Most savings accounts cost nothing to open or maintain
You do not have to pay money to open a savings account at a bank or credit union. There is no fee to create the account, and most accounts charge nothing to keep it open month after month. The account itself is free.
What varies is whether the bank charges you while you use the account. Some banks charge monthly maintenance fees, overdraft fees, or fees for falling below a minimum balance. Others charge nothing at all. The difference depends on which bank you choose and what type of savings account you pick.
Key Takeaways
- Opening a savings account costs nothing at most banks and credit unions — there is no upfront fee to create one.
- Monthly maintenance fees range from zero to $15 or more, depending on the bank and account type, so comparing banks before you open matters.
- Some banks waive monthly fees if you keep a minimum balance, receive direct deposit, or meet other conditions.
- Online banks typically charge no monthly fees because they have lower overhead than brick-and-mortar branches.
- Credit unions often have lower or no fees compared to large national banks.
Monthly maintenance fees and when banks charge them
A monthly maintenance fee is a charge the bank takes from your account each month just for having the account open. It is separate from any interest you earn. Fees typically range from $3 to $15 per month, though some accounts charge more.
Banks charge these fees to cover the cost of maintaining your account. Large national banks are more likely to charge them than online banks or credit unions. If you keep a low balance or make few transactions, the fee can eat into your savings faster than you expect.
Many banks let you avoid the monthly fee if you meet certain conditions. Common ways to waive the fee include keeping a minimum balance (often $500 to $2,500), setting up direct deposit, or maintaining a certain number of debit card transactions per month. Read the account terms before you open to know what waives the fee.
Other fees that can add up
Beyond monthly maintenance, banks charge fees for specific actions. An overdraft fee hits your account if you try to withdraw more money than you have — typically $25 to $35 per overdraft. Some banks charge a fee if your balance drops below a minimum threshold, even if you do not overdraft.
Withdrawal limits can also trigger fees. Federal rules once capped savings account withdrawals at six per month, and some banks still charge a fee if you exceed that limit, though the rule is no longer enforced. ATM fees apply if you use an out-of-network machine — usually $2 to $3 per transaction.
Wire transfer fees, paper statement fees, and inactivity fees (charged if you do not use the account for a set period) are less common but still exist at some banks. Check the fee schedule before opening.
Online banks versus brick-and-mortar banks
Online banks almost never charge monthly maintenance fees. Because they have no physical branches, their overhead is lower, and they pass that savings to customers. Online banks also typically offer higher interest rates on savings accounts than traditional banks.
The trade-off is that you cannot walk into a branch to deposit cash or speak to someone in person. Most online banks let you deposit checks by phone camera or transfer money from another bank account. If you need in-person service, a brick-and-mortar bank or credit union may be worth paying a small monthly fee.
Credit unions and their fee structure
Credit unions are member-owned financial institutions, not for-profit companies. Because they do not answer to shareholders, they often charge lower fees than banks. Many credit unions offer savings accounts with no monthly maintenance fee at all.
To open an account at a credit union, you must become a member. Membership usually requires living or working in a certain area, belonging to a particular employer or organization, or meeting other criteria. Membership itself is free or costs a small one-time fee ($5 to $25). Once you are a member, the savings account is typically free to open and maintain.
How to find a no-fee savings account
Start by listing banks and credit unions in your area or online banks you have heard of. Visit each one's website and look for the savings account fee schedule — it is usually under "Rates and Fees" or "Account Terms." Write down the monthly maintenance fee, minimum balance requirement, and any conditions that waive the fee.
Compare the interest rate alongside the fees. A high interest rate does not matter if a monthly fee eats most of it. A no-fee account at a lower rate is often better than a high-rate account with a $10 monthly fee.
If you have a checking account at a bank already, ask whether they offer a linked savings account with no fee. Many banks waive fees for customers who have multiple accounts with them.
What happens if you cannot meet the minimum balance
If a bank requires a $1,000 minimum balance to waive the monthly fee and you cannot keep that much in savings, you have two choices: pay the fee or switch banks. Paying $10 to $15 per month to keep your money at a bank that requires a high minimum is not worth it.
Online banks and credit unions are better options if you have a small balance. Many have no minimum balance requirement and no monthly fee, so your money stays yours.
Frequently Asked Questions
Can I open a savings account with no money?
Most banks require an opening deposit to create an account, typically $1 to $25. Some online banks and credit unions have no opening deposit requirement. Call or check the website before you visit to confirm what the bank needs.
Do I have to pay to close a savings account?
No. Closing an account is free at banks and credit unions. The bank may ask why you are leaving, but they cannot charge you to close it. Make sure you withdraw your balance first or transfer it to another account.
What if I do not use my savings account for a long time?
Some banks charge an inactivity fee if you do not make a deposit or withdrawal for 12 months or longer. The fee is usually $5 to $10 per month. Check your account terms to see if your bank charges this fee, and make at least one small transaction per year if it does.
Is it better to save money at a bank or keep it at home?
A bank account protects your money through federal insurance (up to $250,000 per account at FDIC-insured banks). Keeping cash at home means no protection if it is lost or stolen. A no-fee savings account gives you safety and interest earnings with no cost.
Can a bank charge me a fee without telling me first?
No. Banks must disclose all fees in writing before you open an account. You receive a document called the "Disclosure Statement" or "Account Agreement" that lists every fee. Read it before signing. If a fee appears later that was not listed, contact the bank to dispute it.