Most banks charge nothing to open a checking or savings account

The account itself is free at nearly every bank and credit union in the United States. You do not pay a fee to create the account, and you do not pay to keep it open. What you may pay for is what happens after — monthly maintenance fees, overdraft charges, minimum balance penalties — but the opening itself costs zero.

Some banks do charge a small deposit to start, usually $25 to $100, but this is not a fee. It becomes your first deposit and sits in your account. You can withdraw it whenever you want. A few banks, mostly online-only institutions, ask for no deposit at all.

The real cost difference between banks is not in opening them. It is in what they charge you month to month if your balance drops below a threshold, if you overdraw, or if you do not meet their conditions for a "free" account.

Key Takeaways

  • Opening a checking or savings account costs nothing at traditional banks, credit unions, and online banks.
  • Some banks require an opening deposit of $25 to $100, but this money is yours and you can withdraw it when ready.
  • Monthly maintenance fees, overdraft charges, and minimum balance requirements are where banks make money from accounts, not from opening them.
  • Credit unions often have lower or no monthly fees compared to large national banks, but membership requirements vary.
  • Online banks typically have no monthly fees and no minimum balance requirements because they have lower overhead costs.

What happens when you walk into a bank to open an account

You bring a government-issued ID and proof of address — usually a recent utility bill, lease, or bank statement from another account. The banker pulls up a form on their computer, asks for your Social Security number, and enters your basic information. They ask what type of account you want: checking, savings, or both. They may ask about your employment or income, though this is optional information.

They then show you the account options available at that bank. Each option has different rules: some have no monthly fee if you keep a minimum balance, others charge a flat fee regardless. Some waive fees if you set up direct deposit. You choose one, sign the paperwork, and the account opens when ready. If you brought a deposit, they take it. If not, the account sits at zero until you add money.

The whole process takes 15 to 30 minutes in person. Online, it takes 10 minutes and you can do it from your phone. You upload a photo of your ID, answer the same questions, and the account opens while you wait.

Opening deposits: what they are and whether you need one

An opening deposit is money you put into the account on day one. It is not a fee — it is your money. Banks that require one typically ask for $25, $50, or $100. A few ask for more. This money counts toward any minimum balance the account requires, so if the account needs $500 to stay open and you deposit $100, you only need to add $400 more.

Many banks have stopped requiring opening deposits altogether. Chase, Bank of America, Wells Fargo, and most regional banks now let you open a checking account with zero dollars. Credit unions vary — some require $25, others require nothing. Online banks like Ally, Charles Schwab, and Discover almost never require an opening deposit.

If a bank does require one and you do not have the cash, you can open an account elsewhere. The deposit requirement is not universal, and there is no advantage to paying it if you can find a bank that does not ask.

Monthly fees and when they actually explore

This is where the real cost lives. A bank may say an account is "free," but the fine print often says it is free only if you meet certain conditions. Common conditions are: keep a minimum balance (often $500 to $1,500), set up direct deposit, or maintain a certain number of debit card transactions per month.

If you do not meet the condition, the bank charges a monthly maintenance fee, usually $10 to $15. Some banks charge this fee every month no matter what. Others waive it if you link a savings account, keep a credit card with them, or maintain a relationship account like a mortgage.

Online banks and credit unions tend to have lower or zero monthly fees because they do not operate physical branches. Ally Bank, for example, charges no monthly fee and has no minimum balance. Charles Schwab charges no monthly fee and reimburses ATM fees nationwide. Credit unions often charge $5 to $10 monthly, or nothing if you meet a low minimum balance like $100.

Overdraft fees and other charges that add up

Opening the account is free, but spending money you do not have costs money. If you write a check or make a debit card purchase for more than your balance, the bank covers it and charges you an overdraft fee. This fee is typically $30 to $35 per transaction. If you overdraft multiple times in one day, you can be charged multiple times.

Some banks charge a separate fee if your account stays negative for more than a few days. Others charge a fee just for having overdraft protection turned on, whether you use it or not. A few banks, like Ally and Charles Schwab, do not charge overdraft fees at all — they straightforward decline the transaction instead.

ATM fees are another cost. If you use an ATM that is not part of your bank's network, the bank charges $2 to $3 per withdrawal. Your own bank's ATM is always free. Credit unions often belong to shared networks (like Allpoint or CO-OP) that let you use thousands of ATMs nationwide for free.

Credit unions versus banks: cost differences

Credit unions are member-owned, not shareholder-owned, so they typically charge less. A credit union checking account often has no monthly fee, no minimum balance, and no overdraft fee. Some credit unions do charge these things, but the rates are usually lower than at a bank.

The catch is membership. To open an account at a credit union, you must meet their membership requirements. Some credit unions are open to anyone in a geographic area. Others require you to work for a specific employer, belong to a specific organization, or live in a specific county. A few have no restrictions at all.

You can find credit unions that accept you by searching the CO-OP or Allpoint networks, or by asking your employer if they sponsor one. If you may have access to, a credit union account usually costs less to maintain than a bank account, especially if you are on a tight budget.

Online banks and why they charge less

Online banks have no physical locations, so they save money on rent, staff, and utilities. They pass some of that savings to you in the form of lower or zero fees. Ally Bank, for example, charges no monthly fee, no minimum balance, no overdraft fees, and reimburses ATM fees. Charles Schwab does the same. Discover Bank charges no monthly fee and no minimum balance.

The trade-off is that you cannot walk into a branch. You manage your account through an app or website, deposit checks by taking a photo, and withdraw cash at any ATM (though some online banks reimburse fees and others do not). If you are comfortable with digital banking, an online bank is usually the cheapest option.

Online banks still run background checks and verify your identity the same way traditional banks do. Opening takes the same amount of time. The only difference is where you do it.

Frequently Asked Questions

Do I have to pay anything to open a bank account?

No. The account itself is free at every major bank and credit union. Some banks ask for an opening deposit of $25 to $100, but that is your money, not a fee. You can withdraw it anytime.

What if I cannot afford an opening deposit?

Open an account at a bank that does not require one. Most large banks, credit unions, and all online banks let you open with zero dollars. Chase, Bank of America, Ally, and Charles Schwab all have zero-deposit options.

Why do some banks charge monthly fees if the account is supposed to be free?

The account is free only if you meet their conditions — usually keeping a minimum balance, setting up direct deposit, or making a certain number of transactions. If you do not meet the condition, they charge a fee, typically $10 to $15 per month. Online banks and credit unions often have no conditions at all.

Can I avoid overdraft fees?

Yes. Some banks, like Ally and Charles Schwab, do not charge overdraft fees — they straightforward decline transactions instead. You can also turn off overdraft protection at most banks so transactions are declined rather than covered and charged.

Is a credit union cheaper than a bank?

Usually, yes. Credit unions typically charge lower monthly fees, have lower or no minimum balances, and charge less for overdrafts. The catch is membership — you have to meet their requirements to join. Ask your employer or search the CO-OP network to find one that accepts you.