Banks and credit unions that don't require opening deposits
Several banks and credit unions let you open a checking or savings account without putting money in upfront. Chime, Varo, LendingClub, and Ally Bank are online banks that charge no opening deposit. Many traditional banks and credit unions also offer no-deposit accounts, though you'll need to search your local options because policies vary by institution.
Online banks tend to have the fewest barriers because they have lower overhead costs than brick-and-mortar branches. Credit unions sometimes waive opening deposits for members, especially if you're joining through an employer or community group. Call ahead or check the account details on the bank's website before you start — some institutions list opening deposit requirements only in the fine print.
No opening deposit does not mean no fees at all. Many of these accounts charge monthly maintenance fees, overdraft fees, or fees for using out-of-network ATMs. Read the fee schedule carefully, because a $0 opening deposit can become expensive if the account charges $10 or $15 per month.
Key Takeaways
- Online banks like Chime, Varo, and Ally Bank do not require opening deposits, and many waive monthly fees if you set up direct deposit.
- Credit unions often waive opening deposits for members, especially if you join through an employer or community affiliation.
- No opening deposit does not mean no fees — check the monthly maintenance fee, overdraft fee, and ATM fee structure before opening.
- Direct deposit often triggers fee waivers at banks that otherwise charge monthly maintenance, so linking your paycheck can save you money.
How opening deposit requirements work
An opening deposit is the money you put into an account on the day you open it. Banks use it as a way to confirm you have funds and to establish a baseline balance. Some banks require $25, others $100 or more. Waiving the opening deposit means you can open the account with $0 and add money later.
The opening deposit is separate from the minimum balance requirement, which is the lowest amount you must keep in the account to avoid fees. Some accounts have no minimum balance at all. Others require you to maintain $500 or $1,000. If you fall below the minimum, you may be charged a monthly fee even if you never use the account.
When you set up direct deposit, many banks waive both the opening deposit and the monthly maintenance fee. This is the most common way to avoid fees entirely — the bank knows your paycheck will land in the account regularly, so they don't need an upfront deposit or a minimum balance.
Online banks versus traditional banks
Online banks have no physical branches, so they operate with lower costs and can afford to waive opening deposits and monthly fees more often than traditional banks. They also tend to offer higher interest rates on savings accounts because they pass along their cost savings to customers. The trade-off is that you cannot walk into a branch to deposit cash or speak to someone in person.
Traditional banks and credit unions have branches where you can deposit checks and cash by hand. Many of them also waive opening deposits, especially if you have direct deposit set up or if you maintain a certain balance. Call your local bank or credit union to ask about their no-deposit checking options — policies differ widely.
If you need to deposit cash regularly, a traditional bank or credit union with branches near you may be worth the extra fees. If you rarely use cash and can do everything online, an online bank usually costs less and has fewer barriers to opening an account.
What to look for in a no-deposit account
Start by checking whether the account charges a monthly maintenance fee. If it does, find out whether that fee goes away when you set up direct deposit — most online banks waive it automatically once your paycheck starts landing. If the fee stays even with direct deposit, calculate whether you'll use the account enough to justify the cost.
Look at the overdraft policy. Some banks charge $30 or $35 per overdraft transaction. Others offer overdraft protection, which links your checking account to a savings account or credit line so you don't overdraw. A few banks, like Chime, don't charge overdraft fees at all.
Check the ATM network. If the bank is online-only, ask whether it reimburses out-of-network ATM fees or whether it partners with a network of free ATMs. Using an ATM that charges $3 per transaction adds up quickly if you withdraw cash often.
Setting up direct deposit to waive fees
Direct deposit is the fastest way to trigger fee waivers at banks that otherwise charge monthly maintenance. When you set up direct deposit, you give your employer your account number and routing number, and your paycheck deposits automatically on payday. Most banks waive their monthly fee once direct deposit is active.
To set up direct deposit, ask your employer's payroll or HR department for the direct deposit form. You'll need your account number and routing number, which you can find on a check or by logging into your online banking portal. The form usually takes effect within one or two pay periods.
If you don't have an employer or your employer doesn't offer direct deposit, some banks will waive fees if you maintain a minimum balance or if you transfer money in regularly from another account. Ask the bank what options are available to you.
Credit unions and membership requirements
Credit unions often have lower fees and higher interest rates than banks, but you have to be a member to open an account. Membership is sometimes restricted to people who work for a certain employer, live in a certain area, or belong to a certain organization. Some credit unions have opened membership to anyone, but most still have restrictions.
If you work for a large employer, check whether your company has a credit union. If you belong to a union, military branch, or professional association, you may be able to join a credit union through that group. If you live in a certain county or city, a local credit union may accept you as a member.
Credit unions typically waive opening deposits for members and often have no monthly maintenance fees. If you can join one, it's worth comparing their rates and fees to online banks in your area.
Frequently Asked Questions
Can I open a bank account online without going to a branch?
Yes. Most online banks and many traditional banks let you open an account entirely online using your computer or phone. You'll need a valid ID, a Social Security number, and proof of address. The process usually takes 10 to 15 minutes, and your account is ready to use the same day or within 24 hours.
What happens if I don't set up direct deposit?
You'll usually pay a monthly maintenance fee, which ranges from $5 to $15 depending on the bank. Some banks waive the fee if you maintain a minimum balance instead, or if you transfer money in regularly. Read the account terms to see what options the bank offers.
Do I need a Social Security number to open a bank account?
Yes, most banks require a Social Security number or an Individual Taxpayer Identification Number (ITIN). Some banks and credit unions have accounts for people without a Social Security number, but they are less common. Call ahead to ask whether the bank you're interested in has options for you.
Can I open multiple accounts at different banks?
Yes. There's no rule against having accounts at multiple banks. Some people keep a checking account at one bank and a savings account at another to take advantage of different interest rates or fee structures. Just make sure you can manage multiple accounts and keep track of which bank holds which money.
What if I have a history of overdrafts or bad banking?
Banks check ChexSystems, a database of banking history, when you open an account. If you have unpaid overdrafts or closed an account with a negative balance, you may be denied. Some banks and credit unions are more lenient than others. If you're denied, ask the bank why and whether you can reapply after a certain period or after paying off the debt.