Minimum deposit and balance requirements vary by bank
Most banks require between $0 and $25 to open a savings account, though some require nothing at all. After you open the account, many banks require you to keep a minimum balance — a set amount that must stay in the account at all times. If your balance drops below that minimum, the bank charges a monthly fee, usually $5 to $15.
The minimum balance requirement is separate from the opening deposit. You might deposit $100 to open an account, but the bank requires you to keep $500 in it at all times. If you drop to $450, you pay the fee that month. Some banks have no minimum balance at all, which means you can keep $1 in the account and pay nothing.
Online banks and credit unions tend to have lower or no minimum balance requirements than traditional brick-and-mortar banks. This is because they have fewer physical locations and lower overhead costs. A local bank branch might require $1,000 to $2,500 in minimum balance, while an online bank might require $0.
Key Takeaways
- Opening deposits range from $0 to $25 at most banks, and some banks waive this entirely.
- Minimum balance requirements — the amount you must keep in the account — range from $0 to $2,500 depending on the bank and account type.
- Falling below the minimum balance triggers a monthly fee of $5 to $15 at most institutions.
- Online banks and credit unions typically have lower minimums than traditional banks because they have fewer physical branches.
- Some banks offer tiered minimums: a lower requirement for basic accounts and higher ones for premium accounts with more features.
What happens if you don't meet the minimum
If your account balance falls below the bank's minimum, you are charged a monthly maintenance fee. This fee is deducted automatically from your account, which can push your balance even lower. Some banks charge the fee once per month; others charge it every day the balance is below the minimum.
The fee itself ranges from $5 to $15 per month at most banks, though some charge more. Over a year, a $10 monthly fee costs $120 — money that could have stayed in your savings. If you are living paycheck to paycheck, this fee can make it harder to build savings at all.
Some banks will waive the fee if you meet an alternative requirement instead of keeping the minimum balance. Common alternatives include setting up direct deposit, maintaining a linked checking account, or making a certain number of debit card transactions per month. Read your account agreement to see what options your bank offers.
How to find a bank with no minimum or low minimum
Online banks almost always have $0 minimum balance requirements because they do not operate physical branches. Banks like Ally, Marcus, and Discover have no minimum balance and no monthly maintenance fees. The trade-off is that you cannot walk into a branch to deposit cash or speak to someone in person.
Credit unions often have lower minimums than traditional banks, sometimes as low as $25 or $0. If you are a member of a credit union, check your account agreement or call the member services line to confirm the exact minimum. Credit unions are member-owned, so they sometimes offer better rates and lower fees than banks.
Traditional banks vary widely. A large national bank like Chase or Bank of America may require $300 to $1,500 in minimum balance for a basic savings account. A smaller local or regional bank might require $100 or $500. Call the bank directly or check their website to compare accounts before opening one.
Tiered accounts and premium savings options
Some banks offer multiple savings account types with different minimum requirements. A basic savings account might have no minimum, while a premium or money market savings account requires $2,500 or more. The premium account usually pays a higher interest rate, which means your money grows faster — but only if you can keep the higher balance.
If you have a small amount to save, a basic account with no minimum makes more sense than a premium account where you would pay fees for falling short. As your savings grow, you can move money to a higher-tier account that pays more interest. Some banks let you move money between your own accounts for free.
Interest rates on savings accounts are separate from minimum balance requirements. A bank might have no minimum balance but pay very little interest (0.01% per year). Another bank might require $500 minimum but pay 4% or 5% interest. Compare both the minimum and the interest rate when choosing where to save.
Special accounts with different rules
Certificates of Deposit (CDs) require a larger upfront deposit — typically $500 to $2,500 — but you agree to leave the money untouched for a set period (3 months to 5 years). In return, the bank pays you a higher interest rate. If you withdraw the money early, you pay a penalty. CDs are not the same as savings accounts and are meant for money you do not need to access quickly.
Money market savings accounts often require a higher minimum balance than regular savings accounts, sometimes $2,500 or more. They pay higher interest rates and may come with a debit card or checkbook. If you do not have that much to deposit, a regular savings account is a better fit.
High-yield savings accounts offered by online banks typically have $0 minimum balance and pay 4% to 5% interest annually. These accounts are designed for people who want to save money without paying fees or meeting balance requirements. The interest rate changes over time, so check the current rate before opening an account.
How to avoid fees while building savings
Choose a bank with no minimum balance requirement if you are just starting to save. This removes the risk of paying a fee if your balance dips below a threshold. Online banks and many credit unions offer this option. You can always move to a higher-tier account later if your savings grow.
If your bank does have a minimum balance requirement, set up an automatic transfer from your checking account to your savings account each payday. Even $25 per week adds up and helps you stay above the minimum. Many banks let you schedule these transfers for free through their website or app.
Read your account agreement before opening an account. The agreement lists the minimum balance, the fee amount, when the fee is charged, and any ways to waive it. If you do not understand something, call the bank and ask. Knowing the rules upfront prevents surprise fees later.
Frequently Asked Questions
Can I open a savings account with no money?
Some banks allow you to open an account with $0 and deposit money later. Others require a small opening deposit of $1 to $25. Call your bank or check their website to see if they offer zero-opening-deposit accounts. Online banks are more likely to allow this than traditional banks.
What if I cannot keep the minimum balance?
Switch to a bank or account type with no minimum balance requirement. Online banks and many credit unions offer savings accounts with $0 minimum. You will avoid monthly fees and can save at your own pace without worrying about falling below a threshold.
Do I earn interest even if I have a low balance?
Yes. Interest is calculated on whatever balance you have, whether it is $1 or $10,000. A low balance earns less interest than a high balance, but you still earn something. Online banks often pay higher interest rates than traditional banks, so even small balances grow a little faster.
Can a bank change the minimum balance requirement?
Yes, banks can change their terms, including minimum balance requirements. They must notify you in advance, usually 30 days. If your bank raises the minimum and you cannot meet it, you can close the account and move your money to another bank with lower requirements.
Is there a difference between opening deposit and minimum balance?
Yes. The opening deposit is what you put in when you first open the account — it might be $0 to $25. The minimum balance is what you must keep in the account afterward to avoid fees — it might be $0 to $2,500. You can deposit $100 to open an account but be required to keep $500 in it at all times.