Most bank accounts don't charge a monthly fee, but some do

You can open a bank account with no monthly fee at most banks and credit unions. Many checking and savings accounts are completely free — you pay nothing to open them, nothing to keep them open, and nothing to use them. But some accounts do charge a monthly maintenance fee, usually between $5 and $15. Whether you pay depends on which bank you choose and which account type you pick.

The key is knowing what to look for before you open an account. Banks advertise their free accounts prominently, but you have to read the details to see if there are conditions — like keeping a minimum balance, or setting up direct deposit — that would trigger a fee if you don't meet them.

Key Takeaways

  • Most checking and savings accounts have no monthly fee, but some banks charge $5 to $15 per month for certain account types.
  • A bank may waive its monthly fee if you keep a minimum balance, set up direct deposit, or meet other conditions — read the account details before opening.
  • Credit unions and online banks are more likely to offer free accounts with no conditions than traditional brick-and-mortar banks.
  • Even if an account has no monthly fee, you may pay for individual services like overdraft protection, wire transfers, or paper statements.
  • Ask the bank directly whether the account you want has a monthly fee and what you need to do to avoid it.

Why some accounts charge monthly fees and others don't

Banks charge monthly fees to cover the cost of maintaining your account — processing transactions, storing your information, and providing customer service. Accounts aimed at people who keep large balances or use many services often have no fee because the bank makes money from the interest on your deposits or from the services you use. Accounts with lower balances or lighter use sometimes charge a fee to make up that difference.

Online banks and credit unions tend to charge fewer monthly fees because they have lower overhead costs — they don't maintain physical branches. A traditional bank with many locations may charge a monthly fee on a basic checking account, while an online bank offers the same thing for free.

Conditions that waive or trigger monthly fees

Many banks offer a free account if you meet certain conditions. The most common are:

  • Direct deposit: The bank waives the fee if your paycheck or government benefit is deposited directly into the account. This is the easiest condition to meet if you receive regular income.
  • Minimum balance: You keep a set amount in the account — often $500 to $1,500 — and the fee is waived. If your balance drops below that, the fee kicks in.
  • Monthly transactions: You complete a certain number of debit card purchases or transfers each month, usually 10 or more.
  • Account type: Some banks waive fees only for students, seniors, or people under a certain age.

If you don't meet the condition, the monthly fee applies automatically. For example, if your account waives the fee with direct deposit but you lose your job, the fee starts charging the next month. Read the account agreement before opening to understand exactly what you need to do.

Other charges that aren't monthly fees

Even a free account may charge you for specific services. These are separate from monthly maintenance fees and only happen when you use them:

  • Overdraft fees: You spend more than you have in your account. This typically costs $25 to $35 per overdraft.
  • Wire transfer fees: You send money to another bank. Domestic wire transfers usually cost $15 to $30.
  • ATM fees: You use an ATM that doesn't belong to your bank. The fee is usually $2 to $3, charged by the ATM owner.
  • Paper statement fees: You request printed statements instead of viewing them online. This is often $1 to $2 per statement.
  • Replacement card fees: You lose your debit card and need a new one. Some banks charge $5 to $15; others replace it free.

These charges only happen if you use these services. A free account with no monthly fee will stay free as long as you don't trigger any of these individual charges.

Where to find accounts with no fees

Credit unions almost always offer free checking and savings accounts with no monthly fee and no minimum balance. You have to be a member to open an account, but membership is usually free or costs a small one-time fee (often $1 to $5). If you work for a large employer, belong to a union, or live in a certain area, you may be able to join a credit union.

Online banks like Ally, Charles Schwab, and Discover typically offer free checking and savings accounts with no monthly fee, no minimum balance, and no conditions. They have no physical branches, so they can afford to charge less. You manage your account entirely through a website or app.

Traditional banks with physical locations often charge monthly fees on basic accounts, but many have a free option if you meet one condition — usually direct deposit. Ask the bank directly about their free accounts and what you need to do to keep them free.

How to compare accounts before opening

Before you open an account, write down the monthly fee and the conditions that waive it. Then ask yourself: Do I have direct deposit? Can I keep the minimum balance? Will I use the account enough to meet the transaction requirement? If you can't meet the condition, the account isn't truly free for you.

Also check for the other charges listed above. A free account that charges $35 every time you overdraft is not a good deal if you sometimes spend more than you have. Some banks offer overdraft protection (a link to savings or a credit line) that prevents overdrafts entirely, though this may have its own fee.

Call the bank or visit their website and look for the account agreement or fee schedule. These documents list every fee and every condition. If you can't find it online, call and ask a representative to explain the fees in plain language.

Frequently Asked Questions

Can I switch banks if my account starts charging a fee?

Yes. If your bank adds a fee or you stop meeting the condition that waives it, you can open a new account at a different bank and transfer your money. This takes a few days. You don't have to close the old account when ready, but you can once the transfer is complete. Some banks charge a fee to close an account early, so check before you switch.

What happens if I can't keep the minimum balance?

The monthly fee starts charging. Your balance doesn't have to stay above the minimum every single day — most banks check it once a month, usually at the end of the month. If you dip below it for a few days, you're usually fine. But if it's below the minimum on the day they check, the fee applies that month.

Do I have to pay a fee to close an account?

Most banks don't charge to close an account, but some do — usually $25 to $50 if you close it within a certain time frame, like 90 days of opening. Check the account agreement before opening to see if there's an early closure fee.

Is a savings account free, or does it cost money?

Savings accounts are usually free with no monthly fee, just like checking accounts. Some banks charge a small monthly fee on savings accounts, but this is less common. The main difference is that savings accounts earn interest on your balance, while checking accounts usually don't. Interest rates vary by bank and change over time.

What if the bank changes the fee after I open the account?

Banks can change their fees, but they must notify you in advance — usually 30 days. You'll receive a notice by mail or email explaining the change. If you don't want to pay the new fee, you can close the account and move to a different bank before the change takes effect.