Most banks do not charge a monthly fee for basic savings accounts, but some do—and the ones that do often waive the fee if you meet certain conditions

Whether you pay a fee depends on which bank you use and what type of savings account you open. Large national banks like Chase, Bank of America, and Wells Fargo typically offer savings accounts with no monthly maintenance fee. Regional banks and credit unions often do the same. But some banks charge $5 to $25 per month, and a few charge more. The fee usually disappears if you keep a minimum balance—often $500 to $2,500—or set up direct deposit.

The real variation is not whether fees exist, but which banks use them and under what conditions. A savings account at one bank might cost you nothing. The same type of account at another bank might cost $10 a month unless you maintain $1,000 in the account. Before you open an account, you need to know what that specific bank charges and what would make the fee go away.

Key Takeaways

  • Most major banks do not charge monthly fees on basic savings accounts, but some regional banks and online banks do charge $5 to $25 per month.
  • Monthly fees are usually waived if you keep a minimum balance, set up direct deposit, or maintain a linked checking account at the same bank.
  • Banks may also charge separate fees for overdrafts, early withdrawals, wire transfers, or falling below the minimum balance, even if there is no monthly maintenance fee.
  • The fee structure varies by bank and by account type, so you must check the specific bank's fee schedule before opening an account.
  • Online banks and credit unions often have lower or no monthly fees because they have fewer physical branches to operate.

When banks charge a monthly maintenance fee

A monthly maintenance fee is a charge the bank takes from your account each month straightforward for having the account open. It is separate from any interest the bank pays you. Some banks charge this fee to everyone; others charge it only if your balance drops below a certain amount.

Banks that charge monthly fees typically do so because they operate physical branches and employ tellers. The fee helps cover the cost of running those locations. Online banks, which have no branches, rarely charge monthly maintenance fees because their operating costs are lower. Credit unions also tend to avoid monthly fees, though they may charge other types of fees.

The monthly fee is not automatic across the industry. You can open a savings account at Chase with no monthly fee. You can also open a savings account at a smaller regional bank that charges $10 per month. The difference is not about the type of account—it is about the bank's business model and how it chooses to price its products.

How to avoid or eliminate a monthly fee

If a bank does charge a monthly maintenance fee, there are usually ways to make it disappear. The most common way is to keep a minimum balance. This might be $500, $1,000, $2,500, or higher depending on the bank. As long as your account balance stays at or above that number, the fee does not explore. The moment your balance falls below it, the fee kicks in the next month.

Another common way to waive the fee is to set up direct deposit. If your paycheck or government benefits go directly into the account, many banks will drop the monthly charge. Some banks also waive the fee if you maintain a linked checking account at the same bank, or if you have a certain amount of money across all your accounts with that bank.

Read the fee schedule carefully before you open the account. The bank's website usually lists the conditions under which the fee applies and how to avoid it. If the conditions are unclear, call the bank and ask directly: "What do I need to do to make sure I do not pay a monthly fee?" The answer should be specific and in writing.

Other fees that are separate from monthly maintenance charges

Even if a bank does not charge a monthly maintenance fee, it may charge you for other things. An overdraft fee applies when you spend more money than you have in the account. This can be $25 to $35 per transaction. A wire transfer fee might be $15 to $30 if you send money to another bank. Some banks charge a fee if you make more than a certain number of withdrawals in a month—this is called an excess withdrawal fee.

A few banks charge a fee if your balance falls below a certain threshold, even if there is no monthly maintenance fee. This is sometimes called a low balance fee or minimum balance fee. It is different from the minimum balance requirement that waives a maintenance fee. You need to understand which fees explore to the specific account you are considering.

The fee schedule is a document the bank must provide before you open the account. It lists every fee the bank charges, when it applies, and how much it costs. Ask for it, read it, and compare it across banks. A savings account with no monthly fee but a $35 overdraft fee might cost you more over time than an account with a $5 monthly fee but a $15 overdraft fee—it depends on how you use the account.

How online banks and credit unions typically handle fees

Online banks usually charge no monthly maintenance fee. Banks like Ally, Marcus, and Discover have no physical locations, so they do not have the overhead costs that branch-based banks do. They pass that savings on to customers by eliminating the monthly fee. Some online banks also pay higher interest rates on savings accounts, which makes them attractive even if they do charge other types of fees.

