Most banks charge nothing to open a checking account, but monthly fees and minimum balances vary widely
Opening a checking account itself is free at nearly every bank and credit union in the United States. The cost comes later — in monthly maintenance fees, overdraft charges, or minimum balance requirements that banks impose to keep the account open. Some banks waive all of these; others charge $10 to $15 per month. The difference between a free account and one that costs $180 a year depends entirely on which bank you choose and which account type you pick.
The initial deposit to open an account is separate from any fees. Most banks require you to deposit money when you open — typically $25 to $100 — but this is your money, not a charge. A few banks and credit unions have no minimum opening deposit at all.
Key Takeaways
- Opening a checking account costs nothing; the fee structure begins only after the account is active.
- Monthly maintenance fees range from $0 to $15 depending on the bank and account type, and many banks waive them if you meet conditions like direct deposit or a minimum balance.
- Overdraft fees, when you spend more than your balance, typically cost $25 to $35 per transaction and are separate from monthly fees.
- Credit unions and online banks tend to charge lower or no monthly fees compared to large national banks.
- The initial deposit required to open an account is your own money held in the account, not a fee.
Monthly maintenance fees and how to avoid them
Most large national banks charge a monthly maintenance fee of $10 to $15 if you do not meet certain conditions. Chase, Bank of America, Wells Fargo, and Citibank all impose these fees on their standard checking accounts. However, each bank offers ways to waive the fee — usually by setting up direct deposit, maintaining a minimum balance (often $500 to $1,500), or keeping a linked savings account with a certain balance.
Online banks and credit unions typically charge no monthly maintenance fee at all. Ally Bank, Charles Schwab, and most credit unions do not charge a monthly fee regardless of your balance or activity. If you want to avoid fees entirely, these are the most straightforward options.
Some banks offer tiered accounts: a basic free checking account with limited features, and a premium account with higher fees but more perks like higher interest rates or fee reimbursement. Read the terms carefully to understand which account you are opening and what conditions apply to your specific tier.
Overdraft fees and other charges beyond the monthly cost
If you spend more money than you have in your account, the bank charges an overdraft fee. This typically costs $25 to $35 per transaction that overdraws your account. Some banks charge multiple overdraft fees in a single day if you make several transactions while overdrawn. This is separate from your monthly maintenance fee and can add up quickly if you are not careful.
Other charges that may apply include: fees for using an out-of-network ATM (usually $2 to $3), fees for wire transfers ($15 to $30), fees for stopping a check payment ($25 to $35), and fees for closing an account within a certain timeframe (some banks charge $25 if you close within 90 days). Most of these are avoidable if you use your bank's own ATM network and avoid frequent wire transfers.
Many banks now offer overdraft protection, which links your checking account to a savings account or credit line. If you overdraw, the bank transfers money from the linked account instead of charging an overdraft fee. This costs nothing if you do not use it, but you pay interest on any credit line balance you carry.
Minimum balance requirements and what happens if you fall short
Some banks waive their monthly fee if you maintain a minimum balance — often $500, $1,000, or $1,500 depending on the bank and account type. If your balance drops below that threshold, the monthly fee kicks in. This is not a one-time charge; the fee recurs every month you stay below the minimum.
A few banks charge a separate "low balance fee" if you fall below a certain amount, even if you do not overdraw. This is rare but does exist at some regional banks. Always check the fee schedule before opening an account if you know your balance will be tight.
Credit unions and online banks rarely impose minimum balance requirements, which makes them a better choice if you cannot reliably keep a large balance on hand.
Initial deposit requirements when you open
When you walk into a bank or open an account online, you will need to deposit money to fund the account. This initial deposit is typically $25 to $100, though some banks ask for more and some ask for nothing. This money is yours — it is not a fee. It sits in your account and you can spend it or withdraw it whenever you want.
A few online banks and credit unions have zero minimum opening deposit. If you want to open an account but do not have much cash on hand, these banks let you open with $1 or even nothing, then deposit more later.
How to compare total costs across banks
To know what a checking account will actually cost you, add up three things: the monthly maintenance fee (or $0 if waived), the overdraft fee (if you overdraw), and any other charges you are likely to incur. Then multiply the monthly fee by 12 to see the annual cost.
For example: Bank A charges $12 per month but waives it if you have direct deposit. Bank B charges $0 per month with no conditions. If you have direct deposit, Bank A costs $0 per year. If you do not have direct deposit, Bank A costs $144 per year, while Bank B still costs $0. The difference is $144 annually.
When comparing banks, look at the fee schedule on their website or ask a banker directly. Most banks publish this information in a document called a "Schedule of Fees" or "Pricing Guide." Read the conditions for fee waivers carefully — "direct deposit required" means any direct deposit counts, including paycheck, government benefits, or transfers from another account.
Credit unions versus banks: typical cost differences
Credit unions are member-owned financial institutions that typically charge lower fees than large banks. Most credit unions charge no monthly maintenance fee and no minimum balance requirement. They also tend to charge lower overdraft fees ($25 instead of $35) and reimburse out-of-network ATM fees.
The trade-off is that credit unions have fewer branches and ATMs than large national banks. If you need in-person banking or frequent ATM access, a large bank may be more convenient despite higher fees. If you bank primarily online or by phone, a credit union often saves you money.
To find a credit union you can join, use the CO-OP Network locator or the Allpoint ATM network finder. Many credit unions have reciprocal agreements that let you use other credit unions' ATMs and branches for free.
Frequently Asked Questions
Do I have to pay anything just to open a checking account?
No. Opening a checking account is free at all banks and credit unions. You will need to deposit money to fund the account (usually $25 to $100), but that is your own money, not a fee. Monthly fees and other charges begin only after the account is open and active.
What is the cheapest way to have a checking account?
Online banks and credit unions typically charge no monthly fee and no minimum balance. Charles Schwab, Ally Bank, and most credit unions offer free checking with no strings attached. If you prefer a large national bank, look for accounts that waive fees with direct deposit, which is usually the easiest condition to meet.
Can I avoid overdraft fees?
Yes. Link your checking account to a savings account or credit line for overdraft protection, so the bank transfers money instead of charging a fee. Alternatively, set up account alerts to notify you when your balance is low, or simply avoid spending more than you have. Some banks also allow you to opt out of overdraft coverage entirely.
What happens if I close my account right after opening it?
Some banks charge a fee ($25 to $50) if you close an account within 90 days or 6 months of opening. Check the terms before you open. If you think you might close the account quickly, choose a bank with no early closure fee or a short waiting period.
Does the bank charge me interest on my checking account balance?
Most checking accounts pay little to no interest on your balance. Some online banks and credit unions offer checking accounts with interest rates of 0.01% to 2%, depending on the account and your balance. If interest matters to you, ask the bank what rate they pay on checking accounts before you open.