Some bank accounts charge you every month just for having them open. This charge is called a monthly maintenance fee, also known as a monthly service fee or account fee. At $5 to $25 per month, it can cost you up to $300 a year. The good news is that most maintenance fees can be avoided. This guide explains what a monthly maintenance fee is, typical costs, common ways to waive it and alternatives with no fee at all.
What is a monthly maintenance fee?
A monthly maintenance fee is a recurring charge banks apply to checking or savings accounts to cover account costs such as branches, ATMs, customer service and technology. It usually appears on your statement as:
- MONTHLY MAINTENANCE FEE
- MONTHLY SERVICE FEE
- MAINT FEE or SVC CHG
- ACCOUNT FEE
How much is a monthly maintenance fee?
| Account type | Typical monthly fee |
|---|---|
| Basic checking at large banks | $5 to $15 |
| Premium or interest checking | $15 to $35 |
| Savings accounts | $3 to $10 |
| Student or senior accounts | Often $0 |
| Online banks | Usually $0 |
| Credit unions | Often $0 to $5 |
How to avoid a monthly maintenance fee
Banks usually waive the fee if you meet at least one requirement each month:
| Common waiver | Example |
|---|---|
| Qualifying direct deposit | At least $500 per month in electronic deposits |
| Minimum daily balance | Keep $1,500 or more every day |
| Average monthly balance | Maintain a set average balance |
| Combined balances | Total balances across linked accounts above a threshold |
| Debit card use | Make a certain number of purchases each month |
| Age-based waivers | Students under 24 or seniors over 62 |
| Military accounts | Fees waived for service members |
| Linked premium account | Relationship accounts waive fees |
Steps to stop paying the fee
- Read your account’s fee schedule to see exactly what waives the fee.
- Set up direct deposit for your paycheck if it qualifies.
- Move your savings into the same bank if combined balances count.
- Ask for a different account type, such as basic or student checking.
- Request a refund if you were charged unexpectedly.
- Switch banks if the requirements do not fit your situation.
Frequently asked questions
Can I get a maintenance fee refunded?
Often yes, especially the first time. Call and ask politely.
Does a maintenance fee mean my account is bad?
No. It is a standard fee on certain account types.
Fee-free alternatives
Online banks
Online-only banks typically have no monthly maintenance fees, no minimum balances and often refund ATM fees. Many also pay higher interest on savings. The trade-off is fewer or no branches, so depositing cash can be harder.
Credit unions
Credit unions are member-owned and often offer free checking with low or no requirements. You need to meet membership criteria, such as living in an area or working for certain employers, but many have broad eligibility.
Second chance and basic accounts
Basic or Bank On certified accounts are designed to be low cost, often with no overdraft fees and low or no monthly fees. They can be good for people rebuilding banking history.
Student and youth accounts
Banks often waive fees for students, teens and young adults until a certain age.
How much fees cost over time
| Monthly fee | Annual cost | Cost over 5 years |
|---|---|---|
| $5 | $60 | $300 |
| $12 | $144 | $720 |
| $15 | $180 | $900 |
| $25 | $300 | $1,500 |
That money could go toward an emergency fund or paying down debt instead. See how to save money on a low income.
Why banks charge maintenance fees
Banks charge maintenance fees to cover operating costs and to encourage customers to keep higher balances or use more services. Fees also help banks profit from accounts with low balances. Requirements like direct deposit encourage customers to make the bank their primary institution.
How to ask for a maintenance fee refund
Call or chat with your bank and say:
I noticed a monthly maintenance fee on my statement. I did not realize my balance dropped below the requirement this month. I have been a customer for [number] years. Could you refund it as a courtesy, and tell me the best way to avoid it in the future?
Banks often refund one fee, especially if you are a long-time customer.
When a maintenance fee is worth paying
Some premium accounts charge higher fees but include valuable perks:
- ATM fee refunds worldwide
- Higher interest rates
- Free checks, cashier’s checks and wire transfers
- Waived overdraft fees
- Relationship discounts on loans
If you already keep enough money to waive the fee, these perks can be valuable. If not, a free account usually makes more sense.
