Most savings accounts have no monthly fee, but some banks charge $5 to $15 per month if your balance falls below a minimum
Whether a savings account costs money depends on the bank and the account type. Many banks—especially online banks—offer savings accounts with no monthly maintenance fee at all. Others charge a fee only if you don't keep a certain amount on deposit, typically $500 to $2,500. A few banks charge a flat monthly fee regardless of your balance, usually $5 to $15.
The fee structure matters because it can eat into the interest you earn. If a bank pays you 4% annual interest on a $1,000 balance but charges a $10 monthly fee, you lose $120 per year—more than the interest you'd make. Knowing what you'll actually pay before you open an account prevents this surprise.
Key Takeaways
- Online banks typically charge no monthly fee because they have lower operating costs than brick-and-mortar branches.
- Traditional banks often waive their monthly fee if you maintain a minimum balance, which ranges from $500 to $2,500 depending on the bank.
- Some banks charge a fee only if your account sits inactive for a set period, usually six months to a year with no deposits or withdrawals.
- Overdraft fees, ATM fees, and wire transfer fees are separate from monthly maintenance fees and can add up quickly if you're not careful.
Monthly maintenance fees and minimum balance requirements
A monthly maintenance fee is a charge the bank takes from your account each month just for having the account open. Not all banks charge this, but those that do typically waive it if you keep a minimum balance. The minimum varies: Chase requires $500 for some accounts, Bank of America requires $300 for others, and some regional banks ask for $2,500 or more.
If you can't maintain the minimum, you pay the fee—usually $5 to $15 per month. Over a year, that's $60 to $180 out of your pocket. The math changes if you're earning interest: a high-yield savings account at an online bank might pay 4% to 5% annual interest with zero monthly fee, which beats a traditional bank's lower interest rate even after you factor in the fee.
Some banks also let you waive the fee by setting up direct deposit or by keeping a linked checking account with them. Read the account terms before opening to see which waiver options apply.
Inactivity fees and dormancy charges
A few banks charge an inactivity fee if you don't use your account for a certain period—usually six months to a year. This is less common than a monthly maintenance fee, but it happens. The fee is typically $5 to $10 and appears if you haven't made a deposit or withdrawal during the inactive window.
If you're opening a savings account to set money aside and leave it alone, check whether the bank charges for inactivity. Some banks also have dormancy policies that allow them to transfer old, unused accounts to the state if no activity occurs for a very long time (often five to seven years), though this is rare for savings accounts. Knowing this upfront means you won't be surprised if your account gets flagged for non-use.
Other fees that add up beyond the monthly charge
Monthly maintenance fees are only one cost. Banks also charge for specific actions, and these fees can exceed the monthly fee if you're not careful. An overdraft fee (charged when you spend more than your balance) typically runs $25 to $35 per overdraft. An ATM fee for using another bank's ATM is usually $2 to $3 per transaction. A wire transfer fee can be $15 to $30.
If you frequently withdraw cash from out-of-network ATMs or send wire transfers, these fees add up faster than a monthly maintenance charge. Some banks reimburse out-of-network ATM fees if you maintain a high balance or have a premium account, so it's worth asking. Savings accounts don't typically allow overdrafts the way checking accounts do, so you're less likely to face overdraft fees on the savings account itself, but if your bank links your savings and checking accounts and you overdraft checking, the bank may charge you anyway.
How online banks keep costs lower
Online banks—banks with no physical branches—almost never charge monthly maintenance fees. They save money by not operating branch locations, and they pass that savings to customers. Banks like Ally, Marcus, and Discover have no monthly fee and no minimum balance requirement on their savings accounts.
The trade-off is that you can't walk into a branch to deposit cash or speak to someone in person. You deposit checks by taking a photo with your phone, and you access your money through an app or website. For most people saving money, this is fine. If you regularly deposit cash or need in-person service, a traditional bank might be worth the fee, but for many savers the lack of fees and higher interest rates make online banks the better choice.
Comparing total cost across banks
To find the true cost of a savings account, multiply the monthly fee by 12, then subtract the annual interest you'd earn on your typical balance. If you keep $1,000 in an account that charges $10 per month but pays 0.01% interest, you lose $120 per year minus $0.10 in interest—a net loss of about $120. The same $1,000 at an online bank with 4.5% interest and no fee earns you $45 per year. The difference is $165 annually, which is real money.
The table below shows how costs differ across bank types. Use it to compare what you'd actually pay at each option based on the balance you plan to keep:
| Bank Type | Monthly Fee | Minimum Balance | Interest Rate (typical) | Best For |
|---|---|---|---|---|
| Online bank | $0 | $0 | 4.0%–5.3% | People who want no fees and high interest |
| Traditional bank (large) | $5–$15 | $500–$2,500 | 0.01%–0.5% | People who need branch access and can meet minimum |
| Credit union | $0–$5 | $0–$500 | 0.5%–2.0% | Members who want lower fees than big banks |
How to avoid paying fees
The simplest way to avoid fees is to open an account at an online bank with no monthly maintenance fee and no minimum balance. If you prefer a traditional bank, keep your balance above the minimum or set up direct deposit to waive the fee. Some banks waive fees for customers under 18 or over 65, so ask about age-based discounts.
If you're already paying a monthly fee, call your bank and ask whether you can waive it. Banks sometimes waive fees for long-time customers or if you move your paycheck to them. It costs nothing to ask, and many banks will do it to keep your business. Avoid out-of-network ATM fees by using your bank's ATM network or by choosing a bank that reimburses ATM fees. Avoid wire transfer fees by using free transfer methods like ACH transfers when you have time. Don't leave money sitting in an inactive account for years—either use it or move it to a bank that doesn't charge for inactivity.
Frequently Asked Questions
Can a bank charge me a fee just for having a savings account?
Yes. Some banks charge a monthly maintenance fee of $5 to $15 just to keep the account open. However, many banks waive this fee if you maintain a minimum balance, set up direct deposit, or meet other conditions. Online banks typically charge no monthly fee at all.
What's the difference between a monthly fee and an overdraft fee?
A monthly fee is charged automatically each month just for having the account. An overdraft fee is charged only when you spend more money than you have in the account. Savings accounts rarely allow overdrafts, so you're unlikely to face overdraft fees on a savings account itself.
Do I have to pay a fee to close a savings account?
Most banks do not charge a fee to close a savings account. However, some banks charge an early closure fee (usually $25 to $50) if you close the account within a certain period, often 90 days to six months. Check the account terms before opening to see if an early closure fee applies.
Will I lose money if I keep a low balance?
You'll lose money only if the bank charges a monthly fee for falling below the minimum balance. If you keep $100 in an account with a $500 minimum and a $10 monthly fee, you'll pay $120 per year. If the bank charges no monthly fee, a low balance just means you earn less interest, but you won't lose money.
Are there any savings accounts with no fees and no minimum balance?
Yes. Most online banks offer savings accounts with no monthly fee and no minimum balance requirement. Credit unions also often have low-fee or no-fee savings accounts for members. The trade-off is usually that online banks don't have physical branches, so you manage your account through an app or website.