Most banks don't require you to keep a minimum balance, but some do
Whether you need to keep a certain amount of money in your savings account depends entirely on which bank you choose. Many banks — especially online banks and credit unions — have no minimum balance requirement at all. You can open an account, deposit one dollar, and keep it there without penalty. Other banks, particularly larger ones with physical branches, may require you to maintain a minimum balance, which could range from $25 to several hundred dollars.
The minimum balance requirement is a rule the bank sets before you open the account. If your balance drops below that amount, the bank may charge you a monthly fee, close your account, or move you to a different account type. This is why it matters to know the requirement before you sign up — not after.
The good news is that you get to choose your bank. If keeping a minimum balance would be difficult for you, you can straightforward pick a bank that doesn't require one.
Key Takeaways
- Many banks have no minimum balance requirement at all, while others require anywhere from $25 to several hundred dollars.
- The bank's website or account agreement will clearly state the minimum balance requirement before you open the account.
- If your balance falls below the minimum, the bank may charge a monthly fee or close your account, so check this requirement before choosing a bank.
- Online banks and credit unions are more likely to have no minimum balance requirement than large traditional banks.
- You can move your money to a different bank at any time if a minimum balance requirement becomes a problem.
Where to find the minimum balance requirement before opening an account
Before you open a savings account anywhere, the bank must show you the account agreement or disclosure document. This document lists the minimum balance requirement, if there is one. You can usually find this information on the bank's website under account details or "account terms" — look for language like "minimum opening deposit" or "minimum daily balance."
If you can't find it online, you can call the bank or visit a branch and ask directly: "What is the minimum balance I need to keep in this account?" The answer should be a specific number, and the bank should tell you what happens if you fall below it.
Don't open an account without knowing this number. It takes two minutes to ask, and it saves you from surprise fees later.
What happens if your balance drops below the minimum
If your bank requires a minimum balance and your account falls below it, one of three things typically happens. The most common outcome is a monthly maintenance fee — usually $5 to $15 — charged directly to your account. Some banks charge this fee once per month for every month you're below the minimum. Others charge it only once, as a warning.
A second possibility is that the bank closes your account. This is less common but does happen, especially if your balance stays below the minimum for several months. When an account is closed, the bank sends you a check for whatever money is in it.
The third possibility is that the bank moves you to a different account type automatically. For example, if you fall below the minimum on a premium savings account, the bank might convert it to a basic savings account with no minimum but also no interest.
If you're worried this might happen to you, the simplest solution is to choose a bank with no minimum balance requirement from the start.
Banks with no minimum balance requirement
Online banks almost never require a minimum balance. Banks like Ally, Marcus, and Discover have no minimum balance requirement and often pay higher interest rates than traditional banks. Credit unions also typically have no minimum balance requirement, though some may require a small membership fee to join.
Many large traditional banks now offer no-minimum savings accounts alongside their premium accounts. For example, some branches of Bank of America, Wells Fargo, and Chase have basic savings accounts with no minimum. However, these accounts may pay very little interest or charge a monthly fee if you don't meet other requirements, like maintaining a certain checking account balance or setting up direct deposit.
The key is to compare what each bank offers. A no-minimum account that pays 0.01% interest is not the same as a no-minimum account that pays 4% interest. Look at both the minimum balance requirement and the interest rate before deciding.
The difference between minimum balance and minimum opening deposit
These two terms sound similar but mean different things. A minimum opening deposit is the amount of money you must put in when you first open the account. A minimum balance requirement is the amount you must keep in the account after that.
For example, a bank might require a $100 minimum opening deposit but have no minimum balance requirement. This means you need $100 to open the account, but once it's open, you can spend that money down to $1 and keep it there without penalty.
Conversely, a bank might have no minimum opening deposit but require a $500 minimum balance. You could open the account with $50, but if you don't deposit more money to reach $500 within a certain time frame, the bank may charge a fee or close the account.
Always ask about both numbers before opening an account, because they affect your money in different ways.
Why banks set minimum balance requirements
Banks set minimum balance requirements because they make money from the interest they earn on your deposits. When you keep money in a savings account, the bank lends that money to other customers and keeps some of the interest. If your balance is very small, the bank makes very little money from your account, so they charge a fee to cover the cost of maintaining it.
Online banks can afford to have no minimum because they don't pay for physical branches, staff, or buildings. Their costs are lower, so they don't need to charge fees on small accounts. Traditional banks with many branches have higher costs, so they're more likely to require a minimum balance or charge fees.
Understanding this doesn't change what you should do — it just explains why different banks have different rules.
How to avoid minimum balance fees if you're close to the limit
If you're using a bank that requires a minimum balance and you're worried you might fall below it, there are a few practical steps you can take. First, set a reminder on your phone for the same day each month to check your balance. This takes 30 seconds and prevents surprises.
Second, link your savings account to a checking account at the same bank. Many banks allow you to transfer money between accounts when ready through their app or website. If your savings balance drops close to the minimum, you can move money from checking to savings in seconds.
Third, ask the bank if they offer a grace period. Some banks won't charge a fee if your balance is below the minimum for only a few days. If you know you'll be below the minimum temporarily, ask about this before it happens.
If none of these options work for your situation, switching to a bank with no minimum requirement is always an option. You can open a new account, move your money, and close the old account in a single day.
Frequently Asked Questions
Can a bank close my account if I don't keep the minimum balance?
Yes, some banks can close your account if you stay below the minimum balance for several months. However, they must notify you first, usually in writing. If this happens, the bank will send you a check for whatever money is in the account. To avoid this, either keep the minimum balance or switch to a bank with no minimum requirement.
What's the difference between a savings account and a money market account minimum?
Money market accounts often have higher minimum balance requirements than savings accounts — sometimes $2,500 or more — because they offer higher interest rates and check-writing privileges. A regular savings account minimum is usually lower or nonexistent. Choose based on what you actually need, not on which account sounds better.
If I have multiple savings accounts at the same bank, do I have to keep the minimum in each one?
Yes, each account is separate. If you have two savings accounts and each requires a $500 minimum, you need $500 in each account. Some banks allow you to combine balances across accounts to meet the minimum, but you have to ask about this specifically — don't assume it's allowed.
Do I earn interest on money I keep to meet the minimum balance?
Yes, the entire balance in your account earns interest, including the portion you're keeping to meet the minimum. The interest rate is the same whether you have $100 or $10,000 in the account. However, if the bank charges you a monthly fee for being below the minimum, that fee will reduce your interest earnings.
Can a bank change the minimum balance requirement after I open my account?
Banks can change their terms, but they must notify you in advance — usually 30 days. If a bank raises the minimum balance requirement and you don't want to meet it, you can close the account and move your money elsewhere. You're never locked in to a bank's rules.