A guide to checking account minimum balance requirements by bank

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Minimum balance requirements can be a major roadblock for people who need bank accounts. In fact, among the “unbanked” (those who don’t have a traditional bank account), the main reason they give for not having an account is that minimum balance requirements are too high.

Minimum balance requirements vary by checking account, with some premium checking accounts requiring $1,000 or more. Fortunately, there are many accounts with no requirement whatsoever.

A minimum balance on a checking account is the lowest balance you can carry without incurring a monthly maintenance fee or other penalties, such as losing out on interest earnings for the month.

Why do some banks have minimum balance requirements? Common reasons include:

Cash reserves: They help banks meet their reserve requirements and prevent bank failures that would result from mass withdrawals of cash.
Bank expenses: They help banks ensure they’ll have money available to fund loans and cover operational costs associated with managing accounts.
Account stability: They deter you from overdrafting and incurring additional fees or having your account involuntarily closed.

For some people, accounts with high minimum balance requirements are preferable, since they tend to have valuable features, like higher interest rates or loan discounts.

But high minimum balances can be harmful to other customers. In particular, customers with the lowest incomes end up paying the most toward low-balance fees.

There are a handful of methods a bank can use to determine whether or not you meet the minimum balance requirement, and the method varies by account. They include:

Minimum balance: Your balance has to stay at or above the minimum at all times during the month, or you’ll be charged a fee.
Minimum daily balance: At the end of each business day, your balance has to be at or above the minimum required amount. If your balance falls below the minimum on just one day, you’ll be charged a fee.
Average daily balance: The bank adds up your daily closing balances for each day in a month and divides that figure by the number of days in the month. If this average is below the minimum requirement, you’ll be charged a fee.

In some cases, the bank may also use the combined balances in all of your accounts to fulfill the requirement.

To understand the requirement for your account and see how your minimum balance is calculated, take a close look at your account disclosure information.

If your account goes below the minimum required balance, a number of things can happen. In some cases, the bank may draw money from a linked savings account to cover the shortage.

However, you might be charged a low-balance fee, a monthly maintenance fee, or lose your ability to earn interest for the month. One way to avoid a low-balance fee is to set up an alert so you know when you’re approaching the minimum.

As for monthly maintenance fees, you might be able to get them waived even if you dip below the minimum balance. For example, some banks will waive the fee if you have a set number of debit transactions or direct deposits to your account within a given month.

Just remember that even if the account has no minimum balance, you can still face fees for going below a $0 balance, including fees for bounced checks and overdrafts.

The following is a look at the checking account minimum balance requirements among six major banks. These minimums are required to avoid fees and/or earn the highest advertised interest rate.

Keep in mind that many of these accounts offer alternative ways to avoid monthly fees beyond maintaining the minimum balance, such as setting up direct deposit or joining the bank’s rewards program.

Before opening an account, verify the account details directly with the bank and be sure you understand all requirements necessary to waive fees.

Bank of America offers a few different checking account options. Generally, the higher the minimum balance requirement, the more features that account comes with.

SafeBalance Banking: Minimum daily balance of $500 (or monthly fee of $4.95; waived for account owners age 25 and under)
Advantage Plus Banking: Minimum daily balance of $1,500 (or monthly fee of $12)
Advantage Relationship Banking: Minimum daily balance of $20,000 (or monthly fee of $25)

Capital One offers one standard checking account: the 360 Checking account. There is no minimum balance requirement, and there are no fees to open or use your Capital One 360 checking account.

Chase Bank offers a variety of checking accounts, including student checking and private client checking. The following is a look at Chase’s standard checking accounts and associated minimum balance requirements.

Chase Secure Banking: No minimum balance; must have electronic deposits made to account totaling $250 or more (or monthly fee of $4.95)
Chase Total Checking: Minimum daily balance of $1,500, or an average beginning day balance of $5,000 or more in any combination of this account and linked qualifying Chase checking, savings and other balances (or monthly fee of $15)
Chase Premier Plus Checking: Average beginning day balance of $15,000 or more in any combination of this account and linked qualifying deposits/investments (or monthly fee of $25)

TD Bank offers three types of checking accounts; the higher the minimum balance requirement, the more features and perks that account comes with.

TD Complete Checking: Minimum daily balance of $500, or a $5,000 minimum daily combined balance across all personal deposit accounts that you choose to link (or monthly fee of $15)
TD Beyond Checking: Minimum daily balance of $2,500, or a $25,000 minimum daily combined balance across eligible TD accounts you choose to link (or monthly fee of $25)
TD Essential Banking: No minimum balance requirement, monthly fee of $4.95 (waived for account owners ages 13 to 17)

U.S. Bank offers two checking accounts, each with different requirements and perks.

Bank Smartly Checking: Minimum average account balance of $1,500 (or monthly fee of $12)
Safe Debit Account: No minimum balance, monthly fee of $4.95

Wells Fargo has several checking account options designed to meet the needs of different types of customers. While the minimum balance requirements vary, all accounts require a minimum of $25 to open.

Clear Access Banking: No minimum balance requirement, monthly fee of $5 (waived for account owners ages 13 to 24)
Everyday Checking: Minimum daily balance of $1,500, or $5,000 or more in qualifying deposit balances, investment balances, or both (or monthly fee of $15)
Prime Checking: $20,000 or more in statement-ending qualifying linked balances (or monthly fee of $25)
Premier Checking: $250,000 or more in statement-ending qualifying linked balances (or monthly fee of $35)

Learn more about minimum balance requirements:

The minimum opening deposit is the initial amount you need to deposit in order to open a bank account. The minimum balance is the lowest balance you can keep in the account each month to avoid a monthly fee or losing certain benefits. Depending on the account, the minimum opening deposit and minimum balance may or may not be the same amount.

You’re most likely to find an account that does not have a minimum balance requirement if you look for one at an online bank or credit union. For example, all of the checking accounts featured in our list of the 10 best free checking accounts have no minimum balance requirements. For accounts with flexible requirements, you can also check to see if you qualify for second-chance checking or a student checking account.

The fee for going below the minimum required balance in your checking account depends on the account. Usually, you have to pay an account maintenance fee ranging anywhere from $5 to $25.