Most savings accounts charge no monthly fee, but some do

Whether you pay a fee on a savings account depends entirely on the bank and the account type you choose. Many banks offer savings accounts with no monthly maintenance fee at all. Others charge anywhere from $2 to $25 per month, though some waive the fee if you meet certain conditions—like keeping a minimum balance or setting up direct deposit.

The fee structure varies so much that two people at the same bank might pay different amounts. One person with $500 in the account might pay nothing, while another with $200 might pay $5 monthly. Before you open an account, you need to know what that specific bank charges and what would trigger a fee in your situation.

Key Takeaways

  • Many banks charge no monthly fee on savings accounts, but others charge $2 to $25 per month depending on the account type and your balance.
  • Monthly maintenance fees are often waived if you keep a minimum balance, set up direct deposit, or maintain a certain number of transactions per month.
  • Online banks and credit unions typically charge lower or no fees compared to large brick-and-mortar banks.
  • You may also pay per-transaction fees, overdraft fees, or ATM fees depending on the account and how you use it.

Types of fees you might encounter on a savings account

Monthly maintenance fees are the most common charge. A bank deducts this from your account each month simply for having the account open. Some banks call it a "service fee" or "account fee." The amount varies: a credit union might charge nothing, a regional bank might charge $3, and a large national bank might charge $10 or more.

Minimum balance fees kick in when your account drops below a set amount. For example, a bank might charge $5 per month if your balance falls below $500. If you stay above that threshold, you pay nothing. This is different from a monthly maintenance fee—you only pay it when you dip below the line.

Inactivity fees apply if you don't use the account for a set period, usually 12 months or longer. Some banks charge $5 to $10 if you haven't made a deposit or withdrawal in that time. This is less common than it used to be, but it still exists at certain banks.

Per-transaction fees charge you for each withdrawal or transfer beyond a certain number per month. Federal rules used to limit savings account withdrawals to six per month, which some banks still enforce with a fee for extra withdrawals. This fee might be $1 to $3 per transaction over the limit.

When banks waive the monthly fee

Banks often waive their monthly maintenance fee if you meet one or more conditions. The most common waiver is maintaining a minimum balance—typically $300 to $2,500, depending on the bank and account type. As long as your balance stays at or above that number, you pay no fee.

Direct deposit is another common waiver trigger. If you set up your paycheck or government payment to deposit directly into the account, many banks will waive the monthly fee. Some banks require the deposit to be a certain amount—like $500 per month—while others just need any direct deposit to hit the account.

A few banks waive fees if you link your savings account to a checking account at the same bank, or if you maintain multiple accounts with them. Others waive fees for customers over 55 or under 18. Read the account terms carefully, because the waiver conditions vary widely.

How online banks and credit unions differ

Online banks typically charge no monthly maintenance fee on savings accounts. Because they have no physical branches, their operating costs are lower, and they pass that savings to customers. Banks like Ally, Marcus, and Discover generally offer savings accounts with zero monthly fees and no minimum balance requirement.

Credit unions also tend to charge lower or no fees compared to large national banks. Many credit unions offer savings accounts with no monthly maintenance fee and no minimum balance. However, you must be a member of the credit union to open an account, which usually means living or working in a certain area or belonging to a may have access to group.

The trade-off is that online banks and credit unions may offer lower interest rates or fewer in-person services. But if your main concern is avoiding fees, these institutions are often the better choice.

Other charges beyond the monthly fee

Overdraft fees apply if you withdraw more money than you have in the account. This is less common on savings accounts than checking accounts, but it can happen. The fee is typically $25 to $35 per overdraft.

ATM fees occur when you use an ATM that does not belong to your bank's network. Your bank might charge $1 to $3, and the ATM owner might charge an additional fee. Online banks often reimburse ATM fees or belong to a large surcharge-free network.

Wire transfer fees apply if you send money out of your account via wire. Incoming wires are usually free, but outgoing wires typically cost $15 to $30.

Excessive withdrawal fees are charged when you exceed the number of withdrawals or transfers allowed per month. This fee is usually $1 to $3 per transaction over the limit, though some banks have eliminated this fee entirely.

How to find an account with no fees

Start by listing the banks and credit unions available to you. If you belong to a credit union, check their savings account terms first—many offer no-fee accounts. Then compare online banks, which almost always have no monthly maintenance fee.

For each account you are considering, look up the fee schedule on the bank's website. Search for "savings account fees" or "account terms and conditions." The fee schedule should list the monthly maintenance fee, minimum balance requirement, and any waivers that apply.

Write down the conditions you can actually meet. If you cannot maintain a $1,000 minimum balance, do not choose an account that waives fees only at that threshold. If you do not receive direct deposit, do not count on that waiver. Pick an account where you naturally meet the waiver conditions, or pick one with no fee at all.

What happens if you get charged a fee you did not expect

If a fee appears on your statement and you believe it was charged in error, contact the bank immediately. Call the customer service number on your statement or visit a branch. Explain what happened and ask them to review the charge.

Many banks will reverse a single unexpected fee, especially if it is your first time being charged. If the fee was legitimate but you did not understand the account terms, ask the bank to explain what triggered it. Then decide whether to keep the account or switch to one with clearer terms or lower fees.

If you switch banks, make sure to close your old account properly. Do not just stop using it—contact the bank and formally close the account to avoid inactivity fees down the road.

Frequently Asked Questions

Can a bank charge me a fee just for having a savings account?

Yes. Many banks charge a monthly maintenance fee simply for keeping the account open, regardless of how much money is in it or how often you use it. However, this fee is often waived if you meet conditions like maintaining a minimum balance or setting up direct deposit. Online banks and credit unions frequently charge no monthly fee at all.

What is the difference between a monthly fee and a minimum balance fee?

A monthly maintenance fee is charged every month no matter what. A minimum balance fee only applies if your balance drops below a set amount. For example, you might pay $10 per month in maintenance fees, or $5 per month only when your balance is below $500—these are two different fee structures.

Will I be charged if I do not use my savings account for a while?

Some banks charge an inactivity fee if you do not make a deposit or withdrawal for 12 months or longer, though this is becoming less common. The fee is usually $5 to $10. Check your account terms to see if your bank has an inactivity policy. If it does and you plan to leave money untouched, consider moving it to a bank with no inactivity fee.

Do online banks really charge no fees?

Most online banks charge no monthly maintenance fee and no minimum balance requirement on savings accounts. Their lower operating costs allow them to offer accounts with fewer fees than traditional banks. However, read the fee schedule carefully—some online banks may charge fees for specific services like wire transfers or excessive withdrawals.

How do I know if my bank is about to charge me a fee?

Read your account's fee schedule before you open it, and review it again if your circumstances change. Most banks send a notice before charging a new fee or changing fee terms. Check your statements monthly to catch any unexpected charges, and contact the bank immediately if you see a fee you do not recognize.