Most checking accounts have no monthly fee, but some do

Whether you pay a fee for a checking account depends on the bank and the account type you choose. Many banks offer free checking with no monthly charge at all. Others charge a monthly maintenance fee—typically $5 to $15—but waive it if you meet certain conditions, like keeping a minimum balance or setting up direct deposit. Some banks charge a fee no matter what. The fee structure varies widely, so the cost is not the same everywhere.

The key is knowing what your specific bank charges and what you can do to avoid paying. Banks are required to disclose their fees upfront, usually in a document called the fee schedule or pricing guide. You can find this on the bank's website, ask for it in person, or call and request it before you open an account.

Key Takeaways

  • Many banks offer free checking with no monthly fee, while others charge $5 to $15 per month depending on the account type.
  • Banks often waive monthly fees if you meet conditions like maintaining a minimum balance, setting up direct deposit, or keeping a certain number of transactions per month.
  • Online banks and credit unions tend to charge lower or no monthly fees compared to traditional brick-and-mortar banks.
  • You can request a fee schedule from any bank before opening an account to compare costs across different institutions.
  • Even if there is no monthly fee, you may be charged for specific actions like overdrafts, ATM withdrawals outside the network, or wire transfers.

Monthly maintenance fees and how to avoid them

A monthly maintenance fee is a charge the bank takes from your account each month just for having the account open. Not all banks charge this, but those that do typically charge between $5 and $15. Some accounts have no fee at all, while premium accounts aimed at wealthier customers may charge $25 or more.

Banks often let you skip the monthly fee if you meet one or more of these conditions: keep a minimum balance (often $500 to $2,500), set up direct deposit of your paycheck, make a certain number of debit card transactions per month, or maintain a linked savings account. Read the fee schedule carefully to see which conditions apply to your account. If you do not meet any of them, you will pay the fee every month.

If your bank charges a monthly fee and you do not want to pay it, you have two options: meet the waiver conditions, or switch to a bank that does not charge a monthly fee. Many online banks and credit unions offer checking accounts with no monthly maintenance fee and no minimum balance requirement.

Other charges beyond the monthly fee

Even if your checking account has no monthly fee, you can still be charged for specific actions. An overdraft fee is charged when you spend more money than you have in your account—typically $25 to $35 per overdraft. Some banks charge multiple overdraft fees in a single day if you make several transactions that overdraw your account.

You may also be charged for using an ATM outside your bank's network, usually $2 to $3 per withdrawal. Wire transfer fees range from $15 to $30 depending on whether the transfer is domestic or international. Some banks charge for paper statements, though most offer free electronic statements. Cashier's checks, stop payments on checks, and account research fees are other charges that vary by bank.

The best way to avoid these charges is to keep enough money in your account to prevent overdrafts, use your bank's ATM network or banks that reimburse out-of-network ATM fees, and ask about fees before requesting a service. Many online banks and credit unions have lower or no fees for these services.

How online banks and credit unions compare

Online banks typically charge no monthly maintenance fee and no minimum balance requirement. They also often reimburse out-of-network ATM fees or have partnerships with ATM networks that let you withdraw cash for free. Examples include banks that operate only through websites and mobile apps, with no physical branches. Because they have lower overhead costs than traditional banks, they can afford to charge less.

Credit unions are member-owned financial institutions that often charge no monthly fee and have lower overdraft fees than banks. They may also have fewer ATM locations than large banks, but many credit unions are part of shared branching networks that let you access services at other credit unions nationwide. To join a credit union, you must meet membership requirements, which vary by union—some are based on where you work, where you live, or your employer.

If you want to avoid checking account fees entirely, online banks and credit unions are usually your best options. Compare a few institutions to see which one offers the features you need at the lowest cost.

What to look for in a fee schedule

When you are comparing checking accounts, ask for or download the fee schedule before you open an account. The schedule should list every fee the bank charges, including monthly maintenance fees, overdraft fees, ATM fees, wire transfer fees, and any other charges. It should also clearly state what conditions waive the monthly fee, if any.

Pay attention to overdraft policies, because they vary significantly. Some banks charge a flat fee per overdraft, while others charge a percentage of the amount overdrawn. Some banks allow you to opt out of overdraft coverage, which means transactions will be declined instead of charged a fee. This is called overdraft protection, and it is worth understanding for your account.

Also check whether the bank charges fees for common actions you plan to use, like wire transfers, cashier's checks, or paper statements. If you plan to use an ATM frequently, ask whether the bank reimburses out-of-network fees or has a large ATM network in your area.

How to switch banks if your current account is too expensive

If you are paying fees you do not want to pay, switching to a different bank is straightforward. Start by opening a new account at the bank you want to switch to. Then update your direct deposit with your employer or benefits provider to point to your new account number. Set up automatic bill payments through your new bank for any bills you currently pay from your old account.

Once your paycheck and bills are flowing to the new account, you can close the old account. Some banks charge a fee to close an account early, so check the fee schedule first. Give yourself at least one or two pay periods to make sure everything is working smoothly before you close the old account, in case a payment bounces back or a deposit is delayed.

You do not need to close your old account immediately. You can keep it open for a month or two while you transition, just to be safe. Once you are confident the new account is working, close the old one to avoid paying fees on an account you are not using.

Frequently Asked Questions

Can a bank charge me a fee just for having a checking account?

Yes. Some banks charge a monthly maintenance fee of $5 to $15 just for keeping the account open. However, many banks waive this fee if you meet conditions like maintaining a minimum balance or setting up direct deposit. Other banks charge no monthly fee at all, so you can avoid this charge by choosing a different bank.

What is an overdraft fee and when do I get charged?

An overdraft fee is charged when you spend more money than you have in your account. Most banks charge $25 to $35 per overdraft. If you make multiple transactions that overdraw your account in one day, you may be charged multiple fees. You can avoid overdraft fees by keeping enough money in your account or by opting out of overdraft coverage so transactions are declined instead.

Do I have to pay ATM fees?

You may be charged $2 to $3 when you use an ATM outside your bank's network. You can avoid this by using your bank's ATM network, or by choosing a bank that reimburses out-of-network ATM fees. Online banks and credit unions often offer free ATM access through shared networks or reimbursement programs.

Is there a way to get a checking account with no fees at all?

Yes. Many online banks and credit unions offer checking accounts with no monthly maintenance fee, no minimum balance, and no overdraft fees (or lower overdraft fees than traditional banks). You may still be charged for specific services like wire transfers, but the basic account itself costs nothing.

What happens if I close my checking account?

When you close a checking account, the bank stops charging you any fees for that account. Some banks charge a fee to close an account early, so check the fee schedule first. Make sure all your direct deposits and bill payments are set up with your new bank before you close the old account.