Where to find accounts with zero monthly fees
Several major banks and most online banks offer checking or savings accounts with no monthly maintenance fee. The banks that do this include Ally Bank, Charles Schwab Bank, Discover Bank, and Capital One 360, along with regional options like Axos Bank and Connexus Credit Union. Traditional banks like Chase, Bank of America, and Wells Fargo typically charge monthly fees unless you meet specific balance or deposit requirements — so the easiest path to zero fees is usually an online bank or credit union, where the lower overhead means they can skip the fee altogether.
The catch is that "no monthly fee" does not mean no fees ever. You can still face charges for overdrafts, wire transfers, foreign transactions, or ATM use outside the bank's network. The banks listed above do not charge monthly maintenance fees, but each has a different fee structure for everything else, so comparing those secondary fees matters as much as the monthly cost.
Key Takeaways
- Online banks like Ally, Discover, and Charles Schwab offer checking accounts with no monthly maintenance fee and no balance requirement.
- Credit unions often have no monthly fees and may offer better ATM access through shared branching networks than you would expect.
- Traditional banks waive monthly fees only if you maintain a minimum balance or set up direct deposit, which is a hidden cost if you cannot meet those terms.
- No monthly fee does not protect you from overdraft fees, out-of-network ATM charges, or wire transfer fees, so read the full fee schedule before opening an account.
- Moving to a no-fee account saves $120 to $180 per year compared to banks that charge $10 to $15 monthly.
Online banks with no monthly maintenance fees
Online banks have the lowest overhead because they do not operate physical branches, so they pass that savings to customers by eliminating monthly fees. Ally Bank, Discover Bank, and Charles Schwab Bank all offer checking accounts with zero monthly maintenance fees and no minimum balance requirement. Ally and Discover also offer savings accounts with no monthly fee and competitive interest rates — currently around 4% to 5% APY on savings, though rates change frequently.
The trade-off is that online banks have no physical branches. If you need to deposit cash, you will have to use an ATM or mobile deposit (taking a photo of a check). Ally and Discover both reimburse out-of-network ATM fees, so you can use almost any ATM without paying. Charles Schwab has a large ATM network through its brokerage partnership, so you have thousands of surcharge-free ATMs available.
Opening an account at an online bank takes 10 to 15 minutes and requires a Social Security number, proof of address, and a way to fund the account (usually a transfer from another bank). Most online banks do not require a minimum opening deposit.
Credit unions with no monthly fees
Credit unions are member-owned, not shareholder-owned, so they often have lower fees than banks. Many credit unions charge no monthly maintenance fee on checking accounts and offer better rates on savings than traditional banks. Connexus Credit Union, Pentagon Federal Credit Union, and Alliant Credit Union are among the largest and accept members nationwide, though you may need to meet a membership requirement (such as working in a certain industry or living in a certain area).
Credit unions also participate in shared branching networks, which means you can walk into a different credit union and conduct transactions as if it were your own bank. This gives you physical access without needing your own credit union to have branches everywhere. The CO-OP network and Alliant's network together cover thousands of locations.
To join a credit union, you typically need to open a savings account first (often with a $5 to $25 deposit) and meet the membership criteria. Once you are a member, you can open a checking account with no monthly fee.
Traditional banks that waive monthly fees
Chase, Bank of America, and Wells Fargo all offer checking accounts with no monthly maintenance fee, but only if you meet one of their conditions. Chase waives the fee on its Chase Total Checking account if you maintain a $500 minimum balance or set up direct deposit. Bank of America waives the fee on its Advantage Plus account if you keep a $1,500 balance or have a linked savings account with $500. Wells Fargo waives the fee on its Everyday Checking if you maintain a $500 balance or have a may have access to direct deposit.
These conditions are effectively a hidden cost. If you cannot maintain the balance, you are paying the monthly fee anyway. If you can maintain it, that money is locked up and earning little or no interest, which costs you more than the fee itself over time. For most people, an online bank or credit union with a true zero-fee account is cheaper.
The advantage of a traditional bank is physical branch access and the ability to deposit cash at a teller window. If you need that convenience and can meet the balance requirement without hardship, a traditional bank may be worth it. Otherwise, the fee waiver is not a real savings.
What fees still apply at no-fee banks
A no-monthly-fee account does not mean you will never pay a fee. Overdraft fees are the most common: if you spend more than you have, the bank charges $25 to $35 per overdraft. Some banks charge multiple overdraft fees per day; others cap it at one per day. Ally and Charles Schwab do not charge overdraft fees at all, which is rare and valuable.
Out-of-network ATM fees apply if you use an ATM that does not belong to your bank's network. Ally and Discover reimburse these fees, so you pay nothing. Charles Schwab has a large network, so you rarely need to pay. Credit unions waive fees for members using the shared branching network.
Wire transfer fees, foreign transaction fees, and check printing fees vary by bank. Read the full fee schedule on the bank's website before opening an account — the monthly fee is only one piece of the total cost.
How to switch to a no-fee account
Switching banks takes one to two weeks. Start by opening the new account online or at a branch. You will need your Social Security number, a government ID, and proof of address (a utility bill or lease). Fund the account with a transfer from your old bank.
Next, update your direct deposit with your employer or benefits provider. This usually takes one pay period to take effect. Set up bill payments through the new bank or update your payees if you pay bills manually. Close the old account once all pending transactions have cleared — usually five to seven business days after your last deposit.
Do not close the old account immediately. Leave it open for a week or two to catch any stray charges or automatic payments you may have forgotten about. Once you are confident everything has moved over, call the old bank and request closure.
Comparing no-fee banks side by side
| Bank | Monthly Fee | Minimum Balance | Overdraft Fee | ATM Access |
|---|---|---|---|---|
| Ally Bank | $0 | None | $0 | Nationwide reimbursement |
| Discover Bank | $0 | None | $0 | Nationwide reimbursement |
| Charles Schwab Bank | $0 | None | $0 | Large network + reimbursement |
| Connexus Credit Union | $0 | $5 (savings) | $25–$35 | Shared branching network |
| Chase Total Checking | $0 (with conditions) | $500 or direct deposit | $35 | Chase branch network |
| Bank of America Advantage Plus | $0 (with conditions) | $1,500 or linked savings | $35 | Bank of America branch network |
Frequently Asked Questions
Do online banks have FDIC insurance?
Yes. Ally Bank, Discover Bank, and Charles Schwab Bank are all FDIC-insured, which means deposits up to $250,000 per account type are protected if the bank fails. Credit unions are insured by the NCUA, which offers the same $250,000 protection. Check the bank's website for the FDIC or NCUA logo to confirm.
Can I still use my debit card at a no-fee online bank?
Yes. Online banks issue debit cards that work at any merchant or ATM. The card functions the same way as a card from a traditional bank. Some online banks mail the card within five to seven business days; others offer expedited shipping for a small fee.
What happens if I overdraft at a bank with no overdraft fees?
At Ally, Discover, and Charles Schwab, transactions are simply declined if you do not have enough balance. You will not be charged a fee, and the transaction will not go through. This is safer than overdraft protection, which can lead to a chain of fees at other banks.
Do I need a minimum balance to avoid monthly fees?
At online banks like Ally, Discover, and Charles Schwab, no. At credit unions, you usually need a small savings account balance (often $5 to $25) to maintain membership, but not a checking account balance. At traditional banks, yes — you must maintain the stated balance or set up direct deposit, or you pay the monthly fee.
Can I get a physical debit card from an online bank?
Yes. All online banks issue physical debit cards. They arrive by mail within five to ten business days. Until the card arrives, you can use the temporary card number in the bank's app to make online purchases.