Most banks allow you to maintain a savings account with a zero balance, but the rules depend on your bank and the account type
You can hold a savings account with zero dollars in it at most major banks. The account stays open and active as long as you follow the bank's terms. However, some banks charge monthly maintenance fees even when your balance is zero, which means you could owe money rather than hold nothing. Other banks waive fees for zero balances or don't charge fees at all. A few banks close accounts automatically if they sit dormant or empty for a set period—typically six months to a year—though they must notify you before doing so.
The key difference is between having zero dollars and having a negative balance. A zero balance is simply no money in the account. A negative balance means you owe the bank money, usually because a fee was charged when your account was empty. This can damage your banking record and make it harder to open accounts elsewhere.
Key Takeaways
- Most banks permit zero-balance savings accounts, but some charge monthly fees that can push your balance negative if no money is in the account to cover them.
- Banks that charge maintenance fees on savings accounts may close your account or send it to collections if the balance goes negative and stays that way.
- Online banks and credit unions are more likely to have no monthly fees, making a zero balance less risky than at traditional banks.
- If your account is closed due to inactivity or a negative balance, the bank will report it to ChexSystems, which affects your ability to open new accounts.
- You can avoid problems by closing the account yourself if you don't plan to use it, rather than leaving it empty indefinitely.
How monthly fees work when your balance is zero
A monthly maintenance fee is a charge the bank deducts from your account each month, regardless of whether you use the account. If your balance is zero when the fee is charged, your account goes negative. For example, if your bank charges a $5 monthly fee and your account has $0, after the fee posts your balance becomes −$5.
Once your account is negative, you have a debt to the bank. Most banks give you a grace period—usually 30 days—to deposit money and bring the balance back to zero. If you don't, the bank may close the account and report the negative balance to ChexSystems, a banking history database that other banks check when you try to open a new account. A ChexSystems report can make it difficult or impossible to open a checking or savings account elsewhere for several years.
Some banks will also send the debt to a collection agency if the negative balance remains unpaid for several months. This appears on your credit report and can affect your ability to borrow money.
Which banks allow zero balances without penalties
Online banks and many credit unions have no monthly maintenance fees on savings accounts, which means you can hold a zero balance indefinitely without owing money. Banks like Ally, Marcus, and Discover have no monthly fees. Most credit unions also waive fees on savings accounts, though you typically must maintain membership, which usually requires a small deposit to an account you keep open.
Traditional banks like Chase, Bank of America, and Wells Fargo charge monthly fees on some savings accounts but waive them if you maintain a minimum balance—often $300 to $500—or meet other conditions like setting up direct deposit or having a linked checking account. If you don't meet these conditions and your balance is zero, you will be charged.
Before opening a savings account, check the bank's fee schedule. Look for the phrase "no monthly maintenance fee" or "fee waived if balance is $0." If the account has a monthly fee with no waiver option, a zero balance will eventually cost you money.
Dormancy and automatic account closure
Some banks close savings accounts automatically if they remain inactive for a long period. Inactivity usually means no deposits, withdrawals, or transfers for six months to a year, depending on the bank's policy. A zero balance combined with no activity increases the risk of closure.
Banks must notify you before closing an account for inactivity, usually by mail to the address on file. If you receive such a notice, you can prevent closure by making a deposit or withdrawal before the deadline. If the account is closed, the bank will return any remaining balance to you by check or transfer, but the closure will appear on your banking record.
Credit unions are less likely to close dormant accounts than banks, but it varies by institution. Check your account agreement or call your bank or credit union to learn their specific policy on dormancy.
What happens if your account is closed with a negative balance
If your account is closed while it has a negative balance, the bank still expects you to pay the debt. They will attempt to collect it by sending statements and notices to your address. If you ignore these notices, the bank may sell the debt to a collection agency, which will contact you for payment.
A closed account with a negative balance is reported to ChexSystems under your name and Social Security number. This report stays on file for five years and is visible to other banks when you try to open a new account. Many banks will deny your application if they see a negative balance closure on your ChexSystems report, even if the balance was small.
If you have a closed account with a negative balance, you can contact the original bank and ask to settle the debt. Paying the full amount may result in the bank removing the ChexSystems report, though this is not may provide. Some banks will negotiate a settlement for less than the full amount owed.
How to close a savings account with zero dollars
If you decide you no longer need a savings account and the balance is zero, close it yourself rather than leaving it open. Contact your bank by phone, in person, or through their online banking portal and request account closure. The bank will confirm that the balance is zero and process the closure. Ask for written confirmation of the closure.
Closing the account yourself prevents the bank from closing it later due to inactivity or fees, which could result in a negative balance and a ChexSystems report. A voluntary closure does not damage your banking record.
If your account has a small positive balance, withdraw it before closing. If it has a negative balance, ask the bank what you owe and pay it before requesting closure. Paying the debt before closure may prevent a ChexSystems report, depending on the bank's policy.
Keeping a zero-balance account open for future use
Some people keep a savings account open with zero dollars because they plan to use it later or want to maintain the account history. This is possible if your bank has no monthly fees or waives fees for zero balances. However, if your bank charges a monthly fee, the account will accumulate debt over time, which defeats the purpose.
If you want to keep an account open for future use, verify that your bank does not charge a monthly maintenance fee. Check your account agreement or call the bank to confirm. If fees are charged, you will need to maintain a minimum balance or meet other conditions to avoid them.
Keeping an account open also requires occasional activity. Some banks close accounts that show no deposits, withdrawals, or transfers for an extended period. To prevent this, make a small deposit or transfer every six months, even if you don't need the money. This keeps the account active and shows the bank you intend to use it.
Frequently Asked Questions
Will my bank close my account if I have zero dollars in it?
Most banks will not close an account solely because the balance is zero, but they may close it if it remains inactive for six months to a year with no deposits or withdrawals. Some banks also close accounts if a monthly fee is charged and the balance goes negative. Check your account agreement or contact your bank to learn their specific policy on dormancy and fees.
Can I go into debt if my savings account balance is zero?
Yes, if your bank charges a monthly maintenance fee and your balance is zero, the fee will be deducted and your account will go negative. You then owe the bank money. If you don't deposit funds to cover the negative balance within the grace period, the bank may close the account and report the debt to ChexSystems.
What should I do if I want to keep a savings account but never use it?
Choose a bank with no monthly maintenance fees, such as an online bank or credit union. Make a small deposit or transfer every six months to keep the account active and prevent automatic closure. This way, the account remains open and ready to use without costing you money.
Does a zero-balance savings account hurt my credit score?
A zero-balance savings account by itself does not affect your credit score because savings accounts are not reported to credit bureaus. However, if the account goes negative and is closed with an unpaid debt, that debt may be reported to your credit report if it goes to a collection agency, which will lower your score.
Can I reopen a savings account that was closed due to a zero balance?
If the account was closed with a negative balance and reported to ChexSystems, you may have difficulty opening a new account at the same bank or other banks for several years. If the account was closed due to inactivity with a zero balance and no debt, you can usually open a new account immediately, though the bank may note the previous closure in their system.