The cost to open a high-yield savings account is often $0. As of ****, many online banks do not require an opening deposit, monthly fee, or minimum balance. Some accounts do require an initial deposit, so check the bank's terms before applying.
High-Yield Savings Account Costs at a Glance
| Cost or requirement | Typical amount |
|---|---|
| Opening deposit at many online banks | $0 |
| Minimum balance at many online banks | $0 |
| Monthly maintenance fee | Often $0 |
| Required deposit at some banks | $25 to $1,000 or more |
| FDIC insurance limit | $250,000 per depositor, per insured bank, per ownership category |
Capital One 360 Performance Savings, American Express High Yield Savings, and Marcus Online Savings advertise no minimum opening deposit. American Express also says customers do not need a minimum balance to avoid fees or earn the disclosed APY.
Do You Need Money to Open a High-Yield Savings Account?
Not always. Some high-yield savings accounts can be opened with no initial deposit.
You may be able to complete the application and transfer money into the account later. Marcus says it does not require a minimum deposit, but the account must be funded within 60 days or it may be closed. Capital One also gives customers 60 days to fund a newly approved account.
You do not need to wait until you have $1,000 or $5,000 to start saving. Depositing $100 can begin earning interest if the account has no minimum balance requirement.
How Much Do Different Banks Require?
Requirements vary by bank and account.
| Example account | Minimum opening deposit or balance |
|---|---|
| Capital One 360 Performance Savings | No minimum deposit or balance |
| American Express High Yield Savings | No minimum deposit or balance |
| Marcus Online Savings | No minimum deposit |
| Southern Bank Platinum Savings | $1,000 minimum deposit |
| Wells Fargo consumer savings accounts | $25 minimum opening deposit |
Southern Bank's Platinum Savings account requires a $1,000 minimum deposit. Wells Fargo says its consumer savings accounts require a $25 opening deposit. These examples show why you should review the disclosure for the specific account you want to open.
What Is the Difference Between an Opening Deposit and a Minimum Balance?
These terms refer to different account requirements:
- Minimum opening deposit: The amount you must deposit when you open the account.
- Minimum balance: The amount you must keep in the account after opening it.
- Minimum balance to earn the APY: The amount required to receive the advertised interest rate.
- Monthly maintenance fee waiver: The balance or activity requirement needed to avoid a monthly charge.
An account may require $25 to open but allow you to maintain a $0 balance afterward. Another account may have no opening deposit but charge a fee when you do not meet its balance requirement.
How Much Should You Deposit When You Open One?
Deposit an amount you can leave in savings without affecting rent, bills, debt payments, or regular spending.
A practical starting plan is:
- Open an account with no minimum deposit if you are starting from $0.
- Transfer $25, $50, or $100 when you can afford it.
- Set up recurring transfers from your checking account.
- Work toward an emergency fund or another savings goal.
At a hypothetical 4% APY, a $1,000 balance would earn approximately $40 over one year before taxes if the rate stayed unchanged. High-yield savings rates are variable, so the actual return can change.
What Do You Need to Open a High-Yield Savings Account?
Most banks ask for:
- Your legal name
- Date of birth
- U.S. mailing address
- Social Security number or Individual Taxpayer Identification Number
- Phone number and email address
- Employment and income information
- A linked checking account for electronic transfers
Capital One lists these types of personal and identification details among the information needed to open its 360 Performance Savings account.
What Fees Should You Check Before Opening the Account?
An account can cost nothing to open and still charge other fees. Check for:
- Monthly maintenance fees
- Excess withdrawal or transfer fees
- Wire transfer fees
- Expedited transfer fees
- Minimum balance requirements
- Account closure rules
- Promotional APY conditions
Do not compare accounts by APY alone. A slightly lower rate with no fees may leave you with more usable savings than a higher rate paired with a monthly charge or large balance requirement.
Is Money in a High-Yield Savings Account Protected?
A high-yield savings account at an FDIC-insured bank is generally covered by FDIC deposit insurance up to $250,000 per depositor, per insured bank, per ownership category. Coverage includes savings accounts and accrued interest, subject to the applicable limit.
Confirm that the account is a bank deposit account and that the institution is FDIC-insured. FDIC insurance does not cover stocks, mutual funds, bonds, cryptocurrency, or other investment products.
Bottom Line
You can often open a high-yield savings account without depositing money upfront. Compare the opening deposit, minimum balance, monthly fees, variable APY, transfer options, and FDIC coverage before choosing an account.
If a deposit is required, the amount may range from $25 to $1,000 or more, depending on the bank and account.