You don't have to keep any minimum balance in most checking accounts today, but some accounts still require it
Most banks no longer require you to maintain a minimum balance in a checking account. The rules changed over the past decade as banks competed for customers and regulators pushed back on fees. But some accounts—particularly those marketed as premium or those tied to investment services—still have minimums ranging from $500 to $25,000 or more.
Whether you have a minimum depends entirely on which account you opened and which bank holds it. A free checking account at a large national bank typically has zero minimum. A checking account bundled with a brokerage or wealth management service almost certainly does. The only way to know for sure is to check your account agreement or call your bank directly.
If your account does require a minimum and you fall below it, the bank will charge a monthly fee—usually $10 to $25—until you bring the balance back up. Some banks waive the fee if you meet an alternative condition, like setting up direct deposit or maintaining a linked savings account with a certain balance.
Key Takeaways
- Most free checking accounts have no minimum balance requirement, but premium or investment-linked accounts often do.
- If your account has a minimum and you drop below it, your bank will charge a monthly maintenance fee until the balance rises again.
- You can find your account's minimum requirement in your account agreement, on your bank's website, or by calling customer service.
- If a minimum is costing you money, you can switch to a different account at the same bank or move to a bank with no minimum.
- Some banks waive minimum requirements if you meet other conditions, such as setting up direct deposit or keeping a linked savings account funded.
How to learn about your account has a minimum
Your account agreement is the official source. This document was either mailed to you when you opened the account or sent by email. If you don't have it, log into your online banking portal and look for "account agreement," "terms and conditions," or "account details." Most banks also post this information on their website under the account type you hold.
The quickest route is often the bank's customer service line. Call and give them your account number. They can tell you the minimum in under a minute and also tell you whether any alternative conditions waive the fee—for example, whether direct deposit or a linked savings account balance would eliminate the requirement.
If you're looking at opening a new account, the bank's website will list the minimum for each account type before you apply. Read the fine print carefully; sometimes the minimum is buried in a table or footnote rather than in the main description.
What happens if you fall below the minimum
Your bank will charge a monthly maintenance fee, typically $10 to $25, for each month your balance stays below the required amount. This fee is automatic; the bank deducts it from your account without asking permission. The fee continues every month until your balance rises above the minimum again.
Falling below the minimum does not close your account, freeze your funds, or damage your credit. You can still use your debit card, write checks, and make transfers. The only consequence is the fee itself.
Some banks offer a grace period—usually 30 days—before charging the first fee. Others charge immediately. Check your account agreement to see whether your bank has a grace period.
Alternative conditions that waive the minimum
Many banks will drop the minimum requirement if you meet one or more of these conditions:
- Direct deposit: Setting up a paycheck or government benefit deposit to the account. Some banks require a minimum deposit amount per month, such as $500.
- Linked savings account: Keeping a certain balance in a savings account at the same bank, often $500 to $2,500.
- Monthly transfers: Moving a set amount into the account each month, typically $500 or more.
- Debit card activity: Using your debit card a certain number of times per month, such as 10 transactions.
- Online statements: Opting into paperless statements instead of receiving paper statements by mail.
Not all banks offer all of these options, and the thresholds vary. Ask your bank which conditions apply to your account. If you already meet one—for example, you receive direct deposit—the minimum may already be waived without you realizing it.
Moving to an account with no minimum
If your current account charges a fee because of a minimum balance you can't maintain, you have two options: switch to a different account at the same bank, or move to a different bank.
Many large banks offer multiple checking account tiers. If you're in a premium account, ask whether the bank has a basic free checking option with no minimum. You can often switch online or by calling customer service. Your account number and routing number may change, so update any automatic payments or direct deposits after the switch.
If your bank doesn't offer a no-minimum option, or if you want to explore other banks, look for accounts specifically labeled "free checking" or "no-minimum checking." Online banks and credit unions often have the most straightforward no-minimum options. Before switching, confirm that the new bank doesn't charge other fees that would offset the savings—for example, overdraft fees or out-of-network ATM fees.
Why some banks still require minimums
Banks use minimum balance requirements to offset the cost of maintaining an account. When you keep money in a checking account, the bank can lend that money out and earn interest on it. A higher minimum means more money the bank can use, which justifies the cost of customer service, technology, and fraud prevention.
Premium accounts and accounts bundled with investment services tend to have higher minimums because they come with extra features—higher interest rates on savings, fee waivers, travel rewards, or access to financial advisors. The bank assumes customers who can maintain a large balance will use these additional services and generate more profit.
Smaller banks and credit unions sometimes use minimums to manage their customer base. A $500 minimum, for example, filters out customers who would rarely use the account or who would cost more to serve than they'd generate in revenue.
Frequently Asked Questions
Can a bank close my account if I don't maintain the minimum?
No. A bank cannot close your account solely because your balance falls below the minimum. They can only charge you a monthly fee. However, if you don't use the account for an extended period—typically one to three years depending on the bank—they may close it for inactivity. Check your account agreement for the inactivity policy.
If I have direct deposit, is the minimum automatically waived?
Not always. Some banks waive the minimum for any direct deposit; others require a minimum deposit amount per month, such as $500. A few banks waive it only if the direct deposit comes from an employer, not from government benefits. Call your bank to confirm whether your direct deposit qualifies.
Does the minimum balance have to stay in checking, or can I move it to savings?
It depends on the account agreement. Most minimums apply only to the checking account itself. However, some banks allow you to link a savings account and count the savings balance toward the minimum. Read your agreement or ask your bank whether linked accounts count.
What if I'm below the minimum for just one day?
Most banks calculate your balance on a daily basis and charge the fee if you're below the minimum on any day of the month. A few banks use an average daily balance instead, which means one low day won't trigger a fee if your balance is higher on other days. Check your agreement to see which method your bank uses.
Can I negotiate the minimum with my bank?
Rarely, but it's worth asking if you have a long history with the bank or if you maintain a large balance in other accounts. Relationship managers at larger banks sometimes have discretion to waive fees for loyal customers. Call and explain your situation; the worst they can say is no.