Most banks charge nothing to open a savings account
Opening a savings account at a traditional bank typically costs zero dollars. Banks make money from the interest they earn on deposits, not from charging you to hold an account. You walk in, provide identification and a Social Security number, and leave with an open account.
Some banks do charge a monthly maintenance fee—usually $5 to $15—but many waive that fee if you meet a minimum balance requirement, set up direct deposit, or maintain a certain number of transactions per month. A few banks charge nothing under any circumstance. The fee structure depends entirely on which bank you choose and which account type you pick.
Online banks almost never charge opening fees or monthly maintenance fees, because they have lower overhead than physical branches. Credit unions also typically charge nothing to open a savings account, though some require a small membership fee (usually $5 to $25, paid once) to join the credit union itself.
Key Takeaways
- Most banks charge nothing to open a savings account, though some charge a monthly maintenance fee of $5 to $15 if your balance falls below a threshold.
- Online banks and credit unions rarely charge any fees at all, making them the lowest-cost option if you want to avoid monthly charges.
- You will need a government-issued ID and a Social Security number to open an account at any bank or credit union.
- Some banks waive monthly fees if you set up direct deposit, keep a minimum balance, or use their debit card a certain number of times per month.
- Initial deposit requirements vary from zero to several hundred dollars depending on the bank, but the deposit itself is your money—not a fee.
Monthly maintenance fees and how to avoid them
A maintenance fee is a charge the bank takes from your account each month just for holding it open. Not all banks charge one, but many do. If you want to avoid the fee, you have several options that most banks will honor.
The most common way to waive a maintenance fee is to keep a minimum balance in the account—often $500 to $1,500, depending on the bank. If your balance never drops below that number, the fee does not apply. Another route is to set up direct deposit of your paycheck or other regular income; many banks waive the fee automatically once direct deposit is active. Some banks also waive the fee if you use their debit card a certain number of times per month (often five or more transactions) or if you maintain a linked checking account with them.
Read the fee schedule before you open the account. Banks are required to provide this information in writing, and most post it online. If the minimum balance requirement is higher than you can maintain, choose a different bank rather than paying the fee every month.
Initial deposit requirements
Many banks require you to deposit money when you open the account. This is not a fee—it is your money, sitting in your new account. The amount varies widely. Some banks have no minimum deposit at all. Others require $25 to $100 to get your free guide. A few require $500 or more.
Online banks tend to have lower or zero initial deposit requirements because they operate with less overhead. Credit unions also often have no minimum deposit to open an account. If you are starting with very little money, an online bank or credit union is usually the better choice.
The initial deposit counts toward any minimum balance requirement the bank has. If a bank requires a $500 minimum balance and a $100 initial deposit, you only need to add $400 more to meet the requirement.
Differences between bank types
| Bank Type | Opening Fee | Monthly Maintenance Fee | Minimum Deposit |
|---|---|---|---|
| Traditional bank | None | $5–$15 (often waivable) | $0–$500 |
| Online bank | None | None or very rare | $0–$100 |
| Credit union | None (membership fee may apply) | None or rare | $0–$100 |
Traditional banks with physical branches charge maintenance fees more often than online banks, because they have the cost of running branch locations. Online banks have no branches, so they pass the savings to you in the form of no fees.
Credit unions are member-owned cooperatives, so they operate differently from banks. Some credit unions charge a one-time membership fee (usually $5 to $25) to join, but this is separate from opening an account. Once you are a member, opening a savings account is free and rarely carries a monthly fee.
What you need to bring to open an account
You will need a government-issued photo ID (driver's license, passport, or state ID card) and your Social Security number. Some banks also ask for a second form of ID or proof of address, such as a utility bill or lease agreement. If you are opening an account online, you will upload photos of your ID or answer security questions to verify your identity.
If you do not have a Social Security number, some banks and credit unions will open an account using an Individual Taxpayer Identification Number (ITIN) instead. Call ahead to confirm the bank accepts ITIN before you go in.
Bring a small initial deposit if you have one, though you can often set this up electronically after opening the account. If you want to set up direct deposit right away, have your employer's information or the details of the account you want to transfer money from.
Special account types and their costs
Some banks offer savings accounts designed for specific purposes—high-yield savings accounts, money market accounts, or youth savings accounts—and these may have different fee structures than a standard savings account.
High-yield savings accounts typically have no monthly maintenance fee and no opening fee, but they often require a higher minimum balance ($2,500 to $10,000) to earn the advertised interest rate. Money market accounts work similarly: no opening fee, but a higher minimum balance requirement. Youth savings accounts (for people under 18) almost never charge fees and often have no minimum balance.
Ask the bank whether the account type you are interested in has different fees or requirements than a standard savings account. The fee schedule will spell this out, but it is worth asking a bank employee to walk you through it if the document is unclear.
Frequently Asked Questions
Do I have to pay anything to open a savings account?
No. Opening a savings account itself is free at banks, credit unions, and online banks. Some banks charge a monthly maintenance fee after the account is open, but you can avoid this by meeting their requirements—usually keeping a minimum balance or setting up direct deposit.
What if I do not have enough money for the minimum deposit?
Choose a bank with no minimum deposit requirement. Online banks and many credit unions have zero minimum deposit. You can open the account and deposit money later, or start with whatever amount you have and build from there.
Can I avoid monthly fees?
Yes. Most banks waive monthly maintenance fees if you keep a minimum balance, set up direct deposit, or use their debit card a certain number of times per month. Read the fee schedule before opening the account to see which waiver options the bank offers.
Is there a difference between opening a savings account online and in person?
No difference in cost. Both are free. Opening online is faster and you can do it from home. Opening in person lets you ask questions face-to-face. The fees and requirements are the same either way.
What happens if my balance drops below the minimum?
If you fall below the minimum balance and do not have another waiver in place (like direct deposit), the bank will charge you the monthly maintenance fee. Some banks charge it once; others charge it every month until your balance goes back up. Check your bank's policy before opening the account.