Which banks have the lowest minimum balance requirements
Most large national banks require you to keep between $500 and $2,500 in your account to avoid monthly fees. But several banks and credit unions let you maintain accounts with no minimum balance at all, or with minimums under $100. The catch is that these accounts often come with restrictions—limited branch access, fewer ATMs, or requirements to set up direct deposit.
The banks with the lowest or zero minimum balance requirements fall into three categories: online-only banks (which have no physical branches), credit unions (which may have membership requirements), and some regional banks that compete on low fees rather than branch networks. Your best option depends on whether you need in-person banking, how often you use ATMs, and whether you can meet any conditions like direct deposit.
Key Takeaways
- Online banks like Ally, Charles Schwab, and Discover typically have zero minimum balance requirements and no monthly maintenance fees.
- Credit unions often have lower minimums than traditional banks, sometimes as low as $25, though you must meet membership requirements to join.
- Some regional banks waive minimums if you set up direct deposit or keep a linked savings account above a certain balance.
- Banks that require high minimums usually charge $10 to $15 per month if your balance falls below the threshold, so switching can save $120 to $180 per year.
Online banks with no minimum balance
Online banks have no physical branches to maintain, so they can afford to drop minimum balance requirements entirely. Ally Bank, Charles Schwab Bank, Discover Bank, and Marcus by Goldman Sachs all offer checking or savings accounts with zero minimum balance and no monthly fees. These accounts come with a debit card, online bill pay, and access to ATM networks—though the specific ATM network varies by bank.
Charles Schwab stands out because it reimburses ATM fees worldwide, so you can use any ATM without paying a surcharge. Ally and Discover use the Allpoint and MoneyPass networks respectively, which cover thousands of ATMs but not every location. If you rarely visit a physical branch and don't need in-person customer service, an online bank is usually the cheapest option.
Credit unions with low or no minimums
Credit unions are member-owned and often have lower fees than banks. Many credit unions have minimum balance requirements between $0 and $100, and some waive them entirely if you meet other conditions like setting up direct deposit. The trade-off is that you must meet membership requirements—usually living or working in a specific area, belonging to a certain employer, or being a family member of an existing member.
To find a credit union near you, use the CO-OP network locator or the Shared Branch network, both of which let you access services at thousands of credit unions nationwide even if you don't bank there. If you already may have access to for membership at a credit union, it is worth comparing their fees to your current bank—many credit unions charge nothing for basic checking accounts and offer better rates on savings.
Regional and community banks with low minimums
Some smaller banks compete by waiving minimums if you meet specific conditions. Chime, LendingClub, and Varo are online banks that focus on customers who cannot maintain high balances; they have zero minimums and no overdraft fees. Traditional regional banks like PNC, TD Bank, and SunTrust sometimes waive minimums if you set up direct deposit or maintain a linked savings account above a certain threshold.
The conditions vary widely. Some banks waive the minimum only if your paycheck is deposited directly; others waive it if you keep $500 in a savings account instead. Before opening an account, ask the bank in writing what conditions, if any, waive the minimum balance requirement, and whether those conditions are permanent or reset each month.
What happens if your balance falls below the minimum
If your account requires a minimum balance and you fall below it, the bank charges a monthly maintenance fee—typically $10 to $15. This fee is deducted from your account, which can push you further below the minimum and trigger another fee the following month. Some banks charge the fee once per month; others charge it every day the balance is below the minimum.
A few banks offer ways to avoid the fee even if your balance drops. Some waive the fee if you set up direct deposit that month, or if you maintain a linked savings account above the minimum instead. Read the account agreement carefully—it will specify exactly when the fee is charged and what actions, if any, waive it.
How to switch to a lower-minimum bank
Switching banks takes about a week if you use the new bank's transfer service. Most banks can move money from your old account automatically, and some can set up direct deposit redirection so your paycheck goes to the new account. You will need your old account number and routing number, which you can find on a check or by logging into your old bank's website.
Before you close the old account, make sure all automatic payments and subscriptions are switched to the new account. Some recurring charges (like insurance or utilities) may take a billing cycle to update. Once everything is moved, you can close the old account—but keep it open for at least a month to catch any stray charges that arrive late.
Comparing accounts side by side
| Bank Type | Minimum Balance | Monthly Fee | ATM Access | Best For |
|---|---|---|---|---|
| Online banks (Ally, Discover, Charles Schwab) | $0 | $0 | Nationwide network or reimbursed | People who don't need branches |
| Credit unions | $0–$100 | $0–$5 | Shared branch network | Members of may have access to groups |
| Regional banks (with direct deposit) | $0–$500 | $0 (if conditions met) | Regional branches | People with regular paychecks |
| Large national banks | $500–$2,500 | $10–$15 | Nationwide branches | People who need many branches |
Frequently Asked Questions
Can I have a bank account with zero balance?
Yes. Online banks and many credit unions allow accounts to sit at $0 without charging a fee. However, if you write a check or make a debit card purchase when your balance is zero, the transaction may be declined or you may be charged an overdraft fee. Keep at least a small buffer to avoid accidental overdrafts.
Do banks with no minimum balance still charge overdraft fees?
Most do, though some newer banks like Chime and Varo have eliminated overdraft fees entirely. Traditional banks charge $25 to $35 per overdraft. Check the account agreement to see whether overdraft fees explore and whether the bank offers overdraft protection (linking to a savings account to cover shortfalls).
What if I need a physical bank branch?
Credit unions offer shared branch networks so you can visit thousands of locations nationwide. Regional banks have branches in specific areas. If you need frequent in-person service, a regional bank or credit union is more practical than an online bank, even if the fees are slightly higher.
Do I need direct deposit to waive the minimum balance?
It depends on the bank. Some banks waive the minimum only with direct deposit; others waive it if you maintain a linked savings account or meet other conditions. Call the bank or read the account agreement to confirm what conditions explore to your specific account.
Is it safe to bank with an online bank?
Yes. Online banks are FDIC-insured just like traditional banks, meaning your deposits are protected up to $250,000 if the bank fails. The main difference is that you cannot walk into a branch, so you handle everything by phone, email, or app. Most online banks have good customer service and security features.