Most savings accounts have no monthly fee, but some do — it depends on the bank and the account type
You do not have to pay a monthly fee to keep a savings account open. Many banks offer savings accounts with zero monthly charges. However, some banks do charge a monthly maintenance fee, and a few charge fees for specific actions like withdrawals or low balances. The fee structure varies by institution and account type, so the cost depends entirely on which bank you choose and what account you open.
The key is knowing what to look for before you open the account. Banks are required to disclose all fees upfront in a document called the Deposit Account Agreement or Truth in Savings Act disclosure. You can read this before you commit any money.
Key Takeaways
- Many banks offer savings accounts with no monthly maintenance fee at all, so you can avoid fees entirely by choosing the right institution.
- Banks must show you all fees in writing before you open an account, usually in a document labeled Deposit Account Agreement or Truth in Savings disclosure.
- Some accounts waive monthly fees if you keep a minimum balance, receive direct deposit, or maintain a linked checking account.
- Fees can include monthly maintenance charges, withdrawal limits, low-balance penalties, and overdraft fees — each one is separate and optional depending on the account.
- Online banks and credit unions often charge lower or no fees compared to large brick-and-mortar banks.
Types of fees banks charge on savings accounts
The most common fee is a monthly maintenance fee, which ranges from $2 to $15 per month at traditional banks. This is a flat charge just for keeping the account open. Some banks charge this every month; others only charge it if your balance drops below a set amount (often $500 to $2,500).
Excess withdrawal fees apply when you withdraw money more than a certain number of times per month. Federal rules once limited savings withdrawals to six per month, but that rule changed. However, many banks still charge $10 to $35 per withdrawal after a set limit — typically six to ten withdrawals monthly. This fee is less common now but still exists at some institutions.
A low-balance fee (sometimes called a minimum balance fee) is charged when your account balance falls below a threshold the bank sets. This is different from a monthly maintenance fee — you only pay it if you dip below the minimum. Banks typically charge $5 to $25 when this happens.
Overdraft fees occur when you withdraw more money than you have in the account. These are rare on savings accounts specifically, but they can happen if your account is linked to a checking account. Overdraft fees typically run $25 to $35 per occurrence.
How to find accounts with no fees
Online banks almost always charge no monthly maintenance fees. Banks like Ally, Marcus, and Discover have built their model around low overhead, which means they pass savings to customers. These accounts typically have no minimum balance requirement and no monthly charge.
Credit unions often charge lower fees than traditional banks, and many offer no-fee savings accounts to members. You can search for credit unions in your area through the CO-OP Network or Shared Branch locator tools on the Credit Union National Association website.
Large national banks like Chase, Bank of America, and Wells Fargo do offer no-fee savings accounts, but you may have to choose the right product. They often have a basic savings account with no fee alongside premium accounts that do charge. Read the fee schedule carefully — it is usually on the bank's website under "Rates and Fees" or "Pricing."
How banks waive monthly fees
Many banks will drop the monthly maintenance fee if you meet one of these conditions: keep a minimum balance (often $300 to $1,000), set up direct deposit of your paycheck, maintain a linked checking account at the same bank, or reach a certain account age. Some banks waive fees for customers over 65 or under 18.
The most common waiver is the minimum balance requirement. If you can keep $500 in the account at all times, the bank skips the monthly fee. This works if you have the money to leave there, but it defeats the purpose if you have to borrow money just to avoid a $5 fee.
Direct deposit waivers are easier for people who get paid by an employer. If your paycheck goes straight into the account, the bank waives the fee. This costs you nothing extra and is worth checking for if your employer offers direct deposit.
What to check before opening an account
Ask the bank or look up the fee schedule for these specific items: monthly maintenance fee, minimum balance requirement, excess withdrawal fee, low-balance penalty, and overdraft fee. Write them down or take a screenshot so you can compare accounts side by side.
Check whether the bank charges fees for things you actually plan to do. If you never withdraw more than six times a month, an excess withdrawal fee does not matter to you. If you can keep $1,000 in the account, a low-balance fee is irrelevant. Focus on the fees that would actually hit your account based on how you use it.
Look at the interest rate the account pays at the same time. A no-fee account that pays 0.01% interest is not better than a $5-per-month account that pays 4.5% if you keep money there for years. The interest you earn can offset the fee.
Fees at online banks versus traditional banks
| Bank Type | Typical Monthly Fee | Minimum Balance | Excess Withdrawal Fee |
|---|---|---|---|
| Online bank | $0 | Usually $0 | Usually $0 |
| Credit union | $0–$5 | $0–$500 | $0–$10 |
| Large national bank | $0–$15 | $300–$2,500 | $10–$35 |
| Local or regional bank | $0–$10 | $100–$1,000 | $10–$25 |
Online banks win on fees because they have no physical branches to staff or maintain. They pass that cost savings to you. The tradeoff is that you cannot walk into a branch to deposit cash or speak to someone in person — everything is done by phone, email, or app.
Traditional banks charge more because they maintain branches, employ tellers, and offer in-person service. If you value being able to walk in and deposit cash or talk to someone face-to-face, that service costs money. Some people find it worth the fee; others do not.
What happens if you cannot avoid a fee
If you are charged a fee you did not expect, contact the bank and ask them to reverse it. Banks will often waive one or two fees as a courtesy, especially if you have been a customer for a while or if the fee was not clearly disclosed. This is worth doing — you have nothing to lose by asking.
If the bank refuses and you are unhappy, you can close the account and move your money elsewhere. Switching banks takes about 15 minutes online. You can open a new account at a no-fee bank and have your direct deposit redirected in one day.
Frequently Asked Questions
Can a bank charge me a fee just for having a savings account?
Yes, some banks charge a monthly maintenance fee just for keeping the account open. However, many banks do not charge this fee at all, and most will waive it if you meet a condition like keeping a minimum balance or setting up direct deposit. You can always choose a bank with no monthly fee.
What is the difference between a monthly fee and a low-balance fee?
A monthly maintenance fee is charged every month regardless of your balance. A low-balance fee is only charged when your balance falls below a specific amount the bank sets. You can avoid a low-balance fee by keeping enough money in the account, but you cannot avoid a monthly fee unless the bank waives it or you close the account.
Do online banks really have no fees?
Most online banks charge no monthly maintenance fee, no minimum balance fee, and no excess withdrawal fee. However, they may charge fees for things like wire transfers, overdrafts, or returned checks. Read the fee schedule to be sure, but online banks are generally the cheapest option for basic savings accounts.
If I switch banks, do I lose money in my savings account?
No. Your money stays yours and moves with you. When you open a new account at a different bank, you can transfer your balance from the old account to the new one. The money is not lost or taxed — it simply moves to the new bank.
Can a bank charge me a fee for withdrawing my own money?
Yes, some banks charge an excess withdrawal fee if you withdraw more than a certain number of times per month (usually six to ten). This fee typically runs $10 to $35 per withdrawal over the limit. However, this rule is less common now, and online banks rarely charge it.