Most savings accounts have no monthly fee, but some do — and the ones that charge tend to be the ones with the lowest interest rates
A savings account itself is free to open and free to hold at most banks and credit unions. You will not pay a monthly maintenance fee at major institutions like Chase, Bank of America, Wells Fargo, or most regional banks. Credit unions almost never charge monthly fees on savings accounts. The catch is that "free" does not mean you earn money — it means you do not lose money just by having the account sit there.
Some banks do charge monthly fees, usually $5 to $15, but they typically waive them if you keep a minimum balance (often $500 to $2,500) or set up direct deposit. Online banks almost never charge fees because they have lower overhead than brick-and-mortar branches. The real cost of a savings account is usually not a fee — it is a low interest rate that does not keep pace with inflation.
Key Takeaways
- Most banks and all major credit unions offer savings accounts with no monthly fee, no matter how much money you have in them.
- Banks that do charge monthly fees usually let you avoid the charge by keeping a minimum balance or setting up direct deposit.
- Online banks typically offer higher interest rates and no fees because they do not operate physical branches.
- The real cost of a savings account is often a low interest rate rather than a monthly charge, which means your money grows slowly.
- Comparing interest rates across banks matters more than comparing fees, since the difference in earned interest can be hundreds of dollars per year.
Which banks charge monthly fees and which do not
Most national banks do not charge a monthly fee on basic savings accounts. Chase, Bank of America, Wells Fargo, Citibank, and US Bank all offer savings accounts with zero monthly maintenance cost. The same is true for most regional banks and virtually every credit union in the country. If you bank at a smaller local institution, call or check their website to confirm, but the default assumption should be that there is no fee.
Banks that do charge fees tend to be smaller regional banks or specialty accounts with extra features. When a fee exists, it is usually $5 to $15 per month. The bank will waive it if you meet one of these conditions: keep a minimum balance (typically $500 to $2,500), set up direct deposit, maintain a linked checking account, or complete a certain number of debit card transactions per month. Read the account terms carefully — the waiver conditions matter more than the fee itself, because most people can meet at least one of them.
Online banks — institutions that operate only through websites and apps, not physical branches — almost never charge monthly fees. Ally, Marcus, Discover, and similar online-only banks compete on interest rate and convenience, not on fees. If you are comparing a traditional bank to an online bank, assume the online bank has no fee and focus instead on which one pays more interest on your balance.
How interest rates work and why they matter more than fees
A savings account earns interest, which is money the bank pays you for letting them use your money. The interest rate varies widely — from nearly 0% at some traditional banks to 4% to 5% at online banks, depending on market conditions and the bank's strategy. The difference between a 0.01% rate and a 4.5% rate is enormous. On $10,000, you would earn $1 per year at 0.01% and $450 per year at 4.5%. That $449 difference dwarfs any monthly fee.
Interest rates change over time and vary by bank. The Federal Reserve sets a benchmark rate that influences what banks offer, but each bank decides its own rate. Online banks typically offer higher rates because they have lower costs and need to attract customers without physical locations. Traditional banks with branches often offer lower rates because they have more overhead. A $10 monthly fee is irrelevant if the interest rate difference costs you $200 or $300 per year.
When you compare savings accounts, look at the annual percentage yield (APY), not just the interest rate. APY accounts for how often the bank compounds interest (adds earned interest back into your account so it earns interest too). A bank advertising a high rate but compounding interest only once per year may pay less than a bank with a slightly lower rate that compounds daily. Most banks show the APY prominently on their website so you can compare directly.
Minimum balance requirements and how they work
Some savings accounts require you to keep a minimum balance to avoid a monthly fee or to earn a higher interest rate. Common minimums are $500, $1,000, $2,500, or $10,000. If your balance drops below the minimum, the bank charges a fee (usually $5 to $15) or drops your interest rate. A few banks have no minimum at all.
The minimum balance is the lowest amount your account can hold at any point during the month. If you keep $1,500 in an account with a $1,000 minimum, you are fine even if you withdraw money later — as long as you do not drop below $1,000. Some banks look at your average balance over the month instead of your lowest balance, which is slightly more forgiving. Read the account terms to understand which method your bank uses.
If you have a small amount of money to save, a high minimum balance requirement is a reason to choose a different bank. Online banks and credit unions often have no minimum or a very low one ($25 to $100). A minimum that is too high for your situation turns a "free" account into one that costs you money through fees.
