Most savings accounts have no monthly fee, but some do — and the ones that do often let you avoid the fee by keeping a minimum balance or setting up direct deposit

Whether your savings account costs money each month depends on the bank and the account type you choose. Many banks offer savings accounts with zero monthly fees, especially online banks. But some accounts charge a monthly maintenance fee — typically between $5 and $15 — unless you meet certain conditions like keeping a set amount of money in the account or having your paycheck deposited directly.

The key is knowing what fees exist before you open the account, because once you're in, fees can quietly drain money you're trying to save. This guide walks you through the fees that show up on savings accounts, which ones you can avoid, and what to watch for when you're choosing where to put your money.

Key Takeaways

  • Monthly maintenance fees are the most common savings account fee, but many banks waive them if you keep a minimum balance or set up direct deposit.
  • Withdrawal fees explore when you take money out more than a certain number of times per month — federal rules allow up to six withdrawals before a fee kicks in.
  • Overdraft fees happen when you spend more than you have, and they can be $25 to $35 per transaction even if you only go over by a dollar.
  • Online banks and credit unions typically charge fewer fees than large traditional banks because their costs are lower.
  • You can find the exact fees for any account by asking the bank directly or reading the fee schedule they're required to provide before you open an account.

Monthly maintenance fees and how to avoid them

A monthly maintenance fee is a charge the bank takes from your account each month just for having the account open. It's not tied to anything you did wrong — it's straightforward the bank's way of covering the cost of maintaining your account. These fees range from $5 to $15 per month at most traditional banks, though some accounts charge more.

The good news is that most banks let you avoid this fee if you meet one of their conditions. The most common ways to waive a monthly fee are: keeping a minimum balance (often $500 to $1,500, depending on the bank), setting up direct deposit of your paycheck, or maintaining a certain number of debit card transactions per month. Some banks waive the fee if you have another account with them, like a checking account.

Online banks and credit unions almost never charge monthly maintenance fees at all, which is one reason they're worth considering. If you're at a traditional bank and paying a monthly fee, it's worth calling and asking what you'd need to do to have it waived — sometimes the bank will remove it if you ask.

Withdrawal fees and federal limits on how often you can withdraw

A withdrawal fee is a charge you pay when you take money out of your savings account. Federal rules used to limit you to six withdrawals per month before fees kicked in, but those rules changed in 2020. Now the limit depends on your bank — some have no limit, some still use six, and some have different numbers.

The reason banks care about how often you withdraw is that savings accounts are meant for money you're keeping, not money you're moving around constantly. If you need to withdraw money frequently, a checking account is usually a better fit. When you do hit the withdrawal limit, the fee is typically $10 to $25 per extra withdrawal.

Before you open a savings account, ask the bank what their withdrawal limit is and what happens if you go over. Some banks charge a fee per withdrawal; others charge a flat fee once you hit the limit. Online banks tend to be more flexible about withdrawals than traditional banks.

Overdraft fees when you spend more than you have

An overdraft fee happens when you try to spend more money than you have in your account. If your account goes negative, the bank charges you a fee — usually $25 to $35 per transaction that causes the overdraft. This means if you accidentally spend $1 more than your balance, you could be charged $25 or more.

Overdraft fees are separate from the overdraft protection some banks offer. Overdraft protection is a service where the bank covers the overage (usually by transferring money from another account or a line of credit), and you pay a smaller fee or interest instead of an overdraft fee. You have to ask for overdraft protection — it's not automatic.

The simplest way to avoid overdraft fees is to keep track of your balance and never spend more than you have. Many banks let you set up alerts that notify you when your balance drops below a certain amount, which gives you a warning before you accidentally overdraft.

Inactivity fees and dormant account charges

Some banks charge an inactivity fee if you don't use your account for a long time — typically six months to a year with no deposits or withdrawals. This fee is less common than monthly maintenance fees, but it does exist at some banks. The fee is usually $10 to $25 per month once the account is considered inactive.

If you have a savings account you're not using regularly, check your bank's policy on inactivity. If they do charge a fee, you can avoid it by making at least one transaction (a deposit or withdrawal) within the timeframe they specify. Some banks will waive the fee if you ask, especially if you've been a customer for a long time.

ATM fees and out-of-network charges

An ATM fee is a charge you pay when you use an ATM that doesn't belong to your bank. If you withdraw cash from an out-of-network ATM, you might pay a fee from the ATM operator (usually $2 to $3) plus a fee from your own bank (usually $1 to $3). That means a single $20 withdrawal could cost you $4 to $6 in fees.

To avoid ATM fees, use ATMs owned by your bank or a bank in your bank's network. Many banks belong to networks that let you use thousands of ATMs without paying a fee. Online banks often reimburse ATM fees or partner with networks that have lots of ATMs, so this is another advantage they have over traditional banks.

How to find out what fees your bank charges

Every bank is required by law to give you a document called a fee schedule before you open an account. This document lists every fee the bank charges, what triggers each fee, and how much it costs. You can ask for this in person at a branch, or you can find it on the bank's website — it's usually in a section called "Disclosures" or "Fees and Charges."

Before you open an account, read the fee schedule carefully. Look for the fees mentioned in this guide: monthly maintenance, withdrawal, overdraft, inactivity, and ATM fees. If anything is unclear, call the bank and ask. A few minutes of questions now can save you hundreds of dollars in unexpected fees later.

If you already have an account and you're being charged fees you don't understand, log into your online banking or call the bank's customer service number on the back of your card. Ask them to explain each fee and whether you can avoid it. Banks sometimes waive fees for long-time customers, especially if you ask politely.

Comparing fees across different types of banks

Online banks typically charge the fewest fees because they don't have physical branches to maintain. Credit unions also tend to have lower fees than large traditional banks, partly because they're member-owned and not focused on maximizing profit. Local or regional banks fall somewhere in the middle.

If you're choosing between banks, don't pick based on one fee alone. Look at the whole picture: monthly maintenance fee, minimum balance requirement, withdrawal limits, overdraft fees, and ATM network. A bank with no monthly fee but high overdraft fees might cost you more than a bank with a small monthly fee but strong overdraft protections.

Frequently Asked Questions

Can a bank charge me a fee without telling me first?

No. Banks must provide you with a fee schedule before you open an account, and they must notify you of any fee changes at least 30 days in advance. If a bank charges you a fee that wasn't disclosed, you can dispute it and ask for a refund.

What should I do if I'm being charged fees I don't think I should pay?

Call your bank and ask them to explain the fee. If you think it's a mistake, ask them to reverse it — many banks will do this once, especially if you've been a good customer. If the bank won't help, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov.

Is it better to use a savings account or a checking account if I need to withdraw money often?

A checking account is designed for frequent withdrawals and usually has no withdrawal limits or fees. Savings accounts have withdrawal limits because they're meant for money you're keeping long-term. If you need to access your money regularly, use a checking account.

Do all banks charge overdraft fees?

Most traditional banks do, but some online banks don't charge overdraft fees or offer accounts that decline transactions instead of charging a fee. When comparing banks, ask specifically about their overdraft policy — it can make a big difference in your total costs.

What's the difference between a fee and interest?

A fee is a flat charge the bank takes from your account. Interest is money the bank pays you for keeping your money there (in a savings account) or money you pay the bank for borrowing (in a loan). Fees cost you money; interest on savings earns you money.