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How Much Do I Need to Start a Savings Account?
A savings account is a secure way to save money for future needs, such as emergencies or vacations. The initial deposit required to open a savings account varies by financial institution. Some banks may require a minimum deposit of $25, while others allow you to open an account with no deposit at all. Read on to learn more about the requirements for opening a savings account.
Initial Deposit Requirements for Different Account Types
The amount needed to open a savings account can differ based on the type of account:
- Brick-and-mortar accounts: Traditional banks with physical branches may require deposits ranging from $25 to $100.
- Online accounts: Many online-only savings accounts allow you to open an account with $0, making it easy to start saving.
- High-yield savings accounts: These accounts often have no minimum deposit requirement, though some may require a $100 initial deposit.
- Tiered accounts: Accounts offering higher annual percentage yields (APYs) as your balance grows may require a higher initial deposit, sometimes several thousand dollars.
- Certificate of deposit (CD) accounts: Minimum deposits for CD accounts can range from $0 to $1,000 or more. Depositing more upfront can help you earn more interest over the CD term.
What Else Do You Need to Open a Savings Account?
Besides the initial deposit, you’ll need to provide some personal information to open a savings account. This typically includes your address, Social Security number (SSN) or tax identification number, and a government ID for identity verification. You may also need to fund your account by connecting an external bank account, sending a check, scheduling a wire transfer, or using a mobile check deposit.
How to Find a Savings Account With No Minimum Deposit
Many online-only savings accounts have no minimum deposit requirement. You can search for “savings accounts with no minimum deposit” to find options. Banks like Ally Bank, Barclays, Capital One, and Marcus by Goldman Sachs offer online accounts with high APYs and no minimum deposit. However, depositing some money initially can help you start earning interest right away.
Keep in mind that online accounts may not offer in-person customer service. If you prefer handling banking tasks in person, consider traditional banks like TD Bank, which also have no minimum deposit requirement for savings accounts.
How to Open a Savings Account
Choosing the right savings account can be challenging. Here are some steps to help you select the best account for your needs:
- Check your budget: Review your checking account balance and income to determine how much you can deposit initially.
- Compare rates and benefits: Look at APYs and account features like budgeting tools and automated savings options.
- Review fees: Check for monthly fees and the conditions to have them waived.
- Complete the application: Most savings account applications can be completed online. Have the necessary documents ready to apply.
The Bottom Line
Opening a savings account doesn’t require a large sum of money. Many accounts have no deposit requirement, and those that do may only need $25 to $100. By shopping around and comparing accounts, you can find one that meets your needs. Setting up automated transfers from your checking account to your savings account can help you grow your balance over time.
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