You don't have to keep any minimum amount in most savings accounts, but your bank may charge fees or close the account if the balance stays too low
Whether you must keep money in your savings account depends entirely on the bank and the specific account type. Most banks no longer require a minimum balance — the smallest amount you must hold to avoid penalties — but some still do, and the rules vary widely. If your account has a minimum balance requirement and you fall below it, the bank will typically charge a monthly fee, sometimes $5 to $25 or more depending on the institution.
The key is knowing what your own bank requires. You can find this in your account agreement, on the bank's website, or by calling customer service. If you're not sure whether your account has a minimum balance requirement, that's the first thing to check before you withdraw money.
Key Takeaways
- Most banks no longer enforce minimum balance requirements, but some still do, and fees range from $5 to $25 per month if you fall below the threshold.
- Your account agreement or the bank's website will state whether a minimum balance applies to your specific account type.
- Banks may close accounts that stay dormant or below minimum balance for an extended period, though they must notify you first.
- If your bank charges a fee for falling below the minimum, you can often switch to a different account type or bank that has no minimum requirement.
- Some banks waive minimum balance requirements if you set up direct deposit or maintain a linked account with them.
How minimum balance requirements work
A minimum balance requirement means the bank will not charge you a fee as long as your account balance stays at or above a set amount — often $500, $1,000, or $2,500, depending on the account. The moment your balance drops below that threshold, the fee kicks in, usually charged monthly until you bring the balance back up.
Some banks calculate the minimum based on your average daily balance over the month, while others look at your lowest balance on any single day. This matters: if you dip below the minimum for even one day, some banks will charge the fee. Read your account agreement to understand which method your bank uses.
Not all savings accounts have minimums. Many online banks and credit unions offer savings accounts with zero minimum balance requirement. If your current bank charges a fee and you want to avoid it, switching accounts or banks is often simpler than trying to maintain a balance you can't afford.
What happens if you don't meet the minimum
If your account has a minimum balance requirement and you fall below it, the bank charges a monthly maintenance fee. This fee is deducted directly from your account, which can push your balance even lower. Over time, repeated fees can drain a small savings account entirely.
If your balance stays below the minimum for a long period — typically six months to a year, depending on the bank — the bank may close your account. Before they do, they must send you a notice, usually 30 days in advance. When the account closes, the bank will send you any remaining balance by check or transfer it to another account you've provided.
Some banks also report dormant or closed accounts to ChexSystems, a banking history database. This can make it harder to open a new account elsewhere, though the impact is usually temporary and limited to banks that check ChexSystems.
Ways to avoid minimum balance fees
If your bank charges a fee for falling below the minimum, you have several options. The simplest is to switch to a different account type at the same bank — many banks offer a basic savings account with no minimum. Call your bank's customer service line and ask whether they have a no-minimum option.
Some banks waive the minimum balance requirement if you set up direct deposit, meaning your paycheck or other regular income is deposited automatically into the account. Others waive it if you maintain a linked checking account or keep a certain balance in a different product, like a money market account. Ask your bank what waivers are available.
If your bank won't waive the fee and doesn't offer a no-minimum account, switching to a different bank may be worth it. Online banks, credit unions, and some regional banks offer savings accounts with no minimum balance and often pay higher interest rates as well. The process takes a few days, but you'll avoid ongoing fees.
Minimum balance requirements by account type
| Account Type | Typical Minimum (if any) | Notes |
|---|---|---|
| Basic Savings Account | $0–$500 | Most common type; many banks have eliminated minimums for this account. |
| High-Yield Savings Account | $0–$2,500 | Online banks often have no minimum; traditional banks may require more. |
| Money Market Account | $2,500–$10,000 | Higher minimums are common; these accounts often pay higher interest. |
| Certificate of Deposit (CD) | $500–$2,500 | You lock money away for a set term; early withdrawal penalties apply. |
| Student Savings Account | $0 | Designed for students; typically no minimum balance required. |
How to find out what your bank requires
The fastest way to learn your account's requirements is to log into your online banking portal and look for the account details or terms and conditions section. Most banks post this information under "Account Features" or "Fees and Rates." You can also download your account agreement from the website.
If you can't find it online, call your bank's customer service number — it's usually on the back of your debit card or on your monthly statement. Have your account number ready and ask directly: "Does my account have a minimum balance requirement, and what is the fee if I fall below it?" Write down the answer and ask them to send you the account agreement by email or mail.
If you're opening a new account, ask about the minimum before you sign up. Many banks will waive minimums for new customers or offer promotional periods with no fees. Compare a few banks before deciding — the difference in fees and interest rates can add up over time.
What to do if your bank closes your account
If your bank closes your account due to a low balance or inactivity, they must notify you in writing at least 30 days before the closure takes effect. The notice will explain the reason and tell you how to access any remaining funds.
When the account closes, any money left in it will be returned to you. The bank will either mail you a check, transfer the funds to another account you've provided, or hold the money for you to pick up in person. Check the closure notice for instructions on how to claim your money.
After an account closure, you can open a new account at the same bank or move to a different bank. If the closure was reported to ChexSystems, you may face a brief delay opening a new account elsewhere, but this usually resolves within a few months. Some banks specialize in second-chance accounts for people with banking history issues.
Frequently Asked Questions
Can a bank charge me a fee if I go below the minimum for just one day?
It depends on how your bank calculates the minimum. Some banks charge a fee if your balance dips below the minimum on any single day during the month, while others use your average daily balance. Check your account agreement or call your bank to find out which method applies to your account.
If I close my savings account, do I have to close my checking account too?
No. Savings and checking accounts are separate products. You can close one without affecting the other. However, if your bank waives the savings account minimum because you have a linked checking account, closing the checking account may trigger the fee on the savings account going forward.
What's the difference between a minimum balance requirement and a low balance fee?
A minimum balance requirement is the amount you must keep in the account to avoid a fee. A low balance fee is the charge itself — usually $5 to $25 per month — that the bank deducts when you fall below the minimum. Some accounts have one without the other; some have both.
Can I withdraw all my money from a savings account and keep it at zero?
Yes, you can withdraw all your money. However, if your account has a minimum balance requirement and you drop to zero, you'll be charged a monthly fee. Eventually, the bank may close the account. If you want to keep the account open but not use it, ask your bank whether they offer a no-minimum savings account or whether you can switch to one.
Do online banks have minimum balance requirements?
Most online banks have no minimum balance requirement on their savings accounts, which is one reason they're popular. However, some online banks do have minimums on certain account types, like money market accounts. Check the specific account details before you open an account.