Most banks charge nothing to open a checking or savings account
The account itself is free at nearly every major bank and credit union in the United States. Wells Fargo, Chase, Bank of America, Citibank, and most regional banks do not charge an opening fee. Credit unions typically charge nothing either. You pay nothing on the day you open the account, and you pay nothing to keep it open.
What varies is what happens after. Some accounts have monthly maintenance fees if you don't meet certain conditions—like keeping a minimum balance, setting up direct deposit, or maintaining a certain number of transactions per month. Others have no monthly fee at all, regardless of how you use the account. A few banks charge fees for specific actions: overdrafts, wire transfers, paper statements, or closing the account early.
The cost of opening a bank account is really the cost of using it over time, not the cost of opening it.
Key Takeaways
- Opening a checking or savings account costs nothing at major banks, credit unions, and most online banks.
- Monthly maintenance fees range from zero to $15 depending on the bank and account type, but most can be waived by meeting simple conditions like direct deposit or maintaining a minimum balance.
- Overdraft fees, if you go negative, typically run $25 to $35 per occurrence and are the largest hidden cost of account ownership.
- Online banks and credit unions are more likely to have zero monthly fees and lower overdraft charges than traditional brick-and-mortar banks.
- You need only an ID and initial deposit to open an account; the deposit amount varies from zero to $25 depending on the bank.
Initial deposit requirements vary by bank and account type
Some banks require you to deposit money the day you open the account. Others do not. Chase, for example, requires a $25 minimum opening deposit for most checking accounts, though some accounts have no minimum. Bank of America requires $100 for certain accounts and nothing for others. Many online banks like Ally, Charles Schwab, and Discover have zero minimum opening deposit.
Credit unions often have no opening deposit requirement either, though some ask for a small deposit to establish your membership. The opening deposit is money that goes into your account—it is not a fee you lose. You can withdraw it immediately if you want, though most people leave it there.
If a bank requires a $25 opening deposit and you have no money, that is a real barrier. But many banks and all credit unions will let you open an account with nothing. Shop around if the opening deposit is a problem for you.
Monthly maintenance fees and how to avoid them
Monthly fees range from zero to $15 per month at most banks. Wells Fargo charges $10 per month for some checking accounts. Chase charges $12 for certain accounts. Bank of America charges $12 for some checking accounts. But nearly every bank waives the fee if you meet one or more conditions.
Common fee-waiver conditions include: setting up direct deposit (your paycheck or benefits going straight to the account), maintaining a minimum balance (often $500 to $1,500), making a certain number of debit card transactions per month, or keeping a linked savings account open. Many banks waive the fee if you maintain online statements instead of paper ones. Online banks almost never charge monthly fees at all.
The practical reality: if you use your account regularly—getting paid via direct deposit, using your debit card, or keeping a small balance—you will not pay a monthly fee. If you open an account and never use it, some banks will charge you. Read the fee schedule before you open, or choose an online bank or credit union with no monthly fee regardless of activity.
Overdraft fees are the largest hidden cost
Overdraft fees happen when you spend more money than you have in your account. Your bank covers the transaction and charges you a fee—typically $25 to $35 per overdraft. If you overdraft multiple times in one day, you can be charged multiple times. Some banks charge $35 per overdraft and cap it at three per day; others charge $25 with no daily cap.
You can decline overdraft protection, which means transactions will simply be rejected if you don't have the money. This costs nothing and prevents overdraft fees, but it can be embarrassing or inconvenient at the register. Most banks enroll you in overdraft protection by default, so you have to opt out if you want to avoid the risk.
Overdraft fees are not part of opening an account—they only happen if you overspend. But they are the most common fee people actually pay after opening. If you live paycheck to paycheck, choose a bank that either has low overdraft fees or lets you turn off overdraft protection easily.
Other fees that may apply after opening
Wire transfer fees typically run $15 to $30 per transfer, depending on whether the wire is domestic or international. ATM fees vary: your bank's ATM is free, but using another bank's ATM usually costs $2 to $3. Some banks reimburse out-of-network ATM fees; others do not. Paper statement fees are rare now, but some banks charge $1 to $2 per month if you want statements mailed instead of viewing them online.
Closing an account early rarely costs money, but a few banks charge $25 to $50 if you close within a certain period (usually 90 days to six months). This is uncommon and usually only applies to accounts with special promotions or high opening bonuses. Check the terms before you open if you think you might close soon.
Account replacement cards (if you lose your debit card) are usually free for the first replacement and $5 to $15 for additional replacements. Expedited card shipping costs extra. These are small fees, but they add up if you are not careful.
How to compare banks by total cost
Do not compare banks by opening fee alone—compare by what you will actually pay over a year. Use this framework: Does the bank charge a monthly maintenance fee? Can you waive it easily (direct deposit, minimum balance, or online statements)? What is the overdraft fee? Can you turn off overdraft protection? What is the ATM fee, and does the bank reimburse out-of-network fees?
If you get paid via direct deposit and keep a small balance, most banks will cost you nothing per month. If you do not have direct deposit and cannot maintain a balance, an online bank or credit union is cheaper because they have no monthly fees. If you overdraft frequently, a bank that reimburses out-of-network ATM fees or has low overdraft charges will save you money.
Write down the three banks you are considering and list their fees side by side. The cheapest bank for you depends on how you use the account, not on the bank's reputation or size.
Credit unions often cost less than banks
Credit unions are member-owned financial institutions, not for-profit companies. Because they do not answer to shareholders, they typically charge lower fees than banks. Most credit unions have no monthly maintenance fee, no opening deposit requirement, and lower overdraft fees than major banks.
The trade-off is convenience: credit unions have fewer branches and ATMs than large banks. If you need to visit a physical location often, a credit union might not work for you. But if you are comfortable banking online and using ATMs, a credit union is often the cheapest option.
To find a credit union near you, use the CO-OP network locator or the Allpoint ATM network. Many credit unions participate in shared branching, which means you can conduct transactions at other credit unions' branches even if you are not a member there.
Frequently Asked Questions
Do I need money to open a bank account?
Not always. Many banks and most credit unions have zero opening deposit requirement. If a bank requires an opening deposit, it is usually $25 or less. That money goes into your account and you can withdraw it immediately—it is not a fee.
What happens if I cannot maintain the minimum balance?
If you cannot meet the minimum balance and the bank charges a monthly fee, you will be charged $10 to $15 per month. You can avoid this by choosing a bank with no monthly fee, by setting up direct deposit (which waives the fee at most banks), or by switching to a credit union or online bank.
Can I get my overdraft fee refunded?
Many banks will refund one overdraft fee per year if you call and ask, especially if you have been a customer for a while and have not overdrafted before. There is no may provide, but it is worth asking. Some banks have formal policies about this; others decide case by case.
Is it cheaper to open an account online or in person?
Cost is the same either way. Online banks are often cheaper overall because they have no physical branches to maintain, so they charge lower fees. But you can open a free account in person at a bank branch just as easily as online.
What if I want to close my account right after opening it?
Most banks let you close an account anytime with no penalty. A few banks charge $25 to $50 if you close within 90 days to six months, but this is rare and usually only applies to accounts with promotional bonuses. Check the account terms before you open if you are concerned about this.