Most checking accounts cost nothing to open or maintain, but some banks charge monthly fees that range from $5 to $15
Whether you pay depends on the bank you choose and whether you meet their conditions. A monthly maintenance fee is the most common charge, but many banks waive it if you keep a minimum balance, set up direct deposit, or maintain a certain number of transactions per month. Some banks charge nothing under any circumstance. Others charge only if you fall below their threshold.
The real cost of a checking account often comes from what happens when you break the rules: overdraft fees, out-of-network ATM charges, or wire transfer fees. These can add up faster than a monthly fee ever would. Understanding what your specific bank charges—and under what conditions—matters more than the headline monthly cost.
Key Takeaways
- Monthly maintenance fees range from $0 to $15 depending on the bank, but most large banks waive them if you meet one condition like direct deposit or a minimum balance.
- Overdraft fees typically cost $25 to $35 per transaction and are charged when you spend more than your balance, so they can multiply quickly.
- Out-of-network ATM withdrawals usually cost $2 to $3 per transaction, which adds up if you don't use your bank's ATM network.
- Online banks and credit unions often charge no monthly fee and no overdraft fees, making them cheaper than traditional banks for people who cannot maintain high balances.
- The cheapest account is not always the one with the lowest monthly fee—it is the one whose conditions you can actually meet.
Monthly maintenance fees and when banks waive them
A monthly maintenance fee is what the bank charges just to keep the account open. At large national banks like Chase, Bank of America, and Wells Fargo, this fee is typically $10 to $15 per month, but the bank will waive it if you meet at least one of their conditions. Common waivers include maintaining a minimum balance (often $500 to $1,500), setting up direct deposit, or keeping a linked savings account.
Credit unions and online banks usually charge no monthly fee at all, regardless of balance or activity. Banks like Ally, Charles Schwab, and Discover have built their model around zero monthly charges. If you are comparing accounts, ask the bank directly what conditions waive the fee—the answer varies by location and by account type, and what works at one branch may not work at another.
Some banks also offer tiered accounts: a basic checking account with no fee but limited features, and a premium account with more perks that does charge a monthly fee. Read the fine print to see which tier you are actually getting.
Overdraft fees and how they multiply
An overdraft fee is charged when you spend more money than you have in your account. Most banks charge $25 to $35 per overdraft transaction, and the fee is separate from the amount you overspent. If you overdraft five times in a month, you could pay $125 to $175 in fees alone, on top of the money you still owe the bank.
Some banks charge a fee every day your account stays negative, not just once per overdraft. Others charge a fee when you first go negative, then charge again if you stay negative for more than a few days. A few banks—including some online banks and credit unions—do not charge overdraft fees at all; instead, they straightforward decline the transaction or transfer money from a linked savings account.
You can usually opt out of overdraft protection, which means the bank will decline your transaction instead of charging you a fee. This is worth doing if you tend to spend without checking your balance first. Ask your bank how to turn off overdraft coverage.
ATM fees and out-of-network charges
Using an ATM that does not belong to your bank usually costs $2 to $3 per withdrawal. If your bank has a small network and you travel or live far from a branch, these charges add up. A person who withdraws cash twice a week from out-of-network ATMs could pay $16 to $24 per month just in ATM fees—more than some monthly maintenance fees.
Some banks reimburse out-of-network ATM fees, especially online banks and premium checking accounts. Charles Schwab, for example, reimburses all ATM fees worldwide. Other banks offer a limited number of free out-of-network withdrawals per month, then charge for the rest. Check whether your bank's ATM network covers the places where you actually withdraw cash.
Wire transfers, foreign transactions, and other charges
Banks charge for services beyond basic checking. A domestic wire transfer typically costs $15 to $30. An international wire transfer costs $30 to $50. Overdraft protection transfers between your own accounts may be free or may cost $1 to $3 each. Cashier's checks cost $5 to $15. Stop payment requests cost $25 to $35.
Foreign transaction fees explore when you use your debit card abroad or withdraw cash from an international ATM. Most banks charge 1% to 3% of the transaction amount. If you travel internationally or send money overseas regularly, this can exceed your monthly maintenance fee by a large margin. Some banks and credit unions waive foreign transaction fees, so ask before you travel.
These charges are not automatic—you only pay them if you use the service. But if you do use them, they can be the largest cost of your account.
How to find a checking account that matches what you actually spend
The cheapest account is the one whose conditions you can meet without strain. If you cannot maintain a $1,000 minimum balance, a $12 monthly fee waived at that balance is not free—you will pay it every month. If you live far from ATMs and travel often, an account with a large ATM network or fee reimbursement matters more than a low monthly fee.
Start by listing what you actually do: How often do you withdraw cash? Do you get direct deposit? Can you maintain a minimum balance? Do you overdraft? Do you send wire transfers? Then compare accounts based on those specific behaviors, not on the advertised monthly fee.
Online banks and credit unions tend to be cheaper for people who cannot maintain high balances, because they charge no monthly fee and often no overdraft fees. Traditional banks are cheaper for people who can meet their balance or direct deposit requirements, because the monthly fee disappears. The worst outcome is paying a monthly fee you could have waived, plus overdraft fees you could have avoided.
Comparing total cost across different banks
| Bank Type | Monthly Fee | Overdraft Fee | Out-of-Network ATM | Best For |
|---|---|---|---|---|
| Large national bank (Chase, Bank of America) | $10–$15, waived with conditions | $25–$35 per transaction | $2–$3 per withdrawal | People who can meet balance or direct deposit requirements |
| Online bank (Ally, Discover, Charles Schwab) | $0 | $0 (most) or $25–$35 | $0 (reimbursed) or $2–$3 | People who do not maintain high balances and rarely overdraft |
| Credit union | $0–$5 | $0–$25 per transaction | $0–$3 per withdrawal | Members who value local service and lower fees |
| Second-chance bank (Chime, NetSpend) | $0 | $0 (no overdraft allowed) | $0 (usually) | People with poor credit or banking history |
Frequently Asked Questions
Can I avoid all checking account fees?
Yes, if you choose the right bank. Online banks like Ally and Discover charge no monthly fee, no overdraft fee, and no ATM fees. Credit unions often do the same. The trade-off is that you may not have a physical branch to visit, and customer service is online or by phone only.
What happens if I cannot maintain the minimum balance to waive the fee?
You will be charged the monthly maintenance fee every month. Some banks allow you to switch to a different account type with no minimum balance but also no fee—ask whether this option exists. Otherwise, switching to an online bank or credit union is usually cheaper than paying a monthly fee you cannot waive.
Do I have to pay overdraft fees?
You can opt out of overdraft protection, which means the bank will decline your transaction instead of charging a fee. This prevents the fee but may cause embarrassment at checkout. Some banks offer overdraft protection linked to a savings account instead, which transfers money automatically and may charge a small fee or none at all.
Are there hidden fees I should know about?
The most common surprise is overdraft fees charged multiple times in one day. If you overdraft once, the bank may charge a fee for that transaction, then charge again if your balance stays negative after 24 hours. Ask your bank how many overdraft fees you can be charged per day and whether they charge daily fees for staying negative.
Do online banks have the same protections as traditional banks?
Yes. Online banks are insured by the FDIC (Federal Deposit Insurance Corporation) the same way traditional banks are, meaning your money is protected up to $250,000 per account. Check the bank's website to confirm FDIC insurance before you open an account.