Most banks charge nothing to open a savings account, but monthly fees vary widely
Opening a savings account itself is free at nearly every bank and credit union in the United States. You do not pay a fee to create the account or to make your first deposit. However, many banks charge a monthly maintenance fee — typically $5 to $15 per month — if your account balance falls below a minimum or if you do not meet other conditions. Some banks waive this fee entirely, while others charge it to every account regardless of balance.
The real cost of a savings account depends on which bank you choose and what you do with the account. A bank that charges $10 monthly will cost you $120 per year if you cannot avoid the fee. A bank with no monthly fee costs nothing to maintain. The difference between these two options is substantial over time, especially if you are saving small amounts.
Beyond the monthly fee, you may encounter other charges: overdraft fees if you accidentally spend more than you have, fees for transferring money out of state, or fees for closing the account early. These are less common with savings accounts than with checking accounts, but they exist at some institutions.
Key Takeaways
- Opening a savings account is free at banks and credit unions; no institution charges you to create the account.
- Monthly maintenance fees range from $0 to $15 per month depending on the bank, and some banks waive the fee if you maintain a minimum balance.
- Online banks and credit unions typically charge lower or no monthly fees compared to traditional brick-and-mortar banks.
- Overdraft fees, early closure fees, and transfer fees may apply in specific situations, but are not automatic charges.
- The total cost of a savings account over a year depends entirely on which bank you choose and whether you can meet their fee-waiver conditions.
How monthly maintenance fees work
A monthly maintenance fee is charged by the bank if you do not meet certain conditions. The most common condition is a minimum balance requirement — if your account balance drops below $500, $1,000, or $2,500 (the threshold varies by bank), the bank charges you a fee that month. Other banks charge the fee only if you make more than a certain number of withdrawals, or if you do not set up direct deposit.
Some banks charge the fee to every account, period. Others charge it only to accounts that do not meet the conditions. A few charge no monthly fee at all. Before you open an account, the bank's website or a banker should tell you whether a monthly fee applies and what you need to do to avoid it.
If you maintain the minimum balance or meet the other requirement, you pay nothing. If you do not, the fee is usually deducted automatically from your account each month. Over a year, a $10 monthly fee becomes $120 out of your savings.
Comparing costs across different bank types
| Bank Type | Typical Monthly Fee | Minimum Balance to Avoid Fee | Other Common Conditions |
|---|---|---|---|
| Online bank | $0 | None | None |
| Credit union | $0–$5 | $0–$500 | May require membership |
| Traditional bank (large) | $5–$15 | $500–$2,500 | Direct deposit or minimum transactions |
| Traditional bank (small/local) | $0–$10 | $0–$1,000 | Varies by location |
Online banks almost never charge monthly maintenance fees because they have lower overhead costs than banks with physical branches. Credit unions typically charge lower fees than large national banks, though you may need to be a member of the credit union to open an account. Large national banks like Bank of America, Wells Fargo, and Chase charge monthly fees on most savings accounts unless you meet their conditions.
Local and regional banks fall somewhere in between. Some charge no fee; others charge $5 to $10 per month. The only way to know is to check the bank's fee schedule, which is posted on their website or available from a banker in person.
Other charges you might encounter
Overdraft fees occur when you withdraw more money than you have in your account. With a savings account, this is less likely than with a checking account, but it can happen if you link your savings to a debit card or if the bank allows overdrafts. An overdraft fee is typically $25 to $35 per occurrence. You can usually prevent this by turning off overdraft protection in your account settings.
Early closure fees are charged by some banks if you close the account within a certain time frame — usually 90 days to six months after opening. These fees are less common than they used to be, but they exist. A typical early closure fee is $25. Check the bank's terms before you open the account if you think you might close it soon.
Transfer fees may apply if you move money out of your savings account to another bank, though most banks do not charge for this. Some banks charge a small fee — $1 to $5 — for wire transfers or for transferring money to accounts outside their network. These are optional services, so you only pay if you use them.
