Most banks charge nothing to open a savings account
Opening a savings account at a bank or credit union typically costs zero dollars. No opening fee, no setup charge, no hidden cost to start. You walk in or go online, provide your name and identification, and the account opens. That part is free.
What varies is what happens after. Some banks charge a monthly maintenance fee if your balance drops below a certain amount, or if you don't meet other conditions like setting up direct deposit. Some charge a fee each time you withdraw money beyond a certain number per month. Some charge nothing at all, no matter what you do. The account opening itself is almost never the cost — the cost is in how you use it afterward.
Key Takeaways
- Opening a savings account is free at nearly all banks and credit unions; no opening fee or setup charge applies.
- Monthly maintenance fees vary widely and depend on your balance, deposit patterns, or withdrawal frequency — read the fee schedule before you open.
- Online banks and credit unions often have no monthly fees at all, while some brick-and-mortar banks waive fees if you maintain a minimum balance or set up direct deposit.
- Overdraft fees and excess withdrawal fees are separate from opening costs and can add up quickly if you're not careful about account rules.
- The account opening itself takes minutes online or in person, and you can start depositing money the same day.
Monthly maintenance fees and when they kick in
A monthly maintenance fee is a charge the bank takes from your account each month just for having the account open. Not every bank charges one, but many do. The fee ranges from $3 to $15 per month at most institutions, though some charge more.
Banks often waive this fee if you meet one of these conditions: keep a minimum balance (often $500 to $2,500), set up direct deposit of your paycheck, make a certain number of debit card purchases per month, or maintain a linked checking account. Read the account terms before you open — they spell out exactly what gets you out of the fee. If you don't meet any of the conditions and the bank charges the fee, it comes out of your account automatically each month.
Credit unions typically charge lower or no monthly fees than banks, and online banks almost never charge a monthly maintenance fee. If avoiding monthly fees matters to you, these are the places to look first.
Withdrawal limits and excess fees
Federal rules once capped how many times per month you could withdraw money from a savings account — the limit was six. Banks charged a fee if you went over. Those rules changed in 2020, and most banks dropped the excess withdrawal fee, but some still have them. A few banks still limit withdrawals and charge $5 to $10 per withdrawal beyond the limit.
Check the account terms to see if your bank charges an excess withdrawal fee. If it does and you think you'll withdraw money more than six times a month, either find a bank without the fee or use a checking account instead, which has no withdrawal limit.
Overdraft fees and NSF charges
An overdraft fee is not a cost of opening the account, but it's a cost that hits many people who have one. If you try to withdraw or spend more money than you have in the account, the bank can either decline the transaction or let it go through and charge you a fee — usually $25 to $35 per overdraft. Some banks charge multiple overdrafts in a single day and charge a fee for each one.
You can usually turn off overdraft protection so the bank declines the transaction instead of charging you. You can also set up low-balance alerts so you know before you get close to zero. These tools cost nothing and prevent overdraft fees from happening in the first place.
How to find a free or low-cost account
Start by listing what you actually need: Do you need to visit a physical branch, or is online-only fine? Do you get direct deposit? Will you keep a minimum balance easily, or do you run close to zero? Do you need to withdraw cash often?
Once you know what matters to you, compare three to five banks or credit unions on these points: monthly maintenance fee and what waives it, overdraft fee, excess withdrawal fee (if any), minimum balance to open, and interest rate on the savings balance. Many banks publish this information on their website under "Pricing" or "Fee Schedule." Credit unions often have lower fees overall, and online banks almost always have no monthly fee.
If you're under 18, some banks offer student savings accounts with no monthly fee. If you're over 55 or 62, some banks offer senior accounts with reduced or waived fees. Ask when you call or visit.
What you need to bring or provide to open an account
To open a savings account, you'll need a government-issued photo ID (driver's license, passport, or state ID card) and proof of your Social Security number or tax ID. If you're opening in person, bring these documents with you. If you're opening online, you'll upload photos of them or answer security questions to verify your identity.
You'll also need an initial deposit, though the amount varies. Some banks require a minimum opening deposit of $25 or $100; others let you open with $0 and deposit later. Check the bank's website or call before you go in so you know what to bring.
The whole process takes 10 to 15 minutes in person or 5 to 10 minutes online. You get an account number and routing number the same day, and you can start depositing money immediately.
Comparing banks side by side
| Bank Type | Monthly Fee | Typical Minimum Balance | Overdraft Fee | Excess Withdrawal Fee |
|---|---|---|---|---|
| Online bank | $0 | $0–$100 | $0–$35 | $0 |
| Credit union | $0–$5 | $25–$500 | $15–$35 | $0–$10 |
| Large bank | $5–$15 | $500–$2,500 | $25–$35 | $0–$10 |
| Local/regional bank | $3–$10 | $100–$1,000 | $20–$35 | $0–$10 |
This table shows typical ranges; your actual fees depend on the specific bank and account type. Always check the fee schedule for the exact account you're considering.
Frequently Asked Questions
Do I have to pay to close a savings account?
No. Closing an account is free at every bank. If you have money in the account, the bank will send it to you by check or transfer it to another account you name. There is no fee for closing, and no penalty for closing early.
What if I can't meet the minimum balance to avoid the monthly fee?
Switch to an online bank or credit union that has no monthly fee, or ask if the bank offers a different account type with a lower minimum. Some banks have "basic" savings accounts with no minimum balance but also no interest earned. That's still better than paying a monthly fee.
Can the bank charge me a fee just for not using my account?
Most banks do not charge an inactivity fee on savings accounts. A few do if the account sits untouched for a year or more, but this is rare. Check the fee schedule to be sure. If you're worried about it, make one small deposit or withdrawal every few months to keep the account active.
Do I pay interest on money in a savings account?
No, you earn interest — the bank pays you a small percentage of your balance each month. The rate varies by bank and changes over time. Online banks usually pay higher interest than brick-and-mortar banks. Interest is not a cost; it's money the bank gives you for letting them hold your money.
What happens if I open an account and then don't use it?
Nothing happens immediately. Your money stays in the account. If the bank charges a monthly maintenance fee and you don't meet the conditions to waive it, the fee will be deducted each month until your balance reaches zero. After that, the bank may close the account. To avoid this, either use the account or move your money to a bank with no monthly fee.