When considering opening a savings account, it’s only natural to concern yourself with the associated fees. Depending on the type you open, there may be more to pay than with other types. But to get a general sense of what you might have to pay, let’s look at a few basic costs of savings accounts.
Opening an Account–Minimum Deposit Amount
The first fee you’ll have to concern yourself with when opening a savings account is the minimum deposit amount. This amount can vary greatly depending on the type of account you open. For example, if you open a low-interest bearing account, you may only have to start with a deposit amount of $100. However, some accounts may require that you start with $5,000 or more, so when shopping around, it’s important to inquire about the minimum deposit amount.
Another one of the costs of savings accounts is your minimum balance. Most all, some banks require that you keep a minimum amount in the savings account to stay open. Some accounts may require a minimum daily balance of $1,500 or an average daily balance of $3,000, while others can jump up to a required minimum of $10,000 or more. Again, the amount you are required to maintain will vary depending on the account, so when opening a savings account, it’s good to take the required minimum balance into consideration.
One of the repercussions of not keeping up your minimum balance is a maintenance fee. For instance, say your agreement was to keep a minimum daily balance of $1,000 and you drop below it. Depending on the bank, you may be charged a maintenance fee of $15 for breaking your agreement. In reality, the maintenance fee will vary depending on the bank’s terms, but it’s good to know that this could very well be one of the costs of savings accounts you’ll have to consider.
When opening a savings account, you may also find that you will be subjected to transaction fees for excessive withdrawals or other transactions made within a specified period of time. However, some accounts allow for unlimited transactions, so it’s good to find out what your account offers.
Without knowing the costs of savings accounts, you can easily be surprised with unanticipated fees. So take time to learn what fees you may have to pay before committing to opening a savings account.