Most banks charge nothing to open a savings account

Opening a savings account costs zero dollars at the vast majority of banks and credit unions in the United States. No enrollment fee, no setup fee, no set up charge. You walk in or go online, provide your identification and Social Security number, and the account opens.

The catch is not the opening itself—it is what happens after. Banks make money from your account through monthly maintenance fees, minimum balance requirements, or low interest rates. Some accounts have no fees at all. Others charge $5 to $15 per month if your balance drops below a certain threshold, often $500 to $2,500 depending on the bank.

The cost of owning the account over time matters far more than the cost of opening it. A bank that charges nothing to open but $10 monthly for falling below a $1,000 minimum will cost you $120 per year if you cannot maintain that balance. A credit union with no opening fee and no monthly fee costs nothing, period.

Key Takeaways

  • Opening a savings account itself is free at virtually every bank and credit union—no fee is charged on the day you open it.
  • Monthly maintenance fees range from $0 to $15 depending on the bank and whether you meet their minimum balance requirement.
  • Some banks waive monthly fees if you maintain a set balance, set up direct deposit, or keep a linked checking account open.
  • Online banks and credit unions tend to have lower or zero monthly fees because they have fewer physical branches to operate.
  • The real cost of a savings account is what you pay month to month, not what you pay to start one.

Where monthly fees come from

A savings account costs money each month only if the bank decides to charge you. This happens in two main scenarios: you fall below the minimum balance, or the bank straightforward charges everyone a monthly service fee regardless of balance.

Large national banks like Bank of America, Wells Fargo, and Chase typically charge $5 to $10 per month if your balance drops below $300 to $500. Some accounts waive this fee if you set up direct deposit of your paycheck, maintain a linked checking account, or keep a certain balance in other accounts at the same bank.

Regional banks and credit unions often have no monthly fee at all, or they charge one only if you do something specific like exceed a certain number of withdrawals per month. The federal limit on savings account withdrawals was removed in 2020, but some banks still impose their own limits and charge fees when you exceed them.

How to avoid monthly fees

The simplest way to avoid fees is to choose an account with no monthly maintenance fee. Online banks like Ally, Marcus, and Discover have no monthly fees and no minimum balance requirements. Credit unions, particularly those that participate in shared branching networks, often have the same structure.

If you prefer a traditional bank with physical branches, ask about fee waivers before you open. Many banks waive monthly fees if you maintain direct deposit, keep a minimum balance, or link a checking account. Some waive fees for customers under 25 or over 65. These waivers are negotiable—the bank lists them, but you need to ask which ones explore to you.

Read the fee schedule before you open. Banks are required to provide this document, called a Regulation DD disclosure, which lists every fee the bank charges and the conditions that trigger it. This is the only document that tells you the true cost of the account.

Minimum balance requirements and what they mean

A minimum balance requirement is a threshold below which the bank charges you a monthly fee. If the requirement is $500 and your balance drops to $400, you pay the fee that month. The fee does not appear when ready—it usually posts at the end of the month or statement cycle.

Some banks calculate the minimum based on your lowest balance during the month. Others use your average daily balance. This matters: if you have $1,000 on day one and $100 on day 30, a lowest-balance calculation might trigger a fee, but an average-balance calculation might not. The fee schedule tells you which method the bank uses.

Minimum balance requirements vary widely. Some accounts have none. Others require $100, $500, $1,000, or more. Higher-tier accounts—often called "premium" or "elite" savings accounts—may require $10,000 or $25,000 but offer higher interest rates in return. For most people, an account with no minimum balance requirement and no monthly fee is the better choice.

Interest rates and what they cost you

The interest rate on a savings account is not a fee you pay—it is money the bank pays you. But it is a real cost if you choose the wrong account, because a low rate means your money grows slowly.

National banks typically offer savings account rates between 0.01% and 0.05% annually. Online banks and credit unions often offer 4% to 5% or higher, depending on current market conditions. The difference is substantial: $10,000 earning 0.01% per year generates $1 in interest. The same $10,000 at 4.5% generates $450.

Interest rates change frequently and vary by bank. When you compare accounts, look at the current rate, not the rate from six months ago. Some banks offer promotional rates for new accounts that drop after a few months. Read the fine print to see whether the rate you are seeing is temporary.

Special accounts with higher costs

Some savings accounts charge fees beyond the monthly maintenance fee. A savings account with check-writing privileges or a money market account may charge per withdrawal or per check. A certificate of deposit (CD) charges an early withdrawal penalty if you take your money out before the term ends—typically 3 months to 5 years of interest, depending on the CD's length.

These accounts are not wrong choices, but they are different products with different costs. A CD makes sense if you know you will not need the money for a specific period and want a may provide rate. A money market account makes sense if you want check-writing and higher interest. A regular savings account with no fees makes sense if you want simplicity and flexibility.

Ask the bank to explain any fees that are not straightforward. If the fee schedule uses jargon or does not clearly state the cost, ask for a dollar amount. Banks are required to explain their fees clearly, and if they cannot, that is a sign to look elsewhere.

Opening an account online versus in person

Opening an account online costs the same as opening one in a branch—nothing. Online banks have no physical locations, so they pass the savings to customers in the form of higher interest rates and lower fees. In-person banks have branch staff and real estate costs, which they recover through fees.

The trade-off is service. An online bank has no teller to talk to, but you can call customer service or use chat. A branch bank has someone to speak to in person, but you may pay for that convenience through higher fees. Neither is inherently better—it depends on what you need.

If you open online, you will need to verify your identity. Most banks do this through a video call with a representative, or by uploading a photo of your driver's license. Some use third-party verification services. The process takes 10 to 15 minutes and costs you nothing.

Frequently Asked Questions

Do I have to pay anything to open a savings account?

No. Banks and credit unions do not charge a fee to open a savings account. The account is free to create. You may pay monthly fees later if you fall below a minimum balance or if the bank charges everyone a monthly service fee, but opening itself costs nothing.

What is the cheapest savings account?

An account with no monthly maintenance fee, no minimum balance requirement, and no withdrawal limits is the cheapest. Online banks and credit unions typically offer these. The interest rate also matters—a free account earning 4% is cheaper than a free account earning 0.01%, because you earn more money over time.

Can a bank charge me to close a savings account?

Most banks do not charge a closing fee, but some do. Check the fee schedule before you open. If a bank charges to close, that is a sign to open somewhere else. You should never pay to leave.

What happens if I do not maintain the minimum balance?

The bank charges you a monthly fee, usually $5 to $15. The fee posts at the end of your statement cycle. If you consistently fall below the minimum, you will lose money to fees. Switch to an account with no minimum requirement instead.

Do credit unions charge different fees than banks?

Credit unions often charge lower fees or no fees at all because they are member-owned and not-for-profit. They typically have no monthly maintenance fee and no minimum balance requirement. However, some credit unions do charge fees, so check before you open.