Ethan Riley
Banks typically charge a monthly service fee, also known as a monthly maintenance fee, for maintaining your account. This fee can be quite steep, often up to $15. In addition to this, banks may also charge overdraft fees, non-sufficient funds (NSF) fees, ATM fees, paper statement fees, and foreign transaction fees. However, there are several banks that offer no-fee checking accounts, allowing customers to manage their deposits and transactions without incurring these charges. These include Capital One, Discover, Alliant Credit Union, Schwab, Fidelity CMA, and Navy Federal Credit Union. Bank of America also offers three accounts with potentially no monthly fees, including a SafeBalance Banking® account with no monthly fee for students under 25 and account holders under 18. BMO also offers a Smart Advantage Checking Account with no monthly maintenance fee and access to 40,000+ fee-free ATMs across the US.
| Characteristics | Values |
|---|---|
| No monthly service fee | Students aged 17-24 at account opening, enrolled in college or a vocational, technical or trade school (Chase); Under 25 or under 18 (Bank of America); Customers in six states (CIBC Bank); Students under 25 or under 18 (Citi); Over 62 (Citi) |
| No overdraft fee | Bank of America, Chase |
| No transfer fee | Bank of America |
| No monthly maintenance fee | BMO |
| No user fees | BMO |
| No monthly fee | Capital One, Discover, Alliant Credit Union, Schwab, Fidelity CMA, Navy Federal Credit Union, SoFi, Ally, Chime, Huntington Bank Asterisk Checking, Logix Federal Credit Union, US Bank |
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What You'll Learn
No monthly fees
Monthly service fees, often up to $15, are charged by banks or credit unions to maintain your account. However, there are several banks that offer no-fee checking accounts. These accounts have zero monthly fees, low (or no) minimums, and availability nationwide.
Bank of America offers three accounts with potentially no monthly fees. The SafeBalance Banking® account charges no monthly fee for students under 25 and all account holders under 18. The Advantage Plus account waives the monthly fee if you have a qualifying direct deposit of at least $250 or maintain a $1,500 minimum daily balance. The Advantage Relationship account removes monthly fees if you maintain a combined balance of $10,000 in qualifying connected accounts. All three accounts offer free overdraft protection.
Citi’s Basic Banking account removes its monthly service fee for customers who make a qualifying direct deposit and bill payment per month or maintain a combined average monthly balance of $1,500. It provides free usage of over 65,000 ATMs but does not provide out-of-network reimbursement. The account does not apply the monthly fee to customers under 18 or over 62.
Chase Bank offers a $0 Monthly Service Fee for students aged 17 to 24 enrolled in college or a vocational, technical, or trade school, up to the graduation date provided at account opening (with a maximum of five years) or a $12 Monthly Service Fee. With over 4,700 branches, Chase has the largest branch network in the US, plus access to more than 15,000 ATMs.
Other banks that offer no-fee checking accounts include Capital One, Discover, Alliant Credit Union, Schwab, Fidelity CMA, Navy Federal Credit Union, SoFi, Ally, Chime, Huntington Bank Asterisk Checking, and Logix Federal Credit Union. Many local credit unions also offer free checking without monthly deposits. US Bank offers free checking if you have an active credit card with them.
Additionally, CIBC Bank offers an account with no monthly fees that requires $50 to open and will not earn interest. Instead, the account returns 1% cashback on up to $2,000 of debit card purchases per month and provides $50 per month of ATM fee reimbursements.
BMO also offers a Smart Advantage Checking Account with no monthly maintenance fee, providing access to 40,000+ fee-free ATMs across the US and digital banking tools for banking from anywhere.
It is important to note that while these accounts may have no monthly fees, there may be other fees associated with specific transactions or services. It is always a good idea to carefully review the terms and conditions of any bank account before opening an account.
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No overdraft fees
Overdraft fees are some of the most expensive fees charged by banks, and they can quickly add up. However, there are banks that do not charge overdraft fees, which can be a great option for those who want to avoid these extra costs. Here are some banks and accounts that offer no overdraft fees:
Chase Secure Banking
Chase Secure Banking is a certified low-cost, low-fee account that does not charge overdraft fees. Even if you have a negative balance, Chase will not charge you an overdraft fee. This account also offers early direct deposit, allowing you to access your money up to two business days early.
Capital One 360 Checking
Capital One 360 Checking offers no overdraft fees or non-sufficient fund fees. It has no monthly maintenance fees, minimum deposit, or balance requirements. Account holders earn 0.10% APY and have access to a free ATM network of 70,000+ Capital One®, MoneyPass, and Allpoint® ATMs.
Ally Bank Spending Account
The Ally Bank Spending Account (Ally's checking product) has zero overdraft fees, monthly maintenance fees, minimum deposit, or balance requirements. Account holders earn 0.10% APY on balances below $15,000 and 0.25% APY on balances above $15,000. They also have access to a free ATM network of 43,000+ Allpoint® ATMs.
Discover Bank
Discover Bank has historically not charged overdraft fees and eliminated insufficient funds fees for all accounts back in 2019. Their Discover® Cashback Debit Checking account does not charge for its overdraft protection, which you can opt into, allowing money to be taken from your Discover savings account to cover an overdraft. There are no monthly maintenance fees, and account holders don't need to worry about minimum deposits or balance requirements.
Alliant Credit Union
Alliant Credit Union stopped charging overdraft and nonsufficient funds (NSF) fees in 2021. They offer the Courtesy Pay program, where the credit union may cover checks or ACH electronic transactions that would otherwise be declined due to insufficient funds.
