What is a minimum balance requirement on a savings account?

A minimum balance requirement is the amount of money you must keep in your savings account at all times to avoid a monthly maintenance fee. This amount is often different (and sometimes higher) than the initial deposit required to open the account. Many online banks and credit unions have no minimum balance requirement, making them an attractive option for new savers.

Should I open a savings account at a bank or a credit union?

Both banks and credit unions offer federally insured savings accounts, but they differ in structure. Banks are for-profit institutions open to anyone. Credit unions are member-owned and not-for-profit, often paying higher savings rates and charging lower fees, but membership requires meeting eligibility criteria. Online banks frequently offer the highest savings rates of all because they pass on the savings from not operating physical branches.

What savings account rate should I expect?

Savings account rates vary widely. Traditional brick-and-mortar banks often pay well below the national average, while online banks and credit unions pay significantly more. The best high-yield savings accounts are paying rates many times higher than the national average. Always compare rates before opening an account; the difference between a low-rate and a high-rate account can add up to hundreds of dollars per year on moderate balances.

Home » Checklist for Opening a Savings Account

Written by

Brian McKay

| Fact checked | Published March 17, 2023 | Updated September 28, 2026 | 8 min read

Checklist for Opening a Savings Account

Q: How much money do I need to open a savings account?

Most banks and credit unions require an initial deposit of between $25 and $100 to open a savings account. Many online banks have eliminated the minimum opening deposit entirely. Separately, check the minimum balance requirement (the amount you must keep in the account on an ongoing basis to avoid monthly fees) as this is often different from the opening deposit amount.

Q: What documents do I need to open a savings account?

To open a savings account you need a government-issued photo ID such as a driver's license, U.S. passport, or military ID; your Social Security number or Individual Taxpayer Identification Number (ITIN); and proof of address such as a utility bill or lease. Some banks and credit unions also accept foreign passports and Consular IDs such as the Matricula Consular card for non-U.S. citizens.

A checklist for opening a savings account covers five things: compare the APY, check monthly fees and the minimum balance needed to earn the advertised rate, confirm FDIC or NCUA insurance, review withdrawal limits and transfer times, and have a government issued ID, your Social Security number and the opening deposit ready. The MonitorBankRates national average is 1.97% APY on high yield savings versus 0.81% on standard savings, verified by MonitorBankRates as of October 13, 2026.

High yield savings

1.97%

avg APY

Standard savings

0.81%

avg APY

Money market

3.07%

avg APY

12 month CD

2.94%

avg APY

MonitorBankRates national averages as of October 13, 2026, computed from rates published by more than 8,000 banks and credit unions.

Key facts

Typical Opening Deposit: $25 to $100 (many online banks: $0)
Federal Insurance: Up to $250,000 (FDIC or NCUA)
Best Rates Available: High-yield accounts at online banks & CUs
Time to Open: As little as 10 minutes online

A savings account is a federally insured deposit account held at a bank or credit union that pays interest on your balance. It is distinct from a checking account, which is designed for daily spending, in that a savings account is meant to hold money you do not need immediately, funds you are setting aside for a specific goal, an emergency cushion, or simply accumulating over time. Every dollar in the account earns interest, and that interest compounds, meaning your balance grows automatically without any additional deposits from you.

Step 1: Choose the Right Bank or Credit Union

The institution you choose will determine your interest rate, your fees, your access to digital tools, and how much friction you encounter when you need to deposit or withdraw. This decision deserves more thought than most people give it.

Start by asking trusted friends or family members where they bank and whether they would recommend it. Personal experience is a valuable filter. From there, research the institutions on your shortlist across three dimensions: the fees they charge, the services they offer, and the interest rate they pay on savings accounts.

Rate Shopping Pays Off: The difference between a traditional bank paying a minimal savings rate and a high-yield savings account at an online bank or credit union can translate to hundreds of dollars per year on a moderate balance. Always compare current savings rates before committing to an institution.

Bank vs. Credit Union vs. Online Bank

Each institution type has distinct advantages depending on your priorities:

Institution Type	Savings Rate	Fees	Branch Access	Best For
Traditional Bank	Often low	Can be higher	Widespread	In-person service preference
Credit Union	Often competitive	Generally low	Varies by CU	Members who meet eligibility
Online Bank	Typically highest	Often none	Digital only	Maximizing interest earned

Step 2: Understand the Deposit and Balance Requirements

Before opening an account, clarify two numbers that are often confused with each other: the opening deposit and the minimum balance requirement.

The opening deposit is the amount of money you need to provide when you first create the account. Most traditional banks and credit unions require between $25 and $100. Many online banks have eliminated this requirement entirely and allow you to open an account with $0.

The minimum balance requirement is the amount you must keep in the account on an ongoing basis to avoid a monthly maintenance fee. This number may be higher than the opening deposit, and it is the one that catches people off guard. Always ask specifically: "How much do I need to keep in the account each month to avoid fees?", not just "What is the minimum to open?"

Watch for Monthly Maintenance Fees: Some banks charge $5 to $15 per month if your balance falls below a threshold. Over a year that can significantly offset any interest you earn. Many online banks and credit unions charge no monthly fees at all, a strong reason to compare before opening.

Step 3: Gather Your Documents

Whether you open your account in person or online, you will need to provide documentation that allows the bank or credit union to verify your identity. Federal law requires all financial institutions to confirm your name, date of birth, address, and identification number before opening an account.