Common mistakes that trigger the fee
- Balance dipping below the minimum for one day. Some accounts use minimum daily balance, so a single low day triggers the fee.
- Direct deposit not counting. Transfers from payment apps or other banks may not qualify as direct deposit.
- Changing jobs. A new employer’s deposit may start late in the month.
- Account type changes. Banks sometimes convert old accounts to new ones with different rules.
- Ignoring statement notices. Banks must notify you of fee changes, often in statement messages.
Real examples
The direct deposit fix. Carlos paid a $12 fee for months because his paycheck went to another bank. He split his direct deposit to send $500 to the account with the fee, and it was waived.
The switch. Amira moved to an online bank with no fees and earned interest on her savings, saving $144 a year.
The senior waiver. Joe turned 65 and asked his bank about senior accounts. He switched to one with no monthly fee.
How to switch banks to avoid fees
- Open the new account and order a debit card.
- Move direct deposits by updating forms with your employer and benefit providers.
- Update automatic payments for bills, subscriptions and loans.
- Keep the old account open for one or two months to catch stray payments.
- Transfer the remaining balance once everything has moved.
- Close the old account in writing and get confirmation.
Switching takes a little effort, but saving $100 to $300 a year is worth it for many people.
Maintenance fee vs other bank fees
| Fee | When it applies |
|---|---|
| Monthly maintenance fee | Every month unless waived |
| Minimum balance fee | When your balance falls below a required level |
| Overdraft or courtesy pay fee | When you spend more than you have |
| ATM fee | Using out-of-network ATMs |
| Paper statement fee | Choosing paper over electronic statements |
| Excess withdrawal fee | Too many savings withdrawals |
| Dormant account fee | Long periods without activity |
See what a courtesy pay fee is, what an ATM withdrawal fee is and what a dormant account fee is.
Frequently asked questions
Is a monthly maintenance fee the same as a minimum balance fee?
They are related. Many banks charge a maintenance fee unless you meet a minimum balance, so the terms overlap.
Do savings accounts have maintenance fees?
Some do, especially at large banks with low balances. Many online savings accounts are fee-free.
Can the bank add a maintenance fee to my account?
Yes, with advance notice. Read notices carefully and switch if new fees do not fit you.
How to check if you are paying a maintenance fee
Many people pay maintenance fees for years without noticing. To check:
- Open your last three statements and search for the words fee, service charge or maintenance
- Look in your banking app’s transaction list for small recurring charges near the end of each month
- Review your account agreement or fee schedule for your account type
- Ask your bank which waiver requirements apply to your account
If you find a fee, decide whether to meet the waiver requirements, change account types or switch banks.
Choosing the right account
| Your situation | Good choice |
|---|---|
| Steady paycheck with direct deposit | Standard checking with direct deposit waiver |
| Low or irregular income | Free checking at an online bank or credit union |
| Large savings | Relationship account with perks and waived fees |
| Student or young adult | Student checking |
| Retiree | Senior checking or free online account |
| Rebuilding banking history | Bank On certified or second chance account |
The best account is one where you never have to think about fees because you either meet the requirements easily or there are no requirements at all.
Quick checklist
- Find your account’s fee and waiver rules
- Set up qualifying direct deposit or keep the required balance
- Turn on alerts if your balance drops near the minimum
- Ask for refunds when fees surprise you
- Compare free accounts at online banks and credit unions
- Switch if your current bank’s rules do not fit your life
Paying a monthly maintenance fee is optional for most people. A few minutes of setup can keep that money in your pocket every month, and the savings add up quickly over the years.
The bottom line
A monthly maintenance fee is charged for keeping certain bank accounts open. Most can be waived with direct deposit or balance requirements, or avoided entirely with fee-free banks. Also read what a minimum balance fee is.
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