When opening a savings account, whether your first or a new one, you should absolutely read the terms carefully before agreeing. Each account and bank will have different terms, including interest rates and whether or not a minimum amount is required when you sign up. Is an account that requires a minimum amount right for you?

Do You Need a Minimum Amount to Open a Savings Account?

Whether or not you need to deposit money as you open your savings account depends entirely on your credit union or bank, and the type of account you’re opening with them. Some of their offered accounts may require initial deposits, while others don’t.

If your bank or credit union does require an initial deposit, it tends to range from $25 to $100. You should ask the institution about the different accounts available if you don’t want to pay an initial deposit.

Are There Other Financial Requirements for Savings Accounts?

In addition to potential initial deposits, savings accounts may come with other specific terms in regards to your finances that you need to follow. Some will require you to deposit a specific amount into the account each and every month. If this is the case, the bank or credit union will usually have you set up an automatic transfer while signing up. The amount required will vary from institution to institution.

Minimum amounts may also be required to be kept in your savings accounts at all times. In most cases where this is needed, this amount will help you avoid bank fees. If your account drops before the minimum required, you will be on the hook for the fee.

Depositing Sooner Rather Than Later is A Good Idea

Even if your savings account doesn’t require an initial deposit when you open the account, that doesn’t mean you shouldn’t deposit money. The biggest benefit of these accounts, aside from keeping your money safe, is the interest they provide. The sooner you put your money in, the sooner it will start accruing interest.

How Do You Find a Savings Account That Works for You?

Shopping around is one of the best ways to find the best savings account for you. You’ll want to look at required initial deposits, of course. Also check the interest rate, any fees associated with the account, and whether or not a minimum amount is required. You should also compare banking services like online banking portals, reviews, customer service, and other offerings.

Before you open an account, whether that is savings or checking, it’s important to know exactly what you’re agreeing to. If your new account requires an initial deposit, you can usually give them cash or set up a wire transfer from another account. You don’t want to be on the hook for surprise fees because you didn’t read the terms before signing up.