Where to find checking accounts with no monthly fee

Several banks and credit unions offer checking accounts with no monthly maintenance fee. The most common places to find them are online banks, credit unions, and a few traditional banks that waive the fee if you meet straightforward conditions like keeping a minimum balance or setting up direct deposit.

Online banks tend to have the lowest fees across the board because they have fewer physical branches to maintain. Credit unions often waive monthly fees for members regardless of balance, though you must first join the credit union—which usually means living or working in a specific area, or having a family member who is already a member.

Traditional banks with brick-and-mortar locations still charge monthly fees on most checking accounts, but many will waive the fee if you maintain a minimum balance (often $500 to $1,500) or set up direct deposit from your employer.

Key Takeaways

  • Online banks like Ally, Charles Schwab, and Discover typically charge no monthly fee with no balance requirement or direct deposit condition.
  • Credit unions often waive monthly fees for all members, but membership depends on your employer, location, or family ties.
  • Traditional banks waive monthly fees if you keep a minimum balance or receive direct deposit, which varies by bank and account type.
  • No-fee accounts still charge fees for overdrafts, wire transfers, and other services, so read the full fee schedule before opening.
  • Moving to a no-fee account can save $120 to $180 per year if your current bank charges $10 to $15 monthly.

Online banks with no monthly checking fees

Online banks operate without physical branches, which cuts their overhead significantly. Most pass that savings to customers by offering checking accounts with no monthly fee, no minimum balance requirement, and no direct deposit requirement. You manage the account entirely through a website or mobile app.

Ally Bank, Charles Schwab Bank, and Discover Bank are three examples that charge no monthly fee on their checking accounts. Each offers a debit card, online bill pay, and access to ATMs—either through their own network or through a partner network. The trade-off is that you cannot walk into a branch to deposit cash or speak to someone in person, though most online banks let you deposit checks by photographing them with your phone.

Online banks still charge fees for things like overdrafts, wire transfers, and expedited delivery of checks. Read the fee schedule on the bank's website before opening an account so you know what costs you might face later.

Credit unions and their fee structures

Credit unions are member-owned financial institutions, and most waive monthly checking account fees for all members. You do not need to maintain a minimum balance or set up direct deposit—the account straightforward costs nothing per month.

The catch is membership. You can only join a credit union if you meet one of their membership criteria. Some credit unions serve people who work for a specific employer, live in a specific county or city, or belong to a specific organization. Others allow you to join if a family member is already a member. A few credit unions have opened membership to anyone, but this is less common.

To find a credit union you can join, use the CO-OP Network locator or the Alliant Credit Union website, which lists credit unions by state and shows their membership requirements. Once you join, you typically get a checking account with no monthly fee, access to shared branch networks, and ATM access through CO-OP or Alliant.

Traditional banks that waive monthly fees

Large banks like Chase, Bank of America, and Wells Fargo charge monthly fees on most checking accounts—typically $10 to $15—but will waive the fee if you meet certain conditions. The most common conditions are maintaining a minimum balance or setting up direct deposit.

Chase's basic checking account costs $12 per month but waives the fee if you keep $500 in the account or set up direct deposit. Bank of America's checking account costs $12 per month but waives the fee if you maintain $1,500 in the account or have a linked savings account with $500. Wells Fargo's checking account costs $10 per month but waives the fee if you keep $500 in the account or have a linked savings account with $300.

These conditions change by bank and by account type, so check your bank's website or call to confirm what applies to you. If you already bank there and meet one of these conditions, you may already have the fee waived without realizing it.

What "no monthly fee" does and does not cover

A no-monthly-fee checking account means the bank does not charge you straightforward for having the account open. It does not mean the account is completely free of all charges.

Banks still charge fees for overdrafts (when you spend more than you have), returned deposits, wire transfers, cashier's checks, and expedited services. Some charge a fee if you fall below a minimum balance, even if the monthly maintenance fee is waived. Others charge a fee if you do not use the account for a set period.

Before opening an account, read or view the fee schedule on the bank's website. Look specifically for overdraft fees, ATM fees outside the bank's network, and any fees tied to balance thresholds or inactivity.

How to switch to a no-fee account

If you currently pay a monthly fee and want to move to a no-fee account, the process takes a few days to a week. You will need to open the new account, update your direct deposit with your employer if you use it, and move any automatic payments to the new account number.

Most banks let you open an account online in 10 to 15 minutes using your Social Security number, driver's license, and current address. You can then transfer money from your old account to your new one using an ACH transfer (which takes one to three business days) or by depositing a check at an ATM.

You do not need to close your old account when ready. Keep it open for a week or two after your direct deposit and automatic payments have switched over, in case something goes wrong. Once you confirm everything is working, you can close the old account.

Frequently Asked Questions

Can I get a no-fee checking account if I have bad credit or a banking history problem?

Most online banks and credit unions do not check your credit score to open a checking account. They may check ChexSystems, a banking history database, but many will still open an account even if you have a record of overdrafts or closed accounts. Call the bank or credit union directly to ask about their policy before you explore.

Do I lose FDIC protection if I use an online bank?

No. Online banks are FDIC-insured just like traditional banks. Your deposits are protected up to $250,000 per account type at each bank. Verify the bank displays an FDIC logo on its website or call the FDIC to confirm.

What happens if I need to deposit cash into a no-fee account?

Online banks cannot accept cash deposits because they have no branches. If you need to deposit cash regularly, choose a credit union (which has shared branches) or a traditional bank with physical locations. Some online banks partner with retailers like Walmart or CVS to accept cash deposits for a small fee.

If my bank waives the monthly fee for direct deposit, what happens if I lose my job?

The fee typically returns once direct deposit stops. You would then need to maintain the minimum balance to keep the fee waived, or switch to a different account type or bank. Contact your bank as soon as your employment changes to understand your options.