Banks charge a monthly maintenance fee because an open account costs money to run, and the fee lands on accounts that do not meet the bank's conditions for a waiver. Those conditions, such as a minimum balance or direct deposit, are the bank's way of favoring customers whose accounts bring in deposits. Federal rules do not set the fee amount, but they do require the bank to disclose it, explain the waiver conditions, and give 30 calendar days' notice before an adverse change.
Key takeaways
- A maintenance fee is a pricing choice: the bank sets a monthly charge and then waives it for customers who keep a balance, receive direct deposits, or link other accounts, or it offers lower-cost student, senior or basic accounts.
- Under Regulation DD, a bank must disclose every fee and the conditions under which it is charged before the account is opened, and must explain how any balance needed to avoid a fee is determined.
- A bank must mail or deliver notice at least 30 calendar days before a change that may adversely affect you, such as a higher fee. Federally insured credit unions follow a parallel NCUA rule with the same 30 days.
- A $12 monthly fee costs $144 a year and $720 over five years, while a $5 fee costs $60 and $300 over the same periods (illustrative numbers).
- Bank On certified accounts are not always free: the standards in force through 2026 allow a monthly fee of up to $5, or up to $10 if it can be waived, and no overdraft or NSF fees.
Why banks charge maintenance fees
The Consumer Financial Protection Bureau (CFPB) confirms that banks and credit unions may charge a monthly maintenance or service fee on checking, savings and money market accounts. It does not publish a cost breakdown, and neither do most banks, so the reasoning below is a general explanation of how the pricing works rather than a figure from any one institution.
An account carries costs that continue every month: statements, customer service, fraud monitoring, recordkeeping and the compliance work that comes with holding consumer deposits. Against those costs, the bank can earn revenue from the balance, because deposited money can be lent out or invested, and from card use. An account with a steady balance or regular deposits tends to cover its own costs. An account that sits near zero does not.
That gap explains the shape of most fee schedules. Instead of charging every customer the same amount, the bank sets a monthly fee and then waives it for customers who bring something back: a balance, a paycheck, or a package of accounts. This is often called relationship pricing. The fee is the default price, and the waiver is a discount for the behavior that makes the account cheaper to hold.
Common ways to get the fee waived
The CFPB names two common waivers: keeping a set minimum balance, and having paychecks or benefit payments deposited directly. It also suggests asking about low-cost accounts, such as a senior or student account, and notes that some banks and credit unions offer a basic checking account with a low minimum balance and a limited number of free checks and withdrawals.
| Waiver condition | What it usually means | What to confirm in the fee terms |
|---|---|---|
| Minimum balance | A set balance, either every day or on average | How the balance is measured and over what period |
| Direct deposit | Payroll or benefit deposits arrive electronically | Which deposits count and whether a minimum amount applies |
| Student, senior or basic account | A lower-cost account type with a low minimum or no fee | The age or status cutoff, and the limits on free checks and withdrawals |
| Linked accounts | The fee is waived when you also hold other qualifying accounts at the bank | Which linked products count and whether their balances are combined |
The first three rows follow the CFPB page. The last is a bank-by-bank choice, not part of any federal rule. One real schedule shows how much the details vary. As of November 4, 2026, Chase lists its Total Checking account at "$15 or $0" a month. The fee is waived for any one of four conditions in a statement period: $500 or more in qualifying electronic deposits, a $1,500 balance at the beginning of each day, a $5,000 average beginning-day balance across this account and linked qualifying deposits or investments, or a link to a qualifying checking account.
The two balance tests in that list work differently. A balance required at the start of each day fails if it dips below the line once. An average balance can absorb a low day if other days are higher. That difference is why the account's own fee schedule, not a general list, decides whether a fee applies.
What banks must disclose
Regulation DD, which implements the Truth in Savings Act, covers consumer deposit accounts at depository institutions other than credit unions. Its text is in 12 CFR Part 1030, and three parts matter for maintenance fees.
Disclosure before the account is opened
Under 12 CFR 1030.4, account disclosures are due before the account is opened or a service is provided, whichever comes first. A service counts as provided when a fee that must be disclosed is charged. If the customer is not present and has not already received the disclosures, they must be mailed or delivered within 10 business days, except for electronic openings, where they come before the account opens. On request, an institution must provide them again.
What the disclosure must contain
The disclosure must state the amount of any fee that may be charged on the account and the conditions under which it may be charged. It must also state any minimum balance needed to open the account, avoid a fee or earn the disclosed APY, and, apart from the opening balance, explain how that balance is determined. So the waiver conditions have to be in writing before you open the account.
The CFPB adds the consumer-facing consequence: the bank cannot charge a fee higher than the amount you were told.
Notice before a change
Under 12 CFR 1030.5, a bank that changes a required term in a way that may reduce the APY or otherwise harm the consumer must mail or deliver notice at least 30 calendar days before the effective date, and the notice must state that date. A higher maintenance fee is one such change, and the CFPB page says the institution must send the notice in writing.
There are exceptions. No advance notice is required for variable-rate changes, check printing fee changes, or terms of time accounts with maturities of one month or less. The regulation's official commentary also says a term that changes automatically on a stated event needs no advance notice when the opening disclosures fully describe it. Its examples are a fee waiver for the bank's own employees that ends when their employment ends, and a promotion described at opening as waiving the monthly service charge for one year.
