Banks Are Raising Minimum Balance Requirements on Checking Accounts

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Changes to checking account minimum balance requirements can leave customers paying monthly maintenance fees unless they qualify for a waiver or switch to a lower-cost account. SHVETS production/Pexels

That checking account you’ve had for years might be costing you more than you realize. Some banks have increased the balances customers must maintain to avoid monthly maintenance fees, creating another potential expense for households already struggling with rising living costs. For retirees and people living paycheck to paycheck, keeping hundreds or thousands of dollars untouched in a checking account isn’t always realistic.

One example involves TD Bank, which increased the minimum daily balance requirement on its Convenience Checking account from $100 to $250 in January 2026. Customers who don’t meet the requirement or qualify for an applicable exemption can face a $15 monthly maintenance fee. That’s potentially $180 annually simply for maintaining an everyday checking account.

While checking account fees aren’t new, changing waiver requirements can catch customers off guard, especially when they assume their accounts still operate under the same rules. Here’s what you should know about banks raising minimum balance requirements and how to protect your money.

TD Bank Increased Its Checking Account Minimum by 150%

TD Bank made a significant change to its Convenience Checking account effective January 4, 2026, increasing the minimum daily balance needed to avoid its monthly maintenance fee from $100 to $250. According to the bank’s official account guide, customers generally must maintain that balance to avoid the $15 monthly charge, although the fee is waived for eligible account holders ages 17 through 23. Because the requirement is based on the minimum daily balance, allowing the account to fall below $250 during the statement period can trigger the fee even if the balance is higher on other days. Someone who previously kept $125 in checking without paying a monthly maintenance fee could now face an additional $180 in annual banking expenses if they don’t adjust their account or qualify for another option. The change illustrates why consumers should review account disclosures rather than assuming their longtime checking arrangements will remain unchanged.

Why Minimum Balance Requirements Matter More Than You Think

A minimum balance requirement may seem like a minor banking detail, but it can create financial difficulties for people who need access to every dollar they earn. In its 2023 National Survey of Unbanked and Underbanked Households, the Federal Deposit Insurance Corporation found that 42.3% of unbanked households cited not having enough money to meet minimum balance requirements as a reason for remaining outside the banking system. Among households without bank accounts, 23.3% identified insufficient funds for minimum balances as their primary reason for not having one. These findings demonstrate that banking requirements can create genuine obstacles for lower-income Americans, even when the monthly fee appears relatively small. For retirees managing Social Security benefits, medical bills, and everyday expenses, avoiding unnecessary checking account fees can make a meaningful difference in their monthly budgets.

Chase Shows How Complicated Fee Waivers Can Become

Not every bank uses the same formula for determining whether customers must pay a monthly maintenance fee. For example, Chase Total Checking currently lists a $15 monthly service fee that customers can avoid through qualifying electronic deposits totaling at least $500 per statement period, maintaining a $1,500 beginning-of-day balance, or meeting certain linked-account balance requirements. One alternative involves maintaining an average beginning-day balance of at least $5,000 across eligible linked accounts or qualifying investments. These different thresholds matter because a customer might have sufficient money across several accounts but still fail to meet a particular waiver condition. Before moving funds or changing banks, consumers should understand whether their account uses a minimum daily balance, an average balance, qualifying deposits, or a combination of requirements.

Why Banks Charge Monthly Maintenance Fees

Banks earn revenue through several sources, including interest on loans, account services, and transaction-related fees. Monthly maintenance fees provide another source of income, although the reasons behind individual banks’ pricing decisions can vary and shouldn’t automatically be attributed to interest rates or operating expenses. Some financial institutions waive these charges when customers maintain certain balances, receive qualifying direct deposits, or establish broader banking relationships. From a consumer’s perspective, however, the important question isn’t why the bank charges a fee but whether the account provides enough value to justify the expense. A $15 monthly charge might appear manageable, but over five years it could total $900 if the customer pays it consistently.

Social Security Recipients Should Review Their Account Options

For retirees receiving Social Security, checking account fees can quietly reduce the amount available for groceries, prescriptions, utilities, and other essential expenses. Consider someone receiving $1,800 in monthly benefits who pays a $15 maintenance fee because their account balance frequently falls below the bank’s required minimum. That charge represents $180 annually, money that could otherwise help cover medication copayments or unexpected household repairs. Some banks offer fee waivers for qualifying electronic deposits, including certain government benefit payments, but eligibility and minimum deposit amounts vary by account. Before changing where Social Security payments are deposited, retirees should ask their financial institution whether their current account qualifies for a waiver and whether a lower-cost checking option is available.

Keeping Extra Money in Checking Has an Opportunity Cost

Maintaining a larger checking account balance isn’t necessarily the most cost-effective way to avoid fees, especially when the account earns little or no interest. TD Bank’s Convenience Checking account, for example, is a non-interest-bearing account, meaning customers don’t earn interest on the money they maintain there. A retiree who must keep additional cash available to satisfy a balance requirement may be giving up interest that money could earn in an insured savings account. However, the trade-off depends on the amount involved, available interest rates, and whether moving funds would trigger maintenance fees or overdrafts. Comparing the cost of monthly fees with the potential interest earned elsewhere can help consumers decide whether maintaining a required balance or switching accounts makes better financial sense.

A Free Checking Account Could Be Worth Considering

Consumers who struggle to meet minimum balance requirements don’t necessarily have to accept monthly maintenance fees as unavoidable. Some online banks, community banks, and credit unions offer checking accounts without monthly maintenance charges or minimum balance requirements, although other fees and restrictions may still apply. The FDIC’s BankFind tool can help consumers verify whether a bank is federally insured, while the National Credit Union Administration provides information about federally insured credit unions. Before opening a new account, compare ATM access, overdraft policies, mobile banking features, customer service, and whether the institution supports your preferred payment methods. An account advertised as free may still charge for certain transactions, so reviewing the complete fee schedule remains essential.

What to Do If Your Bank Already Charged You

If you discover an unexpected maintenance fee, start by reviewing your account’s current fee schedule and recent statements to determine why the charge occurred. Contact the bank and ask whether the fee resulted from a new minimum balance requirement, a missed qualifying deposit, or another change to your account terms. You can also request a courtesy refund, particularly if this is your first fee or you were unaware of a recent account change, although the bank isn’t necessarily required to approve it. If the current account no longer fits your financial situation, ask whether you can switch to a different checking product without closing your existing banking relationship. Consumers who believe a fee was improperly assessed or that required disclosures were not provided can submit a complaint through the Consumer Financial Protection Bureau.

Don’t Let Checking Account Fees Eat Into Your Savings

Banks raising minimum balance requirements can create an unexpected expense for consumers who have relied on the same checking accounts for years. TD Bank’s move from a $100 to a $250 minimum daily balance demonstrates how a seemingly modest policy change can leave some customers facing $180 in annual fees. However, the solution isn’t necessarily to keep more money sitting in checking, particularly when lower-cost alternatives or qualifying fee waivers may be available. Reviewing your account disclosures, comparing banking options, and asking about direct deposit requirements can help you avoid paying for services you may be able to receive without a monthly charge. Your checking account should make managing money easier, not quietly reduce the savings you’ve worked hard to build.

Has your bank increased its minimum balance requirement or started charging a monthly maintenance fee? Have you switched banks to avoid unnecessary charges? Share your experience in the comments.