High yield savings accounts have no monthly fees, but some banks charge for other things
Most high yield savings accounts cost nothing to open and nothing to maintain. You will not pay a monthly service fee, and you will not pay to deposit or withdraw money. The account itself is free.
What varies is what happens around the edges. Some banks charge a fee if your balance drops below a minimum (often $0, but sometimes $1 or $2,500). Some charge for wire transfers or for closing the account early. A few charge if you make more than a certain number of withdrawals in a month, though this is rare now. Read the fee schedule before you open the account so you know what you are and are not paying for.
The reason these accounts are free is that the bank makes money from your deposit—they lend it out and keep the difference between what they pay you and what they charge borrowers. You are the product they are selling to, not the customer they are charging.
Key Takeaways
- High yield savings accounts charge no monthly maintenance fee, no deposit fee, and no withdrawal fee at any major bank.
- Some banks impose a minimum balance requirement and charge a fee if you fall below it, though many have no minimum at all.
- Wire transfer fees, early closure fees, and withdrawal limits vary by bank, so compare the full fee schedule before opening an account.
- The bank profits from lending out your money, which is why they pay you interest and do not charge you a monthly fee.
Minimum balance requirements and when they trigger a fee
A minimum balance requirement is the smallest amount the bank says you must keep in the account. If your balance falls below that number, the bank charges a fee—usually $5 to $15 per month. Not all banks have a minimum; many high yield savings accounts require $0 to open and maintain.
The minimum varies widely. Some banks set it at $1. Others set it at $500, $1,000, or $2,500. A few require $25,000 or more, but those accounts usually offer other perks (like higher interest rates or fee waivers) that make them worth it if you have the money.
Check whether the minimum applies to your account type. Some banks have a minimum only for certain tiers or only if you want the highest interest rate. If you keep $500 in the account and the minimum is $1,000, you might earn a lower rate but avoid the fee—or you might trigger the fee. The bank's disclosure will tell you which.
Withdrawal limits and how they have changed
Before 2020, federal law capped the number of withdrawals you could make from a savings account at six per month. Banks charged a fee if you exceeded that limit. That rule no longer exists, and most banks have removed their withdrawal limits entirely.
Some banks still list a withdrawal limit in their terms, but they do not enforce it or charge a fee if you exceed it. Others have no limit at all. A few online banks still cap withdrawals at a certain number per month, though this is uncommon. Check your bank's current policy before you open the account, because policies change and what was true last year may not be true now.
Transfers to another account (like moving money to a checking account) are usually not counted as withdrawals, so you can move money out as often as you need to without triggering a fee.
Wire transfer fees and when you might pay them
A wire transfer is a way to send money directly from your bank account to someone else's bank account, usually outside your bank. Wire transfers are faster than ACH transfers (which take one to three business days) but they cost money.
Outgoing wire transfer fees range from $15 to $30 at most banks. Incoming wire transfers are usually free. Some banks waive wire fees if you maintain a certain balance or if you have other accounts with them. A few online banks charge for wires; others do not. If you plan to wire money regularly, compare wire fees before you choose a bank.
You do not need to use wire transfers for most money movement. ACH transfers (which move money between your accounts at different banks) are free and take a few business days. Wires are useful when you need money to arrive the same day or when you are sending money to someone outside the banking system.
Early closure fees and account termination charges
Some banks charge a fee if you close your account within a certain time frame—usually 90 days to six months after opening it. The fee is typically $25 to $50. This is meant to discourage people from opening accounts just to grab a sign-up bonus and then leaving.
Not all banks charge this fee. Many online banks do not. If you think you might close the account soon, ask the bank whether they charge for early closure before you open it. If they do, the fee will be in their account agreement or fee schedule.
Closing an account itself is free—you just tell the bank you want to close it, move your money out, and they shut it down. The fee only applies if the bank has a specific policy about it.
Interest rates and why they are not the same as fees
The interest rate you earn is not a fee you pay—it is money the bank pays you. High yield savings accounts are called "high yield" because they pay more interest than traditional savings accounts. The rate changes based on what the Federal Reserve does and what the bank decides.
Banks advertise their rates prominently because that is what attracts customers. The rate you see when you open the account is not locked in for life; it can go up or down. When the Federal Reserve raises rates, banks usually raise their savings rates too. When the Fed cuts rates, banks cut theirs.
A higher rate means more money in your account over time, but it is not a cost to you—it is a benefit. The bank pays you because they are using your money to lend to other people.
Comparing total costs across different banks
To find the true cost of a high yield savings account, look at the full fee schedule, not just the monthly fee. Create a simple list: minimum balance requirement, monthly maintenance fee, wire transfer fee, early closure fee, and any other charges the bank lists. Then compare across three to five banks you are considering.
For most people, the best account is one with no minimum balance, no monthly fee, and no early closure fee. The interest rate matters more than the fees because the fees are usually small or avoidable. A bank that charges $10 per month but pays 0.01% more interest might still cost you money in the long run.
Use the bank's website to find the fee schedule, or call and ask. The schedule should be easy to find; if it is not, that is a sign the bank may not be transparent about costs.
Frequently Asked Questions
Do I have to pay to transfer money from my high yield savings account to my checking account?
No. Transfers between your own accounts at different banks (called ACH transfers) are free and take one to three business days. Wire transfers cost money, but you do not need them for routine transfers to your own checking account.
What happens if my balance drops below the minimum?
The bank charges a monthly fee, usually $5 to $15. You can avoid this by keeping your balance above the minimum or by choosing a bank with no minimum requirement. Some banks waive the fee if you set up a direct deposit or maintain a linked account with them.
Can a bank change its fees after I open the account?
Yes. Banks can change fees, interest rates, and minimum balance requirements at any time, though they must notify you in advance (usually 30 days). Read your statements and emails from the bank so you know if something changes.
Is there a fee to close a high yield savings account?
Most banks do not charge to close an account. Some charge a fee ($25 to $50) if you close it within 90 days to six months of opening it. Check the account agreement before you open it to see if your bank has this policy.
Do online banks charge different fees than brick-and-mortar banks?
Online banks typically charge fewer fees because they have lower overhead costs. Many online banks have no minimum balance, no monthly fee, and no early closure fee. Traditional banks with physical branches often have higher fees, though some offer competitive rates and low fees too.