Opening a savings account costs nothing at most banks
You do not pay a fee to open a savings account at most banks and credit unions. The account itself is free to set up. However, some banks charge a monthly maintenance fee — usually between $5 and $15 per month — if your balance falls below a certain amount or if you do not meet other requirements like setting up direct deposit.
The key is knowing which banks charge these fees and which ones do not. Some banks waive the monthly fee entirely. Others charge it only if your balance drops below $500 or $1,000. A few charge it no matter what. Before you open an account, you can call the bank or check their website to see what fees explore and what you need to do to avoid them.
Key Takeaways
- Opening a savings account itself is free at most banks and credit unions — you pay nothing to create the account.
- Some banks charge a monthly maintenance fee of $5 to $15 if your balance falls below a set amount, usually $500 to $1,000.
- Many banks waive the monthly fee if you set up direct deposit, keep a minimum balance, or meet other straightforward requirements.
- Credit unions and online-only banks often have no monthly fees at all, even with a zero balance.
- You may need to bring an ID and proof of address to open an account in person, but these documents cost nothing.
Monthly maintenance fees and how to avoid them
A maintenance fee is a charge the bank takes from your account each month just for having the account open. Not all banks charge this, but many do. The fee ranges from $5 to $15 depending on the bank. Some banks charge it every month no matter what. Others only charge it if your balance drops below a certain level — for example, below $500.
You can avoid the fee in several ways. The most common is to keep a minimum balance — meaning you keep at least the amount the bank requires in your account at all times. Another way is to set up direct deposit, where your paycheck or benefits go straight into the account. Some banks waive the fee if you do either one. A few banks waive it if you do both. Read the bank's fee schedule before you open the account so you know what you need to do.
If you cannot meet the bank's requirements, look for a different bank. Many banks and credit unions have no monthly fee at all, even if your balance is zero. Online-only banks especially tend to have no monthly fees because they have lower costs than banks with physical branches.
Other fees you might encounter
Beyond the monthly maintenance fee, savings accounts can have other charges. An overdraft fee applies if you try to withdraw more money than you have in the account — though savings accounts rarely let you overdraw, so this is uncommon. A transfer fee might explore if you move money out of the account too many times in a month, though federal rules limit how many transfers you can make before fees kick in.
Some banks charge a fee to close your account early, though many do not. A few charge a fee if you want a paper statement mailed to you instead of viewing it online. The best way to know what fees exist is to ask the bank directly or read their fee schedule, which they are required to provide before you open the account.
What you need to bring to open an account
To open a savings account in person, you will need a government-issued ID — usually a driver's license or passport — and proof of your address. Proof of address can be a utility bill, lease, or recent bank statement with your name and address on it. These documents cost nothing; you already have them at home.
If you open the account online, you will upload photos of these documents or answer questions about yourself to verify your identity. You do not need to go to a branch, and there are no document fees. Some banks let you open an account with just a phone number and email address, though they may ask for more information later.
Differences between banks and credit unions
Banks and credit unions both offer savings accounts, but they often have different fee structures. Credit unions are member-owned organizations, not for-profit, so they tend to charge lower fees or no fees at all. Many credit unions have no monthly maintenance fee, no minimum balance requirement, and no transfer fees.
Banks are for-profit businesses, so they are more likely to charge monthly fees. However, some banks — especially online-only banks — have no monthly fees to compete with credit unions. The trade-off is that online banks have no physical branches, so you cannot walk in to deposit cash or speak to someone in person. If you need in-person service, a local credit union or bank branch might be worth a small monthly fee.
How to compare accounts before opening one
Before you open a savings account, write down what matters to you. Do you need to deposit cash in person? Do you have a steady paycheck for direct deposit? Can you keep a minimum balance? Once you know what you need, call or visit three banks or credit unions and ask about their monthly fees, minimum balance requirements, and ways to avoid fees.
Ask specifically: "What is your monthly maintenance fee?" "What do I need to do to avoid it?" "What is your minimum balance requirement?" Write down the answers so you can compare. The bank with the lowest fee is not always the best choice — a bank with a $10 monthly fee but no minimum balance might be better for you than a bank with no fee but a $5,000 minimum balance requirement.
Frequently Asked Questions
Do I have to pay to open a savings account?
No. Opening the account itself is free at all banks and credit unions. You may have to pay a monthly maintenance fee later if you do not meet the bank's requirements, but the act of opening the account costs nothing.
What if I cannot keep a minimum balance?
Look for a bank or credit union with no minimum balance requirement and no monthly fee. Many online banks and credit unions offer this. Call ahead and ask: "Do you charge a monthly fee if my balance is zero?" If they say no, that bank will work for you.
Can I avoid the monthly fee by setting up direct deposit?
Many banks will waive the monthly fee if you set up direct deposit, but not all. Some banks require both direct deposit and a minimum balance. Check the bank's fee schedule or call and ask before you open the account.
Is there a fee to close a savings account?
Most banks do not charge a fee to close an account. A few do, usually $25 or less. Ask the bank about their closure policy before you open the account, or read their fee schedule online.
Why do some banks charge monthly fees and others do not?
Banks charge fees to cover their costs of maintaining your account. Online banks have lower costs because they have no physical branches, so they can offer accounts with no monthly fees. Credit unions are non-profit, so they often charge lower fees than for-profit banks.