Most savings accounts cost nothing to open or maintain
A savings account itself does not charge you a monthly fee at most banks and credit unions. You can open one, deposit money, and keep it there without paying the institution anything. The account is free to have.
What you do pay — or do not pay — depends on what happens inside the account. Some banks charge fees only when you do certain things, like withdraw money too many times in a month or let your balance drop below a minimum. Other banks charge nothing no matter what you do. The difference is worth understanding before you choose where to open your account.
Key Takeaways
- Opening and maintaining a basic savings account costs nothing at most banks and credit unions.
- Monthly maintenance fees exist at some banks but are often waived if you keep a minimum balance or set up direct deposit.
- Excess withdrawal fees explore only if you move money out more than a certain number of times per month, usually six times.
- Online banks and credit unions tend to have lower or no fees compared to large brick-and-mortar banks.
- You can avoid nearly all savings account fees by choosing the right bank and understanding its rules before you open.
Monthly maintenance fees and how to avoid them
Some banks charge a monthly maintenance fee — usually between $2 and $10 — just for having the account open. This is the most common fee you might encounter. However, most banks let you waive this fee if you meet one straightforward condition.
The most common way to waive a monthly fee is to keep a minimum balance in the account. This might be $100, $500, or $1,000 depending on the bank. If your balance never drops below that number, you pay nothing. Another common way is to set up direct deposit — having your paycheck or benefits automatically sent to the account. Some banks waive the fee if you do either one; others require both.
Many banks, especially online banks and credit unions, charge no monthly maintenance fee at all, regardless of your balance or activity. If you are just starting out and do not want to worry about fees, these are worth looking at first.
Excess withdrawal fees and the six-transaction rule
Federal rules once limited how many times you could withdraw money from a savings account to six times per month. That rule changed in 2020, but many banks still use it as a guideline. If you exceed that limit, some banks charge a fee — usually $5 to $10 per extra withdrawal.
This fee applies to withdrawals, not deposits. Moving money out by ATM, check, transfer, or in-person counts toward the limit. Deposits do not. The fee only triggers if you go over the bank's stated limit in a single month.
In practice, this matters most if you are using your savings account as a checking account — moving money in and out constantly. If you are saving money and leaving it alone, you will never hit this limit. Many online banks have removed this fee entirely, so it is becoming less common.
Overdraft fees and how they work
An overdraft happens when you try to withdraw or transfer more money than you have in the account. Some banks will let the transaction go through and charge you a fee — typically $25 to $35 — for covering the shortfall. Other banks will straightforward decline the transaction and charge nothing.
Savings accounts are less likely to have overdraft fees than checking accounts, because you typically withdraw from savings less often. But it is worth asking your bank what happens if you accidentally try to move out more than you have. Some banks let you turn off overdraft protection so transactions are declined instead of charged.
Inactivity fees and dormant account charges
If you open a savings account and then do not use it for a very long time — usually a year or more — some banks charge an inactivity fee. This is uncommon at mainstream banks, but it does happen at some smaller institutions or specialty accounts.
The fee is usually small, between $5 and $25 per year, but it eats into your savings if the account is sitting unused. The best way to avoid this is to use your account at least once every few months, even if it is just a small deposit or withdrawal. If you are opening an account you plan to leave untouched for years, ask the bank directly whether an inactivity fee exists.
ATM fees and out-of-network charges
Using an ATM that does not belong to your bank can cost you money. The bank that owns the ATM charges a fee — usually $2 to $3 — and sometimes your own bank charges a fee too. Together, this can add up to $4 to $6 per withdrawal.
This is not technically a savings account fee, but it affects how much it costs to access your money. Credit unions and online banks often belong to networks that let you use thousands of ATMs for free. Large banks have their own ATM networks. If you choose a bank with few ATMs near you, you will pay more to withdraw cash.
Wire transfer and special request fees
If you need to send money to another bank using a wire transfer, most banks charge a fee — typically $15 to $30 for an outgoing wire. Receiving a wire is usually free. Some banks charge fees for other special requests, like stopping a payment or getting a copy of an old statement.
These are not routine charges. You only pay them if you actually request these services. For most people saving money in a basic account, you will never encounter these fees.
Comparing fees across different bank types
Different kinds of banks have different fee structures. Online banks — institutions with no physical branches — almost always have lower fees or no fees at all, because they have lower operating costs. Credit unions, which are member-owned nonprofits, tend to have lower fees than large commercial banks. Traditional brick-and-mortar banks often charge more fees but offer the advantage of in-person service.
The table below shows what you might expect at each type of institution. Remember that these are general patterns; individual banks vary widely.
| Bank Type | Monthly Maintenance Fee | Excess Withdrawal Fee | Overdraft Fee | ATM Network |
|---|---|---|---|---|
| Online Bank | Usually $0 | Usually $0 | Usually $0 | Large shared networks |
| Credit Union | $0 to $5 | $0 to $5 | $0 to $25 | Shared networks (CO-OP, Allpoint) |
| Large National Bank | $5 to $10 | $5 to $10 | $25 to $35 | Large proprietary network |
| Small Local Bank | $0 to $10 | $0 to $10 | $0 to $35 | Limited or shared network |
Frequently Asked Questions
Can I get a savings account with no fees at all?
Yes. Many online banks and credit unions offer savings accounts with no monthly maintenance fee, no excess withdrawal fee, and no overdraft fee. You will need to compare specific institutions to find one that matches your needs, but fee-free accounts definitely exist.
What if I cannot keep the minimum balance to waive the monthly fee?
Look for a bank that does not require a minimum balance, or one that waives the fee through direct deposit instead. Online banks and credit unions are more likely to offer accounts with no minimum balance requirement. You can also ask whether the bank will waive the fee if you set up automatic transfers from another account.
Do I have to pay fees if I just leave my money in the account and never touch it?
Not usually. If you do not withdraw money, you will not hit excess withdrawal limits. If you keep a minimum balance or set up direct deposit, you will avoid monthly fees. The main risk is an inactivity fee if you leave the account completely untouched for over a year, but this is rare at major banks.
Are savings account fees the same at every bank?
No. Every bank sets its own fees. Two banks might charge very different amounts for the same service, or one might charge nothing while the other charges $10. This is why it is worth comparing a few banks before you open an account.
If I have a savings account at a credit union, can I use any ATM for free?
Most credit unions belong to shared ATM networks like CO-OP or Allpoint, which means you can use thousands of ATMs nationwide for free. However, not all credit unions participate in all networks, so ask your specific credit union which ATMs you can use without a fee.