Most savings accounts have no monthly fee, but some do
You do not have to pay a monthly fee for a savings account. Many banks and credit unions offer savings accounts with zero monthly charges. However, some accounts do charge a fee — usually between $2 and $10 per month — so you need to check the specific account before you open it.
The account you choose depends on what the bank offers and what you need. A bank might charge a fee on one savings account but not on another. A credit union across town might charge nothing. The fee is not automatic or required by law. It is a choice the bank makes, and you can choose a different bank if the fee does not work for you.
Key Takeaways
- Many banks and credit unions offer savings accounts with no monthly fee at all.
- When a fee exists, it is usually $2 to $10 per month, and the bank will tell you this before you open the account.
- Some banks waive the fee if you keep a minimum balance, make regular deposits, or set up direct deposit.
- Online banks tend to charge no monthly fees because they have lower operating costs than physical branches.
- You can close an account and move to a different bank if the fee does not work for your situation.
When banks charge a monthly savings account fee
A bank charges a monthly fee to cover the cost of maintaining your account. This includes the staff who help you, the computer systems that track your money, and the security that protects your deposits. Some banks build this cost into their business model and charge everyone. Others only charge customers who do not meet certain conditions.
The most common reason a bank charges a fee is that your account balance falls below a minimum. For example, a bank might say: "Keep $500 or more in your account, and there is no fee. Drop below $500, and we charge $5 per month." Other banks charge a fee if you do not make a deposit within a certain time period, or if you make too many withdrawals in a month.
Some banks charge a fee straightforward because that is how they make money from savings accounts. They pay you a very small amount of interest on your balance — sometimes less than 0.01% per year — and charge you a fee to offset what they lose by holding your money. This is less common now than it was ten years ago, but it still happens.
How to find accounts with no monthly fee
The easiest way to avoid a fee is to start by looking at online banks and credit unions. Online banks have no physical branches, so they spend less money on buildings and staff. They pass that savings on to you by charging no monthly fee on most savings accounts. Credit unions are member-owned, not profit-driven, so they also tend to charge lower or no fees.
When you are looking at a specific account, read the document called the fee schedule or account terms. This is a short list that tells you exactly what the bank charges for. It will say whether there is a monthly maintenance fee, and if so, how much. It will also say whether the fee goes away if you meet certain conditions — like keeping a minimum balance or setting up direct deposit.
Ask the bank directly before you open the account. You can call, visit a branch, or use the bank's website. A straightforward question — "Does this savings account have a monthly fee?" — will get you a clear answer. If the answer is yes, ask what you have to do to avoid it. If you do not like the answer, you can look at a different bank.
Ways to avoid or waive a monthly fee
Even if a bank charges a monthly fee, you may not have to pay it. Most banks that charge a fee will waive it if you meet one or more conditions. The most common conditions are:
- Keep a minimum balance in the account — often $300 to $1,000, depending on the bank.
- Set up direct deposit from your paycheck or government benefits.
- Make a certain number of deposits each month — for example, at least one deposit per month.
- Link the savings account to a checking account at the same bank.
- Maintain a combined balance across multiple accounts at the bank.
If you can meet one of these conditions, the fee disappears. For example, if you get paid every two weeks and set up direct deposit, many banks will waive the monthly fee even if your balance drops to zero. If you are saving money and can keep $500 in the account, that alone may be enough.
Read the fee schedule carefully to see which conditions explore to the account you are considering. Some banks make it straightforward — one condition waives the fee. Others require you to meet multiple conditions. If the conditions are too hard for your situation, choose a different account or bank.
Why some people pay a fee and how to stop
People pay savings account fees for two main reasons: they did not know the fee existed, or they could not meet the conditions to waive it. If you are paying a fee now, you have options.
First, contact your bank and ask what you need to do to stop paying the fee. You may be able to set up direct deposit, move money into the account to reach the minimum balance, or link it to another account. If the bank can help you waive the fee, do that.
Second, if the bank cannot help or the conditions are impossible for you, close the account and move to a different bank. Closing a savings account takes a few minutes — you withdraw your money, tell the bank you want to close it, and that is done. There is no penalty for closing an account. You can then open a new account at a bank that charges no fee or has conditions you can actually meet.
The difference between banks and credit unions
Banks are for-profit businesses owned by shareholders. Credit unions are member-owned cooperatives. This difference affects fees. Banks need to make a profit, so they are more likely to charge fees. Credit unions exist to serve their members, so they tend to charge lower fees or no fees at all.
To join a credit union, you usually have to meet a membership requirement — for example, you might have to live in a certain county, work for a certain employer, or be part of a certain organization. Once you are a member, you can open a savings account. Many credit unions offer savings accounts with no monthly fee, even if your balance is very low.
If you have access to a credit union, it is worth checking what they offer. You may find a savings account with no fee and better interest rates than a bank. If you do not have access to a credit union, online banks are your next best option for avoiding fees.
What happens if you cannot avoid the fee
If you are in a situation where you cannot meet the conditions to waive a fee, and you cannot move to a different bank, the fee is still small. A $5 monthly fee is $60 per year. If you are saving money, even slowly, the interest you earn and the safety of having a savings account usually outweigh the cost of the fee.
However, do not accept a fee as permanent. Keep looking for better options. Banks change their fee structures, new banks enter your area, and your own situation changes. What does not work for you today might work in six months. Check back with your current bank once a year to see if they have introduced a no-fee account, or if your circumstances have changed enough to meet their conditions.
Frequently Asked Questions
Can a bank charge me a fee without telling me first?
No. Banks must disclose all fees before you open an account. The fee schedule is part of the account agreement you see before you sign up. If you opened an account online, you saw the fees listed on the screen. If a fee appears on your statement that was not disclosed, contact the bank and ask them to remove it.
What if my balance drops below the minimum and I get charged a fee?
Call the bank and ask them to reverse the fee as a one-time courtesy. Many banks will do this once, especially if you have been a customer for a while. If they refuse, you can dispute the fee or close the account and move to a bank with no minimum balance requirement.
Do online banks really have no fees?
Most online banks have no monthly maintenance fee on savings accounts, but they may charge fees for other things — like overdrafts on a checking account or wire transfers. Read the fee schedule for the specific account you want. The lack of a physical branch does mean lower operating costs, which is why online banks can afford to charge no monthly fee.
If I close my account, will it hurt my credit?
No. Closing a savings account does not affect your credit score. Your credit score is based on borrowed money — credit cards, loans, and payment history. A savings account is your own money, so it does not appear on your credit report. You can close and open savings accounts without any impact on your credit.
Can I have multiple savings accounts to avoid fees?
Yes. Some people open one savings account at a bank with no fees for everyday savings, and another at a different bank for long-term goals. There is no limit to how many savings accounts you can have. Just make sure you can track them and remember where your money is.