Most savings accounts cost nothing to open or maintain

You do not pay a fee to open a savings account at a bank or credit union. You do not pay an annual fee to keep one open. The account itself is free.

What you might pay for depends on how you use the account and which bank you choose. Some banks charge fees only when you break specific rules — like making too many withdrawals in a month, or letting your balance drop below a minimum. Other banks charge nothing no matter what you do. A few still charge monthly maintenance fees, but these are becoming rare.

The real cost of a savings account is usually the opportunity cost: the interest you could earn elsewhere if you moved your money to a higher-paying account. That is a choice you make, not a fee the bank charges.

Key Takeaways

  • Opening and maintaining a savings account costs nothing at most banks and credit unions.
  • Fees, when they exist, usually explore only when you exceed withdrawal limits, fall below a minimum balance, or use out-of-network ATMs.
  • Online banks and credit unions typically charge fewer or no fees than brick-and-mortar banks.
  • The biggest cost is often the interest rate you accept — lower rates mean less money earned on your balance over time.

Fees that actually appear on your statement

The fees you might see depend on the bank and the account type. Excess withdrawal fees explore when you move money out of the account more than a set number of times per month — usually six times. Federal rules once required this limit, though that rule changed in 2020. Many banks still enforce it anyway. The fee is typically $10 to $35 per extra withdrawal.

Minimum balance fees charge you money if your balance falls below a set amount — often $300 to $2,500, depending on the bank. This fee is usually $5 to $15 per month. Some banks waive it if you set up direct deposit or maintain a linked checking account.

ATM fees appear when you use an ATM that does not belong to your bank's network. Your own bank's ATM is free. An out-of-network ATM typically charges $2 to $3 per withdrawal, though some charge more. Your bank may also charge you a fee for using another bank's ATM — usually $1 to $3 on top of what the other bank charges.

Inactivity fees are rare but exist at some banks. If you do not use the account for several months, the bank may charge $5 to $10 per month until you make a deposit or withdrawal. Credit unions are less likely to charge this.

Banks and credit unions with no monthly fees

Many large banks offer savings accounts with no monthly maintenance fee. Chase, Bank of America, Wells Fargo, and Citibank all have no-fee savings accounts, though some have minimum balance requirements or offer lower interest rates on accounts with no minimums.

Online banks — like Ally, Marcus, Discover, and American Express Personal Savings — typically charge no monthly fees, no minimum balance requirements, and no excess withdrawal fees. They also tend to pay higher interest rates than traditional banks, which is how they compete without physical branches.

Credit unions almost always charge no monthly fees on savings accounts. If you belong to a credit union, ask about their savings account structure. If you do not, you may be able to join one through your employer, a professional association, or a community organization. The CO-OP network and Allpoint network let credit union members use thousands of ATMs nationwide for free.

What the interest rate actually costs you

The interest rate your bank pays on savings is where the real money difference lives. A savings account earning 0.01% per year on a $10,000 balance pays you $1 per year. The same $10,000 at 4.5% per year pays you $450 per year — a difference of $449 that has nothing to do with fees.

Interest rates change constantly and vary widely between banks. Online banks almost always pay more than brick-and-mortar banks because they have lower overhead costs. Credit unions often pay competitive rates. Large national banks typically pay the least.

You can check current rates at sites like Bankrate or DepositAccounts, which list rates from hundreds of banks updated daily. The difference between the highest and lowest rate available can be several percentage points — which translates to hundreds of dollars per year on a modest balance.

Fees to watch for when moving money

Opening the account is free, but moving money into it might not be. If you transfer money from another bank, most banks process it free. Some charge $5 to $15 for a wire transfer, though many waive this for the first transfer or for transfers over a certain amount.

Closing the account is always free. If you have a negative balance when you close it, you owe that amount. If you have a positive balance, the bank sends it to you by check or transfer.

How to avoid paying fees

Choose a bank with no monthly maintenance fee and no minimum balance requirement. Online banks meet both criteria almost universally. If you prefer a physical branch, ask your current bank whether they offer a no-fee savings account — many do.

If your bank charges an excess withdrawal fee, make your withdrawals count. Plan ahead and take out what you need in one or two transactions per month rather than many small ones. If you need frequent access to your money, a checking account might suit you better than a savings account.

Use your bank's ATM network or a shared network like CO-OP or Allpoint to avoid ATM fees. If you cannot avoid out-of-network ATMs, factor that cost in when choosing a bank — some banks reimburse out-of-network ATM fees, which is a real advantage if you travel or live far from their branches.

Keep your balance above any minimum if your bank has one. If you cannot, switch to a bank without a minimum. There is no reason to pay a fee to keep money in a savings account.

Frequently Asked Questions

Do I have to pay to open a savings account?

No. Banks and credit unions do not charge to open a savings account. You may need to deposit money to fund the account, but that is your money, not a fee. Some banks require a minimum opening deposit — often $25 to $100 — but this goes into your account balance, not to the bank.

What happens if I do not use my savings account for a long time?

Most banks do nothing. Some charge an inactivity fee of $5 to $10 per month if you do not make a deposit or withdrawal for several months. Credit unions rarely do this. Check your account agreement or call your bank to find out their policy. If your bank charges inactivity fees, you can avoid them by making one small deposit or withdrawal every few months.

Can I move my money to a different bank without paying a fee?

Yes. Closing a savings account is always free. Transferring money to another bank is usually free if you initiate an ACH transfer from your new bank. Wire transfers sometimes cost $5 to $15, but most banks waive this for the first transfer. Your old bank cannot charge you to close the account or leave.

Why do some banks pay more interest than others?

Banks set their own interest rates based on what they need to attract deposits and what they can earn by lending that money out. Online banks typically pay more because they have lower costs — no physical branches, fewer employees. During periods when the Federal Reserve raises rates, all banks pay more. During periods when rates fall, all banks pay less. You can always move your money to a higher-paying bank.

Is a credit union cheaper than a bank?

Usually yes, but not always. Credit unions almost never charge monthly fees or minimum balance requirements. They often pay competitive interest rates. However, some credit unions have limited ATM networks or higher fees for certain services. Compare the specific account you want at your credit union against the same account at your bank before deciding.