Most savings accounts don't charge you to hold money, but some do

A savings account itself—the ability to deposit money and earn interest—costs nothing at most banks. You won't pay a monthly fee just for having the account open. However, some banks do charge fees under certain conditions, and a few charge a flat monthly maintenance fee regardless of how much you keep in the account.

The fees that do exist fall into a few categories: monthly maintenance fees (charged just for having the account), minimum balance fees (charged when your balance drops below a set amount), overdraft fees (charged when you spend money you don't have), and transaction fees (charged for certain types of withdrawals or transfers). Not all accounts have all of these, and many have none.

The key is knowing which fees apply to the specific account you're considering, because the difference between a no-fee account and one with a $5 or $10 monthly charge adds up fast—$60 to $120 per year on money you're trying to save.

Key Takeaways

  • Most banks offer at least one savings account with no monthly maintenance fee, though you may need to meet a minimum balance or use direct deposit to avoid charges.
  • Monthly maintenance fees typically range from $2 to $10 and are charged whether or not you use the account, so they directly reduce your savings.
  • Minimum balance fees are charged only if your balance falls below a threshold set by the bank, which varies from $100 to $25,000 depending on the account type.
  • Online banks and credit unions are more likely to offer no-fee savings accounts than traditional brick-and-mortar banks.
  • You can avoid most fees by reading the account disclosure document before opening the account and choosing one that matches your expected balance and activity.

Monthly maintenance fees and when they apply

A monthly maintenance fee is a flat charge the bank takes from your account each month, usually between $2 and $10. Some banks waive this fee if you meet certain conditions—the most common are keeping a minimum balance, setting up direct deposit, or maintaining a linked checking account at the same bank.

For example, one bank might charge $5 per month unless your balance stays above $500, while another might waive the fee if you receive at least one direct deposit per month. A third might charge nothing at all. The terms vary widely, so the fee you pay depends entirely on which account you choose and whether you can meet the bank's conditions.

If you can't or don't want to meet the waiver conditions, you're paying that fee every month. Over a year, a $5 monthly fee costs you $60 in charges on an account designed to help you save—which is why many people choose accounts with no maintenance fee at all.

Minimum balance fees and overdraft charges

A minimum balance fee is charged only if your account balance drops below a set threshold. The threshold varies: some accounts require $100, others $500, $1,000, or more. If your balance falls below that number, the bank charges a fee, typically $10 to $35.

This is different from a monthly maintenance fee because you only pay it if you dip below the minimum—if you keep your balance above the threshold, there's no charge. However, if you're saving small amounts and your balance fluctuates, this fee can catch you by surprise.

Overdraft fees are charged when you withdraw or spend more money than you have in the account. A typical overdraft fee is $25 to $35 per transaction. Savings accounts don't usually allow overdrafts the way checking accounts do, but some banks will charge a fee if you try to withdraw more than your balance. Check your account terms to see whether overdrafts are permitted and what the fee is.

Transaction fees on savings accounts

Federal rules used to limit how many times per month you could withdraw money from a savings account without paying a fee. Those rules changed in 2020, and now most banks allow unlimited withdrawals without charging per-transaction fees.

However, some banks still charge fees for specific types of transactions. Common examples include fees for wire transfers, fees for transferring money to accounts at other banks, or fees for using an out-of-network ATM. These are usually $1 to $5 per transaction and only apply if you use that service.

Read the fee schedule for your account to see which transactions, if any, carry a charge. If you plan to move money frequently or use ATMs outside your bank's network, choose an account that doesn't charge for those services, or factor the cost into your decision.

Banks and credit unions with no-fee savings accounts

Online banks are the most likely to offer savings accounts with no monthly maintenance fee, no minimum balance requirement, and no transaction fees. Because they don't operate physical branches, their costs are lower, and they pass that savings on to customers.

Credit unions also commonly offer no-fee savings accounts, especially if you're a member. Credit unions are nonprofit organizations, so they're structured differently than banks and often prioritize keeping fees low.

Traditional banks with physical branches do offer no-fee accounts, but you may have to meet conditions like maintaining a minimum balance or setting up direct deposit. Some banks offer a basic savings account with no fees but lower interest rates, and a premium account with higher rates that charges a monthly fee if you don't meet the minimum balance.

The best approach is to compare the accounts available to you: check your current bank's offerings, look at online banks, and if you're a credit union member, check what they offer. Write down the fees, minimum balances, and waiver conditions for each, then choose the one that fits your situation.

How fees reduce the money you save

A monthly fee of $5 might seem small, but it directly reduces your savings. If you deposit $100 per month into an account with a $5 monthly fee, you're only adding $95 to your savings each month. Over a year, you've paid $60 in fees on $1,200 in deposits—that's a 5 percent cost just to hold your money.

Fees also reduce the interest you earn. If your account pays 0.01 percent interest annually on a $500 balance, you'd earn about 5 cents per year. A $5 monthly fee wipes out that interest and takes an additional $59.95 from your account. The fee is far larger than any interest you're earning.

This is why choosing a no-fee account matters most when you're saving small amounts or keeping a low balance. The larger your balance and the longer you keep money in the account, the less impact a fee has—but even then, a no-fee account is always better than one with charges.

What to look for in the account disclosure

Before opening a savings account, the bank must give you a document called a Truth in Savings disclosure or account agreement. This document lists every fee the account can charge, the conditions under which each fee applies, and the interest rate you'll earn.

Look for these specific items: the monthly maintenance fee (if any), the minimum balance requirement (if any), what happens if your balance falls below the minimum, any transaction fees, and any fees for services like wire transfers or ATM use. The disclosure will also show you the annual percentage yield (APY), which is the interest rate you'll earn.

If the disclosure is unclear or you can't find information about a specific fee, contact the bank and ask. It's better to ask before you open the account than to discover unexpected charges later.

Frequently Asked Questions

Can a bank charge me a fee just for having a savings account open?

Yes, some banks charge a monthly maintenance fee of $2 to $10 just for having the account, whether you use it or not. However, many banks waive this fee if you maintain a minimum balance, set up direct deposit, or meet other conditions. Many banks and most online banks offer accounts with no maintenance fee at all.

What's the difference between a monthly fee and a minimum balance fee?

A monthly maintenance fee is charged every month regardless of your balance. A minimum balance fee is charged only if your balance falls below a set amount. If you keep your balance above the minimum, you pay nothing; if you drop below it, you pay a fee, typically $10 to $35.

Do I have to pay fees if I don't withdraw money from my savings account?

Monthly maintenance fees apply whether you withdraw money or not—they're charged just for having the account. Minimum balance fees and transaction fees only apply if you trigger them by dropping below the minimum or making a withdrawal. If you never withdraw and keep your balance above the minimum, you may pay only the monthly maintenance fee, if your account has one.

Are online banks really free, or do they charge hidden fees?

Online banks typically charge fewer fees than traditional banks because they have lower operating costs. Most offer savings accounts with no monthly maintenance fee, no minimum balance, and no transaction fees. However, read the disclosure document for any account you're considering—some online banks do charge fees for specific services like wire transfers or expedited withdrawals.

If my account charges a monthly fee, can I switch to a different bank without penalty?

Yes. Banks cannot charge you a fee for closing an account. You can open a new account at a different bank and transfer your money over, then close the old account. There's no penalty for doing this, and it's a common way to move away from accounts with high fees.