Most banks charge nothing to open an account, but some have monthly fees once it's open
Opening a bank account itself is free at nearly every bank in the United States. The account opening process—filling out the application, providing identification, and getting approved—costs you nothing. But once the account is open, many banks charge a monthly maintenance fee that ranges from $0 to $15 per month, depending on the bank and account type. Some banks waive the fee if you meet certain conditions, like keeping a minimum balance or setting up direct deposit.
The real cost of a bank account is not the opening fee but what you pay to keep it open and what you lose when you make mistakes. A $10 monthly fee adds up to $120 a year. Overdraft fees—charged when you spend more than you have—can run $25 to $35 per transaction at traditional banks. ATM fees for using another bank's machine typically cost $2 to $3 per withdrawal. These ongoing charges are where most people's bank account costs actually come from.
Key Takeaways
- Opening a bank account is free; no bank charges you to create the account itself.
- Monthly maintenance fees range from $0 to $15 depending on the bank, but many banks waive the fee if you maintain a minimum balance or receive direct deposit.
- Overdraft fees ($25 to $35 per transaction) and out-of-network ATM fees ($2 to $3) are the costs that add up fastest after you open the account.
- Online banks and credit unions typically charge lower or no monthly fees compared to large national banks.
- You can avoid most fees by choosing an account with no monthly charge and using your bank's ATM network.
Monthly maintenance fees and how to avoid them
A monthly maintenance fee is a charge the bank takes from your account each month just for having the account open. At large national banks like Chase, Bank of America, and Wells Fargo, these fees typically run $10 to $15 per month. At smaller regional banks and credit unions, the fee is often $0 to $5. Online banks like Ally, Charles Schwab, and Discover almost never charge a monthly fee.
Most banks will waive the monthly fee if you meet one of these conditions: maintain a minimum balance (often $500 to $1,500), set up direct deposit, or keep a certain amount in savings. Some banks waive the fee for students or seniors. Read the account terms before you open—they spell out exactly what waives the fee. If you can meet one condition, the account costs nothing per month.
Overdraft fees and insufficient funds 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 transaction. If you overdraw your account multiple times in one day, you can be charged multiple fees—sometimes the bank will charge you for each transaction that overdrafts, even if they all happen at once. Some banks cap overdraft fees at one or two per day; others do not.
You can avoid overdraft fees by linking a savings account or credit line to your checking account as backup, or by turning off overdraft protection entirely so transactions simply decline instead of going through. Some banks offer overdraft protection for free; others charge a small fee. Check your account settings to see what your bank offers. If you do get charged an overdraft fee, call the bank and ask them to reverse it—many will do so once if you have a clean history.
ATM fees and out-of-network withdrawals
Using an ATM that does not belong to your bank costs $2 to $3 per withdrawal, charged by the ATM operator's bank. If your bank also charges you for using another bank's ATM, you can pay $4 to $6 total for a single withdrawal. This adds up quickly if you travel or live in an area without your bank's ATMs nearby.
To avoid ATM fees, use only your bank's ATM network. If your bank has few ATMs in your area, consider switching to a bank with more locations or joining a credit union that participates in a shared branching network. Online banks often reimburse ATM fees nationwide, which can save you money if you withdraw cash regularly.
Account types and their different fee structures
Different account types have different fee structures. A basic checking account typically has the lowest or no monthly fee but may have overdraft fees. A savings account usually has no monthly fee but may limit how many withdrawals you can make per month. A money market account combines features of both and often has higher minimum balance requirements to avoid fees.
Student accounts and senior accounts often have no monthly fee and reduced overdraft charges. If you are under 25 or over 62, ask your bank whether a special account type is available. Business accounts charge higher monthly fees—usually $15 to $25—because they involve more transactions and require more oversight.
Initial deposit requirements
Most banks require an initial deposit to open an account, but the amount varies widely. Many banks require $0 to $25 to open a checking account. Some require $100 to $500. A few require $1,000 or more. This is not a fee—it is money that goes into your account and belongs to you. You can withdraw it immediately after opening if you want, though doing so might trigger a monthly fee if your balance then falls below the minimum.
Online banks and credit unions typically have lower or no initial deposit requirements. If you do not have much cash on hand, look for a bank that lets you open with $0 down. You can always transfer money in later.
Comparing costs across bank types
| Bank Type | Monthly Fee | Overdraft Fee | ATM Network |
|---|---|---|---|
| Large national bank (Chase, Bank of America, Wells Fargo) | $10–$15, waived with direct deposit or minimum balance | $25–$35 per transaction | Thousands of ATMs nationwide |
| Online bank (Ally, Charles Schwab, Discover) | $0 | $0–$25 (varies by bank) | Nationwide ATM network or reimbursement |
| Credit union | $0–$5 | $20–$30 per transaction | Shared branching network |
| Regional or community bank | $5–$10, often waived with direct deposit | $25–$35 per transaction | Limited to region |
Frequently Asked Questions
Do I have to pay anything to open a bank account?
No. Opening an account is free at every bank. You may need to make an initial deposit (usually $0 to $500), but that money is yours and stays in your account. You do not pay a fee for the act of opening.
What happens if I cannot meet the minimum balance to waive the monthly fee?
You will be charged the monthly maintenance fee. If you cannot maintain the balance, look for a bank with no monthly fee—online banks and many credit unions offer accounts with $0 monthly cost regardless of balance. Switching banks is free and takes about 15 minutes.
Can I get overdraft fees reversed?
Yes, many banks will reverse one overdraft fee if you call and ask, especially if you have not had fees reversed before. Be polite and explain the situation. Some banks have policies against reversing fees; if yours does, ask whether you can switch to an account with overdraft protection instead.
Are online banks really cheaper than regular banks?
Usually yes. Online banks have lower overhead costs, so they pass savings to customers through no monthly fees, no overdraft fees, or nationwide ATM reimbursement. The trade-off is no physical branch to visit. If you rarely need to deposit cash or speak to someone in person, an online bank will cost you less.
What is the cheapest way to open a bank account?
Open an account at an online bank with no monthly fee, no overdraft fees, and nationwide ATM reimbursement. Deposit the minimum required (often $0 to $25), and use only your bank's ATM or reimburse-may be able to access machines. Total annual cost: $0, unless you overdraft.