Opening a bank account is something that most people do at some point in their lives, but it can be challenging. There are many different accounts to choose from, and they all have different rules and fees. So it can be frustrating trying to figure out how much is it to open a bank account. So this is a simple guide that can help you.
Monthly Account Fees
To avoid paying monthly fees, it’s important to understand the different types of accounts that banks offer. While some accounts charge minimal fees, they may also come with limited features and benefits.
Monthly account fees usually range from $3 to $10, depending on the account type and location. For example, a no-fee checking account offered by an online bank might be limited in its capabilities compared with a traditional brick-and-mortar bank account that comes with many more perks—but doesn’t cost anything extra (other than ATM fees).
Overdraft Fees
You’ve probably heard of overdraft fees—the charges that can add up to hundreds of dollars when you spend more than you have in your bank account. Overdrafts happen when a transaction goes through without enough money available in your account.
Overdraft fees are charged when you spend more money than you have in your account, but it’s important to know if any other fees will come along with it. For example, the average overdraft fee is between $25 and $35 per transaction, but some banks will charge as much as $35 per day starting on the first day an overdraft occurs.
Non-Sufficient Funds Fee (NSF)
A non-sufficient funds fee (NSF) is charged when you spend more money than you have in a checking account. For example, NSF fees can be charged by either the bank or the merchant you are paying.
An NSF fee will vary depending on the bank, but it is usually equivalent to an overdraft fee and could range from $35 to $50 per transaction. You can avoid these fees by opting into overdraft protection at your bank; however, this can also result in additional charges or interest if used excessively.
Minimum Balance Fees
Banks may charge a standard fee to customers who need to maintain a minimum balance in their accounts. However, how much you need to maintain varies by bank, but it’s usually between $0 and $1000.
A few banks have no minimum balance requirements at all, so if this is important to you and you want something that won’t hit your pocketbook too hard each month, look for those banks first! “If you’re funding your new account online, you’ll need to give the new bank the routing number and account number for where the money will be coming from,” says SoFi experts.
Transaction Fees
Transaction fees are charged for every transaction you make, including deposits, withdrawals, transfers and purchases. Fees vary by bank and type of transaction. Some banks have a minimum balance requirement to avoid monthly fees. Therefore, you should avoid banks with monthly fees.
So, are there any fees or charges to start a bank account? The answer is yes and no. You can find some great accounts with no monthly fee at all, but other charges like overdraft fees are more difficult to avoid. So it’s best to look into these before you open an account so that they don’t catch you by surprise!