Most checking accounts cost nothing monthly, but some charge $10 to $15
The majority of banks and credit unions offer free checking accounts with no monthly fee. However, some accounts do charge a monthly maintenance fee that ranges from $5 to $15, depending on the bank and the account type. The fee is waived if you meet certain conditions — usually a minimum balance, direct deposit, or a set number of debit card transactions per month.
The real cost of a checking account often comes from what happens when you don't meet those conditions or when you use the account in ways the bank charges for. Overdraft fees, ATM fees, and wire transfer fees can add up quickly and cost far more than a monthly maintenance fee ever would.
Key Takeaways
- Most major banks offer free checking with no monthly fee if you maintain a minimum balance or set up direct deposit.
- Premium checking accounts at some banks charge $15 to $25 monthly but include perks like higher interest rates or fee waivers.
- Overdraft fees, ATM fees, and foreign transaction fees often cost more than monthly maintenance fees and are charged per occurrence.
- Credit unions typically charge lower or no monthly fees compared to traditional banks.
- The cheapest account is not always the one with no monthly fee — look at the full picture of how you use the account.
When banks charge a monthly maintenance fee
Banks charge a monthly maintenance fee to cover the cost of maintaining your account. This fee is most common at large national banks and is usually between $10 and $15 per month. Wells Fargo charges $10 monthly on its standard checking account. Bank of America charges $12 monthly on its basic checking account. Chase charges $12 monthly on its basic checking account.
However, each of these banks waives the fee if you meet one or more conditions. Common fee waivers include: maintaining a minimum daily balance (often $500 to $1,500), setting up direct deposit, making a certain number of debit card purchases per month (usually 10 or more), or maintaining a linked savings account with a minimum balance.
If you do not meet any of these conditions, you pay the full monthly fee. Over a year, a $12 monthly fee costs $144.
Premium checking accounts and what they cost
Some banks offer premium or elite checking accounts that charge higher monthly fees but include additional benefits. These accounts typically cost $20 to $25 per month and are designed for customers who want higher interest rates, fee waivers, or concierge services.
For example, some premium accounts waive all ATM fees worldwide, reimburse wire transfer fees, or offer higher interest rates on the account balance. If you travel frequently, use ATMs outside your bank's network often, or send wire transfers regularly, the higher monthly fee might cost less than paying per-transaction fees.
Premium accounts are not necessary for most people. They make sense only if you regularly use the services they cover and would otherwise pay more in individual fees.
Fees that cost more than monthly maintenance
Even if your checking account has no monthly fee, you can end up paying far more through other charges. An overdraft fee is charged when you spend more money than you have in your account. Most banks charge $25 to $35 per overdraft, and you can incur multiple overdraft fees in a single day if you make several transactions.
ATM fees are charged when you use an ATM outside your bank's network. Most banks charge $2 to $3 per out-of-network withdrawal. If you use an out-of-network ATM twice a week, that is $16 to $24 per month — more than most monthly maintenance fees.
Wire transfer fees typically range from $15 to $30 per wire. Foreign transaction fees are usually 1% to 3% of the transaction amount. Returned check fees, stop payment fees, and account research fees can each cost $15 to $35.
How credit unions compare to banks
Credit unions typically charge lower or no monthly maintenance fees compared to traditional banks. Many credit unions offer free checking with no minimum balance requirement and no monthly fee, period. This is because credit unions are member-owned cooperatives and do not need to generate profit the way banks do.
Credit unions also often participate in shared branching networks and surcharge-free ATM networks, which means you can use ATMs at other credit unions without paying a fee. This can save you significantly if you travel or live in an area without many branches of your specific credit union.
The trade-off is that credit unions may have fewer branches and ATMs than large national banks, and their online banking platforms are sometimes less advanced. However, if you primarily bank online or through mobile apps, this is rarely a problem.
Online banks and their fee structure
Online-only banks almost always charge no monthly maintenance fee. Banks like Ally, Charles Schwab, and Discover offer free checking with no minimum balance. Because they have no physical branches, their overhead costs are much lower, and they pass that savings to customers.
Online banks also typically reimburse ATM fees, which means you can use any ATM in the country without paying out-of-pocket. Some online banks reimburse international ATM fees as well, which is valuable if you travel abroad.
The main drawback is that you cannot deposit cash directly into an online bank account at a branch. You must use mobile check deposit, transfer money from another account, or use a partner bank's ATM for cash deposits. If you rarely handle cash, this is not a problem.
How to find the lowest-cost account for your situation
The cheapest checking account depends on how you use it. If you maintain a high balance, a bank's free checking account with a minimum balance waiver might cost you nothing. If you use direct deposit, many banks waive fees for that alone. If you use out-of-network ATMs frequently, an online bank that reimburses ATM fees will save you money even if it charges a small monthly fee.
Start by listing the ways you actually use a checking account: Do you use direct deposit? Do you maintain a high balance? Do you use ATMs outside your bank's network? Do you send wire transfers? Do you travel internationally? Then compare accounts based on which fees you would actually pay, not just the monthly maintenance fee.
Read the fee schedule for any account you are considering. Banks are required to provide this information, usually on their website under "Pricing" or "Fees." The fee schedule will tell you the cost of every transaction type and the conditions under which fees are waived.
Frequently Asked Questions
Can I avoid a monthly checking account fee?
Yes. Most banks waive monthly fees if you meet one condition, such as direct deposit, a minimum balance, or a certain number of debit card transactions. Credit unions and online banks often charge no monthly fee at all, with no conditions.
What is the average monthly cost of a checking account?
The average monthly maintenance fee for a checking account at a major bank is $10 to $15, but most people pay zero because they meet a waiver condition. Online banks and credit unions average zero monthly fees.
Do I pay overdraft fees on top of a monthly fee?
Yes. A monthly maintenance fee and overdraft fees are separate charges. You pay the monthly fee regardless, and overdraft fees are charged each time you spend more than your balance. An overdraft fee typically costs $25 to $35 per occurrence.
Is it worth paying for a premium checking account?
Only if you regularly use the services it covers. If you use out-of-network ATMs frequently, send wire transfers, or travel internationally, a premium account that waives those fees might cost less than paying per-transaction fees. Otherwise, a free account is the better choice.
Do online banks really have no monthly fees?
Yes. Online banks have no physical branches, so their costs are lower. They pass this savings to customers by offering free checking with no monthly fee and often by reimbursing ATM fees as well.