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July 19, 2024

How Can You Avoid a Monthly Maintenance Fee?

Jamela Adam
Certified Financial Education Instructor®

In this article

  1. What is a monthly service fee?
  2. Monthly maintenance fees charged by the largest U.S. banks
  3. 7 smart ways to avoid maintenance fees
  4. Maximize your savings by avoiding bank fees
  5. FAQs
Avoid common fees
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  • No minimum balance fees
  • No overdraft fees
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Financial institutions may charge monthly maintenance fees in exchange for their services. You may be thinking, why should I have to pay to keep an account open if I’m storing my money there? Sadly, both online and brick-and-mortar accounts may charge monthly maintenance fees, which can easily add up over time.

Many financial institutions will charge a monthly maintenance fee if you don’t meet certain requirements. While some banks don’t have monthly fees associated with their accounts, there are ways to avoid the ones that do.

You should be aware of maintenance fee charges as a consumer. Let’s jump in and help you avoid these fees if you can.

Avoid common fees
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  • No minimum balance fees
  • No overdraft fees
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What is a monthly service fee?

A monthly maintenance fee, or a monthly service fee, is a fee charged by a financial institution to a customer using a checking or savings account if certain requirements aren’t met. This fee is sometimes automatically withdrawn from your account. For example, some banks may charge a monthly maintenance fee if your account balance is under a certain threshold.

Financial institutions are for-profit businesses and need to make money to stay open. Monthly bank service charges contribute to this profit and can help cover day-to-day operating costs.

Banks that do charge monthly maintenance fees often allow account holders to avoid them by meeting certain requirements. The ability to waive fees might also attract new customers to make larger deposits each month, hold larger balances, and even use their accounts more frequently.

Monthly maintenance fees charged by the largest U.S. banks

Not all banks charge monthly maintenance fees for checking accounts or savings accounts. However, several large financial institutions have these account charges.

Banks will add on different amounts for their monthly maintenance fee, as it’s part of how they make their money. Here’s a closer look at some of the bank service charges at the biggest banks in the U.S. and how you can avoid them.

Disclaimer: Fees for each bank may vary based on location.

Bank of America monthly maintenance fees1

Account TypeMonthly FeeHow to Avoid Bank of America Monthly Maintenance Fee
Checking$14
  • Have a $1,500 or more minimum daily balance in the account.
  • Or: have a $2,000 or more minimum daily balance in a linked Regular Savings account.
  • Or: have a $5,000 or more minimum daily balance in a linked Money Market Savings account.
  • Or: maintain a $5,000 or more average daily balance in Checking with linked savings, CD, and IRA accounts.
  • Or: enroll in the Preferred Rewards® program and qualify for the Gold, Platinum, Platinum Honors, Diamond, or Diamond Honors tier.
Savings$5
  • Maintain a minimum daily balance of at least $300.
  • Or: link your Bank of America Advantage Relationship Banking account to your savings account (waiver applies to first four savings accounts).
  • Or: enroll in the Preferred Rewards® program and qualify for the Gold, Platinum, or Platinum Honors tier (first four savings accounts), or Diamond or Diamond Honors tier (unlimited).

Chase monthly maintenance fees²,³

Account TypeMonthly FeeHow to Avoid Chase Monthly Maintenance Fee
Checking$12
  • Have an electronic deposit made into this account totaling $500 or more.
  • Or: have a balance at the beginning of each day of $1,500 or more.
  • Or: have an average beginning day balance of $5,000 or more in any combination of this account and linked qualifying deposits or investments.
Savings$5
  • Have a balance at the beginning of each day of $300 or more.
  • Or: have $25 or more in total Autosave or other repeating automatic transfers from your personal Chase checking account.
  • Or: have a Chase College CheckingSM account linked to this account for Overdraft Protection.
  • Or: the account owner is under the age of 18.
  • Or: have a linked Chase Premier Plus CheckingSM , Chase SapphireSM Checking, or Chase Private Client CheckingSM account.

U.S. Bank monthly maintenance fees⁴,⁵

Account TypeMonthly FeeHow to Avoid U.S. Bank Monthly Maintenance Fee
Checking$6.95
  • Have a combined monthly direct deposit totaling $1,000 or more.
  • Or: keep an average account balance of $1,500.
  • Or: have an eligible U.S. Bank credit card.
  • Or: qualify for one of the bank’s four Smart Rewards tiers.
  • Or: are a member of the U.S. military.
  • Or: are under the age of 24.
  • Or: are 65 or older.
Savings$4
  • Have a $300 minimum daily ledger balance.
  • Or: have a $1,000 average monthly collected balance.
  • Or: hold an account with a child under the age of 12.

TD Bank monthly maintenance fees⁶,⁷

Account TypeMonthly FeeHow to Avoid TD Bank Monthly Maintenance Fee
Checking$15
  • Have $500 or more in direct deposits within a statement cycle.
  • Or: maintain a minimum daily balance of $500.
  • Or: maintain a $5,000 minimum daily combined balance across all personal deposit accounts that you choose to link.
  • Or: if the primary account owner is aged 17 to 23.
Savings$5
  • Maintain a $300 minimum daily balance.
  • Or: the primary account owner is 18 or under or 62 or older

There’s no fee for the first year with a recurring transfer of $25.

