Most online savings accounts have no minimum balance requirement at all

The short answer: many online banks do not require you to keep a minimum balance in a savings account. You can open an account with $1 and leave it there, or deposit and withdraw as you wish. However, some online banks do set minimums, and a few tie their interest rate to how much you hold. The minimum, when one exists, typically ranges from $0.01 to $25,000 depending on the bank and account type.

The reason minimums vary so widely is that online banks compete on different things. Some compete on having zero barriers to entry—no minimum, no monthly fee. Others compete on interest rate, and they offer higher rates only if you maintain a larger balance. A few do both: no minimum to open, but a higher rate tier if you reach a certain amount.

Key Takeaways

  • Most major online banks (Marcus, Ally, Discover, Capital One 360) require no minimum balance to open or maintain a savings account.
  • Some banks offer tiered interest rates where you earn more if your balance stays above a certain threshold, such as $10,000 or $25,000.
  • A few online banks do charge a monthly fee if your balance falls below a stated minimum, though this is less common than it was five years ago.
  • The account agreement or disclosures page on the bank's website will state the exact minimum for that specific account type.

How minimums work in practice

If a bank states a minimum balance requirement, it usually means one of three things. First, you may need that amount to open the account—you cannot fund it with less. Second, you may need to maintain that balance to avoid a monthly fee. Third, you may need that balance to earn the advertised interest rate.

The most common scenario with online banks is the third one: no minimum to open, but a higher interest rate if you keep, say, $10,000 or more in the account. If your balance dips below that threshold, you do not lose the account or pay a fee—you straightforward earn a lower rate on the portion below the minimum. For example, a bank might offer 4.50% APY on balances of $25,000 and above, and 4.25% APY on smaller balances.

A few online banks still charge a monthly maintenance fee if your balance falls below a minimum, but this is becoming rare. When it does happen, the fee is usually $5 to $10 per month, and the minimum is often $500 to $1,000. You can almost always waive the fee by setting up a direct deposit or maintaining the minimum balance.

Where to find the minimum for a specific account

The minimum balance requirement is always disclosed in the account agreement or the fee schedule, which the bank publishes on its website. Look for a document called "Account Agreement," "Deposit Account Agreement," "Fee Schedule," or "Disclosures." These are usually linked at the bottom of the bank's homepage or in the account details section.

The information is also often summarized in a comparison table on the account opening page itself. If you see language like "No minimum balance required" or "Minimum balance of $X to earn stated APY," that is the rule for that account. If the page does not mention a minimum at all, the bank almost certainly has none.

If you cannot find it online, you can call the bank's customer service line or use their chat feature. Have the account type name ready—for example, "High-Yield Savings Account" or "Money Market Account"—because minimums can differ between account types at the same bank.

Why some banks set minimums and others do not

Online banks that have no minimum balance are betting that volume and customer loyalty will make up for the risk of holding small accounts. They also have lower operating costs than brick-and-mortar banks, so they can afford to serve customers with small balances profitably.

Banks that set minimums are usually trying to manage their costs or to attract a specific type of customer. A $25,000 minimum, for instance, signals that the bank wants larger depositors and is willing to offer them a premium rate. A $500 minimum is more of a friction point—it discourages people from opening accounts they will not use, which saves the bank money on account maintenance and customer service.

Some banks also use tiered rates as a way to encourage customers to consolidate their savings in one place. If you have $5,000 in one account and $10,000 in another, you might earn less total interest than if you moved both into one account at the same bank and hit a higher tier.

What happens if your balance falls below the minimum

If the minimum is tied to the interest rate (the most common scenario), your rate straightforward drops to the lower tier. You do not lose the account, and you are not charged a fee. Your money stays in the account earning interest at whatever rate applies to your current balance.

If the minimum is tied to a monthly fee, you will be charged the fee once your balance stays below the minimum for a full statement period. Most banks give you a grace period—usually one or two statement cycles—before they start charging. You can usually avoid the fee by depositing enough to get back above the minimum, or by setting up a direct deposit if the bank offers that waiver.

If you close an account that has a balance below the minimum, the bank will not charge you a fee for closing it. They will send you the remaining balance by check or transfer it to another account you designate.

Comparing minimums across major online banks

The largest online banks in the United States have moved away from minimum balance requirements entirely. Marcus by Goldman Sachs, Ally Bank, Discover Bank, Capital One 360, and American Express Personal Savings all allow you to open a savings account with $0 and earn their standard interest rate on any balance, no matter how small. None of them charge a monthly maintenance fee based on balance.

However, the online banking landscape changes frequently, and new banks enter the market regularly. Some newer or smaller online banks may still use tiered rates or charge fees for low balances. Before opening an account, check the bank's current account agreement or fee schedule to confirm the minimum for that specific account type. The rules can also differ between a regular savings account and a money market account at the same bank.

Frequently Asked Questions

Can I open an online savings account with just $1?

Yes, if the bank has no minimum balance requirement. Most major online banks allow you to open with any amount, including $1. However, you should check the specific bank's account agreement to be certain, because a few banks do require a small opening deposit, such as $25.

If I earn a lower interest rate because my balance is below the minimum, can I get the higher rate back?

Yes. Once your balance rises above the minimum threshold again, the higher rate applies to your entire balance going forward. The rate change usually takes effect on the next interest posting date, which is typically monthly.

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

A minimum balance requirement is the amount you must keep in the account to avoid a fee or to earn a certain rate. A monthly maintenance fee is the charge itself—usually $5 to $10—that the bank deducts if your balance falls below the minimum. Not all accounts with minimums charge fees; some just offer tiered rates instead.

Do online savings accounts ever waive the minimum if I set up direct deposit?

Some do, but it is less common with online banks than with traditional banks. If a minimum exists, the account agreement will state whether direct deposit waives it. You can also ask customer service before opening the account.

If I have multiple savings accounts at the same bank, do the balances count together toward the minimum?

No. Each account is tracked separately. If you have two savings accounts and each has a $5,000 minimum to earn the higher rate, you would need $5,000 in each account—not $10,000 total across both. Check your bank's agreement if you are unsure.