Credit unions are outside Regulation DD. Federally insured credit unions follow the National Credit Union Administration's parallel rule, which also requires 30 calendar days' advance notice under 12 CFR 707.5 for a change that may adversely affect a member.
What a yearly fee really costs
A small monthly number is easy to overlook, so the useful comparison is the annual total. The example below is hypothetical; no specific bank or account is meant.
annual fee = monthly fee × 12
multi-year cost = annual fee × years
| Monthly fee | Per year | Over 5 years |
|---|---|---|
| $12 | $144 | $720 |
| $5 | $60 | $300 |
| $0 | $0 | $0 |
Illustrative example: an account charges $12 a month unless the average balance stays at or above $1,500. Meeting the waiver costs whatever the money would earn elsewhere, minus what the checking account pays on it. Assume a 4% annual gap. If you start from zero and move the full $1,500 in, you give up $60 a year, so meeting the waiver beats paying $144 by $84 a year. Against a $5 monthly fee ($60 a year), the two options are equal at that rate, and a lower rate makes keeping the balance the cheaper choice.
The cost applies only to the extra money you move in. If your balance already averages $900, you need $600 more, which at 4% is $24 a year against a $144 fee. If you would keep $1,500 there anyway, the waiver costs nothing. A rule measured every day, rather than on average, needs a cushion above the line, which raises the amount you hold. The 4% is an assumption; use the rate you can actually earn.
The comparison also needs the other charges. A zero-fee account can still charge for services you use, so the whole fee schedule matters, not only the maintenance line.
Bank On certified accounts
Bank On is a program of the Cities for Financial Empowerment (CFE) Fund. Accounts that meet its National Account Standards can be certified, and the program lists certified accounts by state. The standards are a benchmark for safe, affordable accounts rather than a promise that every account is free.
The CFE Fund updates the standards every two years, and its certification page says the current standards go through 2026. In the 2025-2026 edition, the monthly maintenance fee may be $5 or less if it cannot be waived. If it can be waived, the limit is $10, and the account must offer at least two ways to waive it entirely with a single transaction, such as direct deposit with no minimum, online bill pay or a debit card purchase. That edition also requires an opening deposit of $25 or less, no overdraft or non-sufficient funds fees, and no account activation, closure, dormancy, inactivity or low-balance fees.
The program has already released the 2027-2028 edition. It drops the waivable tier and sets the monthly maintenance fee at $5 or less, keeping the same opening-deposit limit and the same bans on overdraft, NSF and the other listed fees. The CFE Fund says it will contact certified institutions toward the end of 2026 to start recertification.
So a certified account today may charge nothing, up to $5, or up to $10 if a single transaction can waive the fee. Certification also applies to the specific account, not to every account at the same bank. Check the account's own fee schedule, and confirm that it is currently listed as certified.
This article is general education, not personalized financial advice. Fees, waivers and certification status can change, so confirm them with the institution.
Frequently asked questions
Can a bank raise the maintenance fee without telling me?
Not at a bank covered by Regulation DD. A higher fee is an adverse change, so the bank must mail or deliver notice at least 30 calendar days before the effective date. Federally insured credit unions have the same 30-day requirement under NCUA rules.
Can a waiver end without a separate notice?
Sometimes. The regulation's commentary says a term that changes automatically on a stated event needs no advance notice if the opening disclosures fully describe it, such as a promotional waiver described as lasting one year. That is why the opening disclosure's wording about when a waiver ends is worth reading.
Can I ask how the bank measures my balance?
Yes. The disclosure must explain how any balance needed to avoid a fee is determined, and disclosures must be provided on request. If your statement shows a fee that you think the balance rule should have waived, compare the dates and method in that disclosure with your daily balances.
Does Bank On certification mean no overdraft fees?
Yes, for the certified account itself. Both the 2025-2026 and the 2027-2028 standards require no overdraft or non-sufficient funds fees and an opening deposit of $25 or less. Other accounts at the same bank are not covered by the certification.
Do these disclosure rules cover business accounts?
No. Regulation DD defines an account as a deposit account held by or offered to a consumer, meaning a natural person holding it mainly for personal, family or household purposes. Business account terms come from the account agreement and other rules.
Steps before you pay or switch
- Find the fee and the waiver conditions in the account's current fee schedule, and note whether the balance is measured daily or as an average.
- Multiply the monthly fee by 12 to see the annual cost, then compare it with what the extra balance or deposit needed for the waiver costs you.
- If the fee does not fit, ask the bank about a basic, student or senior account, or look for a Bank On certified account and read its fee schedule.
- Keep any change-in-terms notice you receive; it states the effective date.
Sources
- CFPB: Why am I being charged a monthly maintenance fee for my bank or credit union account?
- CFPB: Regulation DD, 12 CFR Part 1030
- 12 CFR 1030.4, Account disclosures
- 12 CFR 1030.5, Subsequent disclosures
- 12 CFR 707.5, Subsequent disclosures (credit unions)
- Chase: Total Checking monthly service fee and waivers
- Bank On: Account Standards
- Bank On: Certified accounts by state
- Bank On: Get certified (current standards through 2026)
- Bank On National Account Standards, 2025-2026
- Bank On National Account Standards, 2027-2028
