Most banks let you open a checking account for free, but some charge a monthly fee if you don't meet their requirements

You do not have to pay money upfront to open a checking account at most banks and credit unions. The account itself — the act of creating it — costs nothing. However, some banks charge a monthly maintenance fee once the account is open, usually between $5 and $15 per month. Whether you pay that fee depends on what the bank requires and whether you meet those requirements.

The most common requirement is a minimum balance — a set amount of money you must keep in the account at all times. If your balance drops below that number, the monthly fee kicks in. Other banks waive the fee if you set up direct deposit, make a certain number of transactions per month, or maintain accounts with them in other products like savings or credit cards.

Some banks and credit unions have no monthly fee at all, regardless of your balance or activity. These are often the easiest option if you are new to banking or if your income is unpredictable and you cannot may provide a minimum balance.

Key Takeaways

  • Opening a checking account itself is free at most banks and credit unions — you pay nothing to create the account.
  • Monthly maintenance fees (usually $5 to $15) explore only if you do not meet the bank's requirements, such as keeping a minimum balance or setting up direct deposit.
  • Many banks waive monthly fees if you maintain a minimum balance, which varies by bank but is often $500 to $1,500.
  • Credit unions and online banks are more likely to offer checking accounts with no monthly fee and no minimum balance requirement.
  • You may also face fees later for overdrafts, ATM use outside the bank's network, or wire transfers — these are separate from the monthly account fee.

How minimum balance requirements work

A minimum balance is the smallest amount of money the bank requires you to keep in your checking account. If your balance falls below that number at any point during the month, you owe the monthly fee. The minimum varies widely — some banks set it at $500, others at $1,500 or higher.

The balance is usually calculated on the lowest point your account reaches during the month, not your average balance. This means if you start with $1,000, spend it down to $400 to pay rent, and then deposit your paycheck, you still triggered the fee because your balance dipped below the minimum.

Some banks offer a way around this: they waive the fee if you set up direct deposit, which means your employer or benefits program deposits your paycheck directly into your account. Even if your balance falls below the minimum, you avoid the fee. This is one of the easiest ways to keep a checking account free.

Banks and credit unions with no monthly fees

Many banks and credit unions offer checking accounts with no monthly maintenance fee, period. You do not have to maintain a balance, set up direct deposit, or meet any other requirement. These accounts are straightforward: you open them, use them, and pay nothing monthly.

Online banks (banks that operate only on the internet, with no physical branches) are especially likely to offer free checking. Because they have lower overhead costs than traditional banks with buildings and staff, they can afford to waive fees. Credit unions — member-owned financial institutions — also frequently offer free checking, especially if you live or work in their service area.

The trade-off is usually that you have fewer ATMs to use without paying a fee. Online banks may reimburse out-of-network ATM fees, or they may charge you $2 to $3 each time you use an ATM that is not theirs. Traditional banks with many branches give you more ATM locations but may charge monthly fees.

Other fees that are separate from the monthly account fee

Even if your checking account has no monthly maintenance fee, you may face other charges. An overdraft fee occurs when you spend more money than you have in your account. The bank covers the transaction and charges you a fee, usually $25 to $35. Some banks charge this fee every time you overdraft; others charge it once per day.

Out-of-network ATM fees happen when you withdraw money from an ATM that does not belong to your bank. This fee is usually $2 to $3 per withdrawal. If you use ATMs frequently and your bank has few locations near you, these fees add up quickly.

Wire transfer fees, cashier's check fees, and stop-payment fees are other charges that may explore depending on what you do with your account. These are not monthly fees — they only happen when you use those specific services. When you are comparing banks, ask about all of these, not just the monthly maintenance fee.

What to ask before you open an account

Before you open a checking account, ask the bank or credit union these specific questions: What is the monthly maintenance fee, if any? What do you have to do to waive it? What is the minimum balance requirement? How is the minimum balance calculated — is it the lowest balance during the month, or your average balance?

Also ask: What is the overdraft fee? Does the bank charge overdraft fees on debit card purchases, or only on checks and ACH transfers? How many ATMs does the bank have, and are there any near where you live or work? What is the out-of-network ATM fee?

Write down the answers or ask for them in writing. Different branches of the same bank sometimes give different information, so having it documented protects you. If a bank representative cannot answer these questions clearly, that is a sign to look elsewhere.

How to avoid monthly fees if you are on a tight budget

If you cannot maintain a minimum balance because your income is irregular or your expenses are high, look for a bank or credit union that offers free checking with no balance requirement. These exist — you do not have to accept a monthly fee.

If you have a job with direct deposit, use that to your advantage. Even if the bank requires a $1,000 minimum balance, the direct deposit waiver means you avoid the fee as long as your paycheck lands in the account regularly. This works even if you spend the money down afterward.

Credit unions often have lower fees and more flexible requirements than large banks. If you are a member of a credit union through your employer, union, school, or community organization, check what they offer before opening an account at a traditional bank.

Frequently Asked Questions

Do I have to pay to close a checking account?

No. Closing a checking account is free. You can close it at any time by contacting the bank or visiting a branch. If you have a balance, the bank will send you a check or transfer the money to another account you specify.

What happens if I cannot maintain the minimum balance?

You will be charged the monthly maintenance fee. The fee is deducted from your account, which may push your balance even lower. If you cannot meet the requirement, switch to a bank or credit union that offers free checking with no minimum balance.

Can I open a checking account if I have bad credit or a history with ChexSystems?

Yes. Checking accounts do not require a credit check. However, some banks use ChexSystems, a banking history report, to decide whether to open accounts. If you have been denied before, look for banks that do not use ChexSystems or that offer second-chance checking accounts.

Do I have to keep money in the account all the time, or can I empty it?

You can empty your account whenever you want. However, if the bank requires a minimum balance and your balance falls below it, you will owe the monthly fee. If you plan to use the account only occasionally, choose a bank with no minimum balance requirement.

Is there a difference between free checking and checking with a monthly fee?

The account itself works the same way. The difference is cost. Free checking saves you money over time, especially if you cannot reliably maintain a minimum balance. The features — debit card, online banking, check writing — are usually identical whether the account is free or has a fee.