Most savings accounts have no opening fee, but monthly maintenance charges vary widely
You do not pay to open a savings account at most banks and credit unions. The account itself is free to start. However, many banks charge a monthly maintenance fee — typically $5 to $15 per month — just to keep the account open. Some accounts waive this fee if you meet certain conditions, like keeping a minimum balance or setting up direct deposit. Others charge nothing at all, no matter what.
The cost depends on which bank you choose and what type of savings account you pick. A basic savings account at a large national bank often costs more per month than the same account at a credit union or online bank. Before you open an account, check what the bank charges and what you need to do to avoid paying that fee.
Key Takeaways
- Opening a savings account is free at virtually all banks and credit unions — you pay nothing to create the account.
- Monthly maintenance fees range from $0 to $15 depending on the bank, and many banks waive the fee if you keep a minimum balance or receive direct deposits.
- Online banks and credit unions typically charge lower or no monthly fees than large national banks.
- Some accounts charge fees for specific actions, such as withdrawing money too many times in a month or closing the account early.
- Reading the fee schedule before you open an account is the only way to know what you will actually pay.
Monthly maintenance fees and how to avoid them
A maintenance fee is what a bank charges you each month just for having the account open. This is separate from any interest the bank pays you on your balance. At large banks like Bank of America, Chase, and Wells Fargo, this fee is usually $5 to $12 per month if you do not meet the bank's conditions.
Most banks let you skip the monthly fee if you do one or more of these things: keep a minimum balance (often $500 to $1,500), set up direct deposit of your paycheck, or maintain a linked checking account at the same bank. Some banks waive the fee for customers under a certain age, such as under 25. Read the account details before opening to see which conditions apply to the account you want.
Online banks and credit unions often charge no monthly maintenance fee at all, regardless of your balance or activity. This is one reason people choose them over traditional banks. If you want to avoid fees entirely, these are usually your best options.
Other charges beyond the monthly fee
Banks may charge you for things beyond the basic monthly maintenance. The most common is an excess withdrawal fee, charged when you withdraw money from your savings account more than a certain number of times per month — typically six times. Federal rules once limited this to six withdrawals, though that rule changed. Banks still enforce their own limits, and violating them can cost $5 to $10 per extra withdrawal.
You may also pay a fee to close the account early, usually if you close it within a short time of opening it (often 90 days to six months). This fee is typically $25 to $50. Some banks charge a fee if your balance falls below a certain amount, or if you request a paper statement instead of viewing it online.
A few banks charge a fee to transfer money out of the account to another bank, though this is less common. Always ask about these specific fees when you are comparing accounts, because they add up quickly if you use the account actively.
How interest rates and fees work together
A savings account earns you interest on your balance — money the bank pays you for letting them use your money. Interest rates vary by bank and change over time. A high-yield savings account at an online bank might pay 4% to 5% annual interest, while a traditional bank might pay 0.01% or less.
If a bank pays you high interest but charges a $10 monthly fee, and you have only $500 in the account, the fee eats into your earnings. On the other hand, a bank with no monthly fee but very low interest rates might cost you money in lost earnings over time. The real cost of an account is the fee minus the interest you earn. Compare both numbers, not just the fee.
Some accounts have no monthly fee and pay decent interest, especially online banks. These tend to be the cheapest option overall, though they may offer fewer in-person services than a traditional bank.
Savings accounts at credit unions versus banks
Credit unions are member-owned organizations, not for-profit companies. Because of this structure, they often charge lower fees than banks. Many credit unions charge no monthly maintenance fee on savings accounts, or charge only $1 to $3 per month. Credit unions also tend to have lower minimum balance requirements.
The trade-off is that credit unions have fewer branches and ATMs than large national banks. If you need to deposit cash or withdraw money in person often, a credit union may be less convenient. However, most credit unions are part of shared branching networks, which means you can use ATMs and branches at other credit unions for free.
If you are a member of a credit union already, or if you work for an employer that offers credit union membership, comparing their savings account fees to your current bank is worth doing. You may find you save money by switching.
What to look for in the fee schedule
Before you open a savings account, ask the bank or credit union for the fee schedule — a document that lists every charge the account may have. This document should tell you the monthly maintenance fee, minimum balance requirements, excess withdrawal fees, and any other charges. Banks are required to provide this information, usually called a "Schedule of Fees and Charges" or similar.
Read the conditions for waiving the monthly fee carefully. If the bank says you can avoid the fee by keeping a $1,000 minimum balance, make sure you can actually keep that much in the account. If the fee is waived by direct deposit, confirm that your employer can set that up. Do not assume a fee will be waived — verify it applies to your situation.
Compare fee schedules from at least two or three banks or credit unions before deciding. The difference between a $0 monthly fee and a $10 monthly fee adds up to $120 per year, which is real money.
Frequently Asked Questions
Can I open a savings account with no money?
Most banks and credit unions let you open a savings account with $0 or $1. However, some require a minimum opening deposit, typically $25 to $100. Check with the specific bank before you try to open an account. Even if there is no opening deposit required, remember that monthly fees may apply if you do not meet the bank's conditions.
What happens if I cannot pay a monthly maintenance fee?
If your account balance is too low to cover the fee, the bank will deduct it from your account anyway, which may overdraw you. This can trigger an overdraft fee on top of the maintenance fee. The best approach is to switch to an account with no monthly fee, or meet the conditions to have the fee waived, before this happens.
Do online banks really charge no fees?
Most online banks charge no monthly maintenance fee, which is one reason they can offer higher interest rates. However, read their fee schedule anyway — some may charge fees for specific actions like excess withdrawals or early account closure. Online banks are generally cheaper than traditional banks, but "no fees" is not always true for every possible action.
Is a savings account worth it if the interest rate is very low?
A savings account is still useful even with low interest, because it keeps your money separate from checking and makes it slightly harder to spend. However, if the monthly fee is high and the interest rate is very low, you are losing money. In that case, switching to a no-fee account at an online bank or credit union makes sense.
Can I move my savings account to a different bank without losing money?
Yes. Closing a savings account and moving your money to another bank is free, as long as you do not close the account within the early closure period (usually 90 days to six months). Withdraw your balance, close the old account, and open a new one elsewhere. There is no penalty for switching banks, except possibly the early closure fee if you close too soon.