Ask about monthly fees before you commit

Most checking accounts charge a monthly maintenance fee — usually between $5 and $15 — but many banks waive it if you meet certain conditions. Before you open an account, ask what those conditions are. Common ones include keeping a minimum balance (often $500 to $1,500), setting up direct deposit of your paycheck, or maintaining a linked savings account.

Some banks waive fees for everyone. Others waive them only for students, seniors, or people who use online banking. A few charge no monthly fee but charge per transaction instead — meaning each time you withdraw cash or write a check, you pay a small amount. Ask which model this bank uses, and ask what the total cost would be for the way you actually plan to use the account.

Also ask whether the fee waiver is permanent or temporary. Some banks offer three months free, then charge after that. Knowing this upfront saves you from a surprise charge later.

Key Takeaways

  • Ask what the monthly fee is and what conditions waive it — minimum balance, direct deposit, or linked accounts are the most common.
  • Find out what you pay for ATM withdrawals, especially at machines outside the bank's network, because those fees add up quickly.
  • Ask how many checks you can write per month and whether there is a cost per check, since some accounts limit free checks.
  • Confirm the bank's hours and whether you can reach customer service by phone, because you will need help when something goes wrong.
  • Ask about overdraft fees and overdraft protection — what happens if you spend more than you have, and whether the bank will let you opt out.

Understand ATM fees and where you can withdraw cash

ATM fees are one of the biggest hidden costs of checking accounts. When you use an ATM that belongs to your bank, withdrawal is usually free. When you use someone else's ATM, both your bank and that ATM's bank may charge you a fee — sometimes $2 to $3 per withdrawal.

Ask your bank three things: First, how many of its own ATMs are near where you live and work? If the bank has only a few locations and you do not live near them, you will be paying fees constantly. Second, does the bank reimburse ATM fees charged by other banks? Some do; many do not. Third, does the bank belong to a shared network of ATMs you can use for free? Many smaller banks and credit unions belong to networks like Allpoint or CO-OP that let you use thousands of ATMs nationwide without a fee.

If you do not have reliable access to your bank's ATMs, ask about this before you open the account. It can cost you more than the monthly fee itself.

Ask about overdraft fees and whether you can turn them off

An overdraft happens when you spend more money than you have in your account. When this happens, the bank can either decline the transaction (so you cannot spend the money) or cover it and charge you a fee — usually $30 to $35 per overdraft.

Ask your bank what it does by default. Some banks decline transactions automatically. Others cover them and charge a fee. Ask whether you can choose which option you want — many banks let you turn overdraft protection on or off, but not all do. If the bank will not let you turn it off, and you are worried about overdrafting, this may not be the right account for you.

Also ask whether the bank charges a fee for overdraft protection — a service where the bank automatically transfers money from a linked savings account to cover an overdraft. Some banks charge for this transfer; others do not. Knowing the cost helps you decide whether to link accounts.

Find out how many checks you can write and what they cost

If you plan to pay bills by check, ask whether the account includes free checks or whether you have to buy them separately. Some banks include a certain number of free checks per month (often 10 to 20); others charge per check or require you to order checks from a third party and pay for them yourself.

Also ask whether there is a limit on how many checks you can write. A few accounts limit free checks to a certain number per month, then charge for extras. This matters less than it used to — most people pay bills online now — but if you still write checks regularly, it is worth knowing.

If the bank charges for checks, ask whether you can order them from a cheaper third-party printer instead of the bank itself. Many banks allow this, and third-party checks are often half the price.

Confirm the bank's customer service hours and how to reach them

When something goes wrong with your account — a fraudulent charge, a missing deposit, a fee you do not understand — you need to reach someone who can help. Ask what hours customer service is available and whether you can reach them by phone, email, or chat.

Some banks have phone support only during business hours. Others offer 24/7 phone support. Some have no phone support at all and require you to use email or an online chat. If you work during the day and cannot call during business hours, a bank with evening or weekend phone support matters more to you.

Also ask whether the bank has a physical branch near you. You may never need to visit in person, but if you do — to deposit a large check, to report a lost card, or to resolve a complicated problem — having a branch nearby is valuable. Online-only banks have no branches, which is fine if you are comfortable handling everything by phone or email, but not fine if you need in-person help.

Ask what documents you need to bring and what information they will ask for

To open a checking account, you will need to prove who you are and where you live. Ask the bank what documents count as proof. Most banks accept a driver's license, passport, or state ID card. Some also accept a tribal ID or a military ID. Ask whether they accept the specific document you have.

You will also need to provide your Social Security number so the bank can check your banking history through a system called ChexSystems. Ask whether the bank uses ChexSystems and what happens if you have had problems with a bank account in the past. Some banks will still open an account for you; others will not.

Ask whether you can open the account in person, online, or both. If you open online, ask what happens if the bank cannot verify your identity — will they ask you to come in, or will they close your process?

Understand the bank's policies on deposits and holds

When you deposit a check, the bank does not always make the money available right away. The bank may put a hold on the check — meaning you cannot withdraw the money for a few days while the bank verifies the check is real. Ask how long the bank typically holds checks. Federal law says the bank must release most checks within one to five business days, but some banks are faster.

Also ask whether the bank charges a fee if a check bounces — meaning the person who wrote the check did not have enough money to cover it. Some banks charge you a fee when this happens; others do not.

If you plan to deposit cash, ask whether there is a limit on how much cash you can deposit per day or per month. Most banks have no limit, but some do, especially for new accounts.

Frequently Asked Questions

What if I have had problems with a bank account before?

Ask the bank whether it uses ChexSystems and whether it will still open an account for you if you have negative history. Some banks specialize in second-chance accounts and will work with you even if you have overdrafted or had a closed account in the past. Others will not. It is worth asking before you explore.

Can I change my mind after I open the account?

Yes. You can close a checking account at any time, usually by calling the bank or visiting a branch. Ask whether there is a fee to close the account and whether you need to have a zero balance before you close it. Most banks let you close for free and will refund any remaining balance.

What happens if the bank makes a mistake with my money?

Ask what the bank's process is for disputing a transaction or reporting an error. Federal law requires banks to investigate errors within a certain timeframe, but ask how long the bank typically takes and whether they will refund your money while they investigate.

Do I need a minimum deposit to open the account?

Ask whether the bank requires an opening deposit and how much. Some banks require $25 or $100 to open; others require nothing. This is separate from the minimum balance you need to keep to avoid monthly fees.

Can I open an account if I do not have a Social Security number?

Ask whether the bank will accept an Individual Taxpayer Identification Number (ITIN) instead. Some banks do; others require a Social Security number. If you do not have either, ask whether the bank has any other options.