Most savings accounts have no monthly fee, but some do — it depends on the bank and the account type
You do not have to pay a monthly fee to have a savings account. Many banks and credit unions offer savings accounts with zero monthly charges. However, some accounts do charge a monthly maintenance fee, usually between $2 and $10. Whether you pay depends on which bank you choose, what type of account you open, and sometimes on how much money you keep in it.
The key difference is that banks set their own fee structures. A savings account at one bank might be free while an identical account at another bank costs $5 per month. You get to choose which bank to use, so you can pick one that does not charge a monthly fee if that matters to you.
Key Takeaways
- Most major banks and credit unions offer at least one savings account with no monthly maintenance fee.
- When a bank does charge a monthly fee, you can often avoid it by keeping a minimum balance — typically $500 to $2,500 — or by setting up direct deposit.
- Online banks almost never charge monthly fees because they have lower operating costs than brick-and-mortar branches.
- Fees are separate from interest rates; a free account might pay better interest than a paid account, or worse — check both before deciding.
Banks that charge monthly fees and how to avoid them
Traditional banks — the kind with physical branches — are more likely to charge a monthly maintenance fee than online banks are. Chase, Bank of America, Wells Fargo, and Citibank all offer savings accounts with monthly fees on some of their products. A typical fee is $5 per month, though some accounts charge more.
Most of these banks let you waive the fee if you meet one of these conditions: keep a minimum balance (often $500 to $2,500), set up direct deposit from your paycheck, or maintain a linked checking account. Read the account details on the bank's website to see which waivers apply to the specific account you are considering. The waiver rules vary even within the same bank.
Credit unions almost never charge monthly savings account fees. If you are a member of a credit union, check their savings account options first — you will likely find a free account. If you are not a member, you may be able to join one through your employer, your school, or your neighborhood.
Online banks and why they usually have no fees
Online banks — institutions that operate only through websites and apps, with no physical branches — almost always offer savings accounts with no monthly fee. Examples include Ally, Marcus, Discover, and Vanguard. These banks can afford to skip the fee because they do not pay for building leases, tellers, or branch staff.
Online banks make money from the interest they earn on the money you deposit, not from charging you to hold your account. They often pay higher interest rates on savings than traditional banks do, which is another reason to compare them. The trade-off is that you cannot walk into a branch to deposit cash or speak to someone in person, though most online banks let you deposit checks through a mobile app.
What happens if your account has a monthly fee and you do not waive it
If you do not meet the conditions to waive a monthly fee, the bank will deduct it from your account balance every month. A $5 monthly fee means $60 comes out of your savings each year, whether or not you use the account. Over time, this reduces the money you have saved and can outpace the interest the account earns.
If your balance drops below zero because of fees, the bank may close the account and report it to ChexSystems, a database that banks check when you try to open a new account. This can make it harder to open accounts at other banks for a period of time. If you cannot meet a fee waiver, switching to a bank with no monthly fee is usually the better choice.
Fees separate from monthly charges
A savings account with no monthly maintenance fee can still charge you for other things. Common fees include overdraft fees (if you withdraw more than you have), out-of-network ATM fees (if you use another bank's ATM), and wire transfer fees. These are not monthly charges — they only happen when you do a specific action.
When you compare savings accounts, look at both the monthly fee and these other possible charges. An account with no monthly fee might still be expensive if you use out-of-network ATMs often. Conversely, an account with a $5 monthly fee might be worth it if the interest rate is much higher and you plan to keep a large balance there.
How to find a savings account with no monthly fee
Start by listing the banks where you already have a checking account or where you have a relationship — many people get a discount on savings accounts if they also bank there. Go to each bank's website and search for "savings account" or "high-yield savings account." Read the account details section, which will list any monthly maintenance fees and the conditions to waive them.
If none of your current banks offer a free savings account, search online for "no-fee savings accounts" or "high-yield savings accounts." Compare the monthly fee (should be $0), the interest rate, and the minimum balance requirement. Online banks and credit unions should appear in these results. Open an account with the one that offers the best combination of no fee and competitive interest for your situation.
Interest rates and fees are not the same thing
A savings account's interest rate — how much the bank pays you to keep money there — is separate from whether it charges a monthly fee. A free account might pay 0.01% interest while a paid account pays 4.5%. Or the opposite could be true. You have to check both numbers.
If you plan to keep $10,000 in savings, a free account paying 0.01% interest earns $1 per year. A paid account charging $5 per month costs $60 per year, but if it pays 4.5% interest, you earn $450 per year — a net gain of $390. In this case, the paid account is better. But if the paid account only pays 0.5% interest, you earn $50 per year and lose $10 overall. Always do the math for your own situation.
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 just for holding the account, even if you never use it. However, you can usually waive this fee by keeping a minimum balance or setting up direct deposit. If you cannot meet these conditions, switch to a bank with no monthly fee instead.
Do credit unions charge monthly fees on savings accounts?
Credit unions almost never charge monthly maintenance fees on savings accounts. If you are a member of a credit union, check their savings options first. Membership requirements vary — some are open to anyone in a geographic area, while others require employment at a specific company or membership in an organization.
What is the difference between a monthly fee and an overdraft fee?
A monthly fee is charged automatically every month just for having the account. An overdraft fee only happens if you try to withdraw more money than you have in the account. You can avoid a monthly fee by switching banks, but you avoid overdraft fees by not overdrawing your account.
If I keep a high balance, can I avoid paying a monthly fee?
Many banks waive their monthly fee if you maintain a minimum balance, typically $500 to $2,500. Check the account details on the bank's website to see what minimum applies to the specific account you want. If you cannot keep that balance, you will pay the fee or need to switch to a bank with no fee.
Do online banks really have no monthly fees?
Online banks almost always have no monthly maintenance fees because they do not operate physical branches. They often pay higher interest rates to make up for it. The main trade-off is that you cannot deposit cash in person or speak to a teller face-to-face, though most let you deposit checks through an app.