How to Avoid Monthly Maintenance Fees on Your Savings Account

28 April 2025

Let’s be real—bank fees are the absolute worst. Nothing stings quite like watching your hard-earned cash dwindle because your bank decides to charge you a monthly maintenance fee just for holding onto YOUR money. Sounds ridiculous, right? Well, you’re not alone in this frustration.

Banks sneak in these fees as an easy way to rake in extra profits, but here’s the good news: you don’t have to put up with it! There are plenty of ways to dodge these unnecessary charges and keep your savings growing without the bank dipping into your pockets.

If you’re tired of seeing those pesky fees nibble away at your balance, you’ve come to the right place. Stick with me, and I’ll break down exactly how to avoid monthly maintenance fees on your savings account.

What Are Monthly Maintenance Fees?

Before we dive into how to avoid them, let’s establish what monthly maintenance fees actually are.

A monthly maintenance fee (also known as a service fee) is a charge that your bank may impose on your savings account for simply keeping it open. Some banks set minimum balance requirements, and if your account balance dips below that threshold, you get hit with a fee. Others might charge a fee just because they can (looking at you, big banks).

These fees typically range between $5 and $25 per month. That may not seem like a lot at first glance, but over the course of a year, you could be throwing away $60 to $300—money that could’ve been earning interest in your account instead!

Alright, enough of that nonsense! Let’s get into how you can dodge these fees and keep your savings intact.

1. Choose a Bank That Doesn't Charge Maintenance Fees

This one’s a no-brainer. If you don’t want to pay monthly fees, why not pick a bank that doesn’t charge them in the first place?

Many online banks and credit unions offer fee-free savings accounts, meaning you won’t have to worry about maintenance fees draining your balance.

Some great options include:

- Online Banks – Banks like Ally, Discover, and Marcus by Goldman Sachs usually have no maintenance fees because they save money by not operating physical branches.
- Credit Unions – Many not-for-profit credit unions offer savings accounts with no hidden fees and better interest rates.

Bottom line? Shop around! There’s no reason to stick with a bank that charges you just for existing.

2. Maintain the Minimum Balance Requirement

If your bank does have a minimum balance requirement, make sure you keep enough money in your account to avoid the fee.

Tips to ensure you maintain your balance:

- Set up automatic transfers – Schedule deposits from your checking account to your savings to keep your balance above the threshold.
- Use a budgeting app – Tools like Mint or YNAB can help you track your balance so you don’t accidentally dip below the requirement.
- Keep an emergency buffer – Even if the minimum balance requirement is $500, try to keep at least $600 in there to avoid close calls.

Meeting the minimum balance isn’t ideal, but if you’re sticking with a bank that has requirements, this is a solid strategy to avoid fees.

3. Set Up a Direct Deposit

Many banks waive maintenance fees if you have a regular direct deposit going into your savings account.

If your employer allows it, consider setting up a portion of your paycheck to be deposited directly into your savings account instead of your checking account. This not only helps you avoid fees, but it also makes saving effortless.

No job with direct deposit? No worries! Some banks also count recurring deposits from PayPal, Venmo, or other financial institutions as direct deposits.

4. Link Your Savings to a Checking Account

Some banks offer relationship banking benefits, meaning if you link your savings account to a checking account at the same bank, they’ll waive your savings account maintenance fees.

Check with your bank to see if they offer this perk. If they do, it might be worth keeping both accounts in one place—just make sure they don’t charge unnecessary fees on the checking side either!

5. Use Automatic Transfers

Some banks will waive your monthly fee if you set up a recurring transfer from your checking to your savings account.

For example, you could set up an automatic transfer of $25 or $50 per month to build your savings while avoiding fees. It’s a win-win! Not only do you dodge the maintenance charge, but you also grow your savings without even thinking about it.

6. Opt for an Online Bank Instead

Online banks are absolute game-changers when it comes to avoiding fees.

Because they don’t have the overhead costs of brick-and-mortar locations, they can pass those savings on to customers. That means:
✅ No monthly maintenance fees
✅ Higher interest rates on savings
✅ Fewer ridiculous banking rules

If you’re comfortable managing your money online, switching to an online bank can save you tons of money in unnecessary fees.

7. Ask Your Bank to Waive the Fees

Here’s a little banking secret: you can negotiate!

If you’ve been a loyal customer, call your bank and politely ask if they’ll waive your monthly maintenance fees. Many banks will do it, especially if they think you might leave for a competitor.

Pro-tip:

- Be firm but polite.
- Mention how long you’ve been a customer.
- Highlight any other accounts, loans, or credit cards you have with them.
- If they refuse, threaten (nicely) to take your business elsewhere.

It never hurts to ask. Worst-case scenario? They say no. Best-case? You get those fees waived for good!

8. Switch to a Credit Union

Tired of traditional banks nickel-and-diming you? A credit union might be your new best friend.

Credit unions are not-for-profit financial institutions, meaning they prioritize members over profits. Because of that, they often offer:
✔️ Lower fees
✔️ Higher savings rates
✔️ Better customer service

Many credit unions have zero monthly maintenance fees or very low requirements to avoid them. If you’re fed up with big banks, switching to a credit union could be a solid move.

9. Keep an Eye on Your Account Statements

Nobody likes reading bank statements, but keeping tabs on your account activity can help you catch sneaky fees before they drain your balance.

If you ever notice a maintenance fee charge, immediately call your bank to see if they’ll waive it. Staying vigilant ensures that you’re not unknowingly throwing money away.

10. Close the Account If It’s Costing You Money

At the end of the day, your bank should work for you—not the other way around. If you’ve tried everything and your savings account is still racking up fees, it’s time to close it and take your money elsewhere.

There are way too many fee-free savings account options out there to settle for one that’s costing you money.

Your savings should be growing, not shrinking because of nonsense fees. So, if your bank refuses to play fair, walk away and find a better home for your money.

Final Thoughts

Monthly maintenance fees are a sneaky way for banks to drain your savings, but the good news is that you don’t have to accept them.

By choosing a no-fee bank, keeping the required minimum balance, setting up direct deposits, or even negotiating with your bank, you can keep your savings intact and growing. And if all else fails? Switch banks. There are plenty of better options out there!

Now, it’s time to take action—don't let the banks play you. Cut those fees and keep YOUR money where it belongs!