Most banks and credit unions let you open a checking account for free, but some charge a monthly fee if you don't meet their requirements
You can open a checking account without paying an upfront fee at the vast majority of banks and credit unions. The catch is that many institutions charge a monthly maintenance fee — usually between $5 and $15 — unless you meet certain conditions. Those conditions vary widely: some waive the fee if you keep a minimum balance, others if you set up direct deposit, and some if you maintain a certain number of transactions per month.
The fee structure depends entirely on the bank or credit union you choose. A checking account at a large national bank like Chase or Bank of America may have a monthly fee unless you meet their threshold. A local credit union or an online bank like Ally or Charles Schwab may have no monthly fee at all, regardless of your balance or activity. Before you open an account, you need to know what that specific institution charges and what you have to do to avoid paying it.
Key Takeaways
- Opening a checking account itself is free at nearly all banks and credit unions — you pay nothing to create the account.
- Monthly maintenance fees range from $5 to $15 at many traditional banks, but can be waived by meeting balance, direct deposit, or activity requirements.
- Online banks and credit unions often have no monthly fee regardless of your balance, making them cheaper if you cannot meet a bank's waiver conditions.
- You should compare the fee structure and waiver conditions of at least three institutions before opening, because the difference over a year can be $60 to $180.
What the monthly fee actually covers (and what it does not)
The monthly maintenance fee is not a charge for a specific service — it is a blanket fee that banks use to offset the cost of maintaining your account. It does not cover overdraft fees, ATM fees, or wire transfer fees, which are separate charges. It is purely a recurring cost for having the account open.
Some banks frame the fee as optional by offering multiple ways to waive it. Chase, for example, waives the $12 monthly fee on their Chase Total Checking account if you maintain a $500 minimum balance, set up direct deposit, or have a linked savings account with a $500 balance. Bank of America waives their $12 fee if you maintain a $1,500 balance or have a linked savings account with $2,500. The waiver conditions are designed so that customers who use the bank actively or keep money there do not pay the fee.
How to find accounts with no monthly fee
Online banks almost never charge a monthly maintenance fee. Ally Bank, Charles Schwab Bank, Discover Bank, and LendingClub all offer checking accounts with zero monthly fees and no minimum balance requirement. These banks make their money on lending and investments rather than account fees, so they can afford to waive the fee entirely.
Credit unions also tend to have lower or no monthly fees. If you are a member of a credit union — either through your employer, your school, or your geographic location — check their fee schedule first. Many credit unions charge no monthly fee on basic checking accounts, period. You can search for credit unions you may be may be able to access to join at CO-OP.org or Surcharge-Free.org, which show you which networks your card will work in without extra charges.
If you want to use a traditional brick-and-mortar bank, call or visit their website and ask directly what the monthly fee is and how to waive it. Write down the conditions for each bank you are considering, then decide which one you can actually meet. If you cannot maintain a $1,500 balance, a bank that requires that waiver is not a good fit for you, even if it is convenient.
Fees that are separate from the monthly charge
Even if you find an account with no monthly fee, you can still be charged for specific actions. An overdraft fee (typically $25 to $35) hits you when you spend more than you have in the account. An ATM fee (typically $2 to $3) is charged when you use an ATM outside your bank's network. A wire transfer fee (typically $15 to $25) applies when you send money electronically to another bank.
These fees are not part of the monthly maintenance charge — they are triggered by specific transactions. Some banks offer overdraft protection, which links your checking account to a savings account and automatically transfers money if you would overdraft, though this may come with its own fee. Others offer overdraft grace, which gives you a short window to deposit money before the fee kicks in. Read the fee schedule carefully and understand which of these fees explore to you based on how you plan to use the account.
What happens if you cannot meet the waiver conditions
If a bank requires a $1,500 minimum balance to waive the monthly fee and you cannot maintain that, you will pay the fee every month. Over a year, a $12 monthly fee costs $144. If you have $500 in the account instead of $1,500, you are paying $144 per year to keep that money at a bank that does not want small-balance customers.
In this situation, switching to an online bank or credit union with no monthly fee is the smarter move. You lose nothing by moving your account — your old bank does not charge a closing fee, and your new bank does not charge an opening fee. The only inconvenience is updating your direct deposit information and any automatic payments you have set up. That takes about 15 minutes and saves you money every month going forward.
How to compare accounts side by side
| Bank Type | Typical Monthly Fee | Common Waiver Conditions | Best For |
|---|---|---|---|
| Large national bank (Chase, Bank of America, Wells Fargo) | $10–$15 | Minimum balance ($500–$2,500) or direct deposit | People who can meet balance requirements or have employer direct deposit |
| Online bank (Ally, Charles Schwab, Discover) | $0 | None | People who do not need physical branches and want no fees |
| Credit union | $0–$5 | Varies; many have no fee | Members who have access through employer or location |
| Community bank | $5–$10 | Varies by bank; often lower than national chains | People who want local service and lower fees |
Before you open an account, visit the website of at least three banks or credit unions you are considering and read their fee schedule. Look specifically for the line item called "Monthly Maintenance Fee" or "Account Fee." Write down the fee amount and the exact conditions to waive it. Then ask yourself: can I realistically meet these conditions? If the answer is no, move to the next option.
The time you spend comparing now prevents months of paying unnecessary fees later. Most banks make their fee schedules straightforward to find on their website, usually under a link labeled "Pricing," "Fees," or "Account Terms." If you cannot find it online, call the bank directly and ask them to email or mail you a copy. You have the right to know what you will be charged before you open the account.
Frequently Asked Questions
Can I open a checking account with no money?
Yes. Most banks do not require an opening deposit. You can open the account with $0 and deposit money later. However, if the account has a monthly fee and you do not meet the waiver conditions, you will be charged even if the account is empty. Some banks will close accounts that stay at zero balance for several months.
Do I have to pay a fee if I close the account right away?
No. Banks do not charge a closing fee. If you open an account and decide it is not right for you, you can close it when ready at no cost. There is no penalty for changing your mind.
What if I cannot meet the minimum balance but I have direct deposit?
If direct deposit is one of the waiver options and you have it set up, the monthly fee is waived. You do not need to maintain the balance. Check the bank's specific rules — some require the direct deposit to hit the account once per month, while others require it to be ongoing.
Are online banks safe if they have no monthly fees?
Yes. Online banks are insured by the FDIC (Federal Deposit Insurance Corporation) just like brick-and-mortar banks, which means your money is protected up to $250,000 per account. The reason they have no fees is that they have lower overhead costs, not because they are less stable.
Can the bank change the monthly fee after I open the account?
Yes, banks can change their fees with notice — usually 30 days. They must notify you before the change takes effect. If a bank raises its fee or changes the waiver conditions, you can close the account and move to a different bank at no cost.