Most banks do not charge you to open an account

Opening a basic checking or savings account is free at most banks and credit unions. You will not pay a fee to create the account itself. However, some banks charge monthly maintenance fees once the account is open, and some accounts have minimum balance requirements — meaning you must keep a certain amount of money in the account or face a fee.

The difference matters: a free account to open is not the same as a free account to keep. Before you choose a bank, you need to know both what it costs to start and what it costs each month.

Key Takeaways

  • Opening a checking or savings account costs nothing at most banks and credit unions, though you may need to bring an initial deposit.
  • Monthly maintenance fees are separate from opening fees and range from zero to $15 per month depending on the bank and account type.
  • Some banks waive monthly fees if you keep a minimum balance, set up direct deposit, or maintain a certain number of transactions each month.
  • Credit unions often have lower or no monthly fees compared to large national banks.
  • Online banks typically charge no monthly fees and have no minimum balance requirements.

What you need to bring to open an account

When you go to a bank or credit union to open an account, you will need to show identification and proof of your address. A government-issued ID like a driver's license or passport works for identification. For address proof, bring a recent utility bill, lease, or mail from a government agency with your name and current address on it.

You will also need to decide on an initial deposit — the money you put in when you open the account. Most banks do not require a minimum opening deposit, though some do. If a bank requires one, it is usually between $25 and $100. That money is yours; the bank is not keeping it as a fee. You can withdraw it whenever you want.

The difference between opening fees and monthly fees

An opening fee is what a bank charges you to create the account. This is rare and becoming rarer — most banks charge zero dollars to open. A monthly maintenance fee is what a bank charges you every month to keep the account open. This is more common, especially at large national banks.

Monthly fees typically range from $0 to $15 per month for a basic checking account. Some banks charge less for savings accounts. The fee is taken directly from your account balance each month, so you will see it on your statement. If your account balance drops below a certain amount — often called a minimum balance requirement — the bank may charge you a fee even if you have not used the account that month.

Ways banks waive monthly fees

Many banks will not charge you a monthly fee if you meet one or more conditions. The most common are: keeping a minimum balance in the account (often $500 to $1,500), setting up direct deposit of your paycheck, or making a certain number of debit card transactions each month (often 10 or more).

Some banks waive fees for customers under a certain age, for seniors, or for people with disabilities. Others waive fees if you have multiple accounts with them or if you maintain a savings account alongside your checking account. Before you open an account, ask the bank or credit union which fees explore to you and what you can do to avoid them.

Credit unions versus banks

Credit unions are member-owned financial institutions that often charge lower fees than banks. Many credit unions have no monthly maintenance fees at all, and those that do often have lower minimums or easier ways to waive them. Credit unions also tend to have lower or no minimum opening deposits.

The trade-off is that credit unions have fewer branches and ATMs than large national banks. If you need to visit a physical location often, a bank near your home or work may be more convenient. If you mostly use ATMs and online banking, a credit union can save you money. You can find credit unions in your area through the CO-OP Network or Allpoint, which let credit union members use ATMs at other credit unions for free.

Online banks and no-fee accounts

Online banks — banks that operate only through websites and apps, with no physical branches — almost never charge monthly maintenance fees. They also rarely require minimum balances. Because they have lower costs than traditional banks, they can offer accounts for free.

The main drawback is that you cannot walk into a branch to deposit cash or speak to someone in person. Most online banks let you deposit checks by taking a photo with your phone, and some let you deposit cash at partner ATMs or retail locations. If you rarely use cash and are comfortable banking on your phone or computer, an online bank is often the cheapest option.

What happens if you cannot meet the minimum balance

If your bank requires a minimum balance and your account drops below it, you will be charged a fee — usually $10 to $35 per month. This fee makes your balance drop further, which can trigger another fee the next month. This cycle is called a "fee spiral" and is one of the most expensive mistakes people make with bank accounts.

If you know you will have trouble keeping a minimum balance, choose an account with no minimum requirement. Online banks and many credit unions offer these. If you already have an account with a minimum balance requirement and you are struggling to meet it, call the bank and ask if they can move you to a different account type with no minimum, or ask what you need to do to have the fee waived.

Frequently Asked Questions

Do I have to bring money with me to open an account?

Not always. Most banks do not require a minimum opening deposit, but some do. If they do, it is usually $25 to $100. That money stays in your account and is yours — you can withdraw it right away if you want. Call the bank before you go in and ask whether they require an opening deposit.

Can I open an account online without going to a bank?

Yes. Online banks let you open an account entirely through their website or app. You will still need to provide identification and proof of address, usually by uploading photos or documents. The process takes about 10 to 15 minutes. You will not be able to deposit cash online, but you can deposit checks by phone or use ATMs at partner locations.

What if I do not have a government ID?

Most banks require a government-issued ID to open an account. If you do not have one, contact your local bank or credit union and ask what documents they will accept instead. Some accept a passport, tribal ID, or military ID. A few may accept other forms of identification, though this varies by location and institution.

Will I be charged if I do not use my account?

Most banks will not close your account or charge you for inactivity. However, some banks charge a monthly maintenance fee whether you use the account or not. If you choose an account with no monthly fee, you can leave it untouched without penalty. Check your account agreement or ask the bank directly about their inactivity policy.

Can I switch banks if I do not like the fees?

Yes. You can close your account at any time with no penalty. Before you switch, set up a new account at the bank you prefer, then transfer your money over. Update your direct deposit and any automatic payments. The old bank will close your account once the balance reaches zero. Switching usually takes a few days to a week.