Savings accounts have no fixed cost, but banks set their own minimum balance requirements and monthly fees
A savings account itself is free to open at most banks. What you pay depends on the bank's rules: some charge a monthly maintenance fee (usually $5 to $15), some waive it if you keep a minimum balance, and some charge nothing at all. The minimum balance to open an account ranges from $0 to $25,000 depending on the bank and account type. You are not buying the account—you are meeting the bank's conditions to hold one.
The money you put in the account is yours. The bank does not take a cut of your deposit. What the bank does charge for is the service of holding your money and the features attached to the account. A basic savings account at a large national bank might have a $300 minimum balance and a $5 monthly fee if you drop below it. An online bank might have no minimum and no monthly fee. A high-yield savings account at the same online bank might require $25,000 to open but pay you interest that covers the cost of holding smaller amounts elsewhere.
Key Takeaways
- Most banks charge a monthly maintenance fee of $5 to $15 if your balance falls below their stated minimum, though many banks now offer accounts with no monthly fee at all.
- Minimum balance requirements to open an account range from $0 to $25,000, and the amount you need to keep in the account to avoid fees is separate from the opening minimum.
- Online banks typically have lower or no monthly fees because they have fewer physical branches, while large national banks often charge more.
- Interest rates on savings accounts vary widely and are not the same as fees—the bank pays you interest on your balance, which can offset or exceed any monthly charge.
- Some banks offer tiered accounts where higher balances unlock better interest rates or waive fees entirely.
Monthly maintenance fees and how to avoid them
A monthly maintenance fee is what a bank charges you for keeping an account open. At Chase, Wells Fargo, and Bank of America, this fee is typically $5 to $10 per month. At smaller regional banks, it can be $3 to $8. Online banks like Ally, Marcus, and Discover often charge $0.
Most banks waive the fee if you meet one of these conditions: keep a minimum daily balance (often $300 to $500), set up direct deposit, or maintain a linked checking account. Some banks waive it for customers under 18 or over 65. Read the account disclosure document—the bank must provide this before you open the account—to see exactly what waives the fee at that specific bank. The fee structure does not change month to month, so once you know the rule, you can plan around it.
If you fall below the minimum balance for one month, most banks charge the fee that month but do not close the account. If you stay below the minimum for several months, some banks will close the account and send you the remaining balance by check.
Minimum balance requirements: opening versus maintaining
Banks list two different minimums. The opening minimum is what you must deposit to create the account. The maintenance minimum is what you must keep in the account to avoid a monthly fee. These are not always the same.
A bank might let you open an account with $25, but charge a $5 monthly fee if your balance drops below $500. Another bank might require $1,000 to open but have no maintenance minimum at all. Check both numbers before you open. The opening minimum is a one-time hurdle; the maintenance minimum is an ongoing condition.
Some banks offer tiered minimums: if you keep $10,000 or more, you get a higher interest rate and no fee. If you keep $1,000 to $10,000, you get a lower rate and a small fee. If you keep less than $1,000, you get the lowest rate and a higher fee. The bank publishes these tiers in the account disclosure, and they do not change without notice.
Interest rates and how they offset fees
A savings account earns interest—money the bank pays you for letting them use your deposit. The interest rate varies by bank and by how much you have in the account. In 2024, online banks offer rates between 4% and 5.35% annually on savings accounts. Large national banks offer rates between 0.01% and 0.05%. The difference is real: on a $10,000 balance, an online bank paying 4.5% earns you $450 per year, while a national bank paying 0.01% earns you $1.
Interest is paid monthly or daily, depending on the bank. If a bank charges you $10 per month in fees but pays you $40 per month in interest, you come out $30 ahead. This is why comparing the full picture—fees plus interest rate—matters more than looking at either one alone. A bank with no monthly fee but a 0.01% interest rate may cost you more over time than a bank with a $5 fee and a 4.5% rate.
What happens if you cannot meet the minimum balance
If you cannot keep the minimum balance, you have options. First, look for a bank with no minimum—many online banks and some credit unions have accounts that require $0 to open and $0 to maintain. Second, ask about fee waivers: some banks waive the fee for direct deposit or for keeping a linked checking account, even if your savings balance is low. Third, move your money to a different bank once you have enough to meet a better account's minimum.
Do not let a low balance stop you from saving. A bank that charges $5 per month in fees but lets you start with $25 is better than no account at all. You can move to a better account later. The goal is to build the habit and the balance; the specific bank is secondary.
Comparing costs across account types
| Account Type | Typical Opening Minimum | Typical Monthly Fee | Typical Interest Rate | Best For |
|---|---|---|---|---|
| Basic savings (national bank) | $25–$300 | $5–$10 (waived with $300–$500 balance) | 0.01%–0.05% | People who want a physical branch and do not mind low interest |
| Online savings | $0–$25 | $0 | 4%–5.35% | People who want the highest interest and do not need a branch |
| High-yield savings (online) | $25,000 (sometimes lower) | $0 | 4.5%–5.35% | People with larger balances who want the highest rate |
| Credit union savings | $25–$100 | $0–$5 | 0.5%–2% | Credit union members who want low fees and local service |
The table shows typical ranges, but individual banks vary. Always check the specific bank's disclosure document before opening an account. Interest rates change monthly, so a rate that is high today may not be high next month. Fees are more stable—a bank that charges $5 per month usually keeps that fee for years.
Hidden costs and what to watch for
Beyond the monthly fee, banks may charge for specific actions. Excessive withdrawal fees explore if you move money out of the account more than a certain number of times per month (federal law allows banks to limit this, though most do not enforce it). Overdraft fees explore if you try to withdraw more than you have, though savings accounts rarely overdraft. ATM fees explore if you use an out-of-network ATM, though most banks waive this for their own ATMs.
The account disclosure lists all of these. Read it before you open the account. If a bank does not provide a disclosure, do not open an account there—the bank is required by law to give you one, and refusal is a red flag.
Frequently Asked Questions
Do I have to pay to open a savings account?
No. Opening an account is free. You may need to deposit money to meet the opening minimum, but that money is yours—the bank does not take a fee to create the account. Some banks have a $0 opening minimum, so you can open an account with no deposit at all.
What is the difference between a monthly fee and interest?
A monthly fee is money the bank takes from your account each month. Interest is money the bank pays you for keeping your balance there. A $10 monthly fee costs you $120 per year. Interest at 4.5% on a $10,000 balance earns you $450 per year. The bank's interest rate and fee structure together determine whether the account costs you money or makes you money.
Can I move my money to a different bank if I do not like the fees?
Yes. There is no penalty for closing a savings account and moving your money elsewhere. The bank does not own your deposit. You can move your balance to a new bank at any time. Some banks offer a switching service that moves your money automatically, though you can also do it yourself by transferring funds online or visiting a branch.
What if my balance is very small—like $50?
Many banks will charge you a monthly fee if your balance is below their minimum. Look for a bank with a $0 opening minimum and $0 monthly fee—online banks like Ally, Marcus, and Discover offer these. A $50 balance earning 4.5% interest at an online bank earns you about $2 per year, which is better than paying $5 per month in fees at a national bank.
Do savings accounts have a maximum balance?
No. You can keep as much money as you want in a savings account. The Federal Deposit Insurance Corporation (FDIC) insures up to $250,000 per account at each bank, so balances above that are not insured at that bank. If you have more than $250,000, you can open accounts at multiple banks to keep all of it insured, or move excess funds to a money market account or certificate of deposit at the same bank.