A monthly maintenance fee is a flat charge your bank takes from your account each month just for holding the account open

Most banks call it a "monthly maintenance fee," "account maintenance fee," or "monthly service fee." The amount varies by bank and account type — some charge $5, others $15 or more. A few banks charge nothing. The fee comes out automatically on a set day each month, usually the first or the last day, and it reduces your balance whether or not you used the account that month.

Banks use these fees to cover the cost of maintaining your account: processing transactions, storing your data, staffing customer service, and running their systems. They also use fees as a way to make money from accounts that sit dormant or hold small balances. Some banks waive the fee if you meet certain conditions — like keeping a minimum balance, setting up direct deposit, or using a debit card a certain number of times per month.

Key Takeaways

  • Monthly maintenance fees range from $0 to $15 or more per month depending on the bank and account type, and they are charged automatically whether you use the account or not.
  • Many banks waive the fee if you maintain a minimum balance, receive direct deposits, or meet other activity requirements.
  • Online banks and credit unions often charge no monthly maintenance fee because they have lower overhead costs than traditional brick-and-mortar banks.
  • Switching to an account with no fee can save you $60 to $180 per year, which adds up over time.

When banks waive the monthly fee

The most common way to avoid a monthly maintenance fee is to keep a minimum balance in your account. This threshold varies widely — some banks set it at $500, others at $1,500 or $2,500. As long as your balance stays at or above that number, the fee does not post. If your balance drops below it even once during the month, you may be charged.

Other banks waive the fee if you set up direct deposit — having your paycheck or government benefits deposited straight into the account. Some require a minimum number of deposits per month, usually one or two. A few banks waive the fee if you use your debit card a certain number of times per month, such as 10 or 15 transactions.

Read the fine print on your account agreement or call your bank to find out exactly what waives the fee. The conditions change, and different account types within the same bank may have different rules.

Account types that typically charge maintenance fees

Checking accounts are the most common accounts to carry a monthly maintenance fee. Savings accounts sometimes charge one, though less often. Money market accounts and certificates of deposit (CDs) rarely charge monthly maintenance fees, though they may charge other fees if you withdraw money early or fall below a minimum balance.

Premium or high-yield accounts sometimes charge higher monthly fees but offer better interest rates or extra perks like travel insurance or fee reimbursements. Student accounts and senior accounts often have no monthly maintenance fee as a way to attract those customers.

Banks and credit unions that charge no monthly fee

Many online banks — including Ally, Charles Schwab, and others — charge no monthly maintenance fee on checking or savings accounts. Credit unions typically charge no monthly maintenance fee either, though you must be a member to open an account. Membership usually requires living or working in a certain area, belonging to a specific employer or organization, or paying a small membership fee.

Traditional banks with physical branches often charge monthly fees, but some offer no-fee accounts if you meet their conditions. Compare the fee waiver requirements across banks in your area before deciding where to open an account. A bank with a $10 monthly fee but a $500 minimum balance requirement may cost you nothing if you can keep that balance. A bank with no fee and no minimum may be cheaper if your balance tends to drop below $500.

How monthly fees add up over time

A $10 monthly maintenance fee costs $120 per year. A $15 fee costs $180 per year. Over five years, a $10 fee totals $600 — money that could have stayed in your account earning interest or going toward savings goals.

The impact is larger if you have multiple accounts. Someone with a checking account and a savings account at the same bank, each charging $10 per month, pays $240 per year. If you switch both accounts to a bank with no monthly fee, you save that $240 annually. That is real money, especially for people living paycheck to paycheck.

How to learn about your account has a monthly fee

Log into your online banking portal and look at your recent statements. Monthly maintenance fees usually appear as a separate line item, often near the bottom of the transaction list. They may be labeled "monthly service charge," "account maintenance fee," or "monthly fee."

If you do not see one, call your bank or visit a branch and ask directly. Some banks do not charge a fee on certain account types or to certain customers. Your account may be grandfathered into an older no-fee plan, or you may may have access to for a waiver you do not know about.

What to do if you want to avoid the fee

First, check whether you already may have access to for a waiver. If your bank waives the fee for direct deposit and you receive a paycheck, you may already be covered. If the fee is waived for a minimum balance, calculate whether keeping that balance is worth it compared to switching banks.

If the fee is not waived and you cannot meet the waiver conditions, consider opening an account at a bank or credit union that charges no monthly maintenance fee. Moving your account takes a few steps — you will need to set up direct deposit at the new bank, update any automatic payments, and decide whether to close the old account. Many banks can help you transfer money between accounts during the switch.

Frequently Asked Questions

Can a bank charge a monthly fee even if I do not use my account?

Yes. A monthly maintenance fee is charged for holding the account open, not for using it. The fee posts whether you made transactions that month or not. This is why some people close accounts they no longer need — to stop paying a fee on money they are not accessing.

What happens if I do not have enough money to cover the monthly fee?

The fee still posts, which may overdraw your account. If your balance goes negative, you may be charged an overdraft fee on top of the maintenance fee. This can create a cycle of fees. Contact your bank immediately if this happens — some banks will reverse one fee as a courtesy if you ask.

Do online banks really charge no monthly fees?

Most online banks charge no monthly maintenance fee on checking and savings accounts because they have lower costs than banks with physical branches. However, they may charge other fees — for overdrafts, wire transfers, or ATM use outside their network. Read the fee schedule before opening an account.

Is a monthly maintenance fee the same as an overdraft fee?

No. A monthly maintenance fee is charged automatically every month. An overdraft fee is charged only when you spend more money than you have in your account. You can have both fees in the same month if your balance goes negative.

Can I negotiate my bank to remove the monthly fee?

You can ask, especially if you have been a customer for a long time or maintain a large balance. Some banks will waive the fee as a courtesy or move you to a different account type with no fee. The worst they can say is no, and it costs nothing to ask.