Most online savings accounts have no minimum balance requirement at all
You do not need to keep a certain amount of money in an online savings account to open one or keep it open. Many of the largest online banks—including Marcus, Ally, and American Express Personal Savings—have zero minimum balance. You can deposit $1, leave it there, and the account stays active. No fees trigger if your balance drops below some threshold.
The reason is straightforward: online banks have lower overhead than brick-and-mortar branches. They do not need you to maintain a balance to cover the cost of a physical location. They make money on the interest rate spread—the difference between what they pay you on savings and what they earn lending that money out. A $1 balance and a $100,000 balance both cost them almost nothing to maintain.
That said, a small number of online savings accounts do set a minimum, usually between $100 and $2,500. These are less common, but they exist. If a bank does require a minimum, they will tell you upfront, and the account agreement will spell out what happens if you fall below it—typically a monthly fee of $5 to $25, or account closure.
Key Takeaways
- Most online savings accounts require no minimum balance to open or maintain the account.
- When a minimum does exist, it is usually $100 to $2,500, and the bank discloses it before you open the account.
- If you fall below a required minimum, the bank typically charges a monthly fee or closes the account rather than charging a one-time penalty.
- Online banks can afford zero minimums because they have no branch costs and profit from the interest rate spread on deposits.
How to check the minimum balance for a specific bank
The account agreement or deposit terms document is where the minimum balance rule appears. You can find this before you open the account—most banks link to it on the account opening page, or you can search the bank's website for "account agreement" or "deposit terms." Read the section labeled "Minimum Balance" or "Account Requirements."
If the document does not mention a minimum balance, the account has none. If it does mention one, it will state the dollar amount and what happens if you go below it. Some banks waive the minimum if you set up direct deposit or maintain a linked checking account, so read that part carefully.
You can also call the bank's customer service line and ask directly: "Does this savings account have a minimum balance requirement?" A yes or no answer takes 30 seconds. If yes, ask what the minimum is and what fee applies if you fall below it.
Why some banks still use minimums
Banks that do require a minimum balance are usually trying to attract customers who will keep larger sums parked there long-term. A $2,500 minimum signals that the bank wants serious savers, not people moving money in and out constantly. It can also be a way to offset the cost of customer service—if you have $2,500 in the account, the bank assumes you are less likely to call with questions or request reversals.
Credit unions sometimes use minimums more often than online banks do. A credit union might require $25 or $100 to open a savings account, partly because they are member-owned and partly because they operate on thinner margins than large online banks. The minimum is usually low enough that it is not a barrier for most people.
What happens if your balance drops below the minimum
If an account has a minimum and you fall below it, the bank will not freeze your money or deny you access. Instead, they charge a monthly maintenance fee—typically $5 to $25—until your balance climbs back above the minimum. Some banks charge the fee once and then close the account if the balance stays low.
A few banks will waive the fee if you bring the balance back up within a certain window, usually 30 days. Check your account agreement to see if that option exists. If you know you cannot maintain the minimum, it is easier to close the account and move to one with no minimum than to pay a monthly fee.
Comparing minimums across account types
| Account Type | Typical Minimum | What Happens If You Fall Below |
|---|---|---|
| Online savings account | $0 (most common) | No fee; account stays open |
| Online money market account | $0 to $2,500 | Monthly fee ($5–$25) or account closure |
| Online checking account | $0 (most common) | No fee; account stays open |
| Credit union savings account | $25 to $500 | Monthly fee or account closure |
| Traditional bank savings account | $100 to $2,500 | Monthly fee ($5–$15) or account closure |
Online savings accounts almost never have minimums. Online money market accounts—which offer check-writing and debit card access—are more likely to require one, though many still do not. Traditional banks and credit unions are more likely to set a minimum than online-only banks, because their branch network costs more to operate.
How minimums affect your choice of bank
If you have a small amount to save and want to avoid fees, choose a bank with no minimum. If you have $5,000 or more and do not mind keeping it in one place, a bank with a $2,500 minimum might offer a slightly higher interest rate to offset the restriction. Compare the rate difference against the monthly fee you would pay if you ever fell below the minimum—usually the zero-minimum account wins.
The minimum balance rule matters most if you are building an emergency fund and expect the balance to fluctuate. If you might dip below $1,000 some months, a bank that requires $2,500 will cost you money. If you are saving for a specific goal and the balance will only go up, the minimum is irrelevant.
Frequently Asked Questions
Can I open an online savings account with $0 and add money later?
Yes, at banks with no minimum balance. You can open the account with $1 or even $0 (some banks allow it), and deposit money whenever you want. The account stays active and open regardless of the balance. If the bank does require a minimum, you usually cannot open the account until you have that amount ready to deposit.
Do online banks ever waive the minimum if I set up direct deposit?
Some do. A few banks will waive a minimum balance requirement if you have direct deposit coming into a linked checking account, or if you maintain a certain balance in another account at the same bank. Check the account agreement or call customer service to see if waivers explore. This is less common at online-only banks than at traditional banks.
What if I close my account while my balance is below the minimum—do I owe a fee?
No. When you close an account, the bank sends you the remaining balance and the account is done. You do not owe fees for the months you were below the minimum. However, if the account has been below the minimum for several months and fees have already been charged, those fees stay charged—they are deducted from your closing balance.
Is the minimum balance the same as the opening deposit?
No. The opening deposit is what you put in when you create the account. The minimum balance is what you must keep in the account afterward to avoid fees. You might open an account with a $500 deposit but only need to maintain a $100 minimum. Or you might open with $1 and have no minimum at all.
Can I have multiple savings accounts at the same bank to avoid a minimum?
Technically yes, but it does not help. If the bank requires a $2,500 minimum per account, you would need $2,500 in each account. Some banks do allow multiple savings accounts, but each one is subject to the same minimum rule. Opening a second account does not lower the requirement for either one.