Most savings accounts do require a minimum balance, but the amount and consequences vary widely
Whether your savings account needs a minimum balance depends on the bank and the specific account type. Some accounts require you to keep $0 on deposit at all times. Others demand $500, $1,000, $2,500, or more. If your balance falls below the required minimum, the bank typically charges a monthly fee—usually $5 to $15—until you bring the balance back up. A few banks waive the fee if you meet an alternative condition, like setting up direct deposit or maintaining a linked checking account.
The minimum balance requirement is stated in your account's terms and conditions, which the bank must provide before you open the account. You can find it in the disclosure document, often called a "Truth in Savings" statement or account agreement. The bank is also required to tell you what happens if you fall below the minimum—whether they charge a fee, close the account, or both.
Key Takeaways
- Minimum balance requirements range from $0 to $2,500 or more, depending on the bank and account tier.
- If your balance drops below the minimum, the bank charges a monthly maintenance fee, typically $5 to $15, until you restore the balance.
- Some banks waive the minimum balance requirement if you meet an alternative condition, such as setting up automatic deposits or maintaining a linked checking account.
- Online banks and credit unions are more likely to have no minimum balance requirement than traditional brick-and-mortar banks.
- The account agreement you receive before opening the account will state the exact minimum balance and the fee amount.
How banks calculate whether you meet the minimum
Banks use different methods to measure your balance against the minimum. The most common is the daily balance method: the bank checks your balance at the end of each day, and if it falls below the minimum on any single day during the month, you owe the fee. Some banks use the average daily balance instead, adding up your balance at the end of each day and dividing by the number of days in the month. If that average is below the minimum, you pay the fee. A few banks use the minimum balance method, looking only at your lowest balance during the entire month.
The difference matters. If you keep $1,500 in the account but withdraw $600 for one day to pay a bill, the daily balance method will trigger the fee even if you restore the money the next day. The average daily balance method is more forgiving because one low day is diluted across the whole month. Ask your bank which method they use before you open the account, or check the account agreement.
Types of accounts with no minimum balance requirement
Online savings accounts are the most likely to have zero minimum balance. Banks like Ally, Marcus, and Discover have no minimum because their lower overhead costs allow them to skip the fee. Credit unions also frequently waive minimums, especially for members who maintain a checking account or set up direct deposit. Some traditional banks offer a "basic" or "starter" savings account with no minimum, though the interest rate may be lower than their premium accounts.
High-yield savings accounts sometimes have no minimum, but not always. Check the specific account's terms. Money market accounts and certificates of deposit (CDs) are more likely to require a minimum—often $2,500 or higher—because they typically pay higher interest rates and banks want to ensure the account is worth maintaining.
What happens if you cannot maintain the minimum
If your balance falls below the minimum, the bank charges the monthly fee. This fee is deducted from your account, which can push your balance even lower and trigger additional fees in subsequent months. Some banks will close the account if the balance stays below the minimum for several months or if the account goes negative.
If the account is closed, the bank sends you the remaining balance by check or direct deposit, depending on what you provided during signup. You will not lose the money, but you will lose the account and any interest you were earning. A closed account may also appear on your banking history, which some banks review when you apply for a new account.
How to avoid minimum balance fees
The simplest approach is to choose an account with no minimum balance requirement. Online banks and credit unions are your best options if you want to avoid this fee entirely. If you prefer a traditional bank, ask whether they offer a basic savings account with no minimum or whether you can waive the minimum by meeting an alternative condition.
If you already have an account with a minimum balance requirement, check whether the bank allows you to waive it. Common waivers include setting up a direct deposit of at least $500 per month, maintaining a linked checking account with the same bank, or keeping a minimum balance in a different account (such as a money market account). Call your bank's customer service line or log into your online banking portal to see what options are available for your specific account.
Minimum balance requirements at different types of institutions
| Institution Type | Typical Minimum Balance | Fee If Below Minimum |
|---|---|---|
| Online banks | $0 | None |
| Credit unions | $0–$500 | $3–$10 per month |
| Traditional banks (basic account) | $0–$500 | $5–$10 per month |
| Traditional banks (premium account) | $500–$2,500 | $10–$15 per month |
| Money market accounts | $2,500–$10,000 | $10–$25 per month |
Frequently Asked Questions
Can a bank change the minimum balance requirement after I open the account?
Yes. Banks can change account terms, including minimum balance requirements, but they must notify you in advance—usually 30 days. If you disagree with the change, you can close the account and move your money elsewhere. Check your account statements and email for notices of changes.
What if my balance goes below the minimum for just one day?
If your bank uses the daily balance method, you will be charged the fee. If they use the average daily balance method, one low day may not trigger the fee. Check your account agreement to see which method applies to you, or contact the bank to ask.
Do I lose my money if the account is closed for not meeting the minimum?
No. The bank will send you the remaining balance by check or direct deposit. You do not lose the money, but the account closes and you lose any interest you were earning. Some banks may also note the closure on your banking history.
Can I waive the minimum balance requirement?
Many banks allow you to waive the minimum if you meet an alternative condition, such as setting up direct deposit, maintaining a linked checking account, or keeping a minimum balance in a different account. Contact your bank to ask what options are available for your account.
Are there savings accounts with no minimum balance and high interest rates?
Yes. Online banks like Ally, Marcus, and Discover offer high-yield savings accounts with no minimum balance and competitive interest rates. Credit unions may also offer no-minimum accounts with rates comparable to or better than traditional banks, depending on the institution.