Most bank accounts cost nothing to open
You do not pay a fee to open a checking or savings account at most banks and credit unions. The bank does not charge you for creating the account itself. What you may pay for is what happens after — monthly maintenance fees, overdraft fees, or fees for using another bank's ATM.
Some banks advertise "free checking" specifically because they want you to know there is no monthly charge. Other banks charge a monthly fee (often called a maintenance fee or service fee) whether you use the account or not. The difference between free and paid accounts matters if you plan to keep a small balance or make few transactions.
Credit unions, which are member-owned financial institutions, often have lower or no monthly fees than banks. You may need to become a member to open an account, but membership is usually free or costs a small one-time fee — typically between $5 and $25.
Key Takeaways
- Opening a bank account itself costs nothing at most institutions, but some charge a monthly maintenance fee after you open it.
- You will need to bring a government-issued ID and proof of address, which are documents you likely already have.
- The real costs come later: overdraft fees (often $25 to $35 per incident), ATM fees at out-of-network machines, and monthly maintenance fees that range from $0 to $15 depending on the bank.
- Credit unions typically charge lower monthly fees than banks and may offer accounts with no monthly cost at all.
- Some banks waive monthly fees if you keep a minimum balance or set up direct deposit, so ask what the conditions are before you open.
What you actually need to bring
To open an account in person, bring a government-issued photo ID (a driver's license, passport, or state ID card) and proof of your current address. Proof of address can be a utility bill, lease, mortgage statement, or bank statement — something dated within the last 60 days that shows your name and address.
If you are opening an account online or by phone, the bank will ask you to upload images of these documents or answer security questions to verify your identity. Some banks use a third-party verification service to check your information against public records.
You do not need to bring money to open the account, though many banks ask you to make an initial deposit right away. The amount varies — some ask for $25, others for $100 or more. A few banks let you open with $0 and deposit later, but this is less common.
Monthly fees and when you will pay them
A monthly maintenance fee is a charge the bank takes from your account every month just for having the account open. These fees range from $0 to $15 at most banks, though some specialty accounts charge more. The fee comes out automatically on a set day each month.
Many banks waive the monthly fee if you meet one of these conditions: you keep a minimum balance (often $500 to $1,500), you set up direct deposit of your paycheck, you make a certain number of debit card transactions per month, or you maintain a linked savings account. Ask the bank which conditions explore before you open, because the rules vary widely.
If you do not meet the conditions and do not want to pay the monthly fee, you have options. Some banks offer accounts with no monthly fee at all, even with a $0 balance. Online banks (banks with no physical branches) almost always have no monthly fees because their costs are lower.
Overdraft fees and other charges after opening
An overdraft happens when you spend more money than you have in your account. If your bank allows overdrafts, they will cover the transaction and charge you a fee — usually $25 to $35 per overdraft. Some banks charge multiple overdraft fees in a single day if you make several transactions while overdrawn.
You can ask your bank to decline transactions instead of allowing overdrafts. This means if you do not have enough money, the transaction will be rejected and you will not be charged a fee. Many banks now offer this as the default option.
Other fees you might encounter include ATM fees (usually $2 to $3 if you use another bank's ATM), wire transfer fees ($15 to $30), and fees for closing your account early. Read the fee schedule before you open so you know what to expect.
How banks and credit unions compare on cost
Banks are for-profit businesses and often charge monthly maintenance fees. However, large national banks like Chase, Bank of America, and Wells Fargo offer accounts with no monthly fee if you meet their conditions — usually direct deposit or a minimum balance. Smaller regional banks vary widely; some charge $5 to $10 monthly, others charge nothing.
Credit unions are member-owned and typically charge lower fees than banks. Many credit unions have no monthly maintenance fee at all, even with a $0 balance. Credit union overdraft fees are sometimes lower than bank fees, though this varies by institution.
Online banks (like Ally, Charles Schwab, or Discover) almost always have no monthly fees and no minimum balance requirements. They make money from interest on loans rather than from customer fees, so they can afford to charge less. The trade-off is that you cannot walk into a physical branch — everything is done online or by phone.
Initial deposit requirements and what happens if you cannot meet them
Some banks require an initial deposit to open an account, while others do not. Initial deposits typically range from $25 to $100, though a few banks ask for more. This money goes into your account and is yours to use — it is not a fee.
If you cannot meet the initial deposit requirement, look for banks that advertise "no minimum opening deposit" or "open with $0." Many online banks and some credit unions offer this. You can also ask the bank directly whether they will waive the requirement; some will if you set up direct deposit.
If you have had banking problems in the past (like overdrafts you did not pay back or accounts you closed with a negative balance), you may be listed in ChexSystems, a banking history database. Some banks will not open accounts for people in ChexSystems, but others will. If you are denied, ask which bank reported you and why, then look for banks that specialize in second-chance accounts.
Choosing between a checking account and a savings account
A checking account is for money you use regularly — paying bills, buying groceries, getting cash. A savings account is for money you want to keep and grow. Some banks charge a monthly fee for savings accounts if you do not keep a minimum balance or if you make too many withdrawals in a month.
Many banks offer a bundle: a free checking account if you also open a savings account. This can lower your total cost. If you only need one account, a checking account is usually the better choice because it has fewer restrictions on how often you can withdraw money.
Interest rates on savings accounts vary by bank and change frequently. Online banks typically offer higher interest rates than traditional banks, though the difference changes month to month. If you are saving money for the long term, the interest rate matters more than the monthly fee.
Frequently Asked Questions
Do I have to pay money to open a bank account?
No. Opening the account itself is free at nearly all banks and credit unions. Some banks ask for an initial deposit (usually $25 to $100), but this is your money that goes into the account — not a fee. You may pay a monthly maintenance fee after opening, but many banks waive this if you meet certain conditions.
What if I do not have a proof of address?
Call the bank and ask what documents they accept. Some will take a lease, utility bill in someone else's name if you live there, or a letter from a shelter or social service agency. A few banks will open accounts online using only an ID and a phone number, then mail you a debit card. Credit unions are sometimes more flexible than banks on this requirement.
Can I open an account with no money?
Yes, at many banks and most credit unions. Online banks almost always allow this. Some traditional banks require an initial deposit of $25 to $100. If the bank you want requires a deposit and you cannot make one, ask whether they will waive it if you set up direct deposit of your paycheck.
What is the cheapest way to open a bank account?
An online bank with no monthly fee, no minimum balance, and no initial deposit requirement. Credit unions are also typically cheaper than traditional banks. If you prefer a physical branch, look for regional banks or ask large banks whether they offer accounts with no monthly fee if you set up direct deposit.
Will opening a bank account hurt my credit?
No. Banks do not report checking or savings accounts to credit bureaus, so opening an account does not affect your credit score. However, if you overdraw your account and do not pay it back, the bank may report you to ChexSystems, which can make it harder to open accounts at other banks in the future.