Most banks charge nothing to open a savings account
Opening a savings account is free at most banks and credit unions. You will not pay an opening fee, a setup fee, or an account creation fee. The bank makes money from the deposits you keep there, not from charging you to start the account.
What you may pay for instead are monthly maintenance fees, overdraft fees, or fees for falling below a minimum balance. These are different from the cost of opening the account itself. A bank might let you open an account for zero dollars but then charge you $5 or $10 per month if your balance drops below $500. Some banks advertise "no monthly fees" as a selling point, which means they do not charge you just for having the account open. Others charge a monthly fee but waive it if you meet certain conditions—like keeping a minimum balance, setting up direct deposit, or maintaining a linked checking account.
Key Takeaways
- Opening a savings account itself costs nothing at banks and credit unions; the account creation is free.
- Monthly maintenance fees vary by bank and may be waived if you meet conditions like a minimum balance or direct deposit.
- You will need to bring an ID and proof of address when you open an account in person, but these documents cost you nothing.
- Online banks often have lower or zero monthly fees because they have fewer physical locations to operate.
- Some banks charge fees for things like overdrafts, wire transfers, or closing the account early, but these are separate from opening costs.
What you need to bring to open an account
When you open a savings account in person, you will need a government-issued ID (a driver's license, passport, or state ID card) and proof of your current address. A utility bill, lease, or recent bank statement works for the address. These documents are things you already have and cost you nothing to provide.
If you open an account online, you will upload photos of your ID and address proof through the bank's website or app. You do not need to print anything or pay for document verification. The bank handles the verification electronically. You will also need to provide your Social Security number so the bank can run a background check through ChexSystems, a banking history database. This check is free to you; the bank pays for it. If you have had problems with a previous bank account, this check may flag it, but running the check itself costs you nothing.
Monthly fees and when they apply
Monthly maintenance fees range from zero to $15 per month, depending on the bank and the type of account. A basic savings account at a large bank like Chase or Bank of America might charge $5 per month. A high-yield savings account at an online bank like Marcus or Ally typically charges zero per month.
Banks waive monthly fees under different conditions. Common waivers include keeping a minimum balance (often $300 to $500), setting up direct deposit of your paycheck, or maintaining a linked checking account at the same bank. Some banks waive fees for customers over 55 or under 18. Read the account terms before you open to see which waivers apply. If you do not meet the waiver conditions and the bank charges a monthly fee, that fee comes out of your account automatically each month. It reduces your balance, so it matters if you are trying to save a small amount.
Other fees you might encounter
Overdraft fees occur when you withdraw more money than you have in the account. Most savings accounts do not allow overdrafts, so this fee is less common for savings than for checking accounts. If your bank does allow overdrafts on savings, the fee is typically $25 to $35 per overdraft. Wire transfer fees apply if you send money to another bank. Incoming wire transfers are usually free, but sending a wire costs $15 to $30.
ATM fees happen if you use an ATM that does not belong to your bank's network; the fee is usually $2 to $3 per withdrawal. Closing fees are rare but do exist at some banks. If you close your account within a certain period (often 90 days to six months), the bank may charge $25 to $50. Most banks do not charge this, but it is worth checking the terms before you open.
How online banks keep costs lower
Online banks charge lower or zero monthly fees because they do not operate physical branches. They have fewer employees, lower rent, and lower overhead costs than traditional banks. They pass those savings on to customers by offering high-yield savings accounts with no monthly fees and competitive interest rates.
Online banks still charge fees for things like wire transfers, overdrafts, or expedited account closure, but the monthly maintenance fee is usually zero. If you want to avoid monthly fees entirely, an online bank is often the easiest path. The tradeoff is that you cannot walk into a branch to deposit cash or speak to a teller in person. Most online banks let you deposit checks by taking a photo with your phone, and you can transfer money to another bank for free. If you rarely need in-person banking, an online bank can save you money over time.
Minimum opening deposit requirements
Most banks do not require you to deposit any money to open a savings account. You can open an account with zero dollars and add money later. Some banks ask for a minimum opening deposit of $25 or $100, but this is less common than it used to be.
A minimum opening deposit is different from a minimum balance requirement. The opening deposit is what you put in when you create the account. The minimum balance is the amount you must keep in the account to avoid a monthly fee. A bank might require $100 to open but only $300 to waive the monthly fee. If a bank does require an opening deposit, that money is yours—it goes into your account and you can withdraw it whenever you want. It is not a fee; it is your own money.
Comparing costs across different bank types
| Bank Type | Opening Fee | Monthly Fee | Minimum Balance to Waive Fee |
|---|---|---|---|
| Large national bank (Chase, Bank of America) | $0 | $5–$10 | $300–$500 |
| Online bank (Marcus, Ally, Discover) | $0 | $0 | None |
| Credit union | $0 | $0–$5 | $100–$500 |
| Community bank | $0 | $3–$8 | $250–$500 |
Credit unions often have the lowest fees because they are member-owned and not-for-profit. If you are a member of a credit union, opening a savings account there usually costs nothing and has no monthly fee. You may need to pay a one-time membership fee to join the credit union itself, but this is separate from the account opening and is typically $5 to $25.
The table shows that online banks and credit unions tend to have the lowest total cost of ownership because they charge no monthly maintenance fee. Large national banks and community banks charge monthly fees but often waive them if you maintain a minimum balance. Your choice depends on whether you can meet the minimum balance requirement and whether you need access to physical branches.
Frequently Asked Questions
Do I have to pay money to open a savings account?
No. Opening a savings account is free at banks and credit unions. You will not pay an opening fee or setup fee. You may pay a monthly maintenance fee later if you do not meet the bank's waiver conditions, but that is different from the cost of opening the account.
What if I do not have a minimum balance?
If you cannot meet the minimum balance to waive the monthly fee, you will pay the fee each month. It comes out of your account automatically. To avoid this, choose a bank with no monthly fee (many online banks offer this) or one with a lower minimum balance requirement.
Can I open a savings account with no money?
Yes. Most banks let you open a savings account with zero dollars. You can deposit money whenever you want after opening. Some banks ask for a minimum opening deposit of $25 or $100, but this is not common.
Do I have to pay to close a savings account?
Most banks do not charge a closing fee. Some banks charge $25 to $50 if you close the account within a certain period (often 90 days to six months of opening). Check the account terms before you open to see if your bank charges this fee.
Is there a difference between opening a savings account and a checking account?
Both are free to open. Checking accounts sometimes have higher monthly fees than savings accounts because they allow unlimited transactions. Savings accounts often have lower fees but limit how many times you can withdraw money per month.