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When you open a savings account, there are several requirements to keep an eye out for, including monthly maintenance fees, initial deposits and minimum balances.
While minimum balance requirements are less ubiquitous today than they have been in the past, many reputable online banks and credit unions still require savings account holders to keep a certain amount of money in their account to either keep their account open, avoid fees, earn interest or a combination of these. The actual requirement can vary by institution – keep reading to learn more.
Key Insights
- Traditional banks often require $300+ to waive monthly fees, and some premium savings tiers require thousands.
- Many online savings accounts have low or $0 minimums, but requirements vary by institution.
- Falling below minimums can trigger monthly fees, lower rates, or other restrictions (varies by bank).
- Auto-transfers and keeping a small buffer help you avoid surprise fees.
- Fintech and online banks have pushed the market toward fewer minimum-balance rules.
What Is a Minimum Balance?
A minimum balance requirement is the amount of money a bank requires you to keep in your savings account, either to keep it open, earn interest, or avoid monthly maintenance fees.
Expert Quote
"If you fall below it, you could face penalties, reduced interest rates, or even account closure,"
Jake Hill, CEO of DebtHammer
There are different types of minimum balances. Some banks require a daily minimum to waive fees, while others set a minimum total to avoid closure altogether. In some cases, your ability to earn interest or qualify for the highest APY depends on keeping your balance above a certain threshold.
While this used to be standard across the banking industry, things are changing.
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Many online banks and fintech companies have disrupted this model by offering no-minimum, no-fee savings accounts,”
Hill adds
👉 Learn more about how savings accounts work and what to expect when managing your balance.
Why Do Banks Have Minimum Balances for Savings Accounts?
Minimum balance requirements exist for a variety of reasons, one of which is that they help to ensure banks and credit unions have access to more funds they can use for investments and lending.
Hill adds that traditional banks use minimum balance requirements to ensure they can maintain the cost of brick-and-mortar operations.
“Online banks eliminate these costs, passing savings to customers through higher APYs and fewer fees,” Hill says.
Online vs. Traditional Savings Accounts
Online banks tend to offer lower (or no) minimum balance requirements, largely because they operate without the overhead costs of physical branches.
Traditional banks often require customers to maintain a minimum daily balance to waive monthly fees. For example, some common savings products waive fees at $300, while higher-tier savings may require $3,500 or more.
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“Online banks typically eliminate these requirements, instead attracting customers with high-yield savings accounts (HYSAs) that have zero fees. Business savings accounts tend to have higher balance requirements, as banks expect businesses to keep more cash on hand.”
–Jake Hill, CEO of DebtHammer
Because of these structural differences, minimum balance expectations vary based on the institution, online banks usually offer more flexibility, while traditional banks often require higher minimums to avoid fees.
Explore how high-yield savings accounts work and whether they’re right for your balance and goals.
What Is the Typical Minimum Balance for an Online Savings Account?
Online savings accounts often have $0 minimum balance requirements to keep the account open or avoid monthly maintenance fees, though some institutions may require a minimum opening deposit or balance (commonly $1–$100+, depending on the bank and product).
What Is the Typical Minimum Balance for a Traditional Savings Account?
With traditional savings accounts, you are more often required to keep a minimum balance in your account to keep it open and/or waive fees, Hill said, which can range from around $300 to several thousand dollars, depending on the bank and account tier.
Tips for Maintaining Minimum Balances
If you fail to meet any minimum balance requirements set by your bank or credit union, consequences may apply. These could include having to pay a monthly maintenance fee, earning a lower APY or even having your account closed. To ensure you maintain balance requirements, follow these tips:
Fund Your Account After Opening
Even when an account has no ongoing minimum balance requirement, some banks may close a newly opened account if it remains unfunded or inactive for an extended period. Check your bank’s deposit agreement for timelines and requirements.
If there is no minimum balance required to open, the amount you put in your account doesn’t matter. If there is a minimum opening deposit, make sure you have those funds ready to go before applying for a new savings account.
Automate Deposits
“Set up automatic recurring transfers from your checking account to ensure you always stay above the threshold,” said Hill. Automating savings can also be a great tool for following a budget and ensuring you are setting aside money regularly.
Hill added that some banks waive requirements if you have a regular direct deposit into your account, so setting up paychecks or benefits to deposit into savings can also help you meet any stipulations.
Keep a Buffer in Your Account
Emergencies happen, and you may need to pull from your savings account when you aren’t expecting to. Keeping an additional buffer amount above any minimum balance requirements can help ensure you can still access the money you need without risking account closure or additional fees.
“If the minimum is $1,000, set a goal to keep at least $1,100 to $1,500 to account for unexpected withdrawals or emergencies,” Hill says.
Leverage Relationship Banking
Some banks waive minimums if you have multiple accounts (i.e. checking + savings + investments), Hill explains.
Many banks offer relationship programs to entice users to open multiple accounts, and meeting the requirements set forth in the program can unlock waived maintenance fees, higher interest rates and other benefits. Take a look at other offerings from your financial institution to see if any are a good fit for your financial goals.
“If your savings balance fluctuates often, a high-yield [certificate of deposit (CD)] or money market account can offer higher returns with less penalty risk,” Hill says.
Factor Minimum Balances Into Your Savings Account Decision
Minimum balances are much less common today than they have been in the past, especially on online bank accounts. When you are researching the best savings account for you, pay attention to any requirements associated – including minimum balances to waive maintenance fees, minimum deposits to open an account and balance requirements for advertised interest rates – to make sure you qualify.
Final Takeaway
Minimum balance requirements still exist, but they’re becoming less common, especially among online banks and fintechs. While traditional savings accounts may require a minimum daily balance (often around $300, and sometimes $3,500+ on higher-tier savings) to avoid monthly fees, many online savings accounts have no such requirement at all.
Before opening an account, review the fine print to understand whether you’ll need to maintain a daily balance, make regular deposits, or meet other conditions to avoid penalties. Choosing a bank that suits your habits and automating deposits or maintaining a small buffer can help you stay compliant and maximize your savings.
Frequently Asked Questions
1. Do online savings accounts have minimum balance requirements?
Many online savings accounts have no minimum to open or maintain the account. Some may require a small opening deposit or a minimum balance to qualify for certain features or rate tiers (varies by bank).
2. What happens if I don’t maintain the minimum balance in a savings account?
You may be charged a monthly fee, earn a lower APY, or in some cases, have your account closed. Some banks offer grace periods or waive fees if you have direct deposit.
3. What is the average minimum balance for traditional savings accounts?
Traditional banks often require between $300 and $5,000 to waive fees or earn interest. Requirements vary by bank and account type.
4. Can I open a savings account with no money?
Yes. Some institutions allow a $0 opening deposit, but it’s smart to fund the account soon and review the bank’s inactivity/unfunded-account policy.
Written byEmily Sherman
Emily Sherman is a personal finance expert at BestMoney.com, specializing in online banking. Her work has appeared in U.S. News & World Report, Buy Side from the Wall Street Journal, Newsweek, and more. As a veteran journalist, Emily leverages her expertise to help readers make informed financial decisions.