Most checking accounts cost nothing to open, but monthly fees and minimum balances vary widely
Opening a checking account itself is free at nearly every bank and credit union in the United States. The bank does not charge you to create the account. What costs money — or does not — depends on what happens after you open it: whether you maintain a minimum balance, how many times you withdraw cash, whether you overdraft, and which bank you choose.
Some accounts have no monthly fee at all. Others charge $10 to $15 per month if your balance drops below a certain threshold, usually $500 to $2,500. A few accounts waive the monthly fee if you set up direct deposit, keep a minimum balance, or maintain a certain number of debit card transactions per month. The fee structure is the real cost — not the opening itself.
Key Takeaways
- Opening a checking account is free; banks do not charge an account creation fee.
- Monthly maintenance fees range from $0 to $15 depending on the bank and account type, and often disappear if you meet one condition like direct deposit or a minimum balance.
- Overdraft fees ($25 to $35 per transaction) and ATM fees ($1 to $3 per withdrawal) are the costs most people actually pay, not the monthly fee itself.
- Credit unions and online banks typically charge lower or no monthly fees compared to large national banks.
- The cheapest account for you depends on how you use it: how often you overdraft, whether you use out-of-network ATMs, and whether you can meet the bank's conditions to waive the fee.
Monthly maintenance fees and how to avoid them
A monthly maintenance fee is what the bank charges you straightforward for holding the account open. This is separate from any transaction fees. At large national banks like Chase, Bank of America, and Wells Fargo, the monthly fee is typically $12 to $15 if you do not meet their conditions.
Most banks let you waive this fee by doing one of the following: setting up direct deposit of your paycheck, maintaining a minimum balance (often $500 to $1,500), making a certain number of debit card purchases per month (usually 10 or more), or keeping a linked savings account with a minimum balance. Some banks waive the fee for customers under 25 or over 65. Read the account terms to see which conditions explore to the specific account you are considering.
Online banks and credit unions often have no monthly fee at all, with no conditions attached. This is one reason they tend to be cheaper overall, though you lose the option to walk into a physical branch.
Overdraft fees are usually the real cost
Overdraft fees are what most people actually pay. When you spend more money than you have in your account, the bank covers the difference and charges you a fee — typically $25 to $35 per transaction. Some banks charge multiple overdraft fees in a single day if you make several purchases while overdrawn.
You can reduce overdraft fees by linking a savings account to your checking account so the bank automatically transfers money when you overdraft, or by opting out of overdraft coverage entirely (though this means transactions will be declined instead). Some banks offer overdraft protection that does not charge a fee if you transfer from savings, or they may waive one overdraft fee per year.
The federal government does not cap overdraft fees, so they vary by bank. If you overdraft frequently, the monthly fee becomes irrelevant — the overdraft fees will cost you far more.
ATM fees and out-of-network withdrawals
If you use an ATM that does not belong to your bank, you typically pay a fee. Your own bank charges $1 to $3 per withdrawal, and the ATM operator may charge an additional $1 to $3. That means a single cash withdrawal can cost $2 to $6.
Large banks have extensive ATM networks, so you may rarely pay this fee. Credit unions often participate in shared branching networks that let you use other credit union ATMs for free. Online banks have no physical ATMs, so if you need cash regularly, you either pay the fee or use a bank that has branches near you.
If you withdraw cash once a week and pay $2 per withdrawal, that is roughly $100 per year in ATM fees alone. This matters more than the monthly maintenance fee for many people.
Comparing total costs across account types
The cheapest account is not always the one with the lowest monthly fee. You have to calculate what you will actually pay based on your habits.
| Account Type | Monthly Fee | Typical Conditions to Waive | ATM Network | Best For |
|---|---|---|---|---|
| Large national bank (Chase, Bank of America, Wells Fargo) | $12–$15 | Direct deposit, $500+ balance, or 10+ debit transactions | Extensive | People who need physical branches and can meet one condition |
| Online bank (Ally, Charles Schwab, Discover) | $0 | None | Limited or reimbursed | People who rarely need cash and do not overdraft |
| Credit union | $0–$10 | Varies; often none | Shared branching network | People who want low fees and do not need a large national bank |
| Second-chance bank (Chime, LendingClub) | $0 | None | Limited | People with poor credit history or no prior banking relationship |
If you have direct deposit and rarely overdraft, a large national bank with a $12 monthly fee is fine — you will waive the fee and pay nothing. If you overdraft twice a month, you are paying $50 to $70 in overdraft fees alone, making the monthly fee irrelevant. If you withdraw cash from out-of-network ATMs weekly, that is $100 per year before you even count the monthly fee.
Hidden costs and fees to watch for
Beyond the monthly fee and overdraft charges, some accounts have fees you may not expect. Wire transfer fees range from $15 to $30 per transfer. Cashier's check fees are typically $5 to $10. Returned deposit fees (if a check you deposit bounces) are usually $5 to $15. Account closure fees are rare but do exist at some banks if you close the account within a certain period.
Foreign transaction fees explore if you use your debit card abroad — usually 1 to 3 percent of the transaction amount. If you travel internationally or send money overseas, this matters. Some online banks and credit unions waive this fee.
Read the fee schedule before you open the account. Banks are required to provide this document, and it lists every fee the bank charges. Do not rely on what the website says — the fee schedule is the official source.
How to find the lowest-cost account for your situation
Start by listing your actual banking habits: Do you receive direct deposit? How often do you overdraft? Do you use out-of-network ATMs? Do you travel internationally? Do you write checks? Once you know this, compare accounts that match your needs.
If you have direct deposit and rarely overdraft, almost any account will work — just pick one where you can waive the monthly fee. If you overdraft frequently, focus on banks with low overdraft fees or overdraft protection options, not the monthly fee. If you need cash regularly, choose a bank with a large ATM network or a credit union with shared branching.
Use the fee schedule comparison tool on your bank's website, or call the bank directly and ask: "What will I pay per month if I do X, Y, and Z?" Be specific about your habits. The answer will tell you the real cost.
Frequently Asked Questions
Do I have to pay anything to open a checking account?
No. Banks do not charge a fee to create the account. You may need to deposit an initial amount of money (often $25 to $100), but that is your money, not a fee. The bank keeps it in your account.
What is the difference between a monthly fee and an overdraft fee?
A monthly fee is what the bank charges just for having the account open, regardless of how you use it. An overdraft fee is what they charge when you spend more than your balance. You can avoid the monthly fee by meeting a condition; overdraft fees happen only when you overdraft.
Can I avoid all fees?
Yes. Online banks and many credit unions charge no monthly fee and no overdraft fee if you opt out of overdraft coverage. You will still pay ATM fees if you use out-of-network ATMs, and wire transfer or cashier's check fees if you use those services. But the core account itself can be free.
Which bank has the lowest fees?
Online banks like Ally, Charles Schwab, and Discover typically have no monthly fee and reimburse ATM fees. Credit unions also tend to be cheaper than large national banks. The lowest-cost account for you depends on your habits, not just the bank's advertised fees.
What happens if I cannot meet the bank's conditions to waive the monthly fee?
You will pay the monthly fee. If you cannot set up direct deposit and cannot maintain the minimum balance, consider switching to an online bank or credit union that has no monthly fee at all, rather than paying $12 to $15 per month for a fee you cannot avoid.