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A savings account is a secure type of bank account you can use to stash away money for a rainy day or other financial goals, like saving for a vacation. Depending on the financial institution, you may need at least $25 to open a savings account; however, some banks let you open an account with $0. Read on to learn more about initial deposit requirements for savings accounts and other requirements financial institutions may have for opening an account.
How Much Do I Need to Start a Savings Account?
How much you need to open a bank account can vary depending on the type of account you're opening. Here's a rundown on what you might need for different account types:
- Brick-and-mortar accounts: Savings accounts at traditional banks with branches may require deposits of $25 to $100 to open a bank account.
- Online accounts: Many online-only savings accounts let you open an account with $0, so you can start saving from scratch.
- High-yield savings accounts: You can find many savings accounts with higher-than-average yields online, and they often have no minimum deposit requirement either. However, some accounts require a $100 minimum deposit.
- Tiered accounts: Savings accounts that offer an increasing annual percentage yield (APY) as your balance grows could require a higher initial deposit, such as several thousand dollars.
- Certificate of deposit (CD) accounts: Minimum deposits required for CD accounts can range from $0 to $1,000 or more. However, you usually only get one opportunity to make a deposit into the CD unless you get an add-on CD. Depositing as much as you can upfront means you'll earn more interest over the CD term.
What Else Do You Need to Open a Savings Account?
While the initial deposit needed can vary, other information required to open an account is similar across the board. Financial institutions will likely ask for your address and Social Security number (SSN) or tax identification number during the application process.
You may also need to provide a government ID number to verify your identity. If you have some money to deposit into the account, you may be instructed to fund your account by connecting an external bank account, sending a check, scheduling a wire transfer or doing a mobile check deposit.
How to Find a Savings Account With No Minimum Deposit
Many online-only savings accounts require no minimum deposit, and you can search for "savings accounts with no minimum deposit" in a web browser to find them.
For example, Ally Bank, Barclays, Capital One and Marcus by Goldman Sachs all offer online accounts with high APYs and no minimum deposit. However, the benefit of depositing at least some money into the account is that you can start earning interest right away.
Before going with an online account, consider that you don't get access to in-person customer service. This might not be a problem if you usually manage money remotely, but online banking might not fit your lifestyle if you're used to going to a location to handle banking tasks.
Some traditional banks, like TD Bank, also have no minimum deposit requirement to open a savings account. Expanding your search to local banks could help you find an account with no minimum balance if you want the option to visit locations.
Find High-Yield Savings Accounts
How to Open a Savings Account
With so many options, choosing the right savings account can be a challenge. Below are some steps that can help you select the right account for your cash:
- Check your budget. Review your checking account balance and income to determine how much you have available to open a savings account if a deposit is required.
- Compare rates and benefits. Compare APYs across different savings accounts and look for account features, like budgeting tools and automated savings tools. Access to savings tools and an app to manage your money could make one savings account better than another if all else is equal.
- Review fees. Savings accounts may have monthly fees if you don't maintain a balance or have a certain amount deposited each month. Check what the fees are and review the conditions to have fees waived.
- Complete the application. Applications for most savings accounts can be completed online, even for accounts of financial institutions with physical locations. Review application requirements so you can have the documents you need on hand to apply.
The Bottom Line
Not having a large sum of money doesn't mean you can't open a savings account. In many cases, savings accounts have no deposit requirement, and those that do may require just $25 to $100. Shopping around and comparing accounts can help you find one with application conditions you can meet. And setting up automated transfers of even small amounts from a checking account to savings account each month can help you grow your balance.