Most savings accounts charge fees, but the type and amount depend on the bank and the account you choose
Yes, savings accounts often have fees. The most common ones are monthly maintenance fees, overdraft fees, ATM fees, and minimum balance fees. Not every account charges all of these, and some accounts charge none. The fees that apply to you depend on which bank you use, which specific account you open, and how you use the account.
The good news: you can avoid most savings account fees by understanding what they are, which ones your bank charges, and what triggers them. Many banks offer accounts with no monthly fee at all, especially online banks. Others waive fees if you keep a certain balance or set up direct deposit.
Key Takeaways
- Monthly maintenance fees are the most common charge and typically range from $5 to $15, though many banks waive them if you meet conditions like keeping a minimum balance.
- Overdraft fees occur when you withdraw more money than you have and can cost $25 to $35 per transaction at most banks.
- ATM fees apply when you use an out-of-network ATM and usually cost $2 to $3 per withdrawal, plus a fee from the ATM operator.
- Minimum balance fees kick in when your account drops below a set amount, often $100 to $500 depending on the bank.
- Online banks and credit unions often charge fewer or no fees compared to large brick-and-mortar banks.
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. This fee typically ranges from $5 to $15. Some banks charge it on the first of the month, others on the last day, and the timing matters if your balance is tight.
Most banks let you waive this fee if you meet one or more conditions. Common ways to avoid it include keeping a minimum balance (often $500 to $1,500), setting up direct deposit, or maintaining a certain number of debit card transactions per month. Read your account agreement or ask your bank directly what the conditions are—they vary widely.
Online banks and many credit unions do not charge monthly maintenance fees at all. If you are paying this fee every month and not meeting the waiver conditions, switching banks may save you $60 to $180 per year.
Overdraft fees and what triggers them
An overdraft fee occurs when you spend more money than you have in your account. If you try to withdraw $50 but only have $30, the bank may allow the transaction and charge you a fee—typically $25 to $35—for covering the shortfall. Some banks charge multiple overdraft fees in a single day if you make several transactions that overdraw your account.
You can prevent overdraft fees by linking a backup account (like a checking account at the same bank) so transfers happen automatically, or by turning off overdraft protection entirely. If overdraft protection is off, transactions that would overdraw your account simply decline instead. Ask your bank how to set this up—the option is usually in your online banking settings or by calling customer service.
Some banks offer overdraft grace periods, meaning they do not charge a fee if you bring your balance positive within a day or two. Others charge a fee no matter what. Check your account agreement or call and ask.
ATM fees for out-of-network withdrawals
An ATM fee is charged when you withdraw cash from an ATM that does not belong to your bank's network. You typically pay two fees: one from your bank (usually $2 to $3) and one from the ATM operator (often $1 to $3). That means a single withdrawal can cost $3 to $6 in fees alone.
To avoid ATM fees, use only ATMs owned by your bank or a bank in your bank's network. Most banks participate in shared branching networks or ATM alliances that let you use thousands of ATMs for free. Ask your bank which ATMs are free to use. If you frequently need cash and your bank has few ATMs near you, this is a good reason to switch banks or choose one with a large network.
Online banks often reimburse ATM fees or partner with networks like Allpoint that offer thousands of free ATMs. If you withdraw cash often, this can save you $20 to $50 per month.
Minimum balance fees and low-balance charges
A minimum balance fee is charged when your account balance drops below a set amount. The minimum might be $100, $500, or $1,000 depending on the bank and account type. If your balance falls below that threshold, the bank charges a fee—often $10 to $25—at the end of the month or statement period.
This fee is most common at traditional banks and less common at online banks. If you tend to keep a low balance, check whether your account has a minimum balance requirement before you open it. Some accounts have no minimum at all, while others waive the fee if you set up direct deposit or maintain a linked account.
Inactivity fees and other less common charges
Some banks charge an inactivity fee if you do not use your account for a set period—often 12 months or longer. This fee is less common than others but does exist at some banks. The fee is usually $10 to $25 and is charged if you have not made a deposit or withdrawal during the inactive period.
Other fees you might encounter include paper statement fees (if you request printed statements instead of electronic ones), wire transfer fees, and fees for closing your account early. These are less common and usually only apply in specific situations. Read your account agreement or ask your bank about any fees you do not recognize.
How to find a savings account with low or no fees
Start by comparing accounts at different banks using their fee schedules, which are usually available on their websites. Look for accounts that waive monthly maintenance fees without requiring a high minimum balance or frequent transactions. Online banks tend to have lower fees than brick-and-mortar banks because they have lower operating costs.
Credit unions often charge fewer fees than banks and may offer better rates on savings. You can search for credit unions in your area using the CO-OP or Allpoint networks. If you are a member of a credit union, compare their savings accounts to what banks are offering before you assume a bank is cheaper.
When comparing, add up the total fees you would pay in a year based on how you actually use your account. If you rarely use ATMs, ATM fees do not matter to you. If you keep a high balance, minimum balance fees do not apply. Focus on the fees that would actually affect you.
Frequently Asked Questions
Can a bank charge me a fee without telling me first?
Banks must disclose all fees in your account agreement before you open the account. However, banks can change fees with notice—usually 30 days. You should receive notice by mail or email before a fee change takes effect. If you do not agree with a new fee, you can close the account and move to another bank.
What happens if I get charged a fee by mistake?
Call your bank and ask them to reverse the fee. If it was a one-time mistake or the first time it happened, most banks will remove it as a courtesy. If it keeps happening, ask what you need to do to prevent it—for example, linking a backup account to prevent overdrafts or switching to an account with no monthly fee.
Do savings accounts at credit unions have fewer fees than banks?
Often yes, but not always. Credit unions typically charge lower fees and have lower minimum balances than large banks. However, some credit unions charge fees similar to banks. Compare the specific account you are interested in at both a credit union and a bank before deciding.
If I keep a high balance, will I avoid all fees?
A high balance will waive monthly maintenance and minimum balance fees at most banks, but it will not prevent overdraft fees or ATM fees. Those fees depend on your actions—overdrawing your account or using out-of-network ATMs—not on your balance.
Are there savings accounts with truly no fees?
Yes. Many online banks and credit unions offer savings accounts with no monthly maintenance fee, no minimum balance requirement, and no inactivity fee. You may still pay overdraft or ATM fees if you use those services, but the account itself costs nothing to maintain.