Most banks charge nothing to open a savings account
You will not pay an opening fee at most banks and credit unions. The account itself is free to create. What you might pay for is what happens after — monthly maintenance fees, overdraft charges, or fees for falling below a minimum balance. Those vary widely by institution and account type.
The real cost question is not "how much to open" but "what will this account cost me to keep." A bank might charge $5 a month if your balance drops below $500, or $10 if you make more than six withdrawals in a month. Another might charge nothing as long as you have a pulse. The difference between two accounts at different banks can be $60 a year or $0 a year, depending on how you use the account.
Key Takeaways
- Opening a savings account itself costs nothing at most banks and credit unions, but monthly maintenance fees and balance minimums vary by institution.
- Some banks charge $5 to $15 per month if your balance falls below a stated minimum, usually between $300 and $2,500.
- Withdrawal limits and transfer fees depend on the account type and the bank's rules, not on opening the account.
- Online banks typically have no monthly fees and no minimum balance requirements, while brick-and-mortar banks are more likely to charge.
- You need only an ID and often a small initial deposit — sometimes as little as $1 — to open the account itself.
What you actually need to bring or have ready
To open an account, bring a government-issued ID (driver's license, passport, or state ID card) and a way to verify your address — a utility bill, lease, or recent bank statement. Some banks will accept a second ID instead. You will also need a Social Security number or ITIN.
For the initial deposit, most banks ask for something — often $1 to $25 — though some online banks ask for nothing. This is not a fee; it is the money that becomes your account balance. You can deposit it by check, transfer, or cash, depending on the bank's options.
Monthly maintenance fees and when they explore
A maintenance fee is a monthly charge some banks take from your account just for having it open. These typically range from $5 to $15 per month. Not all banks charge them — many online banks and credit unions do not — but traditional banks often do.
Banks usually waive the fee if you meet one of these conditions: keep a minimum balance (often $500 to $2,500), set up direct deposit, or maintain a certain number of debit card transactions per month. Some banks waive it if you have another account with them, like a checking account. Read the fee schedule before you open; it is usually on the bank's website under "Savings Account" or "Account Fees."
If you do not meet the waiver conditions and the bank charges the fee, it comes out of your account automatically each month. Over a year, a $10 monthly fee costs $120.
Minimum balance requirements and what happens if you fall short
A minimum balance is the lowest amount the bank says you must keep in the account. If your balance drops below it, the bank may charge a fee — usually $5 to $10 — or close the account. Minimums range from $0 (many online banks) to $2,500 (some premium savings accounts).
The minimum is separate from the opening deposit. You might open with $25, but the bank requires you to keep $500 in the account going forward. If you withdraw down to $400, you have fallen below the minimum and may face a fee the next statement cycle.
Some banks calculate the minimum as a daily balance (the lowest amount on any single day of the month) and others as an average balance (the mean of your balance on each day). This matters if you are close to the line. A daily-balance minimum is harder to meet if you withdraw a large sum even briefly.
Withdrawal limits and transfer fees
Federal rules once capped savings account withdrawals at six per month, but that rule changed in 2020. Most banks now allow unlimited withdrawals, though some still limit transfers to other accounts (like moving money to your checking account) to six per month. Check the bank's rules before you open.
Some banks charge a fee for each withdrawal or transfer beyond a certain number — typically $10 per excess transaction. Others charge nothing. Online banks are more likely to allow unlimited transfers; traditional banks are more likely to limit them.
If you need to withdraw cash, ATM fees also explore. Your bank's ATM is usually free, but using another bank's ATM may cost $2 to $4. Some banks reimburse out-of-network ATM fees; others do not.
How online banks differ from traditional banks on cost
Online banks — institutions with no physical branches, like Ally, Marcus, or Discover — typically charge no monthly maintenance fee, have no minimum balance requirement, and allow unlimited transfers. They make money on lending, not on account fees. The trade-off is that you cannot walk into a branch or deposit cash directly.
Traditional banks with branches — Chase, Bank of America, Wells Fargo — are more likely to charge monthly fees and require minimum balances. They have higher operating costs because of physical locations. However, they offer in-person service and cash deposit options.
Credit unions fall somewhere in between. Many charge no monthly fees and have low or no minimum balances, but they may limit membership to people who work in a certain industry or live in a certain area. Credit unions are member-owned, so they often prioritize lower fees over profit.
What to compare before you choose
| Cost Factor | What to Look For | Typical Range |
|---|---|---|
| Monthly maintenance fee | Whether it applies and what waives it | $0–$15/month |
| Minimum balance | The amount required and how it is calculated | $0–$2,500 |
| Fee for falling below minimum | Whether a fee applies and how much | $5–$10 per occurrence |
| Withdrawal or transfer limits | Number allowed per month and fees for excess | Unlimited or 6/month |
| Out-of-network ATM fees | Whether the bank reimburses them | $2–$4 per transaction |
| Interest rate | Annual percentage yield (APY) on your balance | 0.01%–5.35% APY |
The lowest-cost option is usually an online bank with no fees and no minimum. But if you need to deposit cash regularly or want in-person support, a credit union or a traditional bank with fee waivers you can actually meet may be worth a small monthly cost.
Frequently Asked Questions
Do I have to put money in when I open the account?
Most banks require an opening deposit, but it is usually small — $1 to $25. Some online banks ask for nothing. The opening deposit is not a fee; it becomes your account balance. You can withdraw it later if you want, though doing so might trigger a minimum-balance fee if the bank has one.
What happens if I close the account right after opening it?
Nothing. You can close an account when ready without penalty at most banks. You will get back whatever balance remains. Some banks may charge a small fee if you close within a certain period (like 90 days), but this is rare and usually only applies to accounts opened with promotional offers.
Can I avoid monthly fees by keeping a high balance?
Yes, if the bank offers a minimum-balance waiver. If the bank requires $1,000 in the account to waive the $10 monthly fee, keeping $1,000 or more means you pay nothing. But if you cannot maintain that balance, the fee applies every month. Calculate whether the interest you earn on the balance exceeds the fee before you commit to keeping a large sum.
Are there any hidden costs I should know about?
The main hidden costs are overdraft fees (if you link the account to checking and overdraw), inactivity fees (some banks charge if you do not use the account for months), and fees for requesting a paper statement. Read the fee schedule on the bank's website before opening. Most banks make this document available online under "Disclosures" or "Fee Schedule."
Do I need to open a checking account to open a savings account?
No. You can open a savings account alone at any bank or credit union. However, some banks offer lower fees or higher interest rates if you have both a checking and savings account with them. Compare the total cost of both accounts together before deciding.