Most banks charge nothing to open a checking or savings account
The opening fee itself is free at nearly every bank and credit union in the United States. Chase, Bank of America, Wells Fargo, Ally, Charles Schwab, and most regional banks do not charge you to create an account. Credit unions typically charge nothing either. You hand over your ID and Social Security number, sign some forms, and the account exists.
What matters is what happens after. Banks make money from you through monthly maintenance fees, overdraft charges, minimum balance requirements, and ATM fees — not from opening the door. Some accounts have no fees at all. Others cost $10 to $15 per month if you do not meet certain conditions.
Key Takeaways
- Opening a bank account costs nothing at major banks and credit unions, but monthly maintenance fees range from $0 to $15 depending on the bank and account type.
- You can avoid monthly fees by maintaining a minimum balance (often $500 to $2,500), setting up direct deposit, or choosing an online bank.
- Overdraft fees, which trigger when you spend more than you have, typically cost $25 to $35 per transaction and are separate from any monthly fee.
- Credit unions often have lower fees and lower minimum balances than large national banks, but may charge to use out-of-network ATMs.
- Some banks charge nothing for anything — no monthly fee, no minimum balance, no overdraft fees — but these accounts usually offer fewer features or lower interest rates.
Monthly maintenance fees and how to avoid them
Most checking accounts charge $0 to $15 per month if you do not meet the bank's conditions. Those conditions vary widely. Chase's basic checking account costs $0 if you maintain a $500 minimum balance or set up direct deposit. Bank of America's checking account costs $12 per month unless you keep $1,500 in the account or have a linked savings account with $500. Wells Fargo charges $10 per month for checking unless you maintain $500.
Online banks like Ally, Charles Schwab, and Discover typically charge no monthly fee and have no minimum balance requirement at all. The trade-off is that they have no physical branches — you deposit checks by phone camera and withdraw cash only at ATMs.
Credit unions often charge lower monthly fees than national banks. Many credit unions charge nothing for a basic checking account, period. Others charge $3 to $5 per month but waive it if you maintain a $100 to $300 balance. The catch is that credit unions have smaller ATM networks, so using an out-of-network ATM may cost you $2 to $3 per withdrawal.
Overdraft fees and NSF charges
An overdraft happens when you spend more money than you have in your account. When this occurs, the bank covers the transaction and charges you a fee — typically $25 to $35 per overdraft. Some banks charge multiple overdrafts in a single day as separate fees, so spending $100 more than you have could cost you $50 to $70 in fees alone.
A related charge is an NSF (non-sufficient funds) fee, which some banks charge when a transaction is declined because you do not have enough money. This fee is usually $25 to $35 as well, even though the bank did not actually lend you money.
You can reduce overdraft risk by turning off overdraft protection, which simply declines transactions when you do not have the funds. You can also link a savings account to your checking account so overdrafts pull from savings instead of triggering a fee. Some banks now offer overdraft protection for free; others charge $10 to $15 per month for it.
ATM fees and out-of-network withdrawals
Using an ATM owned by your bank costs nothing. Using an ATM owned by a different bank usually costs $2 to $3, charged by the ATM owner's bank. Some banks also charge you a fee ($1 to $2) for using an out-of-network ATM, on top of what the other bank charges.
National banks like Chase and Bank of America have large ATM networks, so you can withdraw cash for free in most places. Online banks have no ATMs at all, so every cash withdrawal costs you money unless you use a partner network. Credit unions have smaller networks but often participate in shared branching agreements, which let you use other credit unions' ATMs for free.
Minimum balance requirements
A minimum balance is the lowest amount of money the bank requires you to keep in the account at all times. If your balance drops below it, the bank charges a fee — usually $5 to $10 per month. Minimum balances range from $0 to $2,500 depending on the account type and bank.
Savings accounts often have higher minimum balances than checking accounts. A basic savings account might require $500, while a high-yield savings account might require $2,500. Checking accounts at national banks typically require $500 to $1,500. Online banks and credit unions usually require nothing.
The minimum balance is money you cannot spend without triggering a fee. If you have $600 in the account and the minimum is $500, you can only spend $100 without falling below the threshold. This makes minimum balances expensive for people living paycheck to paycheck.
Interest rates and how they affect your money
Banks pay you interest on money you keep in savings accounts and some checking accounts. The interest rate varies from nearly 0% at large national banks to 4% to 5% at online banks. The difference is real: $10,000 in a savings account earning 0.01% makes $1 per year, while the same $10,000 at 4.5% makes $450 per year.
Checking accounts almost never pay interest. Savings accounts do, but the rate depends on the bank and the current Federal Reserve rate. Online banks typically pay higher interest because they have lower overhead costs. National banks pay lower interest because they spend money on branches and marketing.
Interest is separate from fees. A bank can charge you a $12 monthly fee and pay you 0.01% interest, or charge you nothing and pay you 4.5% interest. When comparing accounts, look at both the fee structure and the interest rate to see which one costs you less money over time.
Initial deposit requirements
Most banks require an initial deposit to open an account, but the amount is usually small. Many banks require $0 — you can open an account with no money at all. Others require $25 to $100. A few banks require $500 or more, but these are less common.
The initial deposit is money you put in when you open the account. It counts toward your minimum balance requirement if the account has one. If the bank requires a $100 initial deposit and a $500 minimum balance, you need to deposit at least $500 total to avoid a fee.
Frequently Asked Questions
Do I have to pay anything to open a bank account?
No. Opening an account itself is free at every major bank and credit union. You pay fees only after the account is open, and only if you trigger them or fail to meet the bank's conditions. Many accounts have no fees at all.
What is the cheapest type of bank account?
Online banks like Ally, Charles Schwab, and Discover typically charge no monthly fee, have no minimum balance, and pay higher interest rates than national banks. The trade-off is no physical branch and no ATM network — you deposit checks by phone and withdraw cash only at partner ATMs or your own bank's ATMs.
Can I avoid all fees?
Yes. Online banks charge no monthly maintenance fee, no minimum balance fee, and no overdraft fee if you turn off overdraft protection. You will pay ATM fees if you use out-of-network ATMs, but you can avoid those by using your bank's ATM network or withdrawing cash at grocery stores.
What happens if I do not maintain the minimum balance?
The bank charges you a monthly fee, usually $5 to $10. This fee is separate from any overdraft fees. If you consistently fall below the minimum, you will pay the fee every month until your balance rises above it or you close the account.
Are credit unions cheaper than banks?
Often, yes. Credit unions typically charge lower monthly fees, have lower minimum balances, and charge less for overdrafts. The downside is a smaller ATM network — you may pay $2 to $3 per out-of-network withdrawal, which adds up if you use ATMs frequently.