The banks with no minimum balance requirements

Most large national banks require you to keep money in a savings account or they charge you a monthly fee. But several banks do not. Ally Bank, Charles Schwab Bank, Discover Bank, and Marcus by Goldman Sachs all offer savings accounts with zero minimum balance. You can open an account, deposit one dollar, and never add another cent without paying a fee.

The catch is that these are all online-only banks. You cannot walk into a branch. If you need in-person service, you will need to look at regional banks or credit unions in your area, which often have lower or no minimums than the national chains.

The minimum balance requirement is separate from the interest rate. A bank with no minimum might pay you 4% annual percentage yield on your balance, or it might pay 0.01%. The two are not linked. Check both the minimum and the rate before you choose.

Key Takeaways

  • Ally, Charles Schwab, Discover, and Marcus offer savings accounts with no minimum balance requirement and no monthly maintenance fee.
  • These banks are online-only, so you cannot deposit cash in person or speak to someone at a physical location.
  • Regional banks and credit unions often have lower minimums than national chains, sometimes as low as $25 or $100.
  • The minimum balance rule and the interest rate are separate — a bank with no minimum can still pay a low rate, and vice versa.
  • Some banks waive the minimum if you set up direct deposit or keep a linked checking account, even if the stated minimum is higher.

Why banks set minimum balance requirements

A minimum balance requirement is a way for a bank to make money without charging you a visible fee. If you keep $500 in a savings account earning 0.01% interest, the bank keeps the difference between what it earns on that money and what it pays you. The minimum ensures you have enough in the account to make that spread worthwhile.

Banks also use minimums to discourage people from opening accounts they will not use. An account that sits empty costs the bank money to maintain — they have to send statements, monitor it for fraud, and keep records. A $500 minimum filters out accounts that will never generate revenue.

Online banks do not have the same costs. They do not print statements, staff branches, or process cash deposits. That is why they can afford to drop the minimum entirely. They make money on the interest spread alone, even on small balances.

How minimums work at large national banks

Chase, Bank of America, Wells Fargo, and Citibank all charge a monthly fee if your savings account balance falls below a set amount. The minimum is usually between $300 and $500. If you drop below it, you pay $5 to $12 per month.

Some of these banks will waive the minimum if you meet other conditions. Chase waives the minimum on some savings accounts if you have a linked checking account with them. Bank of America waives it if you set up direct deposit of your paycheck. Citibank waives it if you maintain a higher balance in a linked account. Read the account terms carefully — the waiver is often buried in the fine print.

The fee compounds quickly. A $10 monthly fee on a $300 balance is 40% per year in fees alone. Over time, the fee can eat through a small balance entirely.

Credit unions and regional banks

Credit unions often have lower minimums than national banks, sometimes $25 or $100. Some have no minimum at all. The catch is that you have to be a member, which usually means you live or work in a specific area, work for a specific employer, or belong to a specific organization.

Regional banks — banks that operate in only a few states — also tend to have lower minimums than the national chains. A bank with 50 branches in the Midwest does not have the same overhead as Chase, which has 4,700 branches nationwide. That savings sometimes shows up in lower minimums.

To find credit unions and regional banks near you, search for "credit unions in [your city]" or ask your employer if they have a partnership with a specific credit union. The National Credit Union Administration website has a credit union locator tool.

Comparing the trade-offs

Choosing between a bank with no minimum and one with a minimum is not just about the minimum itself. You are also choosing between online-only access and in-person access, between high interest rates and lower ones, and between a straightforward product and one with conditions attached.

p>An online bank with no minimum and a 4% rate is better than a national bank with a $500 minimum and a 0.01% rate, even if you only have $100 to deposit. The online bank costs you nothing and pays you something. The national bank costs you $10 per month and pays you almost nothing.

But if you need to deposit cash regularly, an online bank will not work for you. You cannot put cash into an Ally account at an ATM. You have to transfer money from another bank account. If you do not have another account, or if you get paid in cash, you need a bank with physical locations.

What happens if you fall below the minimum

The fee hits your account automatically on a set date each month — usually the last day of the month or the first day of the next month. The bank does not warn you or ask permission. The fee just appears as a debit.

If you fall below the minimum for multiple months, the fees stack. A $10 monthly fee for three months is $30 out of your account. Some people do not notice until they check their balance and find it much lower than they expected.

If your balance goes negative because of fees, the bank may close your account and report you to ChexSystems, a banking history database. That can make it harder to open accounts at other banks for several years. It is worth setting a phone reminder on the first of each month to check your balance if you are close to the minimum.

How to avoid minimum balance fees

The simplest route is to choose a bank with no minimum. If you need in-person access, call your local credit unions and ask about their minimums before you visit. Many will tell you over the phone.

If you are already at a bank with a minimum, ask whether they will waive it. Many banks have waivers you do not know about. Call the customer service number on the back of your card and ask: "Does this account have a minimum balance requirement? If so, what do I need to do to waive it?" Write down the name of the person you spoke to and the date, in case you need to reference it later.

If the bank will not waive it and you cannot meet it, move your money. Switching banks takes about 15 minutes. You do not lose your old account — you just stop using it. The bank will close it after a period of inactivity, usually 12 months.

Frequently Asked Questions

Can I have a savings account with zero dollars in it?

Yes, at banks with no minimum balance requirement. You can open the account and never deposit anything. The account will sit empty and cost you nothing. At banks with a minimum, you cannot keep an account open if the balance falls to zero — they will close it after a few months of inactivity.

Do online banks charge fees for anything else?

Most online banks with no minimum also have no monthly maintenance fee, no overdraft fees, and no ATM fees (though they may not have their own ATM network). Read the fee schedule on their website before you open an account. Some charge fees for things like wire transfers or paper statements.

What if I need to deposit cash but I use an online bank?

You can deposit cash at a linked bank account and transfer it to your online savings account, or you can use a prepaid card that lets you load cash at retail locations and then transfer the money. Some online banks partner with ATM networks that accept cash deposits. Check the bank's website for their specific options.

Will switching banks hurt my credit score?

No. Opening a savings account does not affect your credit score. Switching banks does not affect it either. Your credit score is based on borrowing and repayment history, not on which bank holds your money.

How long does it take to switch banks?

Opening a new account takes 10 to 15 minutes online. Transferring money from your old account takes one to three business days. You do not have to close your old account when ready — you can let it sit until the bank closes it for inactivity, which usually takes 12 months.