Where to find accounts with no monthly fees

Several large banks and most online banks offer checking or savings accounts with no monthly maintenance fee. The catch is that the fee waiver usually depends on meeting one condition: keeping a minimum balance, setting up direct deposit, or maintaining a certain number of debit card transactions per month. Some banks waive the fee for all customers regardless of activity; others waive it only if you meet their requirement.

The banks most likely to have no-fee accounts include online-only institutions like Ally, Charles Schwab, and Discover, which typically charge no monthly fee on any account. Among traditional banks with physical branches, Chase, Bank of America, Wells Fargo, and Citibank all offer no-fee checking accounts, though the conditions vary by account type and your relationship with the bank.

The real difference between banks is not whether a fee exists, but what you have to do to avoid it. A bank that charges $12 per month but waives it if you keep $500 on hand is not the same as a bank that charges nothing under any circumstance. Your choice depends on which requirement—if any—fits your situation.

Key Takeaways

  • Online banks like Ally, Charles Schwab, and Discover typically charge no monthly fee on checking and savings accounts with no minimum balance or activity requirement.
  • Traditional banks often waive monthly fees if you maintain a minimum balance (usually $500 to $1,500), set up direct deposit, or make a certain number of debit card transactions each month.
  • Some banks offer no-fee accounts only to customers who also have a credit card, mortgage, or investment account with them.
  • The fee structure can change, so confirm the current terms on the bank's website or by calling before opening an account.

Online banks with no monthly fees on any account

Online banks have lower overhead than brick-and-mortar institutions, which is why most do not charge monthly maintenance fees on checking or savings accounts. Ally Bank, Charles Schwab Bank, and Discover Bank are three examples that charge no monthly fee on their standard checking accounts, with no minimum balance requirement and no activity threshold you have to meet.

The trade-off is that you cannot walk into a branch to deposit cash or speak to someone in person. Most online banks let you deposit checks by taking a photo with your phone, and they reimburse ATM fees charged by other banks. If you rarely need to deposit cash and are comfortable managing your account through an app or website, an online bank is often the simplest way to avoid monthly fees entirely.

Online banks also typically pay higher interest rates on savings accounts than traditional banks do, though the rate changes frequently. If you are comparing accounts, check the current annual percentage yield (APY) on the bank's website, because the rate you see today may not be the rate you earn next month.

Traditional banks with no-fee checking if you meet a condition

Chase, Bank of America, Wells Fargo, and Citibank all offer checking accounts with no monthly fee, but most require you to meet at least one of these conditions: maintain a minimum balance (often $500 to $1,500), set up direct deposit, or make a certain number of debit card transactions per month (typically 10 to 15).

Chase's basic checking account, for example, waives the $12 monthly fee if you keep a $500 minimum balance or set up direct deposit. Bank of America's Advantage SafePass checking waives the $12 fee if you maintain a $500 balance or have a may have access to direct deposit. Wells Fargo's Way2Save savings account charges no monthly fee if you maintain a $500 balance or set up automatic transfers of at least $25 per month.

The condition that is easiest to meet depends on your situation. If you receive a paycheck by direct deposit, that alone will waive the fee at most banks. If you do not have direct deposit but keep several hundred dollars in the account anyway, the minimum balance requirement is painless. If you spend frequently with your debit card, the transaction threshold may be the simplest path.

No-fee accounts tied to other products

Some banks waive monthly fees only if you also hold another product with them—a credit card, a mortgage, an investment account, or a certain level of assets under management. This is common at larger banks that want to deepen their relationship with customers.

For example, some banks offer no-fee checking to customers who have a credit card issued by that bank, or who maintain a combined balance of $25,000 or more across all their accounts. If you already have a mortgage or investment account at a bank, it is worth asking whether opening a checking account there would waive the monthly fee.

This type of fee waiver is worth considering only if you were already planning to use that bank for another product. If you would open a credit card or move money just to avoid a $10 monthly fee, you are probably paying more in interest or opportunity cost than the fee itself.

