Most savings accounts cost nothing to open
You will not pay a fee to open a savings account at a bank or credit union. The account itself is free. What matters is what happens after — whether you keep money in it, how much, and which institution you choose.
Some accounts have a minimum opening deposit, meaning you must put money in on day one. This is not a fee; it is money that stays in your account and belongs to you. The amount varies: some banks ask for $0, others for $25, $100, or more. A few online banks have no minimum at all.
The real cost question is not opening the account. It is whether the bank will charge you fees while you hold it — and those fees depend on your balance, your activity, and the account type.
Key Takeaways
- Opening a savings account costs nothing; you pay only a minimum deposit if the bank requires one, and that money is yours to keep.
- Monthly maintenance fees ($5 to $15) explore at some banks if your balance falls below a threshold, but many banks waive them entirely.
- Overdraft fees, ATM fees, and early withdrawal penalties are separate charges that depend on how you use the account, not on opening it.
- Online banks and credit unions typically charge fewer or no monthly fees than traditional brick-and-mortar banks.
- You can move money between accounts or close an account without penalty at most institutions.
Monthly maintenance fees and balance minimums
After you open the account, some banks charge a monthly maintenance fee — typically $5 to $15 per month. This is where the real ongoing cost lives. But most banks will waive this fee if you meet one condition: keeping a minimum balance, usually $500 to $2,500, or setting up direct deposit.
The fee structure varies widely. A large national bank might charge $12 per month unless you maintain $1,500. A credit union might charge nothing at all. An online bank might charge nothing and have no minimum balance. The fee is not automatic; it applies only if you fail to meet the waiver condition.
If you do fall below the minimum and the fee applies, it comes out of your account automatically each month. Over a year, a $10 monthly fee costs $120 — money that could have earned interest instead.
Fees that explore to specific actions
Beyond the monthly maintenance fee, banks charge for specific things you do with the account. These are not costs of opening or holding the account; they are costs of using it in certain ways.
Overdraft fees explore if you try to withdraw more money than you have. A typical overdraft fee is $25 to $35 per transaction. Some banks charge multiple fees if you overdraft several times in one day. You can usually opt out of overdraft protection, which means the transaction will straightforward be declined instead of charging you a fee.
ATM fees explore when you withdraw cash from an ATM that does not belong to your bank's network. This might be $2 to $3 per withdrawal. If you use your bank's own ATMs, there is no fee. Online banks often reimburse ATM fees or partner with large networks to avoid them.
Early withdrawal penalties explore only to certain account types — mainly certificates of deposit (CDs) and money market accounts. A regular savings account has no penalty for withdrawing your money whenever you want. If you do have a CD, the penalty for withdrawing before the term ends is usually a few months of interest.
How opening deposits and minimums actually work
When a bank says "minimum opening deposit of $100," it means you must deposit at least $100 on the day you open the account. This $100 is not a fee — it is your money, sitting in your new account. You can withdraw it tomorrow if you want, though some banks charge a fee if you do so within a certain period.
A separate thing is the minimum balance requirement to avoid the monthly fee. If the bank requires a $500 minimum balance to waive the $10 monthly fee, you need to keep at least $500 in the account at all times. If your balance drops to $450, the fee applies that month. The balance requirement is usually higher than the opening deposit requirement.
Some banks have both: a $0 opening deposit but a $500 minimum balance to avoid fees. Others have a $100 opening deposit and no minimum balance at all. Read the account terms to see which applies.
Where costs differ most: banks versus credit unions versus online
Traditional banks with physical branches tend to charge monthly maintenance fees more often than other institutions. A regional bank might charge $12 per month unless you maintain $1,500 or set up direct deposit. A large national bank might charge $15 per month with a $2,500 minimum.
Credit unions typically charge lower fees or no fees at all. Many credit unions have no monthly maintenance fee and no minimum balance. The trade-off is that credit unions have fewer ATMs and branches, so you might pay more in ATM fees if you need cash frequently.
Online banks almost never charge monthly maintenance fees and rarely have minimum balance requirements. They make money on the difference between what they pay you in interest and what they earn by lending your deposits out. Since they have no physical branches, their costs are lower and they pass some of that savings to you. The downside is you cannot deposit cash in person — you must transfer it from another account or use mobile check deposit.
What to compare when choosing an account
The true cost of a savings account is not one number — it is the combination of several things. Start by listing what you actually do: Do you need to deposit cash in person? Do you use ATMs outside your bank? Will you keep a large balance or a small one? Do you have direct deposit set up?
Then compare three accounts on these points: monthly maintenance fee and what waives it, ATM network and out-of-network fees, minimum opening deposit, minimum balance requirement, and interest rate. A bank with a $0 monthly fee but a 0.01% interest rate might cost you more over time than a bank with a $5 fee but a 4.5% interest rate — especially if you keep a large balance.
The interest rate matters because it is money the bank pays you, offsetting any fees. A $10 monthly fee is $120 per year. If you keep $10,000 in the account and earn 4% interest, you make $400 per year — more than enough to cover the fee and come out ahead.
Closing an account and moving your money
You will not pay a fee to close a savings account at most banks. Some banks charge a small fee — $25 to $50 — if you close the account within a certain period, usually 90 days to a year. Check the account terms before you open to see if this applies.
Moving money to another bank is free. You can transfer your balance electronically using the account number and routing number, or you can withdraw the money and deposit it elsewhere. There is no penalty for moving your savings.
Frequently Asked Questions
Do I need a minimum deposit to open a savings account?
Some banks require a minimum opening deposit of $25 to $100 or more; others require nothing. This is not a fee — it is money that goes into your account. Check the specific bank's requirements before you open. Online banks often have no minimum opening deposit.
What happens if my balance drops below the minimum?
If you fall below the minimum balance requirement, the bank will charge the monthly maintenance fee that month. The fee is usually $5 to $15 and comes out of your account automatically. You can avoid it by bringing your balance back up or by meeting an alternative waiver condition like direct deposit.
Can I avoid all fees?
Yes. Online banks and many credit unions charge no monthly maintenance fees and have no minimum balance requirements. You will still pay fees for specific actions — overdrafts, out-of-network ATM withdrawals — but you can avoid those by managing your account carefully.
Is the interest rate part of the cost?
Interest is money the bank pays you, so a higher rate actually reduces your net cost. A bank with a $10 monthly fee but 4% interest might cost you less overall than a bank with no fee but 0.01% interest, depending on your balance.
Can I move my money to a different bank for free?
Yes. Transferring your balance to another bank is free. Some banks charge a small fee if you close the account within 90 days of opening, so check the terms, but moving your money itself has no cost.