What is the difference between a monthly maintenance fee and a monthly service charge?

Question

This is when opening a checking account.

Answer 1

I believe that essentially a monthly maintenance fee and a monthly service charge is the same thing. I've noticed that some banks will use each term differently depending on the type of account. For an account that you have to keep a minumum balance of $500 in, the bank might use the term "monthly service charge." For an account that you have to keep a minumum balance of $5,000 in, the bank might use the term "monthly maintenance fee." And, concerning these two fees/charges, most banks will waive the fee/charge if you keep your account balance above a certain amount.

Some banks, however, will charge a monthly maintenance fee no matter what. This is mainly used for special accounts, ones that offer a great deal of services that are given to you because you have that special account. Kind of like a fee that's charged because they are providing extra services to you. A service charge is something you'll get if you go below a set balance. For example, most banks will charge you a service charge if your savings account drops below $100. I hope this helps.

Answer 2

A monthly service charge is probably a charge every month.  In some cases that is waived due to total balance in other accounts or loans.  But you have to be careful how they handle that if you have a low balance.  For example I have an interest checking account at WaMu and every month they charge $20, give me $20 credit, and then credit the interest.

A maintenance fee is probably something only charged if your daily or average monthly balance is below some set minimum.  As long as your balance is above that minimum, the charge might not apply.

But read the bank's fine print to make sure what charges apply when.