Most banks let you open a savings account for free, but some charge monthly maintenance fees or require a minimum balance to avoid them

Opening a savings account itself costs nothing at most banks and credit unions. You walk in, fill out paperwork, and the account is yours. The catch is what happens after: some institutions charge monthly maintenance fees (usually $5 to $15 per month) if your balance drops below a certain amount, or they may charge fees for specific actions like overdrafts or transfers.

The real cost difference comes down to which bank you choose and what you do with the account. A bank with no monthly fee and no minimum balance requirement will never charge you just for having the account open. A bank that requires a $500 minimum balance will charge you every month if you fall below it. Neither type is better or worse — it depends on how much money you plan to keep there.

Key Takeaways

  • Opening a savings account is free at nearly all banks and credit unions; the account itself has no setup cost.
  • Monthly maintenance fees ($5 to $15 typically) apply only if your balance falls below a required minimum or if the bank charges them regardless of balance.
  • Online banks and credit unions are more likely to have no monthly fees and no minimum balance requirements than large national banks.
  • You will need a government ID, proof of address, and usually a Social Security number or tax ID to open an account, but providing these documents costs you nothing.
  • Some banks waive monthly fees if you set up direct deposit or maintain a linked checking account with them.

Banks that charge monthly maintenance fees and how to avoid them

Large national banks like Bank of America, Wells Fargo, and Chase typically charge monthly maintenance fees on savings accounts unless you meet certain conditions. Bank of America charges $4 per month unless you maintain a $500 minimum balance or set up direct deposit. Wells Fargo charges $5 per month unless your balance stays above $300. Chase's savings account has no monthly fee, but some of their other products do.

The easiest way to avoid these fees is to keep your balance above the minimum. If you cannot do that, look for a bank that waives the fee if you set up direct deposit from your paycheck — many do. Some banks also waive fees if you link a checking account to your savings account with them, or if you maintain a certain total balance across all your accounts combined.

Credit unions almost never charge monthly maintenance fees on savings accounts. If you are a member of a credit union, opening a savings account there is free and stays free regardless of your balance. You can find credit unions you may be able to join through CO-OP, a network that lets credit union members use other credit unions' ATMs and branches.

Online banks versus brick-and-mortar banks

Online banks (like Ally, Marcus, and Discover) charge no monthly maintenance fees and have no minimum balance requirements. Because they have no physical branches, their overhead is lower, and they pass that savings to customers. Opening an account takes 10 to 15 minutes online, and you can start depositing money the same day.

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 they reimburse ATM fees if you use an out-of-network machine. If you rarely need to deposit cash and are comfortable managing your account on a phone or computer, an online bank is usually the cheapest option.

Brick-and-mortar banks charge monthly fees more often but offer in-person service and the ability to deposit cash at a teller window. If you need to deposit cash regularly or prefer face-to-face help, the monthly fee may be worth it to you — or you can choose a local bank or credit union that does not charge one.

What you need to bring to open an account

You will need a government-issued photo ID (driver's license, passport, or state ID), proof of your current address (a utility bill or lease dated within the last 60 days), and your Social Security number. Some banks also ask for your date of birth and employment information, though employment is not required to open a savings account.

If you do not have a Social Security number, you can use an Individual Taxpayer Identification Number (ITIN) instead. Bring the original documents, not copies — banks verify them on the spot. This process is free; the bank does not charge you for verifying your identity.

If you are opening an account online, you will upload photos of your ID and proof of address, and the bank verifies them electronically. Some online banks also require a video call where you show your ID to a representative. Again, this is all free.

Fees that can happen after you open the account

Monthly maintenance fees are the most common, but other charges can add up. Overdraft fees (usually $25 to $35) happen if you withdraw more money than you have in the account. Excess withdrawal fees (typically $10) apply if you make more than six transfers or withdrawals from your savings account in a month — this is a federal rule, not a bank choice, though not all banks enforce it.

ATM fees happen if you use an ATM that is not part of your bank's network; these usually cost $2 to $3 per transaction. Some banks charge fees to close an account if you close it within a certain time frame (often 90 days to six months), though this is less common now.

The best way to avoid these fees is to keep your balance above zero, use your bank's ATM network or an ATM that reimburses fees, and limit transfers if your bank charges for them. Read the fee schedule before you open an account — banks are required to provide it, and it tells you exactly what you might be charged.

How to compare banks before opening

Before you open an account, check three things: the monthly maintenance fee (if any), the minimum balance required to avoid it, and what actions trigger other fees. Most banks post this information on their website under "Savings Account" or "Deposit Account Fees."

Use a comparison tool like Bankrate or DepositAccounts to see multiple banks side by side. Filter by "no monthly fee" and "no minimum balance" if those matter to you. Read customer reviews on sites like Trustpilot to see whether people have had trouble with the bank's customer service or unexpected fees.

Call the bank's customer service line and ask directly: "Does this account have a monthly maintenance fee?" and "What is the minimum balance to avoid it?" A real person can answer faster than reading the website, and they can tell you about current promotions (some banks waive fees for new accounts for the first few months).

Opening an account if you have had banking problems before

If you have been denied a bank account in the past, it is usually because you appear in ChexSystems, a database that banks use to check for a history of overdrafts, fraud, or unpaid fees. You can request your ChexSystems report for free at chexsystems.com and dispute any errors.

Some banks specialize in second-chance accounts for people with ChexSystems records. These accounts may have higher fees or lower limits on how much you can deposit, but they let you rebuild your banking history. Credit unions are also more likely to work with people who have had problems before.

If you cannot open a traditional savings account, a prepaid debit card or a savings account at a credit union are alternatives that do not require a credit check or ChexSystems clearance.

Frequently Asked Questions

Do I have to put money in the account right away?

No. You can open an account with $0 and deposit money later. However, some banks require an initial deposit (usually $25 to $100) to complete the opening process. Check the bank's requirements before you go in or apply online.

What happens if I close the account right after opening it?

Most banks let you close an account anytime with no penalty. A few charge a fee if you close within 90 days to six months, but this is uncommon. Check the terms before you open if you think you might close it quickly.

Can I open a savings account if I do not have a Social Security number?

Yes. You can use an Individual Taxpayer Identification Number (ITIN) instead. Some banks also accept a passport number or other government ID. Call the bank first to confirm they accept ITINs, because not all do.

Will opening a savings account hurt my credit score?

No. Opening a savings account does not appear on your credit report and does not affect your credit score. Banks check ChexSystems (a banking history database), not your credit, when you open a deposit account.

Can I open multiple savings accounts at the same bank?

Yes. You can open as many savings accounts as you want at the same bank, and each one is separate. Some people open multiple accounts to save for different goals. Monthly maintenance fees usually apply to each account separately, so check whether that makes sense for you.