Most high yield savings accounts have no minimum balance requirement, but some do
Whether a high yield savings account requires a minimum balance depends entirely on the bank or credit union offering it. Many online banks—including Marcus, Ally, and American Express Personal Savings—have zero minimum balance. You can open an account with $1 and start earning interest immediately. Other institutions set minimums ranging from $500 to $25,000, and a few require $100,000 or more.
The minimum, when one exists, is the amount you must keep in the account at all times to avoid a monthly fee or to may have access to for the advertised interest rate. If your balance drops below the minimum, the bank may charge a monthly maintenance fee (typically $5 to $15) or reduce your interest rate to a standard savings rate, which is much lower than the high yield rate you opened the account for.
Online banks tend to have lower or no minimums because they have fewer physical branches and lower operating costs. Credit unions and regional banks are more likely to require a minimum, sometimes as a condition of membership or account type.
Key Takeaways
- Many online banks offer high yield savings with no minimum balance, while others require $500 to $25,000 to avoid fees or maintain the advertised rate.
- If your balance falls below the minimum, you may be charged a monthly fee or moved to a lower interest rate that defeats the purpose of a high yield account.
- Check the account terms before opening—the minimum is listed in the fee schedule or account agreement, not always on the main product page.
- Some banks waive the minimum if you set up automatic monthly deposits or link the account to a checking account at the same institution.
Where to find the minimum balance requirement
The minimum balance is disclosed in the account's fee schedule or terms and conditions, usually available as a PDF on the bank's website. It is not always prominent on the product marketing page, so you may need to scroll to a "Fees" or "Account Terms" section or click a link labeled "Pricing Information" or "Disclosures."
Call or chat with the bank directly if you cannot find it online. Ask specifically: "What is the minimum balance required to avoid a monthly fee?" and "What is the minimum balance required to earn the advertised interest rate?" These may be different. Some banks charge no fee for a low balance but reduce your rate if you fall below a higher threshold.
What happens if your balance drops below the minimum
If your account balance falls below the required minimum, one of three things typically occurs. The bank may charge a monthly maintenance fee (usually $5 to $15), deducted directly from your account. Alternatively, your interest rate may drop to the bank's standard savings rate, which is often 0.01% or lower—a significant cut from high yield rates, which currently range from 4% to 5.35% depending on the bank and market conditions.
Some banks do both: they charge a fee and lower your rate. Others waive the fee if your balance recovers by the end of the statement cycle. Read the fee schedule carefully to understand the exact penalty at your bank.
The fee is charged monthly for as long as your balance stays below the minimum, so a $10 monthly fee on a $500 shortfall adds up quickly. Over a year, that is $120 in fees—money that would otherwise earn interest.
Banks with no minimum balance requirement
If you want to avoid a minimum balance entirely, these banks currently offer high yield savings with no minimum:
- Marcus by Goldman Sachs
- Ally Bank
- American Express Personal Savings
- Discover Bank
- Vanguard Cash Management Account
- Wealthfront Cash Account
Rates and terms change frequently, so confirm the current minimum and interest rate on the bank's website before opening an account. Some of these banks also offer other account types (money market accounts, certificates of deposit) that may have different minimums.
Banks with minimum balance requirements
Institutions that do require a minimum include many credit unions and regional banks. For example, some credit unions require $500 to $1,000 to open a high yield savings account, while certain regional banks may require $2,500 or more. A few private banks and wealth management firms require $100,000 or higher.
If you are considering an account with a minimum, weigh the cost of maintaining that balance against the interest rate offered. A bank paying 5.30% with a $1,000 minimum may earn you more than a bank paying 4.50% with no minimum—but only if you can comfortably keep that $1,000 in savings and not need it for emergencies.
Waiving or lowering the minimum
Some banks will waive or reduce the minimum balance requirement if you meet certain conditions. Common waivers include setting up automatic monthly deposits (often $25 or more), linking a checking account at the same bank, or maintaining a combined balance across multiple accounts.
Ask the bank about these options before you open the account. A waiver can make a high yield savings account with a stated minimum accessible to you, even if you do not have the full amount on hand right now.
Frequently Asked Questions
Can I open a high yield savings account with $0 and deposit money later?
Yes, at banks with no minimum. You can open an account with $1 or even $0 (depending on the bank's system) and start earning interest as soon as you make your first deposit. However, at banks with a minimum requirement, you typically must deposit the minimum amount during account opening or within a short grace period, or the account may be closed.
What is the difference between a minimum balance and a minimum deposit?
A minimum deposit is the amount you must put in when you open the account. A minimum balance is the amount you must keep in the account at all times to avoid fees or maintain your interest rate. Some banks have both; others have neither. Check the account terms to see which applies to you.
If I drop below the minimum for one day, do I get charged?
Most banks calculate your balance at the end of each statement cycle (usually monthly) and charge a fee only if your balance is below the minimum on that date. A one-day dip usually does not trigger a fee, but confirm this with your bank. Some institutions use a daily average balance instead, which is more forgiving.
Does the interest I earn count toward the minimum balance?
Yes. Interest deposited into your account counts as part of your balance. If you have $4,950 and earn $50 in interest, your balance is now $5,000. However, do not rely on interest alone to meet a minimum—interest rates fluctuate and may not be enough to keep you above the threshold.
Can I move money between accounts to avoid a minimum balance fee?
Technically yes, but it is not a sustainable strategy. If you transfer money out to avoid a fee, you are defeating the purpose of a high yield savings account, which is to earn interest on money you are saving. If the minimum is a burden, choose an account with no minimum instead.