Wells Fargo Clear Access Banking
Wells Fargo's Clear Access Banking is a checkless banking account with no overdraft fees. This account gives you the option to choose how the bank handles your ATM and debit card transactions if you don't have sufficient funds. You can choose to have your transactions declined with no fees, or you can enrol in Overdraft Protection and have your transactions approved with an overdraft fee of $35 per item.
It is important to note that while these banks and accounts offer no overdraft fees, there may be other fees associated with these accounts, such as monthly service fees or transaction fees. It is always a good idea to carefully review the terms and conditions of any bank account before opening an account. Additionally, some banks offer grace periods or buffer amounts to help customers avoid overdraft fees, so it is worth exploring the options available at your current bank as well.
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No ATM fees
When it comes to ATM fees, there are a few options for those seeking to avoid them. Firstly, it is important to distinguish between in-network and out-of-network ATMs. In-network ATMs are those that are partnered with your bank or credit union, and using these machines typically does not incur a fee. Out-of-network ATMs, on the other hand, are those that are not affiliated with your financial institution, and using them can result in two fees: one from your bank and another from the ATM operator.
To avoid ATM fees, one strategy is to stick to using in-network ATMs. Most banks, even online banks, have partnerships with large ATM networks, so locating one near you is usually convenient. Additionally, some retailers, such as CVS and Walgreens, offer surcharge-free cash withdrawals through networks like Allpoint+.
Another strategy is to choose a bank that offers ATM fee reimbursements. Here are some banks that provide this benefit:
- Ally Bank: Offers a network of 75,000 fee-free ATMs and also provides up to $10 per month in ATM fee reimbursements.
- Alliant Credit Union: Offers up to $20 per month in ATM fee rebates when using the Alliant Visa debit card.
- Charles Schwab: With a High Yield Investor Checking account, customers receive unlimited worldwide ATM fee rebates, though there may be a conversion fee for international transactions.
- Fidelity Cash Management Account: Provides unlimited worldwide ATM fee reimbursements.
- TD Bank: With the Beyond Checking account, customers can get unlimited out-of-network ATM fee reimbursements, but a minimum balance of $2,500 is required to qualify.
- LendingClub: Customers with a LevelUp Checking account receive unlimited ATM fee reimbursements.
By considering the ATM networks of different banks and taking advantage of fee reimbursement offers, individuals can effectively minimise or eliminate ATM fees.
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No paper statement fees
As online banking has become more prevalent, many banks have started charging a paper statement fee, which can be up to $5 per statement. This is in addition to other fees that banks charge, such as monthly service fees, overdraft fees, and ATM fees. However, some banks do not charge paper statement fees, and opting for paperless statements can help you avoid this fee.
Smaller banks and online banks are more likely to have lower fees or no paper statement fees at all. Some larger banks may also waive the fee for customers who meet certain qualifications, such as age or minimum balance requirements, but this is not common.
To avoid paying paper statement fees, you can opt for paperless statements, also known as e-statements, which you can access on the bank's website or mobile app. Not only are e-statements more convenient and environmentally friendly, but they can also offer better protection against identity theft. To ensure the security of your electronic banking statements, use unique passwords for all of your accounts, enable two-factor authentication where available, and avoid downloading your e-statements on a public computer.
If you prefer to receive paper statements, there are a few ways to reduce or avoid the paper statement fee. First, check with your bank to see if they offer a waiver under certain circumstances, such as maintaining a minimum balance. You can also consider printing your e-statements and keeping a physical file at home. Additionally, some banks may offer benefits when you opt for paperless statements, such as waiving your monthly maintenance fee or offering a cash sign-up bonus.
While it may be challenging to find banks that do not charge paper statement fees, opting for paperless statements or taking advantage of waiver options can help you minimize this expense.
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No foreign transaction fees
When travelling abroad, it is important to consider the foreign transaction fees that your bank may charge on your debit or credit card. Foreign transaction fees can add up quickly, so it is worth looking into cards that do not charge these fees.
Some banks and credit unions that offer no foreign transaction fees include Capital One, Discover, and SoFi. Additionally, some credit card companies like Visa and Mastercard may charge a fee, typically 1%, to offset the conversion cost and the risk of fraud, so it is important to check with your card issuer.
If you are a student, the Bank of America® Travel Rewards Credit Card for Students is a good option, as it has no annual fee and offers rewards for everyday spending. For non-students, the Bank of America® Travel Rewards credit card is also a solid choice, as it has no annual fee and offers a simple rewards structure.
Other options for no foreign transaction fees include prepaid cards, although these may have technical glitches, and exchanging currency before travelling, which can help you avoid fees for withdrawing cash from foreign ATMs.
In addition to foreign transaction fees, it is important to consider other potential fees, such as overdraft fees, monthly service fees, and ATM fees. When choosing a bank account or credit card, be sure to review the fee schedule carefully to understand all potential charges.
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Frequently asked questions
Some banks that offer accounts with no monthly service fees include Ally Bank, Chase Bank, Bank of America, Fifth Third Bank, and Citizens Bank.
Some accounts that don't charge service fees include SoFi Checking and Savings, Axos Bank's Rewards Checking, and Citi's Basic Banking account.
No, not all banks charge service fees. However, most banks charge for services like wire transfers and bounced checks.
You can find banks that don't charge service fees by researching online and comparing the fees charged by different banks. You can also consider credit unions, which often have lower fees than traditional banks.
