Dollar Bank does not charge a fee to open a checking account
Dollar Bank, an online division of Megalith Bank, does not charge an account opening fee for its checking products. You can open an account online without paying to start, and there is no monthly maintenance fee on their basic checking account either.
The catch is that Dollar Bank is an online-only bank with no physical branches. All account setup, deposits, and customer service happen through their website or mobile app. If you need in-person banking or want to deposit cash at a local branch, Dollar Bank is not the right fit — you would need to use ATMs or mail checks instead.
Key Takeaways
- Dollar Bank charges no opening fee and no monthly maintenance fee for its checking account.
- The bank is online-only, so you cannot visit a physical branch or deposit cash directly at a location.
- You can deposit checks by mobile app, transfer money from other banks, or use ATMs to withdraw cash.
- Other fees may apply for overdrafts, wire transfers, or stopping payment on a check, so read the fee schedule before opening.
What fees Dollar Bank does charge
While there is no opening or monthly fee, Dollar Bank does charge for certain transactions and services. An overdraft fee applies if you spend more than your balance, and the amount varies depending on whether the overdraft is covered by the bank or declined. Wire transfer fees, stop payment fees, and replacement debit card fees all carry charges as well.
The specific amounts change over time and may differ based on your account type, so you should review Dollar Bank's current fee schedule on their website before you open. The fee disclosure document is usually available in the account opening flow or in the FAQ section.
How to open a Dollar Bank checking account without fees
Opening takes about 10 minutes on the Dollar Bank website or app. You will need your Social Security number, a valid ID, your current address, and an initial deposit method — either a debit card, bank transfer, or check deposit by mobile app. Dollar Bank does not require a minimum opening deposit, though you do need to fund the account to use it.
Once you submit your information, the bank verifies your identity and typically approves the account the same day or within one business day. You can start using your debit card and making transfers as soon as the account is active. There is no waiting period and no hidden charges for this process.
Comparing Dollar Bank to other online banks
Most online banks, like Ally, Charles Schwab, and Discover, also charge no opening fee and no monthly maintenance fee. The real differences lie in interest rates paid on your balance, overdraft policies, and how they handle deposits. Some online banks reimburse ATM fees nationwide; others do not. Some offer higher interest rates but require larger minimum balances.
Dollar Bank's checking account pays very little interest — often less than 0.01% — so if you are looking to earn money on your balance, you would be better served by a bank that pays higher rates. But if you simply want a free, no-fee place to keep your money and pay bills, Dollar Bank works fine as long as you do not need cash deposits or in-person service.
What happens if you overdraft your Dollar Bank account
If you spend more than your balance, Dollar Bank will either cover the transaction and charge you an overdraft fee, or decline the transaction and charge you a non-sufficient funds (NSF) fee. The bank does not automatically link overdraft protection to a savings account, so you cannot transfer money automatically to cover the gap.
You can request overdraft protection during account setup or later through your online dashboard, but this requires linking another account at Dollar Bank or another bank. Without it, declined transactions are the default. Either way, you pay a fee — so the best approach is to monitor your balance and avoid overdrafting altogether.
Depositing money into a Dollar Bank account
Since Dollar Bank has no branches, you cannot walk in and deposit cash or checks. Instead, you can deposit checks by taking a photo through the mobile app, transfer money from another bank account using ACH, or receive direct deposits from your employer or government payments. Cash deposits are not possible unless you withdraw from an ATM at another bank first and then transfer the money.
Check deposits by mobile app usually clear within one to two business days. ACH transfers from another bank take one to three business days. Direct deposits arrive on the schedule your employer or payment source sets. There is no fee for any of these deposit methods.
Frequently Asked Questions
Does Dollar Bank charge a fee to close my account?
No, Dollar Bank does not charge a fee to close your checking account. You can close it anytime through your online dashboard or by calling customer service. If you have a balance, the bank will mail you a check or transfer the money to another account you specify.
Can I get a debit card without paying a fee?
Your first debit card is free when you open the account. If you lose it or need a replacement, Dollar Bank charges a fee for a new card. The amount varies, so check the current fee schedule on their website.
What if I need to deposit cash?
Dollar Bank does not accept cash deposits at any location. You can withdraw cash from ATMs using your debit card, or you can deposit cash at another bank and transfer it to Dollar Bank via ACH. Some people use a second bank account specifically for cash deposits.
Is my money safe at Dollar Bank?
Yes, Dollar Bank is a real bank backed by Megalith Bank and insured by the FDIC. Your deposits up to $250,000 are protected if the bank fails. You can verify this on the FDIC website by searching for Megalith Bank.
Can I use Dollar Bank if I have bad credit?
Dollar Bank does not run a credit check to open a checking account. They do check your banking history through ChexSystems, a system that tracks past account problems like overdrafts or fraud. If you have been flagged in ChexSystems, you may be denied, but bad credit alone will not stop you from opening.