Most savings accounts have no monthly fee, but some do — it depends on the bank and the account type
You can open and keep a savings account without paying a monthly maintenance fee at most banks and credit unions. Many institutions offer free accounts with no minimum balance requirement and no charge just for having the account open. However, some banks do charge monthly fees, and nearly all banks charge fees for specific actions — like overdrafts, wire transfers, or excessive withdrawals. The cost depends on which bank you choose and which account features matter to you.
The key is knowing what to look for before you open an account. A bank's fee schedule is public information, and you can compare it against other banks before committing. Some fees are avoidable if you meet certain conditions, like keeping a minimum balance or setting up direct deposit.
Key Takeaways
- Most banks offer savings accounts with no monthly maintenance fee, though some charge $5 to $15 per month depending on account type and balance.
- Nearly all banks charge fees for overdrafts, excessive withdrawals, wire transfers, and returned checks — these are separate from monthly account fees.
- Many banks waive their monthly fee if you maintain a minimum balance, usually $500 to $2,500, or set up direct deposit.
- Credit unions typically charge lower fees than banks and often have no monthly maintenance fee even with a zero balance.
- You can request a fee waiver or reversal if you have been charged unfairly, and banks sometimes honor the request if you have a good account history.
Monthly maintenance fees and when banks charge them
A monthly maintenance fee is a charge just for keeping the account open. Not all banks charge this fee — many offer savings accounts with zero monthly cost. Banks that do charge typically ask for $5 to $15 per month, though some charge more for premium or specialty accounts.
Banks most often charge a monthly fee when your account balance falls below a certain threshold, usually $500 to $2,500 depending on the bank. If you stay above that balance, the fee disappears. Some banks charge the fee to all customers but waive it if you set up direct deposit or link the account to a checking account at the same bank.
Online banks and credit unions charge monthly maintenance fees less often than traditional brick-and-mortar banks. If you are comparing accounts, check the fee schedule on each bank's website — it is usually listed under "Pricing" or "Fees and Charges." The schedule will show you exactly which actions trigger which fees.
Overdraft fees and other transaction-based charges
Beyond monthly fees, banks charge for specific actions. An overdraft fee occurs when you try to withdraw more money than you have in the account. Most banks charge $25 to $35 per overdraft, and some charge multiple fees if several transactions overdraw the account on the same day. Overdraft fees are separate from monthly maintenance fees and can add up quickly if you are not careful.
Other common fees include charges for wire transfers (usually $15 to $30), returned checks or failed deposits ($5 to $15), and excessive withdrawals. Federal rules limit savings account withdrawals to six per month; banks charge a fee for each withdrawal beyond that limit, typically $10 to $25 per excess withdrawal.
ATM fees apply when you use an out-of-network ATM — your bank charges you $2 to $3, and the ATM operator may charge an additional fee. Using your bank's own ATMs is free. Some banks reimburse out-of-network ATM fees if you maintain a high balance or pay a monthly fee for a premium account.
How to avoid or reduce fees
The simplest way to avoid fees is to choose a bank that does not charge a monthly maintenance fee. Online banks like Ally, Marcus, and Discover often have no monthly fees and no minimum balance requirements. Credit unions also tend to have lower fees than traditional banks.
If you prefer a traditional bank, you can avoid monthly fees by keeping your balance above the minimum threshold or setting up direct deposit. Some banks waive fees for students, seniors, or military members — ask your bank whether you may have access to. Linking your savings account to a checking account at the same bank sometimes triggers a fee waiver as well.
To avoid overdraft fees, set up account alerts that notify you when your balance drops below a certain amount. Many banks let you set these alerts for free through their app or website. You can also request overdraft protection, which links your savings account to your checking account and automatically transfers money if you overdraft — this usually costs nothing or a small flat fee per transfer, which is cheaper than an overdraft fee.
Comparing fees across different bank types
| Bank Type | Typical Monthly Fee | Minimum Balance to Waive | Overdraft Fee |
|---|---|---|---|
| Online Bank | $0 | None | $0–$35 |
| Credit Union | $0–$5 | $500–$1,000 | $25–$35 |
| Traditional Bank | $5–$15 | $500–$2,500 | $25–$35 |
| Premium/High-Yield Account | $10–$25 | $2,500–$10,000 | $25–$35 |
Online banks consistently charge the lowest fees because they have no physical branches to maintain. Credit unions are member-owned and typically charge less than traditional banks. Traditional banks charge the most, though they vary widely — some offer free accounts while others charge $15 or more per month.
High-yield savings accounts often come with higher minimum balance requirements and sometimes charge monthly fees, but they pay significantly more interest on your balance. Whether the higher interest rate offsets the fee depends on how much money you keep in the account.
What to do if you are charged an unfair fee
If you have been charged a fee you believe is wrong, contact your bank's customer service and ask for a reversal. Banks sometimes waive fees as a courtesy, especially if you have a good account history or if the fee was caused by a bank error. Be polite and specific — explain why you think the fee should not have been charged.
If your bank refuses to reverse the fee and you believe it was charged unfairly, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov. The CFPB investigates complaints about banks and can sometimes force a refund. Keep records of all communications with your bank and copies of your account statements showing the disputed fee.
Frequently Asked Questions
Can I open a savings account with no fees at all?
Yes. Most online banks and many credit unions offer savings accounts with no monthly maintenance fee, no minimum balance, and no opening deposit. You will still pay fees for overdrafts or excessive withdrawals, but the account itself costs nothing to maintain.
Do I have to pay a fee if I do not use my savings account?
No. Savings accounts do not charge fees for inactivity. You can leave money in the account untouched for months or years without being charged. However, some banks may close accounts that show no activity for an extended period — typically one to three years — so check your bank's policy if you plan to leave an account dormant.
What happens if I go over the six-withdrawal limit?
Your bank will charge a fee for each withdrawal beyond six per month, usually $10 to $25 per excess withdrawal. This rule applies to most savings accounts, though some banks have relaxed it in recent years. Check your bank's withdrawal policy before opening an account if frequent withdrawals are important to you.
Can I switch banks to avoid fees?
Yes. If your current bank charges high fees, you can open an account at a different bank with lower fees and transfer your money. The transfer itself is free and usually takes one to three business days. You can keep both accounts open or close the old one once the transfer is complete.
Do credit unions charge the same fees as banks?
Credit unions typically charge lower fees than traditional banks, but fees vary by credit union. Some charge no monthly maintenance fee while others charge $5 to $10. Ask your credit union for their complete fee schedule before opening an account.