Most banks charge nothing to open a savings account, but monthly fees can range from zero to $15 depending on the bank and account type
Opening a savings account itself is free at nearly every bank — online banks, credit unions, and traditional branches do not charge you to create the account. The cost comes later, in the form of monthly maintenance fees that some banks charge to keep the account open. These fees vary widely: many banks charge nothing at all, while others charge $5 to $15 per month. The fee depends on which bank you choose, what type of savings account it is, and sometimes on your account balance or how often you use it.
The real question is not whether you can afford to open an account — you can — but whether you can afford to keep it open at a particular bank. A $10 monthly fee adds up to $120 a year, which eats into the interest your savings would earn. Knowing what banks charge, and what they waive, matters more than the opening cost.
Key Takeaways
- Opening a savings account costs nothing at any bank, but monthly maintenance fees range from $0 to $15 depending on the institution.
- Many banks waive monthly fees if you keep a minimum balance, set up direct deposit, or maintain a linked checking account.
- Online banks typically charge no monthly fees because they have lower operating costs than brick-and-mortar branches.
- Credit unions often charge lower or no fees, especially if you are a member of a workplace or community group.
- Overdraft fees and ATM fees are separate from monthly maintenance and can add significant cost if you are not careful.
Monthly maintenance fees and how banks waive them
A monthly maintenance fee is what a bank charges to keep your account active and process transactions. Not all banks charge one. Online banks like Ally, Marcus, and Discover typically charge zero monthly fees because they do not operate physical branches. Traditional banks like Bank of America, Wells Fargo, and Chase charge $5 to $15 per month on some savings accounts, though they often waive the fee if you meet certain conditions.
The most common ways to waive a monthly fee are: keeping a minimum balance (often $300 to $500), setting up direct deposit, maintaining a linked checking account, or making a certain number of debit card transactions per month. Some banks waive fees for customers under 25 or over 65. Read the account terms before you open — the fee structure is usually listed in the account details, and customer service can tell you exactly what waives the fee at that bank.
Differences between bank types and their fee structures
Online banks almost never charge monthly maintenance fees on savings accounts. They operate without physical locations, so their costs are lower, and they pass that savings to customers. The trade-off is that you cannot walk into a branch to deposit cash or speak to someone in person — everything happens online or by phone.
Traditional banks with branches charge monthly fees more often, but they also offer in-person service and the ability to deposit cash at a teller window. Credit unions, which are member-owned cooperatives, typically charge lower fees or no fees at all. You usually have to be a member to open an account — membership is often based on where you work, where you live, or a group you belong to. If you are may be able to access for a credit union, it is worth checking their rates and fees before opening at a traditional bank.
What other costs come with a savings account
Monthly maintenance fees are not the only charges you might face. Overdraft fees apply when you withdraw more money than you have in the account — typically $25 to $35 per overdraft. ATM fees occur when you use an ATM that does not belong to your bank's network, usually $2 to $3 per transaction. Some banks charge fees for paper statements, wire transfers, or closing an account early.
The good news is that most of these fees are avoidable. Use your bank's ATM network to avoid ATM fees. Keep enough money in the account to avoid overdrafts. Choose a bank with no monthly maintenance fee to eliminate that cost entirely. Read the fee schedule before you open the account — it is usually a PDF on the bank's website or available from a teller — so you know what you might be charged.
How to compare savings accounts by total cost
Do not compare banks on opening cost alone — they are all free. Instead, compare the monthly maintenance fee, the minimum balance required to waive it, and the interest rate the bank pays on your balance. A bank with a $10 monthly fee but a 4.5% interest rate might cost you less over a year than a bank with no fee but a 0.01% interest rate, depending on how much money you keep in the account.
Use a spreadsheet or calculator to estimate your total cost. Write down the monthly fee, the minimum balance you need to keep to waive it, the interest rate, and any other fees that apply to how you plan to use the account. Multiply the monthly fee by 12 to see the annual cost. Then calculate how much interest you would earn at that bank's rate on your expected balance. The bank where your interest earnings exceed your fees is the cheapest option for you.
When a savings account with fees makes sense
Most of the time, a savings account with no monthly fee is the better choice. But there are situations where a bank with a fee might still be worth it. If you need to deposit cash regularly and do not have access to an online bank's ATM network, a traditional bank branch might be worth the $5 monthly fee. If you want a savings account linked to a checking account at the same bank for easier money management, and that bank charges a fee, the convenience might justify the cost.
The key is knowing what you are paying for and making sure the benefit is real. If you are paying a $10 monthly fee to keep a minimum balance of $500 in an account that earns 0.01% interest, you are losing money. If you are paying the same fee because you need in-person service and you use the branch regularly, that is a choice you can make with full information.
Frequently Asked Questions
Do I have to pay to open a savings account?
No. Every bank, credit union, and online financial institution offers free account opening. You will not be charged to create the account. Fees, if any, start only after the account is open and active.
What is the cheapest way to have a savings account?
Open an account at an online bank with no monthly maintenance fee and no minimum balance requirement. Banks like Ally, Marcus, and Discover charge nothing to keep the account open and often pay higher interest rates than traditional banks. You give up in-person service but keep all your money.
Can I avoid monthly fees by keeping money in my account?
Yes, if the bank offers a minimum balance waiver. Many banks waive the monthly fee if you keep $300 to $500 in the account at all times. Check the account terms to see what minimum balance your bank requires and whether that waiver applies to you.
What happens if I cannot meet the minimum balance to waive the fee?
You will be charged the monthly maintenance fee. If you cannot maintain the minimum balance, choose a bank with no monthly fee instead. Paying $10 a month to keep a savings account open defeats the purpose of saving.
Are there hidden fees I should know about?
The main hidden costs are overdraft fees ($25 to $35), ATM fees ($2 to $3), and wire transfer fees ($15 to $30). These are not monthly charges but occur only when you use those services. Read the fee schedule before opening to see what your bank charges for each.