How to find a savings account with no monthly fee
Start by looking at online banks first. Institutions like Ally, Marcus, Discover, and American Express Bank offer savings accounts with no monthly fee, no minimum balance, and no conditions. You open the account online in minutes, and you can deposit money by transferring it from another bank. These accounts are insured by the Federal Deposit Insurance Corporation (FDIC), so your money is protected up to $250,000.
If you prefer a bank with physical branches, call or visit local banks and credit unions in your area. Ask them directly: "What is your monthly fee for a savings account, and what do I need to do to avoid it?" Write down the answer. Compare three or four institutions before you decide. Many small banks and credit unions charge no monthly fee if you maintain a modest balance — $100 to $500.
Read the fee schedule before you open the account. The fee schedule is a document the bank must provide; it lists every fee the bank charges. Do not rely on what a banker tells you verbally — get it in writing so you know exactly what you are signing up for.
What happens if you cannot meet the minimum balance
If you are saving small amounts and cannot maintain the minimum balance, choose a bank with no minimum balance requirement. Online banks are the easiest option because they have no minimum and no monthly fee. You can open an account with $1 and never pay a fee, no matter how low your balance gets.
If you want to use a traditional bank with branches, ask whether they offer a basic savings account with no minimum balance. Some do, though they may call it a "starter savings account" or "youth savings account." These accounts are designed for people who are building up their savings and cannot maintain a large balance.
If you open an account at a bank that does charge a monthly fee and you cannot meet the minimum balance, the fee will be deducted from your account each month. This means your savings will grow more slowly. After a year, a $10 monthly fee will have cost you $120 — money that could have stayed in your account earning interest.
Interest rates and how they affect your total cost
A savings account earns interest — a small percentage of your balance that the bank pays you each month or year. The interest rate varies by bank and changes over time. Currently, online banks offer higher interest rates (4% to 5% annually) than traditional banks (0.01% to 0.5% annually). A high interest rate can offset a monthly fee, or it can make a no-fee account even more valuable.
For example, if you have $1,000 in an online bank earning 4.5% interest, you earn about $45 per year. If you put the same $1,000 in a traditional bank earning 0.1% interest but paying a $10 monthly fee, you earn $1 in interest but lose $120 to fees — a net loss of $119. The difference is real and compounds over time.
When you compare banks, look at both the monthly fee and the interest rate. A bank with no fee and a high interest rate is almost always the better choice for a savings account.
Frequently Asked Questions
Do I have to pay money upfront to open a savings account?
No. Every bank and credit union in the United States allows you to open a savings account for free. You do not pay a fee to create the account. You do need to make an initial deposit, but that money is yours — it goes into your account, not to the bank as a fee.
What is the cheapest way to open a savings account?
Online banks are the cheapest option. They charge no monthly fee, require no minimum balance, and often pay higher interest rates than traditional banks. You can open an account in minutes on their website and fund it by transferring money from another bank. Examples include Ally, Marcus, Discover, and American Express Bank.
Can I avoid the monthly fee by keeping a certain amount in my account?
Yes, if the bank has a minimum balance requirement. Check the bank's fee schedule to see what the minimum is — it typically ranges from $500 to $2,500. If your balance stays above that amount, the monthly fee is waived. If it drops below, you are charged the fee that month.
What happens if I close my savings account right after opening it?
Most banks allow you to close an account anytime without penalty. However, some banks charge an early closure fee — typically $25 — if you close within 90 days to six months of opening. Check the bank's terms before you open the account. Online banks rarely charge early closure fees.
Is a savings account at a credit union cheaper than a bank?
Usually, yes. Credit unions typically charge lower or no monthly fees compared to large national banks. However, you may need to be a member of the credit union to open an account, which sometimes requires living or working in a certain area or belonging to a specific group. Ask your local credit union about membership and fees.