Most checking accounts have no monthly fee, but some charge $5 to $15 depending on the bank and account type

The cost of a checking account varies widely. Many banks offer accounts with no monthly maintenance fee at all. Others charge a monthly fee that ranges from $5 to $15, though some premium accounts cost more. The fee depends on which bank you choose, what type of account you open, and sometimes on how you use the account.

The key is that you have options. If one bank charges a fee, you can usually find another that does not. Before you open an account anywhere, ask directly: "Is there a monthly fee?" If the answer is yes, ask what you would need to do to avoid it — many banks waive fees if you keep a minimum balance or set up direct deposit.

Key Takeaways

  • Most major banks offer checking accounts with no monthly fee, though some charge $5 to $15 per month depending on the account type.
  • Banks often waive monthly fees if you maintain a minimum balance, set up direct deposit, or meet other conditions — ask what applies to you.
  • Online banks and credit unions typically charge lower or no fees than traditional brick-and-mortar banks.
  • Overdraft fees, ATM fees, and wire transfer fees are separate from monthly account fees and can add up quickly if you are not careful.
  • You should compare the total cost of an account, not just the monthly fee, because other charges vary widely between banks.

Why banks charge monthly fees

A monthly maintenance fee is what a bank charges to keep your account open and active. The bank uses this money to cover the cost of maintaining the account system, processing your transactions, and providing customer service. Not all banks charge this fee — many consider it part of their basic service and cover the cost through other means, like earning interest on the money you deposit.

When a bank does charge a fee, they usually offer ways to avoid it. The most common way is to keep a minimum balance — a set amount of money that must stay in your account at all times. If your balance drops below that amount, the fee kicks in. Another common way is to set up direct deposit, which means your paycheck or benefits payment goes straight into your account electronically. Some banks waive fees if you do either one, or if you do both.

How to find accounts with no monthly fee

Online banks almost always charge no monthly fee. Banks like Ally, Charles Schwab, and Discover have checking accounts with zero monthly cost and no minimum balance requirement. The trade-off is that they have no physical branch — you do your banking through their website or app, and you deposit checks by taking a photo with your phone.

Credit unions also typically charge no monthly fee or charge very low fees. A credit union is a member-owned financial institution, similar to a bank but usually smaller and more focused on serving a specific community or group. If you are a member of a credit union, ask them about their checking account options.

Traditional banks with physical branches vary. Some, like Bank of America and Wells Fargo, charge monthly fees on certain accounts but offer fee-free options if you meet their conditions. Others, like some local or regional banks, may charge no fee at all. The only way to know is to ask or check their website.

Other costs beyond the monthly fee

A monthly fee is just one way a checking account can cost you money. Overdraft fees happen when you spend more money than you have in your account. If you write a check or make a purchase for $50 but only have $30 in your account, the bank may cover the $20 difference — and then charge you a fee, usually $25 to $35, for doing so. Some banks charge this fee every time you overdraft; others charge it once per day or once per statement period.

ATM fees occur when you withdraw cash from an ATM that does not belong to your bank. If your bank has few ATMs near you, this can add up. Some banks charge you $2 to $3 per out-of-network withdrawal. Others reimburse these fees or have agreements with other banks so you can use their ATMs for free.

Wire transfer fees explore when you send money electronically to another bank. This typically costs $15 to $25 per transfer. Returned check fees happen if you write a check that bounces because you do not have enough money — the bank charges you, and so does the person or business you wrote the check to.

Comparing total cost, not just the monthly fee

When you are deciding between banks, do not look at the monthly fee alone. A bank with no monthly fee might charge high overdraft fees or ATM fees. A bank with a $10 monthly fee might reimburse all ATM fees and charge no overdraft fee if you are just $5 short.

Make a list of what matters to you: Do you need a physical branch nearby? Do you use ATMs often, and if so, which ones? Do you ever overdraft, or do you keep a careful balance? Do you send wire transfers? Once you know what you actually use, you can compare the real cost across banks. A bank's website usually lists all these fees clearly, often in a document called a "fee schedule" or "pricing guide."

What happens if you cannot avoid a fee

If you are in a situation where you cannot meet a bank's minimum balance requirement or set up direct deposit, you will likely pay the monthly fee. This is common for people with very low or irregular income, or for those who are just starting out with banking.

In this case, your best option is usually an online bank or credit union, since they typically have no fees and no minimum balance. If you prefer a traditional bank with a branch, ask the bank directly whether they have any accounts designed for people with lower balances. Some do, though they may have other conditions attached.

Frequently Asked Questions

Can I switch banks if I do not like the fees?

Yes. You can close your account at any time and open one elsewhere. The bank cannot charge you a fee for closing the account. You will need to move any automatic payments or direct deposits to your new account, which takes a few days to set up. Some people keep accounts at two banks during the switch to make sure nothing gets missed.

What is a minimum balance and how is it calculated?

A minimum balance is the lowest amount of money your bank requires you to keep in the account to avoid a monthly fee. Some banks require you to maintain it every single day; others look at your average balance over the month. Check your bank's rules — the difference can matter if your balance fluctuates.

Do I have to pay overdraft fees?

You can ask your bank to turn off overdraft protection, which means transactions will be declined if you do not have enough money instead of being covered and charged a fee. This prevents overdraft fees but may cause problems if a payment fails. Ask your bank how to set this up.

Are there accounts designed for people with bad credit or banking history?

Yes. Some banks and credit unions offer "second chance" checking accounts for people who have had problems in the past. These may have higher fees or lower limits, but they let you rebuild your banking history. Ask your bank or credit union whether they offer this option.

What if I cannot afford any monthly fee?

Look for online banks or credit unions, which almost always have zero-fee accounts with no minimum balance. If you need a physical branch, call local banks and ask specifically about accounts with no fee and no minimum — some have them even if they are not advertised prominently.