Savings accounts with no monthly fees

Nearly all banks charge no monthly fee on savings accounts, whether online or traditional. The difference between savings accounts is the interest rate they pay, not the fee structure. A savings account at an online bank typically pays 4% to 5% annual percentage yield (APY), while a savings account at a traditional bank might pay 0.01% to 0.05% APY.

Some traditional banks do charge a monthly fee on savings accounts if the balance falls below a certain threshold—often $300 to $500—but most waive the fee if you maintain that minimum. Online banks almost never charge a monthly fee on savings accounts, regardless of balance.

If you are comparing savings accounts, focus on the APY first and the fee structure second. A high-yield savings account at an online bank with no monthly fee will earn you far more money than a low-yield account at a traditional bank, even if both charge no fee.

How to confirm a bank charges no monthly fees

Bank fee structures change, and they sometimes differ by region or account type. Before opening an account, visit the bank's website and look for the "Pricing" or "Fees" page, which should list all monthly charges and the conditions that waive them. The fee schedule is usually in a PDF document called a "Schedule of Fees" or "Deposit Account Agreement."

If the website is unclear, call the bank's customer service line and ask directly: "Does this account have a monthly maintenance fee, and if so, what do I have to do to waive it?" Write down the answer and the date you asked, in case the fee structure changes later.

Pay special attention to the fine print about minimum balance requirements. Some banks calculate the minimum as a daily balance (the balance on each day of the month), while others calculate it as an average balance (the total of all daily balances divided by the number of days). A $500 minimum daily balance is harder to maintain than a $500 average balance, because you have to keep $500 in the account every single day.

What happens if you do not meet the fee waiver condition

If you open an account at a bank that charges a monthly fee and you do not meet the condition to waive it, the bank will deduct the fee from your account each month. At some banks, the fee is charged on the last day of the month; at others, it is charged on the first day. The fee reduces your balance, which can trigger overdraft fees if your balance falls below zero.

If you realize you cannot meet the condition—for example, you thought you would have direct deposit but you do not—you have options. You can close the account and move to a different bank that does not charge a fee. You can ask the bank to waive the fee as a one-time courtesy, though they are not required to do so. Or you can change your behavior to meet the condition going forward (for example, by making more debit card transactions or by transferring money into the account to meet the minimum balance).

Frequently Asked Questions

Do online banks have FDIC insurance like traditional banks?

Yes. Online banks that are FDIC-insured (most are) protect your deposits up to $250,000 per account type, just like traditional banks. Check the bank's website for the FDIC insurance logo or call to confirm. The fact that you cannot walk into a branch does not affect your insurance coverage.

Can I get cash out of an online bank account if there are no branches?

Yes. Most online banks reimburse ATM fees charged by other banks, so you can use any ATM and get your money back. Some online banks partner with ATM networks that let you withdraw cash for free at thousands of locations. If you need to deposit cash, most online banks let you do it by mailing a check or transferring money from another account.

What if I need to deposit cash regularly?

If you receive cash payments and need to deposit them frequently, an online bank may not be practical for you. In that case, look for a traditional bank with a no-fee checking account that waives the fee based on direct deposit or minimum balance, since you can deposit cash at any branch. Alternatively, some online banks partner with retailers like Walmart or CVS where you can deposit cash for free.

Is a no-fee account worth switching banks for?

It depends on what you are switching from. If you are currently paying a $12 monthly fee ($144 per year), switching to a no-fee account saves you money. But if switching means losing features you use (like a branch near your home, a credit card rewards program, or a financial advisor), weigh that cost against the fee savings. A $12 monthly fee is not worth switching if the move costs you more in convenience or lost benefits.

Can a bank change its fee structure after I open an account?

Yes. Banks can change their fees, minimum balance requirements, and fee waiver conditions at any time, though they usually give you notice (often 30 days) before the change takes effect. Read any notices the bank sends you, and check your account terms periodically. If a bank adds a fee you do not want to pay, you can close the account and move to a different bank.