Most checking accounts have no monthly fee, but some do

You do not have to pay a monthly fee for a checking account. Many banks and credit unions offer accounts with zero monthly charges. However, some accounts do charge a monthly maintenance fee — usually between $5 and $15 — and the fee depends on the bank, the account type, and sometimes on what you do with the account.

The key difference is that banks can choose their own fee structure. A big national bank might charge $12 a month for a basic checking account, while a credit union down the street charges nothing. Online banks almost never charge monthly fees because they have lower overhead costs than branches do.

Whether you pay a fee also depends on what you do. Some banks waive their monthly fee if you keep a minimum balance, set up direct deposit, or use their debit card a certain number of times per month. Others waive it if you maintain a savings account with them at the same time. Read the account terms before you open it, because the fee structure is part of the contract.

Key Takeaways

  • Most checking accounts charge no monthly fee, but some banks charge $5 to $15 per month depending on the account type.
  • Online banks and credit unions are more likely to have zero-fee accounts than large national banks.
  • Many banks waive their monthly fee if you meet conditions like keeping a minimum balance or setting up direct deposit.
  • The fee structure is part of the account terms, so compare what each bank charges before opening an account.
  • Overdraft fees, ATM fees, and wire transfer fees are separate from monthly maintenance fees and can add up quickly.

When banks charge a monthly fee and how to avoid it

Banks charge a monthly maintenance fee to cover the cost of running the account. Large national banks are more likely to charge this fee than smaller institutions. Chase, Bank of America, and Wells Fargo all charge monthly fees on their basic checking accounts, though each one has a way to waive it.

The most common way to avoid a monthly fee is to keep a minimum balance in the account. This might be $500, $1,000, or $1,500 depending on the bank. If your balance drops below that threshold, the fee kicks in. Some banks also waive the fee if you set up direct deposit, make a certain number of debit card transactions per month, or maintain a linked savings account with a minimum balance.

Credit unions almost never charge monthly fees on basic checking accounts. Online banks like Ally, Charles Schwab, and Discover also offer free checking with no minimum balance and no conditions. If you want to avoid fees entirely, these are your best options.

Other fees that are separate from monthly charges

A checking account can be free to maintain but still cost you money through other fees. Overdraft fees are charged when you spend more than you have in the account — typically $25 to $35 per overdraft. ATM fees are charged when you use an ATM that is not part of your bank's network, usually $2 to $3 per transaction. Wire transfer fees are charged when you send money electronically to another bank, typically $15 to $30.

Some banks also charge fees for things like stopping a check, requesting a replacement debit card, or closing an account within a certain time frame. These fees are not part of the monthly maintenance charge — they are separate costs that apply only if you do that specific thing.

The best way to avoid these fees is to know what your bank charges before you need the service. Ask the bank directly or read the fee schedule on their website. Many banks post this information in a document called the "Schedule of Fees" or "Pricing Information."

How to compare checking accounts by total cost

When you are comparing checking accounts, do not look at the monthly fee alone. Add up all the fees you are likely to pay in a year, including overdraft fees, ATM fees, and any other charges. An account with a $12 monthly fee might cost you $144 per year, but an account with no monthly fee might cost you $200 per year if you use out-of-network ATMs frequently.

Start by listing the things you actually do with a checking account. Do you use ATMs? How often? Do you overdraft sometimes? Do you send wire transfers? Once you know your habits, look at what each bank charges for those specific things. A bank that charges no monthly fee but $3 per out-of-network ATM withdrawal might be more expensive than a bank that charges $10 a month but has free ATMs everywhere.

Many banks offer a fee waiver for the first month or two, so you can test the account without paying. Use that time to see whether you hit the minimum balance requirement, whether you trigger overdraft fees, and whether the ATM network works for you. After that, you will know whether the account is actually free or whether the fees add up.

Credit unions versus banks for free checking

Credit unions are member-owned financial institutions, and they typically charge lower fees than banks because they do not have to generate profit for shareholders. Most credit unions offer free checking with no monthly fee, no minimum balance, and no conditions. Some credit unions also offer free overdraft protection, which means they will cover a small overdraft instead of charging you a fee.

To join a credit union, you have to meet a membership requirement. This might be working for a certain employer, living in a certain county, or belonging to a certain organization. Once you are a member, you can open a checking account. If you do not meet the membership requirement for any local credit union, some credit unions now allow anyone to join by making a small donation to a nonprofit organization.

Banks are for-profit institutions, and they charge fees to generate revenue. However, not all banks charge the same fees. Online banks and smaller regional banks are more likely to offer free checking than large national banks. If you want to use a bank instead of a credit union, compare the fee structures of several banks before you decide.

What happens if you cannot meet the minimum balance requirement

If a bank requires a minimum balance to waive the monthly fee, and you cannot keep that balance in the account, you will pay the fee every month. This is common for people who live paycheck to paycheck or who have irregular income. In that situation, a free checking account at a credit union or online bank is a better choice than a bank that charges a fee.

Some banks offer a lower-tier account with no minimum balance but a higher monthly fee. For example, a bank might offer a basic account with a $12 monthly fee and no minimum balance, and a premium account with a $0 monthly fee but a $1,500 minimum balance. If you cannot meet the minimum balance, the basic account is your only option at that bank.

Before you open an account, ask the bank what happens if your balance drops below the minimum. Some banks charge the fee immediately. Others give you a grace period of a few days. Knowing the rules helps you avoid surprise fees.

Frequently Asked Questions

Can I have a checking account with no fees at all?

Yes. Credit unions, online banks, and some regional banks offer checking accounts with no monthly fee, no minimum balance, and no conditions. You will still pay fees if you overdraft, use out-of-network ATMs, or request special services, but the basic account itself costs nothing.

What is the difference between a monthly fee and an overdraft fee?

A monthly fee is charged every month just for having the account open, regardless of what you do with it. An overdraft fee is charged only when you spend more money than you have in the account. You can have an account with no monthly fee but still pay overdraft fees if you overdraft.

Do I have to keep a certain amount of money in my checking account?

Only if your bank requires a minimum balance to waive the monthly fee. Many banks do require this — often $500 to $1,500. If you cannot keep that balance, look for a bank or credit union that does not have a minimum balance requirement.

Will switching banks cost me money?

Switching banks itself does not cost money. However, some banks charge a fee if you close an account within a certain time frame, usually 30 to 90 days. Check the account terms before you open it. Most banks do not charge a closing fee, but it is worth confirming.

What if my bank charges a fee I did not know about?

Contact your bank and ask them to explain the fee. If the fee was charged by mistake or if you did not understand the account terms, some banks will refund it as a courtesy. If the fee was legitimate, ask whether you can change your account type or your banking habits to avoid it in the future.