Banks with no minimum balance requirements

Most online banks and credit unions do not require a minimum balance to open or maintain a savings account. Ally Bank, Marcus by Goldman Sachs, Discover Bank, and American Express Personal Savings all offer savings accounts with zero minimum balance. Many credit unions, including those in the CO-OP and Allpoint networks, also waive minimums entirely.

Traditional banks—Chase, Bank of America, Wells Fargo, Citibank—typically require $300 to $25,000 in minimum balance to avoid monthly fees on savings accounts. The exact amount depends on the account type and your relationship with the bank. If you fall below the minimum, you pay a monthly maintenance fee that ranges from $2.50 to $10, which erodes any interest you earn.

The trade-off is real: banks with no minimum balance usually offer lower interest rates (0.01% to 0.05% APY) than online banks with no minimums (4% to 5% APY as of 2024). You are not choosing between "minimum required" and "no minimum"—you are choosing between a traditional bank with a balance requirement and an online bank without one. The online option typically pays more interest and costs nothing to maintain.

Key Takeaways

  • Online banks like Ally, Marcus, Discover, and American Express do not require a minimum balance and pay significantly higher interest rates than traditional banks.
  • Credit unions often waive minimum balance requirements, especially if you maintain direct deposit or set up automatic transfers.
  • Traditional banks (Chase, Bank of America, Wells Fargo) require $300 to $25,000 minimum balance to avoid $2.50 to $10 monthly fees.
  • A $5 monthly fee on a savings account earning 0.01% interest means you lose money every month, even if you have the minimum balance.
  • Moving to an online bank with no minimum and higher interest can earn you $100 to $200 per year on a $5,000 balance.

How minimum balance requirements actually work

A minimum balance requirement means you must keep at least a set amount in the account at all times. Most banks check your balance at the end of each business day. If your balance drops below the minimum even once during the month, you owe the monthly fee—usually charged on the last day of the month.

Some banks calculate the minimum differently. A few use an "average daily balance" method, meaning they add up your balance each day and divide by the number of days in the month. Others use a "lowest balance" method, which penalizes you for a single day below the threshold. Read the account disclosure document (called a "Truth in Savings" statement) to know which method your bank uses.

The minimum balance also sits in your account earning little to no interest. If a bank requires $1,000 minimum and pays 0.01% APY, that $1,000 earns about $0.10 per year. A $5 monthly maintenance fee costs you $60 per year—you would need $600,000 in the account just to break even on the fee.

Online banks that pay interest without minimums

Ally Bank (online only, no branches) offers a savings account with no minimum balance and no monthly fee. Interest rates change with the market but have ranged from 3.5% to 5.35% APY in recent years. You can open an account with $0 and deposit as little as $1.

Marcus by Goldman Sachs has no minimum balance, no monthly fees, and no withdrawal limits. Interest rates typically track within 0.25% of Ally's rates. Marcus also offers high-yield savings accounts and certificates of deposit (CDs) with no minimums.

Discover Bank requires no minimum balance for its savings account and pays rates competitive with Ally and Marcus. Discover also offers a money market account with no minimum, which functions like a savings account but may include a debit card.

American Express Personal Savings has no minimum balance and no monthly fees. Interest rates are typically 0.5% to 1% lower than Ally or Marcus, but the account is still free to maintain. You can only fund it from an external bank account (no in-person deposits).

Smaller online banks like Vio Bank, Connexus Credit Union, and Quontic Bank also offer no-minimum savings accounts, though their interest rates and customer service reputations vary. Compare current rates on a rate-tracking site like Bankrate or DepositAccounts before opening an account, because rates change weekly.

Credit unions and their balance policies

Credit unions often have lower or no minimum balance requirements than traditional banks. Many waive the minimum if you set up direct deposit, maintain a checking account, or transfer money monthly from another account. Some credit unions require only $25 or $50 minimum.

To find a credit union near you, search the CO-OP Network or Allpoint directory. If you are a member of any credit union in these networks, you can use their ATMs and branches nationwide without extra fees. Credit unions are member-owned, so they typically prioritize keeping fees low rather than maximizing profit.

The downside: credit union savings rates are often lower than online banks. A credit union might pay 0.25% to 1% APY on savings, while Ally or Marcus pay 4% to 5%. The no-minimum benefit is real, but you sacrifice interest income to get it.

Traditional banks with lower minimums

If you want to use a physical branch, some traditional banks have lowered their minimums in recent years to compete with online banks. Charles Schwab Bank (online and branches) has no minimum balance on savings accounts and no monthly fees. Interest rates are lower than pure online banks but higher than most traditional banks.

Ally Bank is online-only, but Axos Bank offers branches in select states and has no minimum balance on savings accounts. Customers Bank has no minimum and pays rates closer to online banks, though availability is limited to certain states.

Most regional banks (PNC, U.S. Bank, Fifth Third) still require $300 to $500 minimum balance on savings accounts. If you want a branch and no minimum, you will need to search your specific region—requirements vary by state and by branch.

What happens if you fall below the minimum

If your balance drops below the required minimum, the bank charges a monthly maintenance fee. This fee is deducted from your account automatically, usually on the last business day of the month. The fee ranges from $2.50 to $10 depending on the bank and account type.

Some banks offer one or two "free passes" per year—they waive the fee once or twice if you fall below minimum. Others charge every month without exception. Check your account disclosure to see if your bank offers any waivers.

If you are charged a fee by mistake—for example, if a pending deposit should have kept you above minimum—you can call the bank and ask them to reverse it. Banks often reverse one or two fees per year if you have been a customer for a while and have a clean history. Reversals are not may provide, but asking costs nothing.

How to avoid minimum balance fees

The simplest way is to move your savings to an online bank with no minimum. If you want to stay with a traditional bank for branch access, keep your balance above the minimum at all times. Set up automatic transfers from checking to savings on payday, so you hit the minimum immediately and do not have to think about it.

If you cannot maintain the minimum, ask your bank about waiving it. Some banks will remove the requirement if you set up direct deposit, maintain a linked checking account, or agree to automatic transfers. It never hurts to ask—the worst they say is no.

Another option: move your savings to an online bank and keep only a small checking account at your traditional bank for branch access and bill pay. Many people maintain both without paying fees on either, because the online savings account has no minimum and the checking account minimum is often lower ($0 to $100).

Frequently Asked Questions

Can I open a savings account with $0?

Yes, at online banks like Ally, Marcus, Discover, and American Express. You can open the account with no deposit and fund it later. Traditional banks typically require an opening deposit of $25 to $100, but online banks waive this entirely.

Do I lose interest if I fall below the minimum balance?

No, you still earn interest on whatever balance you have. But you pay a monthly fee that usually exceeds the interest you earn. On a $500 balance earning 0.01% APY at a traditional bank, you earn about $0.04 per month—far less than a $5 fee.

What if my bank charges a fee and I did not know about the minimum?

Call the bank and explain. If it is your first or second fee and you have been a customer for a while, many banks will reverse it as a courtesy. Ask to speak with a supervisor if the first representative says no. Keep records of the fee and the date you called.

Is an online bank safe if I need cash?

Yes. Online banks are FDIC-insured just like traditional banks, so your money is protected up to $250,000. You can withdraw cash by transferring to your checking account at another bank (usually free, takes 1 to 3 business days) or by using ATMs in partner networks. Some online banks reimburse ATM fees nationwide.

Can I have both a traditional bank account and an online savings account?

Yes, and many people do. You can keep a checking account at a traditional bank for branch access and bill pay, and move your savings to an online bank for higher interest and no fees. There is no rule against having accounts at multiple banks.