Most banks require $0 to $500 to open a savings account, but the minimum to avoid a monthly fee is often higher
The minimum balance that triggers a monthly fee varies by bank and account type. Some banks charge nothing if your balance drops below $100; others waive the fee only if you keep $2,500 or more on hand at all times. A few banks—mostly online-only institutions—have no minimum balance requirement at all, meaning you can keep $1 in the account without penalty.
The difference matters because the fee itself is usually $5 to $15 per month. Over a year, a single monthly fee can erase the interest you earn on a small savings account. Before opening an account, you need to know three things: the opening minimum (what you must deposit to create the account), the balance minimum (what you must maintain to avoid fees), and whether the bank calculates the minimum using your lowest balance during the month or your average balance.
Traditional banks—Chase, Bank of America, Wells Fargo, Citibank—typically require $300 to $500 to open a savings account and $500 to $2,500 to avoid monthly fees. Credit unions often have lower minimums, sometimes $25 or less. Online banks like Ally, Marcus, and Discover frequently have no minimum balance requirement at all.
Key Takeaways
- Opening minimums and fee-waiver minimums are two separate numbers; you can open an account with $100 but owe a monthly fee if you don't keep $500 in it.
- Online banks are more likely to have no minimum balance requirement, while traditional brick-and-mortar banks usually require $500 to $2,500 to avoid fees.
- The monthly fee ($5 to $15) can eliminate your interest earnings on a small account, so the minimum balance requirement directly affects whether saving is worth your time.
- Some banks waive the fee if you maintain a linked checking account, set up direct deposit, or use their debit card a certain number of times per month—alternatives to keeping a high balance.
How banks calculate whether you meet the minimum
Banks use one of two methods to check your balance against the minimum: the lowest balance method or the average daily balance method. With the lowest balance method, if your balance dips below the minimum even once during the month—say you withdraw $600 to pay a bill—you owe the fee that month, even if you deposit the money back the next day. With average daily balance, the bank adds up your balance for each day of the month and divides by the number of days; you avoid the fee if that average stays above the minimum.
The lowest balance method is stricter and more common at traditional banks. The average daily balance method is more forgiving but still requires you to keep money in the account most of the time. You can find which method your bank uses in the account disclosure document, usually labeled "Truth in Savings" or in the account terms and conditions section of the bank's website.
When the minimum balance requirement doesn't apply
Many banks offer ways to waive the minimum balance requirement without actually keeping the money in the account. Common waivers include maintaining a linked checking account at the same bank, setting up direct deposit of your paycheck, or using the bank's debit card a set number of times per month (often 10 or more transactions). Some banks waive the fee if you maintain a combined balance across multiple accounts—for example, $1,000 total across checking and savings combined, rather than $1,000 in the savings account alone.
Student accounts and accounts for people under 18 often have lower or no minimum balance requirements. Military members may have access to accounts with reduced minimums through military-specific banks or credit unions. If you don't meet the standard minimum, ask the bank whether any of these waivers apply to you before you open the account.
Comparing minimums across account types
| Bank Type | Typical Opening Minimum | Typical Fee-Waiver Minimum | Monthly Fee (if minimum not met) |
|---|---|---|---|
| Large traditional bank (Chase, Bank of America, Wells Fargo) | $300–$500 | $500–$2,500 | $5–$10 |
| Regional or community bank | $100–$300 | $300–$1,000 | $3–$8 |
| Credit union | $25–$100 | $100–$500 | $2–$5 |
| Online bank (Ally, Marcus, Discover) | $0–$100 | $0 (no fee) | $0 |
The numbers in this table vary by specific institution and change over time. Use this as a starting point, then check the actual terms for the bank you are considering. Some banks offer multiple savings account tiers—a basic account with a high minimum and a premium account with a lower minimum but lower interest rate, or vice versa.
Why the minimum matters for small savers
If you are saving less than $500, a monthly fee can wipe out your interest earnings. A savings account earning 4% annual interest on $300 generates about $1 per month in interest. A $5 monthly fee means you are losing money. In this scenario, an online bank with no minimum and no fee is the only choice that makes financial sense.
The minimum also affects how you use the account. If you need to withdraw money regularly—for example, moving money from savings to checking to pay bills—a lowest-balance minimum can penalize you even if you plan to replenish the account. An average daily balance minimum or a bank with fee waivers gives you more flexibility.
How to find the actual minimum for a specific bank
Do not rely on the bank's homepage or advertising; minimums are buried in the account disclosure. Look for the document called "Truth in Savings Disclosure" or "Account Terms and Conditions," usually available as a PDF on the bank's website or in a branch. Search the document for "minimum balance," "monthly maintenance fee," and "waiver." If you cannot find it online, call the bank's customer service line and ask directly: "What is the minimum balance I must maintain to avoid a monthly fee, and how do you calculate it?"
When you call, also ask whether the minimum applies to the specific account you want to open. Some banks have different minimums for different savings account products—a basic savings account might have a $500 minimum, while a money market account has a $2,500 minimum. Confirm the fee amount and what triggers it before you deposit money.
Frequently Asked Questions
Can I open an account with less than the minimum balance?
Yes. The opening minimum is what you must deposit to create the account, and it is often lower than the balance minimum needed to avoid fees. You might open an account with $100 but owe a $5 monthly fee if you do not keep $500 in it. Read the disclosure to see both numbers.
What happens if my balance drops below the minimum for one day?
If your bank uses the lowest balance method, you will owe the monthly fee. If it uses average daily balance, one low day usually does not trigger the fee unless it pulls down your average for the entire month. Check your bank's disclosure to see which method applies.
Do online banks really have no minimum balance?
Most online banks (Ally, Marcus, Discover, American Express Personal Savings) have no minimum balance requirement and no monthly fee. The tradeoff is that you cannot deposit cash or visit a branch in person. If you need those services, you will likely need to use a traditional bank with a minimum.
Can I avoid the fee by keeping money in a linked checking account instead?
Some banks allow this, but not all. The bank's disclosure will state whether a combined balance across accounts counts toward the minimum, or whether you must maintain the minimum in the savings account itself. Ask before you open the account.
Is the minimum balance the same as the interest-bearing minimum?
Not always. Some banks require a higher balance to earn interest than to avoid a fee. For example, you might avoid a $5 fee with $500 in the account but earn interest only on balances above $1,000. Check both the fee waiver minimum and the interest-earning minimum in the disclosure.