Most savings accounts have no minimum balance requirement, but some do
You can open a savings account at most banks and credit unions with no minimum balance at all. You can deposit $1 and start saving. However, some accounts — particularly those offering higher interest rates or extra features — do require you to keep a certain amount in the account at all times. The minimum varies widely: some accounts ask for $100, others for $1,000 or more.
The key is that the minimum applies to what stays in your account, not what you need to open it. You might be able to open an account with $25, but if it has a $500 minimum balance requirement, you need to reach and maintain that $500 or face a monthly fee.
Whether a minimum balance matters to you depends on your situation. If you are building savings slowly or living paycheck to paycheck, an account with no minimum keeps you from being penalized for having a small balance. If you have money to keep set aside, a higher-minimum account often pays more interest, which can work in your favor.
Key Takeaways
- Many banks and credit unions offer savings accounts with zero minimum balance requirements, meaning you can open and maintain an account with any amount.
- Accounts that require a minimum balance typically charge a monthly fee if your balance drops below that amount, even if you only fall short by a few dollars.
- Higher-minimum accounts often pay better interest rates, so the fee you avoid by choosing a no-minimum account may cost you in lower earnings.
- Online banks are more likely to have no minimum balance requirements than brick-and-mortar banks, though this varies by institution.
How minimum balance requirements work
A minimum balance requirement means the bank sets a floor — a lowest amount you must keep in the account. If your balance falls below that number at any point during the month (or on a specific day, depending on the bank's rules), you owe a fee. That fee is usually $5 to $15 per month, though it varies.
The requirement is measured differently at different banks. Some check your balance on the last day of the month. Others check it every day and charge a fee if you dip below the minimum even once. A few calculate an average balance across the month — so if you start with $600, spend it down to $200, then deposit $800, your average might still meet the requirement.
The minimum applies to the total in that account only. If you have a checking account and a savings account at the same bank, the balances do not combine. Your savings account minimum is separate.
Where to find accounts with no minimum balance
Online banks are the most common source of no-minimum savings accounts. Banks like Ally, Marcus, and Discover have no minimum balance requirement and no monthly maintenance fee. You can open these accounts entirely online, and the process takes 10 to 15 minutes.
Many traditional brick-and-mortar banks also offer no-minimum savings accounts, though they may be less advertised than premium accounts. Call your bank or visit their website and search for "savings account" — look at the account details or fee schedule. The information is there, but you may need to dig past the featured products.
Credit unions often have no-minimum accounts as well. If you are a member of a credit union, ask about their basic savings product. If you are not yet a member, you can search for credit unions in your area through the CO-OP network or Alliant Credit Union's shared branching system.
When a minimum balance requirement might actually save you money
This seems backwards, but it is true: an account with a minimum balance requirement can sometimes cost you less than a no-minimum account, depending on how much interest you earn.
Suppose Bank A has no minimum balance and pays 0.01% interest. Bank B requires a $1,000 minimum and pays 4.5% interest. If you keep $1,000 in Bank B, you earn roughly $45 per year in interest. If you keep the same $1,000 in Bank A, you earn about $0.10. The difference is $44.90 — far more than any monthly fee Bank B might charge if you occasionally dip below the minimum.
The math only works if you actually have the money to keep in the account. If you are scraping together $200 a month, a high-minimum account with a high interest rate does not help you — you cannot meet the minimum, so you pay the fee and earn nothing.
What happens if your balance drops below the minimum
The bank charges a fee, usually called a "minimum balance fee" or "account maintenance fee." This fee appears on your statement and is deducted from your account. If your balance is already low, the fee makes it lower.
Some banks charge the fee once per month. Others charge it every day you are below the minimum, which can add up quickly. A few banks waive the fee if you meet the minimum by a certain date in the following month, giving you a grace period to recover.
The fee does not close your account or damage your credit. It is straightforward money the bank takes. However, if your balance goes negative because of the fee, the bank may close the account and report you to ChexSystems, a banking history database that other banks check when you try to open new accounts.
How to choose between minimum and no-minimum accounts
Start by asking yourself: do I have money I can leave untouched in savings? If the answer is yes and you have at least $500 to $1,000, compare the interest rates. A higher rate might offset the risk of occasionally paying a fee.
If the answer is no — if you are saving small amounts or your balance fluctuates — choose a no-minimum account. The peace of mind is worth more than a fraction of a percent in interest. You can always move money later if your situation changes.
Also consider how the bank measures the minimum. A bank that checks your balance once a month is less risky than one that checks daily. And a bank that offers a grace period is more forgiving if you slip below the minimum temporarily.
Minimum balance requirements at different types of banks
| Bank Type | Typical Minimum | Common Fee if Below | Interest Rate Range |
|---|---|---|---|
| Online banks | $0 | $0 | 4% to 5% |
| Credit unions | $0 to $100 | $2 to $10 | 0.5% to 2% |
| Large national banks | $0 to $500 | $5 to $15 | 0.01% to 0.5% |
| Regional banks | $100 to $1,000 | $5 to $12 | 0.5% to 2% |
These ranges are typical but not universal. Always check the specific account's fee schedule before opening, because rates and requirements change and vary by location.
Frequently Asked Questions
Can I open a savings account with $0 and deposit money later?
Yes, at banks with no minimum balance requirement. You can open the account with your first deposit, even if it is just $1. However, some banks require a small opening deposit — usually $25 or less — so check before you start the process.
What if I go below the minimum by accident?
The bank charges a fee. The fee is deducted from your account, which may push your balance even lower. Some banks offer a grace period of a few days to bring your balance back up before charging the fee. Check your account agreement or call the bank to ask about their policy.
Does a minimum balance requirement affect my credit score?
No. Minimum balance fees are between you and the bank. They do not appear on your credit report and do not affect your credit score. However, if your account goes negative and the bank closes it, that closure may be reported to ChexSystems, which other banks see when you try to open new accounts.
Can I have multiple savings accounts to avoid the minimum?
Technically yes, but it does not help. Each account is separate, so the minimum applies to each one individually. If you have two accounts with $500 minimums and only $600 total, you will pay a fee on one of them. You would be better off choosing one account with no minimum.
Do online banks ever add minimum balance requirements later?
It is rare, but banks can change their terms. They must notify you in writing before the change takes effect, usually 30 days in advance. If a bank adds a minimum balance requirement you do not want to meet, you can move your money to a different bank before the change goes into effect.