Most checking accounts have no monthly fee, but some do—and the ones that charge often waive the fee if you meet certain conditions
Whether you pay a fee depends on which bank you choose and what you do with the account. Large national banks like Chase, Bank of America, and Wells Fargo offer checking accounts with no monthly fee as their standard product. Credit unions and online banks like Ally, Charles Schwab, and Chime also offer no-fee checking. But some banks charge $10 to $15 per month for a basic checking account, and premium accounts at any bank can cost $25 or more.
The catch: even when a bank lists a monthly fee, they often waive it if you meet one or more conditions. Common waivers include maintaining a minimum balance (usually $500 to $1,500), setting up direct deposit, or keeping a linked savings account open. If you don't meet the waiver conditions, you pay the full fee every month.
Beyond the monthly fee, checking accounts can charge you for specific actions: overdrafts (usually $25 to $35 per transaction), ATM withdrawals at out-of-network machines ($2 to $3), wire transfers ($15 to $30), and stop payments on checks ($25 to $35). These fees add up faster than a monthly charge if you're not careful.
Key Takeaways
- Most major banks and online banks offer checking accounts with no monthly fee, though some regional or specialty banks charge $10 to $15 per month.
- Banks that charge a monthly fee usually waive it if you maintain a minimum balance, set up direct deposit, or meet another condition listed in the account terms.
- Overdraft fees, ATM fees, and wire transfer fees can cost more than a monthly charge if you use them regularly.
- Online banks and credit unions tend to have lower or no fees because they have fewer physical branches to maintain.
- Reading the fee schedule before opening an account takes five minutes and can save you $100 to $200 per year.
How to find the actual fee schedule before you open an account
Banks are required to disclose their fees, but they bury them. When you visit a bank's website, look for a link labeled "Pricing," "Fees," "Account Terms," or "Disclosures"—not the marketing page that says "no monthly fee." read or request the fee schedule in writing. It should list the monthly maintenance fee (if any), the conditions that waive it, and all per-transaction fees.
Call the bank directly and ask: "What is the monthly fee for a basic checking account, and what do I need to do to waive it?" Write down the answer and the name of the person who told you. If the bank later charges you a fee they said would be waived, you have documentation to dispute it.
For online banks, the fee schedule is usually on the account details page. For credit unions, ask whether you need to be a member of a specific employer or organization, and whether there are membership fees separate from the account fee.
Minimum balance requirements and how they work
A minimum balance waiver means you keep a set amount of money in the account at all times, and the bank waives the monthly fee as long as you do. The balance is usually $500, $1,000, or $1,500. If your balance drops below that threshold even once during the month, you may be charged the full monthly fee for that month.
Some banks calculate the minimum as a daily balance (the amount you have each day), while others use an average balance (the total of your daily balances divided by the number of days in the month). The difference matters: if you get paid on the 1st and spend it by the 15th, a daily balance requirement is harder to meet than an average balance requirement. Ask which method the bank uses.
If maintaining a minimum balance is difficult for you, choose a bank with no monthly fee instead. The stress of watching your balance and the risk of accidentally dipping below the threshold is not worth saving a fee you can avoid elsewhere.
Direct deposit as a fee waiver condition
Many banks waive the monthly fee if you set up direct deposit—meaning your paycheck or government benefits go straight into the account. This is one of the easiest waivers to meet if you receive regular income. You do not need a large paycheck; some banks waive the fee for any direct deposit amount, while others require a minimum like $500 per month.
To set up direct deposit, you give your employer or benefits administrator your account number and routing number (both on the bottom left of a check, or available through your bank's website). The deposit usually arrives within one to two business days of payday.
If you are self-employed or do not receive regular direct deposits, this waiver does not help you. In that case, look for a bank that waives fees based on balance or offers no-fee checking outright.
Overdraft fees and how to prevent them
An overdraft happens when you spend more money than you have in the account. The bank covers the transaction and charges you an overdraft fee, usually $25 to $35 per transaction. If you overdraft multiple times in one day, you can be charged multiple fees—sometimes the bank charges one fee per transaction, sometimes a daily cap applies.
You can prevent overdrafts by linking a savings account to your checking account. If you overdraft, the bank automatically transfers money from savings to cover it. This transfer may cost $0 to $10, which is cheaper than an overdraft fee. Some banks also let you set up alerts that text or email you when your balance drops below a certain amount.
You can also opt out of overdraft coverage entirely. If you do, transactions that would overdraft your account are straightforward declined—like a debit card being rejected at the register. This prevents the fee but can be embarrassing or inconvenient. Ask your bank what your options are.
ATM fees and out-of-network charges
Using an ATM that belongs to your bank is free. Using an ATM owned by another bank usually costs $2 to $3, charged by the ATM owner's bank. Some banks also charge you a fee for using an out-of-network ATM—another $1 to $2 on top of what the ATM owner charges. That can add up to $5 per withdrawal.
If you use cash regularly, choose a bank with a large ATM network in your area, or an online bank that reimburses out-of-network ATM fees. Ally, Charles Schwab, and some credit unions reimburse these fees automatically, which means you can use any ATM without paying anything.
If you rarely use ATMs, this fee probably does not matter to you. If you withdraw cash multiple times per week, it can cost you $40 to $50 per month.
Comparing checking accounts side by side
| Bank Type | Monthly Fee | Common Waivers | Overdraft Fee | Out-of-Network ATM Fee |
|---|---|---|---|---|
| Large national bank (Chase, Bank of America, Wells Fargo) | $0 to $15 | Direct deposit, minimum balance, linked savings | $25 to $35 | $2 to $3 (bank may charge additional fee) |
| Online bank (Ally, Charles Schwab, Chime) | $0 | None (no fee to waive) | $0 to $35 (varies by bank) | $0 (reimbursed) or $2 to $3 |
| Credit union | $0 to $10 | Membership, minimum balance, direct deposit | $25 to $35 | $0 to $3 (varies by credit union network) |
| Regional or specialty bank | $10 to $25 | Direct deposit, minimum balance, account type | $25 to $35 | $2 to $3 |
This table shows typical ranges, but your specific bank may differ. Always check the fee schedule for the exact account you are considering.
Frequently Asked Questions
Can a bank charge me a fee without telling me first?
No. Banks must disclose all fees in writing before you open the account. If a bank charges you a fee that was not in the fee schedule you received, you can dispute it and ask for a refund. Keep copies of all fee schedules and account agreements you receive.
What if I cannot meet the minimum balance requirement?
Open an account at a bank with no monthly fee instead. Online banks and many credit unions do not charge a monthly fee regardless of your balance. You will save money and avoid the stress of watching your balance.
Do I have to pay overdraft fees if I do not want overdraft protection?
If you opt out of overdraft coverage, transactions that would overdraft your account are declined instead, and you are not charged a fee. However, some banks may still charge a fee for attempting to overdraft. Ask your bank about their policy before you opt out.
Are checking account fees the same at every branch of the same bank?
Yes. A bank's fee schedule applies to all branches nationwide. However, some banks offer different account types with different fees—for example, a basic checking account and a premium checking account. Make sure you are looking at the fee schedule for the specific account type you want to open.
Can I switch banks if I do not like the fees?
Yes. You can close your account at any time and open a new one elsewhere. Ask your old bank for a list of pending transactions before you close, so you know which checks or automatic payments are still processing. Once those clear, you can close the account without penalty.