Identification Number Options

Your identification number can be any of the following:

Social Security number (SSN)
Individual Taxpayer Identification Number (ITIN)
Passport number and country of issuance
Alien identification card number
Other government-issued identification number

Accepted Photo ID

Most banks and credit unions require a U.S. or state government-issued photo ID, such as:

Driver's license or state identification card
U.S. passport or passport card
Military identification card

If you do not have a U.S. or state-issued photo ID, many banks and credit unions accept foreign passports and Consular IDs such as the Matr cula Consular card as valid identification.

Step 4: Open the Account In Person or Online

Once you have selected your institution and gathered your documents, you are ready to open the account. The process differs slightly depending on whether you go in person or apply online, but the core information required is the same.

Opening In Person

Visit a branch during business hours. A banker will walk you through the application, collect your documents, have you sign an account agreement and signature card, and collect your opening deposit. The account is typically active the same day.

Opening Online

Most banks and all online banks allow you to complete the full application in 10 minutes or less directly on their website or app. You will enter your personal information digitally, provide your ID number, agree to the account terms electronically, and fund the account by linking an existing bank account via routing and account numbers, entering a debit card number, or setting up direct deposit from your employer.

Online Accounts Fund Faster Than You Might Expect: When funding a new online savings account via a transfer from your existing bank, the funds typically become available within one to three business days. Some institutions offer instant verification and same-day availability when you link accounts electronically.

Your Complete Savings Account Opening Checklist

Use this checklist before and during the account-opening process to make sure nothing is missed:

Choose a bank or credit union: consider a recommendation from a trusted friend or family member, then verify rates and fees independently.
Compare savings rates: confirm the current APY and whether the rate is promotional or ongoing. Check current savings rates to benchmark against competitors.
Review all fees: monthly maintenance fees, excess transaction fees, paper statement fees, and any charges for account inactivity.
Confirm the opening deposit amount: know the minimum required to open the account before you apply.
Confirm the minimum balance requirement: ask specifically how much must remain in the account at all times to avoid monthly fees. This may differ from the opening deposit.
Bring a government-issued photo ID: driver's license, state ID card, U.S. passport, or military identification. Foreign passports and Consular IDs such as the Matr cula Consular card are accepted at many institutions.
Bring your Social Security card, ITIN, or passport: your identification number is required for federal verification and tax reporting on interest income.
Bring proof of address: a utility bill, lease agreement, or bank statement that shows your name and current address.
Prepare your opening deposit: cash, check, money order, debit card, or routing and account numbers from an existing bank account. Many online banks accept $0 to open.
Have an email address ready: required for online applications, account alerts, and electronic statements.
Read the account agreement: confirm the interest rate, compounding frequency, fee schedule, and any terms related to rate changes before signing.

After You Open: Getting the Most from Your Savings Account

Opening the account is only the beginning. The habits you build around managing it determine how much financial benefit you actually get.

Automate Your Savings

Set up an automatic transfer from your checking account to your new savings account on every payday. Even a modest recurring deposit builds a meaningful balance over time without requiring any ongoing decisions. Automating the transfer removes the temptation to spend money before it gets saved.

Monitor Your Rate

Savings account rates are variable and can change at any time. Check your rate periodically and compare it against what competitors are currently offering. If your rate has drifted significantly below the best available options, switching accounts is straightforward and costs nothing at most institutions.

Keep Your Contact Information Current

Banks and credit unions use your address and email on file to send statements, rate change notices, and fraud alerts. An outdated address can cause you to miss important communications about your account.

Set a Savings Goal: Accounts with a specific purpose (emergency fund, down payment, vacation) are statistically more likely to grow than accounts opened with no defined objective. Most online banking platforms let you label savings accounts or sub-accounts with a goal name and target amount, which reinforces the habit of leaving the funds untouched.

Find the Best Savings Rates

Compare high-yield savings accounts and money market rates from banks and credit unions nationwide.

All Savings Rates High-Yield Savings

Frequently Asked Questions

How much money do I need to open a savings account? ▼

Most banks and credit unions require between $25 and $100 as an initial opening deposit. Many online banks have no minimum opening deposit at all. Separately, ask about the minimum balance requirement (the amount you must keep in the account on an ongoing basis to avoid a monthly fee) as this can differ from the opening deposit amount.

What documents do I need to open a savings account? ▼

You need a government-issued photo ID (driver's license, U.S. passport, or military ID), your Social Security number or ITIN, and proof of your current address such as a utility bill or lease. Some banks also accept foreign passports and Consular IDs for non-U.S. citizens. For online applications, you provide the same information digitally and fund the account by linking an existing bank account or entering a debit card number.

What is a minimum balance requirement? ▼

A minimum balance requirement is the amount of money that must remain in your savings account at all times to avoid a monthly maintenance fee. It is often different from (and sometimes higher than) the initial deposit needed to open the account. Many online banks and credit unions have eliminated minimum balance requirements entirely.

Should I open my savings account at a bank or a credit union? ▼

Both are federally insured and safe. Credit unions are member-owned and not-for-profit, often offering higher savings rates and lower fees than traditional banks. Online banks typically offer the most competitive rates of all. Consider your priorities: if you want the highest rate, focus on online banks and credit unions. If branch access matters, look at credit unions with local locations or traditional banks in your area.

What savings rate should I expect on a new account? ▼

Rates vary widely. Traditional brick-and-mortar banks often pay significantly below the national average, while high-yield savings accounts at online banks and credit unions pay substantially more. Always compare current rates before opening an account, the gap between the lowest and highest available savings rates can be the difference between your money barely growing and earning meaningful interest income each year.

This article is for general information and is not financial advice. Rates shown are market averages, not offers; terms and fees are set by each institution.