Most checking accounts charge nothing to open or maintain, but many banks add fees for specific actions

You do not pay a monthly fee to have a checking account at most banks and credit unions. The account itself is free. However, banks make money by charging you when you do certain things with that account — overdraw it, use an out-of-network ATM, request a paper statement, or close it early. Some accounts charge monthly maintenance fees, but those are less common than they used to be, and you can usually avoid them by meeting simple requirements like keeping a minimum balance or setting up direct deposit.

The fees that actually cost money fall into a few categories: overdraft fees (the most expensive), ATM fees, wire transfer fees, and account closure fees. A single overdraft can cost $25 to $35. Using an out-of-network ATM might cost $2 to $3 per transaction. These add up fast if you are not watching them.

Key Takeaways

  • Monthly maintenance fees are rare now, but when they exist you can usually waive them by keeping a minimum balance or receiving direct deposits.
  • Overdraft fees are the largest cost most people face, ranging from $25 to $35 per transaction, and a single day can trigger multiple fees.
  • ATM fees from out-of-network machines typically cost $2 to $3 per withdrawal, and your bank may charge an additional fee on top of what the ATM owner charges.
  • Wire transfers, paper statements, and early account closure each carry their own fees, but these are avoidable if you know what to expect.
  • Credit unions and online banks often charge fewer or no fees compared to large national banks.

Monthly maintenance fees and how to avoid them

A monthly maintenance fee — sometimes called a service charge — is what a bank charges just to keep your account open. Most major banks stopped charging these fees around 2020, but some still do, particularly for certain account types or at smaller regional banks. When a fee exists, it is usually $5 to $15 per month.

Banks almost always let you waive the fee by meeting one of these conditions: keeping a minimum balance (often $500 to $1,500), setting up direct deposit, or maintaining a certain number of debit card transactions per month. Read the account terms before you open it, because the waiver requirement matters more than the fee itself. If you cannot meet the requirement, choose a different account.

Overdraft fees: the most expensive mistake

An overdraft happens when you spend more money than you have in your account. Your bank can either decline the transaction (costing you nothing) or pay it anyway and charge you an overdraft fee. Most banks charge $25 to $35 per overdraft, and the fee hits your account immediately, which can trigger a second overdraft and a second fee within hours.

A single day of overspending can result in multiple overdraft fees. If you overdraw by $5 and three transactions post that day, you might face three separate $30 fees — $90 total on a $5 mistake. This is why overdraft protection matters: you can link a savings account or credit line to your checking account so the bank pulls money from there instead of charging you a fee. Some banks offer this for free; others charge a small transfer fee ($1 to $3) instead of an overdraft fee.

You can also turn off overdraft protection entirely, which means your debit card will simply decline if you do not have enough money. This prevents fees but can be embarrassing at checkout. Check your bank's settings to see what is turned on by default.

ATM fees and out-of-network charges

Using an ATM owned by your bank costs nothing. Using an ATM owned by a different bank or network costs money — usually $2 to $3 per withdrawal. Your bank charges you this fee, and the ATM owner may charge an additional fee on top of it, so a single withdrawal can cost $4 to $5.

This adds up if you travel or live in an area where your bank has few branches. A person who withdraws cash twice a week from out-of-network ATMs spends $200 to $500 per year on fees alone. Before opening an account, check whether the bank has branches or ATM partnerships near your home and work. Online banks often belong to ATM networks that let you use thousands of machines for free, even though the bank has no physical branches.

Wire transfers, paper statements, and other transaction fees

Sending money to another bank account via wire transfer typically costs $15 to $30 per wire. Receiving a wire is usually free, but some banks charge $10 to $15. If you wire money regularly — to pay contractors, send money overseas, or move funds between accounts — these fees add up. Some banks offer a certain number of free wires per month if you maintain a higher balance or have a premium account.

Requesting paper statements instead of viewing them online costs $1 to $5 per statement at many banks. Most banks now default to online statements and charge only if you ask for paper. Cashier's checks, stop payments on checks, and expedited card replacement each carry their own fees, typically $5 to $15 per service.

Early closure fees and account switching costs

Some banks charge a fee if you close your account within a certain period — usually 90 days to 6 months of opening it. These fees range from $25 to $100 and are designed to discourage people from opening accounts just to get a sign-up bonus and then leaving. Read the terms before you open an account if you think you might close it soon.

Switching banks itself does not cost money, but moving your direct deposits and automatic payments takes time and attention. Some banks offer to help you transfer money from your old account, and a few offer sign-up bonuses ($50 to $300) to offset any inconvenience. These bonuses have requirements — you usually need to set up direct deposit or maintain a minimum balance for a set period — so read the fine print.

Where fees are lowest: credit unions and online banks

Credit unions typically charge fewer fees than large national banks. Most credit unions have no monthly maintenance fee, no overdraft fees if you link a savings account, and access to ATM networks that let you withdraw cash for free at thousands of machines nationwide. The trade-off is that credit unions have fewer physical branches, so they work best if you do most of your banking online or by phone.

Online banks (banks with no physical branches) also tend to have lower fees. They have no monthly maintenance fees, no overdraft fees, and often reimburse out-of-network ATM fees up to a certain amount per month. The downside is that you cannot deposit cash directly — you have to transfer it from another account or use a mobile check deposit feature.

Large national banks charge more fees overall, but they offer more branches and ATMs, which matters if you need to deposit cash or speak to someone in person regularly. The choice depends on how you actually use your account.

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, but most do not. If your bank does charge one, you can usually waive it by keeping a minimum balance, setting up direct deposit, or making a certain number of debit card transactions per month. If you cannot meet the requirement, switch to a bank that does not charge the fee.

What is the most expensive checking account fee?

Overdraft fees are the most expensive for most people, ranging from $25 to $35 per transaction. A single day of overspending can trigger multiple overdraft fees, costing $60 to $90 or more. Linking a savings account as overdraft protection prevents these fees by letting your bank pull money from savings instead.

Do I have to pay to close a checking account?

Most banks do not charge to close an account, but some charge $25 to $100 if you close it within 90 days to 6 months of opening it. Check the account terms before you open it. If you are switching banks, ask your new bank whether they offer a sign-up bonus to offset any inconvenience.

Why do banks charge overdraft fees if I only went over by a few dollars?

Banks charge overdraft fees because they are lending you money (even if just briefly) and taking on the risk that you will not repay it. The fee is the same whether you overdraw by $5 or $500. You can avoid overdraft fees by turning off overdraft protection so transactions decline instead, or by linking a savings account so your bank pulls money from there.

Can I use any ATM without paying a fee?

You can use your own bank's ATMs for free. Using another bank's ATM costs $2 to $5 per withdrawal. Credit unions and online banks often belong to ATM networks with thousands of free machines, so check whether your bank participates in a network before you open an account.