also overdraft fees, ATM fees, and any other charges that explore to how you use money. A bank with no monthly fee but a $3 ATM fee might cost more than a bank with a $12 monthly fee but free ATM withdrawals, depending on how often you use ATMs.

If you have direct deposit or can maintain a minimum balance, a traditional bank with a waived fee might be the best choice. If neither is realistic for you, an online bank or credit union with no monthly fee will almost certainly be cheaper.

Frequently Asked Questions

Can a bank charge me a monthly fee without telling me first?

No. Banks must disclose all fees before you open the account. You will receive a document called a "Deposit Account Agreement" or "Truth in Savings Disclosure" that lists every fee and the conditions that waive it. Read this document before you sign — it is the contract that governs your account.

What if I cannot meet the waiver conditions — do I have to pay the monthly fee?

Not necessarily. You can switch to a different bank that does not charge a monthly fee, or you can ask your current bank if they offer a different account type with no fee. Some banks have a "basic" or "student" checking account with no monthly charge, even if their standard account charges a fee.

If my balance drops below the minimum for one day, do I get charged?

It depends on the bank's policy. Some banks look at your daily balance and charge the fee only if you fall below the minimum on a specific day (often the last day of the month). Others look at your average balance across the entire month. Read your account agreement to know which method your bank uses.

Do I pay the monthly fee even if I do not use the account?

Yes, if you do not meet the waiver conditions. The fee is charged automatically each month, whether you made any transactions or not. If you are not using the account, consider closing it or switching to a bank with no monthly fee.

Are there accounts with no monthly fee and no other hidden fees?

Yes, but they are usually at online banks or credit unions. These institutions typically have no monthly maintenance fee, no overdraft fees (or they let you opt out of overdraft protection), and no ATM fees if you use their network. Read the fee schedule carefully — "no monthly fee" does not mean "no fees at all," but some banks come close.