Most savings accounts do not charge a monthly fee, but some do—and the fee varies by bank and account type
Whether your savings account has a monthly fee depends entirely on which bank you use and which account you open. Some banks charge nothing. Others charge $5 to $15 per month, though many waive the fee if you meet certain conditions like keeping a minimum balance or setting up direct deposit.
The fee is separate from interest earned on your balance. Even if your account earns interest, a monthly fee still reduces what you take home. A $10 monthly fee on an account earning 4% annual interest can wipe out most or all of that gain on smaller balances.
Key Takeaways
- Most major banks charge no monthly fee on basic savings accounts, but some charge $5 to $15 per month depending on the account tier and bank.
- Many banks waive monthly fees if you maintain a minimum balance—commonly $500 to $2,500—or set up direct deposit.
- Online banks and credit unions are more likely to offer savings accounts with no monthly fee at all.
- A monthly fee reduces your net earnings, so comparing fee structures matters more on smaller balances than on large ones.
Which banks charge monthly fees and which do not
Large national banks like Chase, Bank of America, and Wells Fargo typically do not charge a monthly fee on their basic savings accounts. However, they may charge fees on premium or specialty savings accounts—such as high-yield or money market accounts—if your balance falls below a threshold.
Online banks like Ally, Marcus, and Discover generally do not charge monthly fees on any savings account. Credit unions also rarely charge monthly fees on savings accounts, though this varies by institution.
Regional banks and some smaller institutions may charge $5 to $15 per month. The fee structure depends on the specific account type and your relationship with the bank. Always check the fee schedule before opening an account.
Minimum balance requirements that waive the fee
If a bank does charge a monthly fee, it often waives it when you maintain a minimum balance. This threshold varies widely: some banks waive the fee at $500, others at $1,000 or $2,500. A few require $10,000 or more.
The minimum is usually calculated as a daily balance, meaning you must keep that amount in the account every day of the month. If your balance dips below the threshold even once, the fee may apply for that month. Some banks use an average monthly balance instead, which gives you slightly more flexibility.
Read the account terms carefully to understand exactly how the bank calculates the minimum and when the fee applies or is waived.
Direct deposit and other fee waivers
Many banks waive monthly fees if you set up direct deposit—having your paycheck or other regular income deposited automatically into the account. The amount required varies; some banks waive the fee for any direct deposit, while others require a minimum deposit amount per month, such as $500 or $1,000.
A few banks waive fees if you maintain a linked checking account with them, use their debit card a certain number of times per month, or keep a combined balance across multiple accounts above a threshold. Check your bank's website or call to learn which waivers apply to your account.
How monthly fees reduce your earnings
A monthly fee directly reduces the interest you earn. If your savings account earns 4% annual interest and charges a $10 monthly fee, the math works like this:
| Account Balance | Annual Interest Earned | Annual Fees (12 × $10) | Net Earnings |
|---|---|---|---|
| $1,000 | $40 | $120 | –$80 |
| $5,000 | $200 | $120 | $80 |
| $10,000 | $400 | $120 | $280 |
On a $1,000 balance, the fee costs you more than the interest you earn. On a $5,000 balance, the fee cuts your earnings by 60%. This is why avoiding monthly fees matters most when you are building savings and your balance is still small.
Comparing fee-free accounts to fee-based accounts
If you have a choice between a fee-based account and a fee-free account, the fee-free account is almost always better unless the fee-based account offers significantly higher interest rates. Most banks that charge monthly fees do not offer meaningfully higher rates to offset the cost.
Online banks and credit unions typically offer competitive interest rates with no monthly fees, making them worth comparing to your current bank. Even if the interest rate is slightly lower than a fee-based account at a national bank, the absence of fees often makes the net return higher.
Use a calculator or spreadsheet to compare: (interest rate × your balance ÷ 12) minus monthly fees. This shows you the actual monthly gain or loss for your specific balance.
What to do if your account has a monthly fee
If you are currently paying a monthly fee, your first step is to check whether you can waive it by meeting one of the bank's conditions—usually a minimum balance or direct deposit. If you can meet that condition, contact your bank to confirm the fee will stop.
If you cannot meet the waiver conditions, consider switching to a different bank. Moving money takes a few days, but the savings add up quickly. A $10 monthly fee is $120 per year; over five years, that is $600 in fees alone.
When you switch, ask your new bank to confirm in writing that the account has no monthly fee and what the conditions are. Keep that confirmation for your records.
Frequently Asked Questions
Can a bank charge a monthly fee even if I have a high balance?
No. If your balance meets the minimum required to waive the fee, the bank cannot charge it. However, if your balance falls below the minimum at any point during the month, the fee may apply depending on how the bank calculates it. Check your account terms to understand the exact rule.
Do online banks ever charge monthly fees on savings accounts?
Most do not. Online banks like Ally, Marcus, and Discover typically offer savings accounts with no monthly fees and no minimum balance requirements. This is one reason they can offer higher interest rates than traditional banks—they have lower operating costs.
What happens if I do not meet the minimum balance one month?
The bank will charge the monthly fee for that month. Some banks charge the fee once; others charge it every month until your balance rises back above the minimum. Read your account agreement to know the exact policy, or call your bank to ask.
If I switch banks, do I lose the interest I earned?
No. Interest you have already earned stays in the account and moves with you when you transfer the money. You only lose future interest if you close the account before the interest is posted, which usually happens monthly or quarterly.
Is a $5 monthly fee worth paying for higher interest?
Only if the interest rate difference is substantial. A $5 monthly fee costs $60 per year. If one account earns 4% and another earns 4.5%, the difference is 0.5% annually. On a $5,000 balance, that is $25 per year—far less than the $60 fee. Stick with the no-fee account.