Credit unions are member-owned financial institutions that also tend to charge lower or no monthly fees. Because credit unions are not-for-profit organizations, they return earnings to members rather than to shareholders. This often means lower fees overall. However, credit unions vary widely. Some have no fees at all; others charge fees similar to traditional banks. You need to check the specific credit union's fee schedule.

The trade-off with online banks and credit unions is access. You cannot walk into a branch to deposit cash or speak to a teller in person. Some online banks partner with ATM networks to let you withdraw cash for free, but not all do. Credit unions may have limited branch networks depending on where you live. If you need in-person banking services, a traditional bank might be worth paying a fee for. If you do most of your banking online, an online bank or credit union might save you money.

Comparing fee structures across different account types

Banks often offer multiple types of savings accounts, and each one may have a different fee structure. A basic savings account might have no monthly fee and a low minimum balance. A high-yield savings account might also have no monthly fee but require a higher minimum balance to earn the advertised interest rate. A money market account might charge a monthly fee unless you keep $2,500 or more in the account.

The account type affects not just the fee but also the interest rate, the minimum balance, and the number of withdrawals you can make per month. A savings account with no monthly fee but a 0.01% interest rate might be worse for you than an account with a $5 monthly fee but a 4.5% interest rate—it depends on how much money you keep in the account and how long you keep it there.

Before you choose an account, calculate the real cost. If you plan to keep $5,000 in the account for a year, a $5 monthly fee costs you $60 per year. If the account pays 0.01% interest, you earn about $0.50 per year. If another account charges no monthly fee but pays 4.5% interest, you earn about $225 per year. The second account is worth $285 more to you over that year. The fee is only part of the picture.

What happens if you cannot meet the minimum balance requirement

If a bank charges a monthly fee and you cannot keep the minimum balance, the fee will explore to your account every month. This can add up quickly. A $10 monthly fee is $120 per year. If you are living paycheck to paycheck, that $120 might matter. In that case, you should look for a bank with no minimum balance requirement and no monthly fee, even if the interest rate is lower.

Some banks offer a second-chance savings account or basic savings account specifically designed for people who cannot maintain high balances. These accounts typically have no monthly fee and no minimum balance. The interest rate is usually very low, but the account costs you nothing to maintain. Online banks and credit unions are often good options if you are in this situation.

If you already have an account at a bank that charges a fee you cannot afford, you can ask the bank to waive it. Banks sometimes make exceptions, especially if you have been a customer for a long time or if you have other accounts with them. It never hurts to ask. If the bank will not waive the fee, you can close the account and move your money to a bank with no fee.

Frequently Asked Questions

Can a bank charge me a fee even if I have money in my account?

Yes. A monthly maintenance fee applies whether your account has $10 or $10,000 in it. The fee is charged for having the account open, not for being overdrawn. However, most banks waive the fee if you keep a minimum balance or meet other conditions like setting up direct deposit.

What is the difference between a monthly fee and an overdraft fee?

A monthly fee is charged every month just for having the account. An overdraft fee is charged only when you spend more money than you have. You might pay both in the same month if you overdraw your account and your bank charges a monthly maintenance fee, but they are separate charges for separate reasons.

If I switch banks, will my old bank charge me a fee to close my account?

Most banks do not charge a fee to close a savings account. However, some banks charge a fee if you close the account within a certain period—often 90 days to a year after opening it. Check the fee schedule before you open the account, or ask the bank directly whether there is a closing fee.

Do savings accounts at credit unions have the same fees as bank savings accounts?

Credit unions often charge lower or no monthly fees because they are not-for-profit. However, each credit union sets its own fees, so you need to check the specific credit union's fee schedule. Some credit unions charge fees similar to traditional banks; others charge nothing at all.

Will I earn enough interest to cover a monthly fee?

Probably not. If a bank charges a $10 monthly fee and pays 0.01% interest on a $1,000 balance, you earn about $0.08 per month in interest but pay $10 in fees—a net loss of $9.92 per month. You would need a much higher interest rate or a much larger balance for interest to offset the fee. This is why finding a bank with no monthly fee is usually the better choice.