One thing I learned after opening a Bank of America checking account in the U.S.

"Why do I have to pay monthly fees when I deposit money in a U.S. bank?"

This is a part that is hard to understand, but it is said to be due to the long-standing financial culture in the U.S.

Other countries have similar systems, but there are very few where almost all banks apply it as extensively as in the U.S.

The monthly fees at U.S. banks are simply 'account maintenance fees.'

These fees cover the costs of managing customer accounts, issuing debit cards, operating ATMs, running call centers, and so on.

For example, Chase charges $12 for a basic checking account, Bank of America charges between $12 and $16, and Wells Fargo charges around $10.

However, most accounts can have the fees waived if certain conditions are met.

For instance, setting up direct deposit of your paycheck ($500 or more), maintaining a minimum balance ($1,500 or more, or $5,000 for business accounts), or registering as a student account can make it free.

So why has this structure become established only in the U.S.? There are three main reasons.

First, in the U.S., accounts are viewed as a 'paid financial service.'

The U.S. has the Federal Deposit Insurance Corporation (FDIC) that protects depositors up to a certain amount even if the bank fails. However, the banks have to pay for that insurance, so ultimately, the costs are passed on to customers. Additionally, U.S. banks are large, and the costs for IT, security, and customer service operations are enormous. Therefore, the concept of a 'free account' is almost nonexistent.

Second, consumers are accustomed to a culture of service fees.

In the U.S., there are basic fees for healthcare, telecommunications, electricity, and internet services. Banking is one of them. People perceive banks more as places to receive financial services rather than just places to deposit money. As a result, many consider $10 to $15 a month as a management fee. However, nowadays, online banks like Chime, SoFi, and Ally are breaking this culture by promoting 'No Monthly Fee.'

Third, the revenue structure of U.S. banks is centered around fees.

Traditional banks earn from the difference between loan interest and deposit interest, but large U.S. banks have a much higher proportion of non-interest income.

They earn billions of dollars each year from card fees, transfer fees, overdraft fees, and monthly maintenance fees.

In contrast, Europe, South Korea, and Japan still focus on deposits and loans, so their reliance on such fees is lower.

Now, comparing with other countries, the differences are clear.

In South Korea, Japan, and most of Europe, basic accounts are free.

Only in special situations like international transfers or interbank transfers do small fees apply.

In the UK, premium accounts (which include insurance and travel benefits) charge around £10 to £15 a month, while most standard accounts are free.

Canada is similar to the U.S. RBC and TD Bank charge $4 to $15 a month, but fees can be waived if certain conditions are met.

Australia used to have fees, but most accounts have become free since the 2010s.

Ultimately, only the U.S. and Canada still have this 'monthly maintenance fee' culture.

However, this system is gradually disappearing.

Online banks like SoFi, Chime, and Capital One 360 are attracting younger customers by promoting "No Monthly Fees."

Banks are also reducing branch operating costs due to digitalization, and competition is intensifying, leading to a trend of eliminating fees.

In conclusion, the monthly fees at U.S. banks are not just a way to take money from customers; they are remnants of traditional financial services.

However, the younger generation is now asking, "Why do I have to pay to use a bank?"

As a result, 'No Fee accounts' are becoming the new standard in the U.S.

While there are inconveniences like not being able to use Zelle or issue checks, younger people seem to prefer accounts without fees.