Most banks do not charge you to open a savings account, but some do

Opening a savings account itself is free at most banks and credit unions. You walk in or go online, provide your name and Social Security number, and the account opens with no fee. However, some banks charge a monthly maintenance fee once the account is open — typically $5 to $15 per month — and a few charge an upfront fee to create the account in the first place, usually $25 or less.

The real cost difference comes down to which bank you choose and what you do with the account after opening it. A bank with no monthly fee costs nothing. A bank that charges $10 per month costs $120 per year, even if you never withdraw money. Some banks waive their monthly fee if you keep a minimum balance — often $500 to $2,500 — or if you set up direct deposit.

Before you open an account anywhere, check whether that specific bank charges a monthly fee and what conditions waive it. This takes five minutes and saves you money for as long as you keep the account.

Key Takeaways

  • Opening a savings account has no upfront cost at most major banks and credit unions, though a few charge $10 to $25 to create the account.
  • Monthly maintenance fees range from $0 to $15 per month depending on the bank, and these fees add up to $60 to $180 per year.
  • Many banks waive their monthly fee if you maintain a minimum balance, set up direct deposit, or meet other conditions — check the bank's fee schedule before opening.
  • Online banks typically charge no monthly fee because they have lower overhead than brick-and-mortar branches.
  • Overdraft fees and ATM fees are separate from account opening and maintenance costs, and you can often avoid both by choosing your bank carefully.

Monthly maintenance fees and how to avoid them

A monthly maintenance fee is a charge the bank takes from your account each month just for having the account open. It is not a penalty for doing something wrong — it is simply the bank's way of charging you for the service. At a traditional bank, this fee ranges from $5 to $15 per month. At online banks, the fee is usually $0.

Most banks let you waive this fee by meeting one of these conditions: keeping a minimum balance (often $500 to $2,500), setting up direct deposit, making a certain number of debit card purchases per month, or maintaining a linked checking account at the same bank. Read the fee schedule on the bank's website — it lists exactly what waives the fee.

If you cannot meet the waiver conditions, the monthly fee will drain your account over time. A $10 monthly fee on a $500 balance means you are paying 24% per year just to hold the money. Online banks and credit unions often have no monthly fee at all, which makes them worth considering if you do not want to worry about waiver conditions.

Upfront fees when you open the account

Most banks charge nothing to open a savings account. You provide identification and a Social Security number, and the account is ready to use. A few banks, usually smaller regional ones or those targeting customers with poor credit, charge an upfront fee of $10 to $25 to create the account.

This upfront fee is separate from the monthly maintenance fee. You might pay $25 to open the account and then $10 per month to keep it open. Before you open an account, search the bank's website for "savings account fees" or call and ask directly: "Is there a fee to open a savings account?" If the answer is yes, ask whether you can waive it by opening online or by meeting certain conditions.

Other costs that come after opening

Once your account is open, other fees can appear depending on how you use it. An overdraft fee (usually $25 to $35) happens if you withdraw more money than you have. An ATM fee (usually $2 to $3) happens if you use an ATM that does not belong to your bank's network. A wire transfer fee (usually $15 to $25) happens if you send money to another bank.

These fees are not automatic — they only happen if you do those specific things. You can avoid them by not overdrawing your account, using your bank's ATM network or a bank that reimburses ATM fees, and transferring money between accounts at the same bank instead of using wire transfers.

When comparing banks, look at the full fee schedule, not just the monthly maintenance fee. A bank with no monthly fee but high ATM fees might cost more than a bank with a $5 monthly fee but free ATM access nationwide.

Credit unions versus banks

Credit unions are nonprofit organizations owned by their members, and they typically charge lower fees than banks. Many credit unions have no monthly maintenance fee on savings accounts, no upfront fee to open an account, and no ATM fees if you use their network or a partner network. Some credit unions also reimburse ATM fees charged by other banks.

To join a credit union, you usually have to meet a membership requirement — you might need to live in a certain area, work for a certain employer, or be related to a current member. Once you are a member, you can open a savings account. If you are not sure whether you are may be able to access for a credit union, search "credit unions near me" and call to ask.

Online banks and their fee structure

Online banks (banks with no physical branches) almost always charge no monthly maintenance fee and no upfront fee to open a savings account. They can afford to do this because they have no branch buildings to maintain and no tellers to pay. Their savings accounts often pay higher interest rates than traditional banks, which means your money grows faster.

The trade-off is that you cannot walk into a branch to deposit cash or speak to someone in person. Most online banks let you deposit checks by taking a photo with your phone, and you can withdraw cash at ATMs or transfer money to another bank. If you rarely need to deposit cash and do not mind managing your account online, an online bank is usually the cheapest option.

How to compare banks before opening

Before you open an account, gather this information from each bank you are considering: upfront fee to open (if any), monthly maintenance fee (if any), conditions that waive the monthly fee, interest rate on savings, ATM network and fees, and overdraft fees. Write it down or use a spreadsheet so you can see the differences side by side.

Then calculate the real cost for your situation. If you plan to keep $1,000 in the account and make no withdrawals, a bank with a $10 monthly fee costs $120 per year. If you plan to keep $2,000 and can meet the waiver condition, the same bank costs $0 per year. The cheapest bank for someone else might not be the cheapest for you.

Frequently Asked Questions

Can I open a savings account with no money?

Most banks require an opening deposit, usually $25 to $100, but some allow you to open with $0. Check the bank's website or call to ask about their minimum opening deposit. If you cannot meet the minimum, try a credit union or online bank, which often have lower or no opening deposit requirements.

What happens if I cannot pay a monthly maintenance fee?

The bank deducts the fee from your account balance each month. If your balance is too low to cover the fee, your account may go negative and you could face an overdraft fee on top of the maintenance fee. If this happens repeatedly, the bank may close your account. Switch to a bank with no monthly fee or meet the waiver conditions to stop the charges.

Do I have to use the account after I open it?

No. You can open an account and leave it unused. However, if the bank charges a monthly maintenance fee and you do not meet the waiver conditions, the fee will drain your balance over time. If you do not plan to use the account, choose a bank with no monthly fee or close the account.

Is there a fee to close a savings account?

Most banks charge nothing to close a savings account. You can call or visit a branch and ask them to close it. Some banks charge a small fee (usually $5 to $10) if you close the account within a certain time period, such as 90 days after opening. Check the bank's terms before opening to see if this applies.

Can I move money from one bank to another without paying a fee?

Yes. You can transfer money between banks using an ACH transfer (usually free and takes one to three business days) or by having your new bank pull the money from your old bank (also usually free). Wire transfers cost $15 to $25, so avoid those unless you need the money immediately. Check both banks' websites for their transfer fees.