Most bank accounts cost nothing to open

Opening a basic checking or savings account at a bank or credit union is free. You pay no fee to create the account, no setup charge, and no set up cost. The bank makes its money from the deposits you keep there and the loans it makes with those deposits, not from charging you to open an account.

What varies is what happens after you open it. Some accounts charge monthly maintenance fees if your balance drops below a certain amount, or if you don't meet other conditions like setting up direct deposit. Some accounts have no monthly fee at all. The cost structure depends on the specific account and the institution.

Key Takeaways

  • Opening a bank account itself is free at virtually all banks and credit unions in the United States.
  • Monthly maintenance fees, if they exist, typically range from $5 to $15 and can be waived by meeting conditions like maintaining a minimum balance or setting up direct deposit.
  • You may face fees later for overdrafts, ATM use outside your bank's network, or wire transfers, but these are not opening costs.
  • Credit unions often have lower or no monthly fees compared to large national banks, though this varies by institution.
  • The documents you need to open an account (ID, proof of address, Social Security number) cost nothing to obtain or provide.

When monthly maintenance fees explore

Some accounts charge a monthly fee to keep the account open. This is separate from the opening cost. Common monthly fees range from $5 to $15 per month, though some accounts charge nothing. Banks typically waive these fees if you meet one or more conditions: maintaining a minimum balance (often $500 to $1,500), setting up direct deposit, or keeping a certain number of debit card transactions per month.

A checking account with a $10 monthly fee that you waive by setting up direct deposit costs you nothing in practice, because the condition is straightforward to meet. An account with a $12 monthly fee and a $5,000 minimum balance requirement costs you nothing if you keep that balance, but it costs $144 per year if you cannot maintain it. Read the fee schedule before you open the account so you know which conditions explore to you.

Fees that come after opening

The opening itself is free, but banks charge for specific actions after the account exists. An overdraft fee (charged when you spend more than your balance) typically costs $25 to $35 per transaction. Using an ATM outside your bank's network usually costs $2 to $3. Sending a wire transfer costs $15 to $30. Closing an account within a short period (usually 90 to 180 days) can trigger a closure fee of $25 to $50 at some banks.

These are not opening costs. They are costs for things you do with the account later. Understanding them matters because they can add up, but they are not part of opening the account.

Credit unions versus banks

Credit unions often charge lower or no monthly maintenance fees compared to large national banks. Many credit unions offer free checking with no minimum balance and no monthly fee. However, credit unions are not all the same — some do charge monthly fees, and some have stricter membership requirements. The only way to know is to check the fee schedule for the specific credit union you are considering.

Banks like Chase, Bank of America, and Wells Fargo typically charge monthly fees on their basic checking accounts, though these fees are often waived if you meet conditions. Smaller regional banks and online banks (like Ally or Charles Schwab) frequently offer checking accounts with no monthly fee at all. Cost is one factor in choosing where to bank, but it is not the only one — consider also whether the bank has branches near you, what their customer service is like, and whether they offer the features you need.

What you need to bring (no cost)

Opening an account requires documents, but obtaining or providing them costs nothing. You will need a government-issued photo ID (a driver's license or passport), proof of your current address (a utility bill or lease), and your Social Security number. If you do not have a Social Security number, some banks and credit unions will open an account with an Individual Taxpayer Identification Number (ITIN) instead.

If you do not have a current utility bill or lease, a bank statement, insurance policy, or government document with your address on it usually works. You are not paying for these documents — you already have them. Some banks let you bring these documents in person, upload them online, or mail them in. The method does not change the cost.

Online accounts and mobile banking

Opening an account online costs the same as opening one in a branch: nothing. Online banks like Ally, Charles Schwab, and Discover typically have no monthly fees and no minimum balance requirements. They make this work because they have no physical branches to maintain, so their costs are lower than traditional banks.

The tradeoff is that you cannot deposit cash at a branch. You deposit checks by taking a photo with your phone (mobile check deposit), or you transfer money from another account. If you need to deposit cash regularly, an online bank may not work for you. If you rarely use cash, an online bank often costs less and offers better interest rates on savings accounts.

Accounts for people with banking history problems

If you have been denied a bank account because of a history with ChexSystems (a banking verification system that tracks overdrafts and fraud), some banks offer second-chance checking accounts. These accounts are free to open, but they often come with higher monthly fees ($10 to $25) and stricter rules about overdrafts. The fee is higher because the bank sees you as a higher risk.

Credit unions are sometimes more flexible with people who have banking problems. Some credit unions do not use ChexSystems at all, or they use it differently. If you have been denied elsewhere, call a local credit union and ask whether they offer accounts to people with your situation. The opening cost is still zero, but the monthly fee structure may be different.

Frequently Asked Questions

Do I have to pay to open a savings account instead of a checking account?

No. Savings accounts are free to open, just like checking accounts. Some savings accounts have monthly fees if your balance falls below a minimum (often $300 to $500), but opening the account itself costs nothing. High-yield savings accounts at online banks typically have no monthly fee and no minimum balance.

What if I want to open an account but I don't have a Social Security number?

You can open an account with an ITIN (Individual Taxpayer Identification Number) at most banks and credit unions. Some banks require an ITIN to be issued by the IRS, which you obtain by filing a tax return or submitting Form W-7 to the IRS. This process is free, though it takes several weeks. Call the bank before you visit to confirm they accept ITINs.

Can I open multiple accounts at the same bank for free?

Yes. Opening a second or third account at the same bank costs nothing. Some banks limit how many accounts you can have, or they charge a monthly fee if you have multiple accounts, but most do not. Check the bank's policy before you open the second account.

Will opening a bank account hurt my credit score?

No. Banks do a soft inquiry into your credit history when you open an account, which does not affect your credit score. They check ChexSystems (a banking history database) instead. Opening an account has no impact on your credit.

What happens if I close the account right after opening it?

Some banks charge a closure fee (usually $25 to $50) if you close an account within 90 to 180 days of opening it. This is the only time you might pay a fee directly related to opening. Check the account terms before you open to see whether a closure fee applies.