Most savings accounts cost nothing to open or maintain
You do not have to pay a monthly fee to keep a savings account open at most banks. Many banks offer savings accounts with zero monthly maintenance charges, no minimum balance requirement, and no opening fee. The cost to you is nothing.
That said, some banks do charge fees, and the fees vary widely. A few banks charge a small monthly maintenance fee—typically $2 to $5—if your account balance falls below a certain amount, often $500 or $1,000. Other banks charge fees only if you exceed a certain number of withdrawals in a month. Understanding what your specific bank charges is the only way to know what you will actually pay.
Key Takeaways
- Most major banks offer savings accounts with no monthly fee and no minimum balance requirement.
- Some banks charge $2 to $5 per month if your balance drops below a set threshold, usually $500 to $1,000.
- Online banks typically charge lower or no fees because they have fewer physical locations to maintain.
- Fees can be waived if you meet conditions like setting up direct deposit or maintaining a linked checking account.
- Always check the fee schedule before opening an account—banks post this information on their website or in writing at the branch.
Where fees show up and how much they are
The most common fee is a monthly maintenance fee, charged by some traditional banks if your balance stays below a minimum. Chase, Bank of America, and Wells Fargo, for example, charge $5 per month on certain savings accounts if the balance falls below $300 to $500. However, these same banks often waive the fee if you set up direct deposit, maintain a linked checking account, or keep a higher balance.
A second type of fee is an excess withdrawal fee, though this is less common now. Federal rules once limited savings account withdrawals to six per month; banks that enforced this limit charged $10 to $35 per withdrawal over the limit. Most banks have removed this rule and no longer charge the fee, but some regional banks still do. Check your bank's withdrawal policy before opening the account.
A third fee is an overdraft fee, which applies if you withdraw more money than you have in the account. This is not a maintenance fee—it is a penalty for going negative—and it typically costs $25 to $35 per overdraft. Some banks charge multiple overdraft fees in a single day if you make several transactions while overdrawn.
How online banks keep fees lower
Online banks—banks with no physical branches, like Ally, Marcus, and Discover—almost never charge monthly maintenance fees or minimum balance requirements. They can afford to do this because they have no branch locations to staff and maintain, so their operating costs are lower. They pass some of that savings to customers by offering free accounts.
Online banks also typically offer higher interest rates on savings balances than traditional banks do. 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 taking a photo with your phone, and they reimburse ATM fees at out-of-network machines.
When banks waive fees you would otherwise pay
Many banks will waive a monthly maintenance fee if you meet one or more conditions. Common fee waivers include:
- Setting up direct deposit of your paycheck or government benefits into the account.
- Maintaining a minimum balance—often $300 to $500, sometimes higher.
- Linking the savings account to a checking account at the same bank.
- Maintaining a combined balance across all your accounts at that bank above a certain threshold.
- Being under a certain age (some banks waive fees for accounts held by people under 25).
Ask your bank which waivers apply to your account type. If you already have direct deposit set up or a checking account at the same bank, you may already may have access to for a waiver without doing anything extra.
How to find out what your bank charges
Every bank publishes a fee schedule that lists all the charges that apply to each account type. You can find this document on the bank's website, usually under "Rates and Fees" or "Disclosures." The fee schedule will tell you the monthly maintenance fee (if any), the minimum balance requirement, withdrawal limits, overdraft fees, and any other charges.
If you cannot find the fee schedule online, call the bank's customer service line or visit a branch and ask for it in writing. Banks are required by law to provide this information before you open an account. Read it before you sign anything.
If you already have an account and want to know what you are paying, log into your online banking portal and look at your recent statements. Any fees charged will appear as separate line items. If you see a fee you do not recognize, call the bank and ask what it is for—sometimes fees can be reversed if you were not aware of the condition that triggered them.
Comparing costs across different banks
The cheapest option for most people is an online bank with no monthly fee and no minimum balance. If you need the ability to deposit cash or prefer in-person service, a traditional bank with a waived maintenance fee (through direct deposit or a linked checking account) costs the same as an online bank.
If you are comparing two traditional banks and both charge a monthly fee, calculate the annual cost. A $5 monthly fee costs $60 per year; a $2 fee costs $24 per year. Over time, that difference adds up. Also check whether the fee can be waived—a bank that charges $5 but waives it for direct deposit may actually be cheaper than a bank that charges $2 with no waiver option.
Frequently Asked Questions
Can a bank charge me a fee just for having a savings account?
Yes, some banks charge a monthly maintenance fee. However, most major banks waive this fee if you meet certain conditions, such as setting up direct deposit or keeping a minimum balance. Online banks typically do not charge any monthly fee at all.
What happens if I do not meet the minimum balance requirement?
If your account balance falls below the minimum and you do not may have access to for a fee waiver, the bank will charge you a monthly maintenance fee—usually $2 to $5. The fee is deducted from your account balance. If this happens repeatedly, ask your bank whether you can waive the fee by setting up direct deposit or linking a checking account.
Are there any hidden fees I should watch out for?
The main fees to watch for are overdraft fees (charged if you withdraw more than your balance), excess withdrawal fees (charged if you make too many withdrawals in a month, though this is rare now), and ATM fees (charged if you use an out-of-network ATM). Read your bank's fee schedule to see which of these apply to your account.
Do I have to pay interest on money I keep in a savings account?
No. Interest is money the bank pays you for letting them use your money. You earn interest; you do not pay it. The amount of interest varies by bank and by how much money you have in the account. Online banks typically offer higher interest rates than traditional banks.
Can a bank close my account if I do not use it?
Yes, some banks close accounts that have had no activity for a long period—often one to three years, depending on the bank's policy. They may also charge an inactivity fee before closing the account. Check your bank's policy if you plan to leave money in an account without touching it for a while.