Fees for not having enough money in your account
When you start a regular savings account, the bank may require you to keep a certain amount in it at all times or charge you a monthly upkeep fee. Most banks require a minimum amount of between $300 and $500, and the fees are usually around $5.
Learn more about how minimum account balance rules work, why banks have them, and what you can expect from big U.S. banks when you open a traditional savings account.
Key Takeaways
- In a standard savings account, there is something called a “minimum account balance” that must be met. This is the least amount of money you need to keep in the account to avoid fees.
- Most standard savings accounts need to have at least $300 to $500 in them at all times. Still, this amount can be different from one bank to the next, and some banks have no minimum standards at all.
- The requirement for the minimum balance amount could be a certain minimum daily balance or an average monthly balance.
How the Minimum Account Balance Requirements Are Met
The “minimum account balance” is the least amount of money that a bank or other financial company will let you keep in one of your accounts. When you start a savings account at a bank today, most require that you put in at least a certain amount at first.
After that, banks will charge you a service fee every month, which you can avoid if you always keep a certain amount in your account. For example, to start a Way2Save savings account at Wells Fargo, you need to put $25 down as a first payment. The account also has a $5 monthly service fee. If you meet one of the other standards for the account, like keeping at least $300 in the account every day, you won’t have to pay that fee.
Traditional Bank Accounts for Basic Savings
This article takes a closer look at the minimum account balance requirements and fees associated with traditional savings accounts offered by major financial institutions in the United States.
Bank |
Minimum Opening Deposit |
Ongoing Minimum Balance Requirement |
Fee for Not Meeting Requirement (per month) |
Other Ways To Waive Fees |
Wells Fargo (Way2Save Savings) |
$25 | $300 (minimum daily balance) | $5 | Automatic transfer of at least $25 or $1 per business day from a linked WF checking account, primary account holder under 24 years old, or a Save As You Go transfer from a WF checking account. |
Chase (Chase Savings) |
$0 | $300 (minimum daily balance) | $5 | Account owner under 18, automatic transfers of at least $25 from a Chase checking account, linked Chase College Checking account for Overdraft Protection, or another qualifying Chase account that is linked. |
Bank of America (Advantage Savings) |
$100 | $500 (minimum daily balance) | $8 | Link the savings account to a Bank of America Advantage Relationship Banking account, become a Bank of America Preferred Rewards client, or be under the age of 24 and enrolled in school. |
Citi (Basic or Access Savings Account) |
$0 | $500 (average monthly balance) | $4.50 | N/A |
U.S. Bank (Standard Savings Account) |
$25 | $300 (minimum daily ledger balance) or $1,000 (average monthly collected balance) | $4 | Under the age of 18. |
Citizens Bank (One Deposit Savings) |
Any amount | $0 | $4.99 | Under 25 or over 65 years old, or one deposit of any amount per month. |
Fifth Third Bank (Traditional Savings Account) |
$0 | $500 (average monthly balance) | $5 | Have a Fifth Third checking account, be under the age of 18, or enroll in Military banking with Fifth Third. |
PNC (Standard Savings) |
$25 | $300 (average monthly balance) | $5 | Linked PNC checking account, under 18 years old, or auto savings transfer of at least $25 each month. |
SunTrust (Essential Savings Account) |
$0 | $0.01 | $0 | N/A |
TD Bank (TD Simple Savings) |
$0 | $300 (daily minimum balance) | $5 | Under 18 or over 62 years old. |
When looking at traditional savings accounts offered by the major financial institutions in the United States, the required minimum balance can range anywhere from zero dollars to five hundred dollars. On the other hand, if your balance is lower than the minimum required amount, you will likely be subject to a monthly service fee that is, on average, somewhere around $5.
Having said that, there are frequently additional ways to avoid paying the service fee. Some of these include being a minor, young adult, or senior citizen; having a linked checking account with the same bank, making small automatic transfers each month; and having a checking account with the same bank.
Accounts for savings with a higher interest rate offered by traditional banks
Now, let’s look at the requirements and fees associated with the savings accounts offered by conventional banks that have a higher yield than the standard savings account offering.
Bank |
Minimum Opening Deposit |
Ongoing Minimum Balance Requirement |
Fee for Not Meeting Requirement (per month) |
Other Fee Waivers |
Wells Fargo (Platinum Savings) |
$25 | $3,500 (minimum daily balance) | $12 | N/A |
Chase (Chase Premier Savings) |
$0 | $15,000 (minimum daily balance) | $25 | A linked Chase Premier Plus Checking or Chase Sapphire Checking account. |
Citi (Priority Package) |
$0 | $50,000 (average monthly balance in eligible linked deposit, retirement, and investment accounts) | $30 | N/A |
Citizens Bank (Citizens Quest Savings) |
Any Amount | $0 | $0.00 with Citizens Quest Checking | N/A |
TD Bank (TD Beyond Savings) |
$0 | $20,000 (minimum daily balance) | $15 | N/A |
If you want to get a higher annual percentage yield (APY), the requirements for the minimum balance in your account at a traditional bank are typically much higher.
If you don’t meet the requirement, you’ll typically be responsible for paying a monthly service fee. This is analogous to the standard practice associated with traditional savings accounts. However, the fee that is associated with these higher yield accounts is typically a little bit higher as well, and it is typically somewhere around $16 per month on average. Take into consideration that if you are assessed these fees, they may quickly cancel out any interest you have earned.
High-Yield Accounts Available Online Only
Finally, for the purpose of making a comparison, let’s look at the different requirements and fees associated with online savings accounts. Because many of these financial institutions do not have to pay for the same overhead costs that traditional banks do, you will typically find more attractive rates and terms when it comes to online savings accounts.
Bank |
Minimum Opening Deposit |
Ongoing Minimum Balance Requirement |
Fee for Not Meeting Requirement (per month) |
Other Fee Waivers |
Smarty Pig by Sallie Mae |
$0 | $0 | $0 | N/A |
Affirm |
$0 | $0 | $0 | N/A |
Ivy Bank |
$2,500 | $2,500 for 0.61% APY | 0.05% APY | N/A |
Axos Bank |
$250 | $0 | $0 | N/A |
Alliant |
$5 | $100 average daily balance | N/A | $1 paper fee waived with electronic statements |
You can see that many banks don’t require a minimum investment to start an online account, there are no annual service fees, and you don’t have to keep a certain amount of money in the account at all times.
How to keep your balance from going below the minimum amount
Some banks do not require that you always keep a certain amount of money in your savings account. Some standard savings accounts, like the ones given by Citizens Bank, don’t need a certain amount of money in them to stay open. If you look around for a savings account, you won’t have to keep a certain amount in it.
Most savings accounts with better returns and that isn’t only available online will have minimum amount conditions. These accounts can be found at traditional banks.
Frequently Asked Questions (FAQs):
How much of my monthly income should I put into my savings account?
Most people say that if you want to be ready for anything unplanned, you should put away enough money to cover your living costs for at least three to six months. Also, if your bank needs you to keep at least a certain amount in your account to avoid fees, keeping at least that amount can help you get the most out of your account. The Federal Deposit Insurance Corporation (FDIC) covers each account up to a ceiling of $250,000 per person.
Why do banks make you keep a certain minimum amount in your savings account?
For a bank to be able to cover the cost of giving interest and help them meet their legal capital requirements, they will often charge monthly service fees and require savings accounts to keep a certain minimum amount. If you don’t make payments that help them make more money, they will charge you a fee. This fee will help them pay for the costs they have paid.
