Most banks require a minimum balance, but the amount and consequences vary widely
Whether a savings account requires a minimum balance depends entirely on the bank and the specific account type. Some banks require $0 to open and maintain the account. Others require $25, $100, $500, or more. If your balance drops 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 set by the bank, not by law. Federal regulations do not mandate that banks charge fees or require minimums. This means you can shop around: if one bank's requirement is too high, another bank may offer the same account type with no minimum at all.
Key Takeaways
- Minimum balance requirements range from $0 to $500 or more, depending on the bank and account type.
- Falling below the minimum typically triggers a monthly maintenance fee of $5 to $15, charged until the balance recovers.
- Online banks and credit unions often have lower or no minimum balance requirements than traditional brick-and-mortar banks.
- Some banks waive the minimum balance requirement if you meet other conditions, such as setting up automatic deposits or maintaining a linked account.
How minimum balance requirements work
When you open a savings account, the bank's disclosure document—called the Truth in Savings Act disclosure—will state whether a minimum balance is required. This document is provided at account opening and is also available on the bank's website. The disclosure specifies the exact dollar amount and explains what happens if you fall short.
The bank calculates your balance in one of two ways: either the balance at the end of each day, or the average balance over the month. Some banks look at your lowest balance during the month. Read your disclosure carefully, because the method matters. If the bank uses your lowest daily balance and you dip below the minimum for even one day, you may trigger the fee.
Once the fee is charged, it reduces your account balance further, which can create a cycle: the fee itself may push you below the minimum again the next month, triggering another fee. This is why it is important to know the exact threshold and how the bank measures it.
Banks and account types with no minimum balance requirement
Online banks—such as Ally, Marcus, and Discover—typically have no minimum balance requirement. Because they have lower overhead costs than physical branches, they can afford to waive this fee. High-yield savings accounts at online banks often have $0 minimums and pay interest rates higher than traditional banks.
Credit unions also frequently have no minimum balance requirement or very low ones ($25 to $100). If you are a member of a credit union, check your account disclosure or call the credit union directly to confirm.
Traditional banks (Chase, Bank of America, Wells Fargo, Citibank) typically require a minimum balance on savings accounts, though the amount varies by account tier. A basic savings account might require $100 to $300, while a premium savings account might require $500 or more. However, these banks often waive the minimum if you maintain a linked checking account with direct deposit or a certain balance in that checking account.
What happens if your balance falls below the minimum
The most common consequence is a monthly maintenance fee. This fee is charged once per month, usually on the same day each month, and ranges from $5 to $15 depending on the bank. The fee is deducted from your account balance automatically.
Some banks charge the fee only once, when you first fall below the minimum. Others charge it every month you remain below the minimum. A few banks offer a grace period—typically 5 to 10 days—to bring your balance back up before the fee is charged.
The fee does not close your account or damage your credit. However, repeated fees can significantly reduce your savings over time, especially if your balance is small. For example, a $10 monthly fee on a $50 account balance means you are losing 20 percent of your money to fees each month.
How to avoid minimum balance fees
The simplest approach is to choose an account with no minimum balance requirement. If you already have an account with a minimum, you have several options:
- Keep the balance above the minimum. If the requirement is $100 and you can maintain that, the fee will never be charged. This works if you have steady savings or regular deposits.
- Meet an alternative condition. Many banks waive the minimum if you set up direct deposit, maintain a linked checking account with a certain balance, or use the bank's mobile app. Check your account disclosure or call the bank to ask what conditions are available.
- Switch to a different account type. Some banks offer a basic savings account with a lower minimum and fewer features, or a high-yield savings account with no minimum. Ask your bank what options are available.
- Move to a different bank. If your current bank's minimum is too high and you cannot meet the alternative conditions, opening an account at an online bank or credit union with no minimum is free and takes about 10 minutes online.
Minimum balance requirements for different account types
| Account Type | Typical Minimum | Where to Find It |
|---|---|---|
| Basic savings account (traditional bank) | $100–$300 | Bank website or account disclosure |
| Premium savings account (traditional bank) | $500–$2,500 | Bank website or account disclosure |
| High-yield savings account (online bank) | $0–$25 | Bank website or account disclosure |
| Money market account | $500–$2,500 | Bank website or account disclosure |
| Credit union savings account | $0–$100 | Credit union website or account disclosure |
The minimum balance requirement is often tied to the interest rate the account pays. Accounts with higher interest rates may have higher minimums. Conversely, accounts with no minimum often pay lower interest. When comparing accounts, factor in both the minimum and the interest rate to see which account actually costs or benefits you the most.
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, with advance notice—typically 30 days. The bank will notify you by mail, email, or through your online banking portal. If you disagree with the change, you can close the account and move your money to another bank.
Does a minimum balance requirement affect my credit score?
No. Minimum balance requirements and the fees associated with them do not appear on your credit report and do not affect your credit score. However, if your account is closed due to non-payment or fraud, the bank may report it to ChexSystems, a banking history database that other banks can see when you apply for a new account.
What if I cannot afford to keep the minimum balance?
Open an account at a bank or credit union with no minimum balance requirement. Online banks like Ally, Marcus, and Discover have $0 minimums and often pay higher interest than traditional banks. Credit unions also frequently have low or no minimums. There is no penalty for closing an account with a minimum balance and moving to one without.
Is the minimum balance the same as the opening deposit?
No. The opening deposit is the amount you put in when you first open the account. The minimum balance is the amount you must keep in the account to avoid a fee. Some banks require an opening deposit of $25 but a minimum balance of $100. Others require both to be the same amount. Check your account disclosure to see what applies to your account.
Do savings accounts at online banks really have no minimum?
Most do, but not all. Check the account disclosure on the bank's website before you open the account. The disclosure will clearly state whether a minimum balance is required and what happens if your balance falls below it. If the disclosure does not mention a minimum, there is no minimum.