Citibank monthly maintenance fees⁸,⁹

Account TypeMonthly FeeHow to Avoid Citibank Monthly Maintenance Fee
Checking$15
  • Fee waived for the first three months after opening the account.
  • Have $250 or more in enhanced direct deposits.
  • Or are in one of Citibank’s tiers: Citigold® Private Client, Citigold®, or Citi Priority Relationship tier.
Savings$4.50
  • Maintain an average monthly balance of $500.
  • Or: also have a regular checking account or access checking account with Citibank.The fee is waived for the first three months after you open the account.

Wells Fargo monthly maintenance fees¹⁰,¹¹

Account TypeMonthly FeeHow to Avoid Wells Fargo Monthly Maintenance Fee
Checking$10
  • Maintain a $500 minimum daily balance 
  • Or: have $500 or more in total qualifying direct deposits
  • Or: an account owner who is 17 to 24 years old
  • Or: have a linked Wells Fargo Campus ATM Card or Campus Debit Card (for college students)
Savings$5
  • Have a $300 minimum daily balance
  • Or: one automatic transfer each fee period of $25 or more from a linked Wells Fargo checking account
  • Or one automatic transfer each business day within the fee period of $1 or more from a linked Wells Fargo checking account
  • Or one or more Save As You Go transfers from a linked Wells Fargo checking account
  • Or an account owner who is 24 years old or younger

PNC monthly maintenance fees¹²

Account TypeMonthly FeeHow to Avoid PNC Monthly Maintenance Fee
Checking$7
  • Have $500 in monthly direct deposits.
  • Have a $500 monthly balance in Spend and Reserve.
  • Or: the account holder is 62 years old or older.
  • Or: the account holder is a PNC employee.
Savings$5
  • Have an average monthly balance of $300.
  • Or: link account to a Performance checking or Performance Select checking account.
  • Or: set up an Auto Savings transfer of $25 or more each month from your PNC Checking account to your Savings account.
  • Or: the account owner is under the age of 18.

 

7 smart ways to avoid maintenance fees

Monthly maintenance fees can add up quickly, especially if you have multiple accounts. You may want to choose a financial institution that allows you to waive monthly fees. Typically, this involves meeting certain requirements.

Some banks make it possible to waive monthly maintenance fees, and they’re required to disclose any fees upfront. If you are looking to open a new checking account, make sure you read the account disclosures.

Here are some smart ways to avoid maintenance fees:

  1. Maintain the minimum balance. The most straightforward way to avoid monthly maintenance fees is by keeping a minimum balance in your account. Some financial institutions will waive your checking account maintenance fee as long as you maintain the minimum daily balance.
  2. Switch to online banking. Many banks offer mobile banking apps that let you deposit checks, transfer funds, and pay bills with just your phone. This can help you manage your account more easily and maintain the minimum balance needed to avoid a monthly fee.
  3. Set up an additional account at the same institution. Some banks waive monthly maintenance fees if you already have another account with them.
  4. Stay above the minimum debit card usage limit. Another way to avoid a bank’s maintenance fee is to stay above the minimum debit card usage limit, which means you’ll have to use your card a minimum number of times per month.
  5. Try getting the fee forgiven. Some banks waive certain charges, like overdraft fees, if you typically pay your bills on time and have a good relationship with them. It’s worth contacting customer service to see if this option is available to you.
  6. Use only ATMs in your bank’s network. Use your bank’s network of ATMs to avoid out-of-network ATM fees. You could also avoid this bank charge by signing up for an account that offers ATM fee reimbursement.
  7. Make monthly direct deposits. Some banks waive the monthly maintenance fee when you make a certain number of direct deposits or deposit a certain amount of money each statement period.

Maximize your savings by avoiding bank fees

Monthly maintenance fees will ultimately vary, depending on the type of account you open and the financial institution you choose to hold your money. Each bank also has different requirements and ways to avoid these fees.

To help you maximize your savings and avoid bank fees, we’ve gathered some of the best online checking accounts you can open for free. Some of these checking accounts even allow you to earn interest on your balance.

FAQs

How do I know if a bank charges a monthly maintenance fee?

Whether you’re opening an account online or in person, the monthly fees associated with that account are usually listed on the company’s website or at the brick-in-motor branch. Financial institutions are required to let you know about any monthly fees upfront so that you aren’t surprised down the line. It’s a good idea to first do your research and compare fees before opening an account.

Are there other banking products that have monthly maintenance fees?

Monthly maintenance fees are commonly associated with personal checking and savings accounts and sometimes with business accounts as well. Other types of accounts, such as certificates of deposit (CDs), may charge fees or have monetary penalties.

How much are the average overdraft, maintenance, and out-of-network atm fees?

Overdraft fees vary by bank, but they’re typically around $35 per transaction.¹³ The average monthly maintenance fee for non-interest accounts charged by banks in the U.S. was around $5.31, and the average out-of-network ATM transaction fees were $4.73.¹⁴