Hidden costs that are not monthly fees
Some savings accounts have costs that are not labeled as monthly fees. Overdraft fees apply if you try to withdraw more money than you have, though most savings accounts do not allow overdrafts at all — they simply decline the transaction. Excessive withdrawal fees can apply if you move money out of your savings account too many times in a month; federal rules used to limit this to six times per month, but that rule is no longer enforced, and most banks have removed the limit.
Inactivity fees are rare but do exist at some banks. If you do not make any deposits or withdrawals for a long period (usually a year or more), the bank may charge a monthly fee. This is uncommon at major banks but more common at smaller institutions or specialty accounts. Check the account terms if you plan to open an account and leave it untouched for a long time.
ATM fees are not technically a savings account cost, but they affect how much it costs to use your money. If your bank has few ATMs and you frequently withdraw cash, you may pay $2 to $3 per out-of-network withdrawal. Banks with large ATM networks or those that reimburse out-of-network fees (like Charles Schwab) reduce this hidden cost. If you rarely use cash, this does not matter; if you withdraw cash weekly, it adds up.
Comparing free accounts across different bank types
| Bank Type | Monthly Fee | Typical Minimum Balance | Typical Interest Rate (APY) |
|---|---|---|---|
| Large national bank (Chase, Bank of America, Wells Fargo) | $0 | $0 to $500 | 0.01% to 0.05% |
| Regional bank | $0 to $15 | $0 to $2,500 | 0.05% to 0.5% |
| Credit union | $0 | $0 to $25 | 0.1% to 1% |
| Online bank (Ally, Marcus, Discover) | $0 | $0 to $100 | 4% to 5% |
The table above shows typical ranges, but rates and fees change frequently. Check each bank's website for current terms before opening an account. The interest rate difference between a traditional bank and an online bank is usually the most important factor in your decision, not whether there is a monthly fee.
When you are deciding between banks, focus on which one will put the most money back into your account over time. A bank with no fee but a 0.01% interest rate will cost you far more than a bank with a $10 monthly fee and a 4% interest rate. The math is straightforward: calculate what you will earn in a year at each bank, subtract any fees, and choose the one that leaves you with the most money.
What to do if your bank charges a fee you did not expect
If you see a monthly fee on your statement that you did not know about, contact the bank immediately. Call the customer service number on the back of your debit card or log into your online banking portal and start a chat. Explain that you were not aware of the fee and ask whether it can be waived. Banks often waive one or two unexpected fees as a courtesy, especially if you have been a customer for a while.
If the fee is recurring and you cannot meet the waiver conditions (minimum balance, direct deposit, etc.), consider switching to a different bank. Switching is free and takes about 15 minutes. You can keep your old account open or close it; there is no penalty either way. Many online banks and credit unions make switching easy by offering to transfer your money for you.
If you were charged an overdraft fee or an excessive withdrawal fee, ask the bank to explain the charge. These fees are sometimes applied by mistake, and the bank may reverse them if you ask. If the bank refuses and you believe the fee was unfair, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov. The CFPB does not refund your money, but it investigates complaints and can pressure banks to change their practices.
Frequently Asked Questions
Do I have to pay to open a savings account?
No. Opening a savings account is free at every bank and credit union. You do not pay to open it, and you do not pay a monthly fee to keep it open at most institutions. You only pay if you fail to meet a minimum balance requirement or if you trigger a specific fee like an overdraft charge.
What is the difference between a savings account and a money market account?
A money market account usually requires a higher minimum balance (often $2,500 to $10,000) and may charge a monthly fee if you do not meet it. In return, it typically pays a higher interest rate than a regular savings account. Both are free to open, but a money market account is only worth it if you have enough money to meet the minimum and avoid the fee.
Can I move my money to a different bank without paying a fee?
Yes. Switching banks is free. You can transfer your money electronically, and there is no charge from either bank. Some banks even offer to handle the transfer for you. You can close your old account or leave it open; neither choice costs money.
Why do some banks offer higher interest rates than others if savings accounts are free?
Banks compete on interest rate because that is how they attract customers when they cannot compete on branch locations or brand recognition. Online banks offer higher rates because they have lower costs. Traditional banks with many branches offer lower rates because they spend more money on real estate and staff. The bank pays you interest from the money it earns by lending your deposits to other customers.
What happens if I do not use my savings account for a year?
At most banks, nothing happens. Your money stays in the account earning interest (however small), and you can withdraw it whenever you want. A few banks charge an inactivity fee if you do not make any transactions for 12 months or longer, but this is uncommon. Check your account terms if you plan to leave money untouched for a long time.