Opening a checking account is free at most banks, but staying free depends on what you do with it
You will not pay a fee to open a checking account at any major bank or credit union. The account itself costs nothing to create. What matters is what happens after: whether you maintain a minimum balance, how many times you withdraw money, whether you overdraw, and what services you use. Some accounts stay free forever. Others charge monthly fees unless you meet conditions—and those conditions vary widely between banks.
The real cost of a checking account is not the opening. It is the fees you pay while using it, and whether you know about them before you sign up.
Key Takeaways
- Opening a checking account has no fee at banks and credit unions, but monthly maintenance fees may explore once the account is open.
- Many banks waive monthly fees if you keep a minimum balance, set up direct deposit, or maintain a linked savings account.
- Overdraft fees, ATM fees, and foreign transaction fees are separate charges that can add up quickly if you do not know the rules.
- Credit unions and online banks typically charge lower or no monthly fees compared to large national banks.
- You should ask about all fees before opening—not just the opening fee, but the monthly maintenance fee and what it takes to waive it.
Monthly maintenance fees and how to avoid them
Most banks charge a monthly maintenance fee—usually between $5 and $15—unless you meet one or more conditions. The conditions differ by bank. Common ones include keeping a minimum balance (often $500 to $1,500), setting up direct deposit, or maintaining a linked savings account with a certain balance.
Some banks waive the fee if you do any one of these things. Others require you to do all of them. A few banks—particularly online banks and credit unions—charge no monthly fee at all, with no conditions attached. Before you open an account, ask the bank directly: "What is the monthly maintenance fee, and what do I need to do to avoid paying it?" Write down the answer. Do not assume it is zero.
If you cannot meet the bank's conditions, switch banks. There is no reason to pay $10 a month to a bank that will not waive it when another bank will not charge it in the first place.
Overdraft fees and how they stack up
An overdraft happens when you spend more money than you have in the account. Banks charge overdraft fees—typically $25 to $35 per transaction—when this happens. Some banks charge one fee per day, others charge one per transaction. A single day of overdrafts can cost you $100 or more.
You can usually turn off overdraft protection, which means the bank will decline your transaction instead of charging you a fee. This is the safer choice if you do not have a cushion in your account. Ask the bank how to disable overdraft protection when you open the account, or do it yourself online once the account is active.
Some banks offer overdraft protection through a linked savings account: if you overdraw checking, the bank automatically transfers money from savings to cover it. This costs less than an overdraft fee (usually $0 to $10 per transfer) and keeps your transaction from being declined. This is worth setting up if you have a savings account with a small balance you can use as a buffer.
ATM fees and where they hide
Using an ATM that does not belong to your bank costs money—usually $2 to $3 per withdrawal. If you use out-of-network ATMs twice a week, that is $16 to $24 a month. Over a year, it adds up to $200 or more.
When you choose a bank, check whether it has ATMs near your home, work, or places you go regularly. If it does not, ask whether the bank reimburses out-of-network ATM fees. Some banks do; some do not. If the bank has no ATMs near you and does not reimburse fees, choose a different bank. The cost of convenience is real.
Credit unions often belong to shared branching networks, which means you can use ATMs at other credit unions for free. If you join a credit union, ask whether it participates in a network and how many ATMs you can access.
Foreign transaction fees and international transfers
If you travel internationally or send money abroad, your bank may charge a fee for transactions in foreign currency. These fees are usually 1 to 3 percent of the amount, plus a flat fee of $5 to $15. They explore to purchases made overseas and to transfers sent to other countries.
Most people do not need to worry about this. But if you travel frequently or have family abroad, ask about foreign transaction fees before opening the account. Some banks charge them; others do not. Some waive them if you have a premium account (which may cost more per month). Know the answer before you need it.
How to compare accounts before you open one
Before you open a checking account, write down these questions and call or visit the bank:
- Is there a fee to open the account? (The answer should be no.)
- Is there a monthly maintenance fee? If yes, what is it, and what do I need to do to waive it?
- What is the overdraft fee, and can I turn off overdraft protection?
- How many ATMs does your bank have, and are there any near me? If not, do you reimburse out-of-network ATM fees?
- Are there fees for transfers, wire transfers, or foreign transactions?
- What is the minimum balance required to open the account, and is there a minimum balance to keep the account open?
Write down the answers. Compare them across two or three banks. The cheapest account is not always the one with the lowest monthly fee—it is the one whose fee structure matches how you actually use money. If you never overdraw and you use the bank's ATMs, overdraft fees do not matter to you. If you travel internationally twice a year, foreign transaction fees matter a lot.
Credit unions and online banks as lower-cost alternatives
Credit unions typically charge lower monthly fees than large national banks, and many charge no monthly fee at all. Online banks (banks with no physical branches) also tend to charge no monthly maintenance fee. Both usually have lower overdraft fees and fewer restrictions on minimum balances.
The trade-off is convenience. A credit union may have fewer ATMs and branches than a national bank. An online bank has no physical location at all, so you cannot walk in to deposit cash or speak to someone in person. But if you are comfortable banking online and depositing checks by phone camera, online banks are often the cheapest option.
Credit unions require you to be a member of a specific group—employees of a company, members of an organization, or residents of a geographic area. Check whether you are may be able to access to join a credit union before you assume you can only use a bank.
Frequently Asked Questions
Can I open a checking account with no money?
Yes. Most banks have no minimum deposit to open an account. Some require a small deposit ($25 to $100) to set up the account, but this is your own money—you are not paying the bank. Once the account is open, you can deposit as little or as much as you want.
What happens if I cannot meet the minimum balance to waive the fee?
You will pay the monthly maintenance fee unless you switch to a bank that does not charge one. Many online banks and credit unions have no minimum balance requirement and no monthly fee. There is no reason to pay a fee you cannot avoid.
Do I have to use a debit card, or can I just use the ATM?
You do not have to use the debit card. You can withdraw cash at ATMs and use the account only for deposits and transfers. However, using the debit card for purchases does not cost extra—it is the same as using cash from your account. Some banks waive monthly fees if you use the debit card a certain number of times per month, so check the terms.
What if I want to close the account later?
Closing a checking account is free. You can close it anytime with no penalty. If there is money in the account, the bank will send it to you. If you owe the bank money (from overdrafts or unpaid fees), they will deduct it from your balance before closing.
Are there accounts designed for people with bad credit or no banking history?
Yes. Some banks and credit unions offer "second chance" checking accounts or accounts for people building credit. These may have higher fees or stricter rules, but they exist. Ask your bank whether it offers this type of account, or search for "second chance checking" in your area. Credit unions are often more flexible than national banks on this.