Most savings accounts cost nothing to open or maintain
You will not pay an upfront fee to open a savings account at a bank or credit union. There is no monthly maintenance charge at most institutions, and no annual fee. The account itself is free.
What you might pay depends on how you use the account and which bank you choose. Some banks charge fees only when you break specific rules — like making too many withdrawals in a month, or letting your balance drop below a minimum. Others charge nothing no matter what you do. A few still charge monthly fees, but these are becoming rare.
The real cost of a savings account is usually the opportunity cost: the interest rate the bank pays you on your money. If your bank pays 0.01% annual interest and another bank pays 4.5%, you lose money by staying with the first one — not in fees, but in interest you could have earned elsewhere.
Key Takeaways
- Opening a savings account is free at banks and credit unions, and most accounts have no monthly maintenance fee.
- Fees appear only when you exceed withdrawal limits, fall below a minimum balance, or use out-of-network ATMs — and many banks waive these entirely.
- The bigger cost is a low interest rate: a bank paying 0.01% interest costs you far more over time than a bank paying 4.5%, even with no fees.
- Online banks and credit unions typically charge fewer fees and pay higher interest rates than traditional brick-and-mortar banks.
Fees that actually appear on your statement
Most banks charge fees only when you do something outside their normal rules. The most common is an excess withdrawal fee, which appears when you make more than six withdrawals or transfers from your savings account in a month. Federal rules once required this limit; most banks still enforce it even though the rule changed. The fee ranges from $5 to $35 per excess withdrawal, depending on the bank.
A minimum balance fee hits you if your account balance drops below a set amount — often $300 to $500. This fee is less common now but still exists at some traditional banks. It typically costs $5 to $15 per month.
Out-of-network ATM fees appear when you withdraw cash from an ATM that does not belong to your bank. Your bank charges you $1 to $3 per withdrawal, and the ATM owner may charge another $1 to $3. This adds up fast if you use ATMs frequently. Credit unions often waive this fee for members, and online banks reimburse ATM fees at the end of each month.
A paper statement fee of $1 to $5 per month appears if you request printed statements instead of viewing them online. Almost no one pays this anymore.
Banks that charge monthly maintenance fees
Some traditional banks still charge a flat monthly fee of $5 to $15 just to keep the account open. These fees are less common than they were ten years ago, but they exist. Banks that charge them usually waive the fee if you meet one condition — maintaining a minimum balance, setting up direct deposit, or keeping a linked checking account.
Online banks and credit unions almost never charge monthly maintenance fees. If a bank is charging you $10 a month to hold your money, switching to an online bank will save you $120 a year with zero effort.
Interest rates matter more than fees
A bank with no fees but a 0.01% interest rate will cost you more money than a bank with a $5 monthly fee and a 4.5% interest rate. The math is straightforward: on $10,000, the no-fee bank pays you $1 per year, while the $5-fee bank pays you $450 per year and costs $60 in fees, netting you $390 more.
Interest rates change constantly and vary widely by bank. As of late 2024, online banks and credit unions pay between 4% and 5.35% on savings accounts, while many traditional banks pay 0.01% to 0.05%. The difference compounds over time, especially if you leave money in the account for years.
When comparing banks, look at the Annual Percentage Yield (APY), which shows the actual interest you will earn in a year. Ignore the advertised rate if it is different from the APY — the APY is what matters.
How to avoid fees entirely
Choose a bank with no monthly maintenance fee, no minimum balance requirement, and no excess withdrawal fees. Most online banks and credit unions meet all three criteria. You will still pay out-of-network ATM fees unless the bank reimburses them, so check that policy if you use ATMs often.
If you use a traditional bank with a branch near you, ask whether they waive monthly fees for customers who set up direct deposit or maintain a linked checking account. Many do. If they do not, the fee is usually small enough that the convenience of a nearby branch might be worth it — but do the math first.
Never let your balance drop below a minimum just to avoid a fee. If a bank requires you to keep $500 in the account to avoid a $10 monthly fee, you are paying 24% per year on that $500 in opportunity cost. Move the money to a bank with no minimum instead.
Fees at credit unions versus banks
Credit unions typically charge fewer fees than banks and pay higher interest rates. They do not have shareholders demanding profits, so they return money to members instead. The tradeoff is that credit unions have fewer branches and ATMs than large banks — though many credit unions are part of shared branching networks that give you access to thousands of ATMs nationwide.
Credit unions do charge some fees: overdraft fees, excess withdrawal fees, and out-of-network ATM fees exist at credit unions too. But the fees are usually lower, and the interest rates are usually higher. If you have access to a credit union through your employer or a community organization, it is worth comparing their rates and fees to your current bank.
Special account types and their costs
High-yield savings accounts cost the same as regular savings accounts — nothing — but pay much higher interest. Online banks offer these accounts with APYs around 4% to 5.35%, compared to 0.01% at traditional banks. There is no catch: the higher rate exists because online banks have lower overhead.
Money market accounts are a hybrid between savings and checking accounts. They usually pay slightly higher interest than savings accounts but may charge higher fees. Some require a larger minimum balance. Compare the APY and fees to a regular savings account before opening one.
Certificates of Deposit (CDs) lock your money away for a set period — three months to five years — in exchange for a may provide interest rate. If you withdraw early, you pay a penalty. CDs are not savings accounts, so they do not appear in this comparison, but they are worth knowing about if you have money you will not need for a while.
Frequently Asked Questions
Do I have to pay to close a savings account?
No. Banks cannot charge you to close an account. If a bank tells you there is a closing fee, that is illegal. You can close your account at any time for any reason, and it costs nothing.
What happens if I do not use my savings account for a long time?
Nothing, as long as you keep a balance in it. The account stays open and earns interest. If you do not deposit or withdraw for several years, the bank may mark it as inactive, but you can reactivate it by logging in or visiting a branch. Some states have unclaimed property laws that require banks to turn over very old inactive accounts to the state, but this takes many years of complete inactivity.
Can a bank charge me a fee for having too little money?
Yes, if the account has a minimum balance requirement and your balance falls below it. The fee is usually $5 to $15 per month. You can avoid this by choosing a bank with no minimum balance requirement, which most online banks and credit unions offer.
Are there hidden fees I should watch for?
The main ones are excess withdrawal fees, out-of-network ATM fees, and inactivity fees (rare). Read the fee schedule on the bank's website before opening an account. The schedule lists every fee the bank charges. If you cannot find it, call and ask — banks are required to disclose all fees.
Does it cost more to open a savings account online than in person?
No. Online accounts and in-person accounts cost the same. Online banks often charge fewer fees and pay higher interest because they have lower overhead, but the account opening itself is free either way.