Does It Ever Make Sense to Choose a Bank With a Monthly Maintenance Fee?

Some banks charge monthly maintenance fees for checking accounts. These fees could add up over time. And since there are financial institutions that don't charge for being a customer, you may wonder whether it is ever worth picking a bank that imposes this type of cost. 

The answer to this question isn't necessarily as straightforward as you'd think, though. To decide if a bank with a monthly maintenance fee is worth it, consider these issues. 

What features does the bank offer to justify the fee? 

Paying a fee only makes sense if you are getting something that wouldn't otherwise be available to you. For example, if the bank is linked with a savings account that offers a particularly competitive rate or if the bank provides a generous rewards program when you use your debit card, then it might be worth opening an account there.

Other features that might justify choosing a bank with a fee could include locations close to your home, customer-only access to a safe deposit box to store your valuables, or a large mobile deposit limit that other banks may not offer.

But, if the bank has no special features that you can't get elsewhere, the big question is, why would you ever pay a fee to maintain your account there? It just wouldn't make sense. 

Can you avoid the fee by complying with the bank's requirements? 

The next thing to consider is whether you can avoid the fee. Most banks that charge monthly maintenance fees enable you to avoid them if you comply with certain requirements. For example, you may be able to have your fee waived if you directly deposit money into the account or if you maintain a certain minimum daily balance. You might be able to sidestep the fee if you also have a savings account and transfer a set amount of money into it each month.

If your hope is to open an account with a bank and avoid the fee, be sure you really understand what you need to do in order not to pay. For example, if you have to maintain a certain balance, how is that balance calculated? Is it the amount in your account at the end of the month or is it your average daily balance (which is calculated by adding up your balance each day and dividing the total by the number of days in the month)? 

You don't want to assume you'll meet the requirements to avoid a fee, only to find out that you didn't really understand how the rules work and you're having money taken out of your account that you didn't expect to lose each month. 

Ultimately, you may just decide that you find it more convenient not to have to worry about your bank charging you money for your account, so you may decide to opt for an account without the chance of a fee. But, if you find a bank that offers tons of great perks and that enables you to get the fee waived, then there's no harm in opening an account there to take advantage of all the benefits it has to offer.