What do banks mean when they say no fees if you have a minimum balance?

Question

Like one of the bank i was finding more information about said "Minimum daily balance in checking– $750 or more" does that mean if i were to have that amount in the checking account no fees for me?

Answer 1

Yes, thats what it means but if it drops below that amount for even a day you can expect a monthly service charge and maybe other fees.  Still, yes, keep it at $750 of above and you are fine.

Answer 2

Most banks charge an account keeping fee which may range from $3.00 per month to over $10.00 per month. Many will waive this fee if you maintain a minimum balance of usually $500.00 or more in the account.

You need to decide whether it is better to pay the fee or have your money tied up in the account not earning interest.

In the case of the bank you mention, you need a minimum of $750.00 to avoid paying the fee.  That amount of money invested at say 8% per annum would earn $60.00 interest which is $5.00 per month. So in effect it is still costing you $5.00 per month  (loss of interest) by having that amount of money in your cheque account, merely to avoid the bank's account keeping fee.

Answer 3

Yes.  Your minimum balance cannot be less than $750 at any time during the month or there will be a fee charged.