MINIMUM DEPOSITS REQUIRED FOR BANK ACCOUNTS

Opening a savings account or checking account is not difficult to do but it can be a big step and contrary to popular belief, it is not always free. In addition to the documentation that must be provided, the consumer may also have to have some funds to deposit upon opening the account. The term free account often refers to maintenance fees, which has nothing to do with whether or not funds will be needed to open the account. There are multiple factors which may affect whether a deposit is needed and the amount of this minimum deposit.

 

Do All Banks Have a Minimum Deposit to Open an Account?

Some financial institutions may not require an initial deposit to open an account, this may apply to both checking and savings. However, there are often stipulations in place and that does not guarantee that there are no fees associated with the account. Those who are opening the account for direct deposit, (DD), may not have to have funds available immediately so long as they are setting up DD of a payroll check or other routine deposit of approved funds.

 

How Much Money is Needed to Open an Account?

The amount of money needed to open a bank account will depend on several different factors. There is no one size fits all answer to this. Factors to consider may include but are not limited to the type of checking or savings account, the financial institution and other terms and conditions. For example, accounts that require the consumer to maintain a minimum balance in order to prevent accumulation of fees or some interest-bearing accounts may require a deposit of that minimum balance to open.

Is the Minimum Amount the Same for Checking and Savings?

This is where it can be a bit tricky. Depending on the financial institution the minimum amount requirements may be different between checking and savings. Some banks and credit unions may waive the initial deposit to open an account if the consumer is already a customer. Let’s say Jane Doe has an active account and wishes to open savings as well and the minimum amount to open is $25, since she already banks there, they may waive a deposit in lieu of linking her accounts. Other financial institutions may require a greater deposit amount for one type of account over another.

 

What Else Can Affect the Minimum Deposit?

Whether opening a checking account or a savings account, there are a few things that can impact whether a deposit is required and the amount of that deposit. Some of these factors can include the type of account as mentioned above, but another key role may rely on credit worthiness. Those who have a past of writing cold checks or charge off accounts may not be eligible for a standard or no deposit required type of account. Rather, they may be offered what is commonly referred to as a second chance account. Traditionally, these types of accounts will require a minimum, but small deposit to initially open.