Most banks charge nothing to open a checking or savings account
Opening a basic checking or savings account at a traditional bank costs zero dollars. No application fee, no setup fee, no hidden charge to get your free guide. You walk in or go online, provide your ID and Social Security number, and the account opens immediately.
The catch is not the opening—it is what happens after. Banks make money from your account through monthly maintenance fees, overdraft charges, minimum balance requirements, and ATM fees. These are the costs that actually matter to your wallet.
Some banks waive their monthly fee if you keep a certain balance, set up direct deposit, or maintain a linked savings account. Others charge $10 to $15 per month no matter what. A few—mostly online banks and credit unions—charge nothing at all, ever.
Key Takeaways
- Opening a checking or savings account itself is free at nearly all banks and credit unions.
- Monthly maintenance fees range from $0 to $15 depending on the bank and account type, and many banks waive them if you meet certain conditions.
- Overdraft fees ($25 to $35 per transaction) and ATM fees ($2 to $3) are where banks collect most of their money from account holders.
- Online banks and credit unions are more likely to charge zero monthly fees and zero overdraft fees than traditional brick-and-mortar banks.
- You need an ID and Social Security number to open an account, but no minimum deposit is required at most institutions.
Monthly maintenance fees: what they cover and when you pay them
A monthly maintenance fee (also called a service charge or account fee) is what a bank charges just to keep your account open. It is separate from any transaction fees or overdraft charges. At a traditional bank, this fee typically runs $10 to $15 per month if you do not meet the bank's conditions to waive it.
Banks waive the fee in different ways. Chase, for example, waives the monthly fee on many checking accounts if you maintain a $500 minimum balance or set up direct deposit. Bank of America waives it if you keep $1,500 in the account or have a linked savings account with $500. Credit unions often waive monthly fees across the board—no conditions attached.
Online banks like Ally, Charles Schwab, and Discover typically charge no monthly fee at all. They operate with lower overhead than physical branches, so they pass that savings to you. If you are comparing accounts, the monthly fee is one of the first numbers to check.
Overdraft fees and what triggers them
An overdraft fee is charged when you spend more money than you have in your account. If your balance is $50 and you swipe your debit card for $75, the bank covers the $25 shortfall—and charges you $25 to $35 for doing so. Some banks charge multiple overdraft fees in a single day if you make several transactions while overdrawn.
Not all banks charge overdraft fees the same way. Some allow one or two overdrafts per month before charging. Others charge on every overdraft, no exceptions. A few banks (Ally, Charles Schwab, and some credit unions) do not charge overdraft fees at all—they simply decline the transaction instead.
You can usually opt out of overdraft protection, which means the bank will decline your transaction rather than cover it and charge you a fee. This prevents surprise charges but also means your card may be declined at the register. Ask your bank about their overdraft policy before you open the account.
ATM fees and out-of-network charges
Using an ATM that does not belong to your bank costs money. If you withdraw cash from a competitor's ATM, you typically pay $2 to $3 to your bank, plus another $1 to $3 charged by the ATM operator's bank. That $100 withdrawal just cost you $3 to $6.
Banks with large branch networks (Chase, Bank of America, Wells Fargo) have thousands of ATMs you can use for free. If you live in a rural area or travel frequently, this matters. Online banks do not have physical ATMs, but many partner with ATM networks (Ally partners with Allpoint, for example) to offer free withdrawals at thousands of locations.
Credit unions often belong to shared branching networks, which means you can withdraw cash at other credit unions' ATMs for free. If you are a member of a small local credit union, this network access can save you hundreds of dollars per year.
Minimum deposit requirements when you open
Most banks do not require you to deposit any money to open an account. You can open a checking account with zero dollars and add money later. Some banks ask for a small opening deposit ($25 to $100) as a formality, but this is not a fee—it becomes your account balance.
A few banks do require a minimum opening deposit, usually $100 to $500. This is rare and mostly found at smaller regional banks. Online banks almost never require an opening deposit because the entire process is digital and costs them almost nothing to set up.
Comparing the real cost: traditional bank vs. online bank vs. credit union
| Cost Type | Traditional Bank | Online Bank | Credit Union |
|---|---|---|---|
| Opening fee | $0 | $0 | $0 |
| Monthly maintenance fee | $10–$15 (often waived) | $0 | $0 |
| Overdraft fee | $25–$35 per transaction | $0–$35 (varies) | $0–$25 (varies) |
| Out-of-network ATM fee | $2–$3 | $0–$3 (varies) | $0 (shared network) |
| Minimum opening deposit | $0–$100 | $0 | $0–$50 |
The real cost of an account depends on how you use it. If you keep a $1,500 balance and never overdraft, a traditional bank's monthly fee disappears and you pay nothing. If you overdraft twice a month and use out-of-network ATMs weekly, you could pay $200 to $300 per year in fees alone.
Online banks and credit unions tend to cost less over time because they charge fewer fees overall. But they require you to be comfortable banking without a physical branch. If you need to deposit cash frequently or prefer talking to a teller, a traditional bank's branch network may be worth the monthly fee.
Fees you might encounter later
Beyond the opening and monthly costs, banks charge for specific actions. Requesting a cashier's check costs $5 to $10. Closing an account within a certain period (usually 90 to 180 days) may trigger a $25 to $50 early closure fee. Ordering checks costs $10 to $30 per box. Wire transfers cost $15 to $50 depending on whether they are domestic or international.
These are not charges you face when opening the account, but they are worth knowing about. Read the fee schedule before you commit to a bank. Most banks publish this online, and you can compare it to other banks' schedules in minutes.
Frequently Asked Questions
Do I need to put money in the account the day I open it?
No. Most banks let you open an account with zero dollars and deposit money whenever you want. Some banks ask for a small opening deposit ($25 to $100), but this becomes your balance—it is not a fee. You can withdraw it immediately if you choose.
What if I cannot meet the minimum balance to waive the monthly fee?
You have three options: pay the monthly fee, switch to a bank that does not charge one, or join a credit union. Many online banks and credit unions charge zero monthly fees regardless of your balance. If you are living paycheck to paycheck, these are better choices than traditional banks with balance requirements.
Can I avoid overdraft fees by opting out of overdraft protection?
Yes. If you opt out, the bank will decline transactions that would overdraft your account instead of covering them and charging a fee. Your card will be declined at the register, but you will not be charged. Some banks make this opt-out automatic; others require you to request it.
Are there banks that charge nothing at all?
Yes. Online banks like Ally, Charles Schwab, and Discover charge no monthly fees, no overdraft fees, and no ATM fees (within their network). Many credit unions also charge zero fees across the board. The trade-off is no physical branch to visit in person.
What happens if I close my account right after opening it?
Some banks charge an early closure fee ($25 to $50) if you close within 90 to 180 days. Check the bank's terms before you open. If you are just testing the account, ask whether an early closure fee applies—many banks waive it if you explain your situation.