Most banks charge nothing to open a checking account, but some charge monthly fees to keep it open

Opening a checking account itself is free at nearly every bank and credit union in the United States. You walk in (or go online), show an ID and proof of address, and the account opens that day at no cost. The real question is what happens after: whether the bank charges you a monthly maintenance fee to keep the account active.

Monthly fees vary widely. Some banks charge nothing no matter what. Others charge $10 to $15 per month unless you meet certain conditions — like keeping a minimum balance, setting up direct deposit, or using the debit card a certain number of times. A few banks charge fees only if your balance drops below a threshold. The fee structure depends entirely on which bank you choose.

Beyond the monthly fee, you may encounter other costs: overdraft fees if you spend more than you have, ATM fees if you use another bank's machine, or fees for services like wire transfers or cashier's checks. These are optional costs — you only pay them if you use those services.

Key Takeaways

  • Opening a checking account costs nothing at banks and credit unions; the fee you might pay is a monthly maintenance charge to keep it open.
  • Monthly fees range from zero to $15 or more, depending on the bank and whether you meet conditions like direct deposit or minimum balance.
  • Many banks waive monthly fees if you maintain a low minimum balance (often $500 to $1,500) or receive direct deposit paychecks.
  • Overdraft fees, ATM fees, and wire transfer fees are separate charges you only pay if you use those specific services.
  • Credit unions and online-only banks are more likely to charge no monthly fee than large traditional banks.

How monthly maintenance fees work

A monthly maintenance fee is a charge the bank takes from your account each month just for having the account open. It is not a penalty — it is straightforward the bank's way of covering the cost of maintaining your account. The fee typically ranges from $5 to $15 per month, though some banks charge more.

Most banks let you avoid this fee by meeting one or more conditions. The most common are: keeping a minimum balance (often $500 to $1,500), setting up direct deposit of your paycheck, making a certain number of debit card purchases per month, or maintaining a savings account at the same bank. Some banks waive the fee for customers under 25 or over 65. Read the account terms carefully — the conditions vary by bank and sometimes by which specific checking account you choose.

If you do not meet the conditions and do not pay the fee, the bank will deduct it from your balance automatically each month. Over a year, a $12 monthly fee adds up to $144. That is why it matters to either find a bank with no monthly fee or understand exactly what you need to do to avoid it.

Banks and credit unions with no monthly fees

Some banks and credit unions charge no monthly maintenance fee under any circumstances. Online-only banks (banks with no physical branches) are more likely to have zero fees because their operating costs are lower. Examples include Ally Bank, Charles Schwab Bank, and Discover Bank, though you should verify current terms before opening an account.

Many credit unions also charge no monthly fee. Credit unions are member-owned financial institutions, not profit-driven corporations, so they often have lower fees overall. You can find credit unions in your area through CO-OP, which is a network that lets credit union members use each other's ATMs without fees.

Large traditional banks like Chase, Bank of America, and Wells Fargo typically charge monthly fees unless you meet their conditions. This does not mean they are worse — they may offer other benefits like more branches or better customer service — but you will need to either meet their fee waiver conditions or pay the monthly charge.

Other costs beyond the monthly fee

Overdraft fees occur when you spend more money than you have in your account. If you write a check or make a debit card purchase for $50 but only have $30, the bank may cover the $50 (called an overdraft) and charge you a fee — typically $25 to $35 per overdraft. Some banks charge multiple overdraft fees in a single day if you make several purchases that overdraw the account. You can usually opt out of overdraft coverage, which means the transaction will straightforward be declined instead of costing you a fee.

ATM fees happen when you withdraw cash from an ATM that does not belong to your bank. Your bank charges you a fee (often $2 to $3), and the ATM's bank may charge an additional fee. Using your own bank's ATM is always free. If you use cash frequently, choose a bank with many branches or one that reimburses ATM fees.

Wire transfer fees explore when you send money electronically to another bank account, usually $15 to $30 per transfer. Cashier's check fees (a may provide check the bank issues on your behalf) typically cost $5 to $15. These are not monthly costs — you only pay them when you use the service.

How to compare checking accounts by cost

Before opening an account, write down the conditions for waiving the monthly fee and be honest about whether you can meet them. If the bank requires $1,500 minimum balance and you typically have $300, that account will cost you money. If it requires direct deposit and you are self-employed, you cannot meet that condition.

Ask the bank directly about all fees: monthly maintenance, overdraft, ATM, wire transfer, and any others. Many banks publish this information on their website in a document called a "fee schedule" or "pricing guide." Read it before you open the account, not after.

Consider how you actually use money. If you rarely use ATMs, an ATM fee does not matter. If you overdraw frequently, overdraft fees will cost you more than a monthly maintenance fee. If you send wire transfers regularly for business, that fee matters. Match the account to your real habits, not to what sounds cheapest in theory.

What happens if you cannot meet the fee waiver conditions

If you cannot maintain the minimum balance or do not have direct deposit, you have two main options: pay the monthly fee, or switch to a bank that charges no fee.

Paying a monthly fee is not shameful or unusual. Many people do it because the bank offers something else they value — a branch near their home, good customer service, or other account features. If you are comfortable with the cost, that is a valid choice.

Switching banks is also straightforward. You can open a new account at a no-fee bank while keeping your old account open temporarily. Once you have moved your direct deposits and automatic payments to the new account, you can close the old one. This takes a few weeks but costs nothing.

Frequently Asked Questions

Do I have to pay a fee to open a checking account?

No. Opening a checking account is free at all banks and credit unions. You may pay a monthly fee later to keep the account open, but the initial opening costs nothing.

What is the cheapest checking account?

The cheapest is one with no monthly fee and no conditions to waive it. Online-only banks and many credit unions offer these. Large traditional banks usually charge monthly fees unless you meet conditions like direct deposit or minimum balance.

Can I avoid overdraft fees?

Yes. You can opt out of overdraft coverage, which means transactions will be declined instead of charging you a fee. Ask your bank how to do this — it is usually a straightforward form or online request.

Do I pay ATM fees at my own bank?

No. Using an ATM owned by your bank is always free. You only pay fees when you use another bank's ATM. If you use cash often, choose a bank with many branches or one that reimburses out-of-network ATM fees.

What if I cannot keep the minimum balance?

You can either pay the monthly fee, or open an account at a bank that charges no monthly fee regardless of balance. Many online banks and credit unions have no minimum balance requirement.