A bank account is an important financial tool that can make it easier to pay bills, get paid, invest, and manage a budget. However, if you don't have a lot of extra cash on hand, you may not have opened a bank account yet. While some banks do require you to deposit an initial amount of cash when you open a bank account, this isn't the case for every institution.
How do no-deposit checking and savings accounts work? And what limits should you know about? Read on to learn about the requirements for an initial deposit, which banks let you start an account with $0, and what to watch out for before signing up.
Why banks often require an initial deposit
While no-minimum bank accounts are growing in popularity, they aren't available everywhere. For the banks that do require a deposit, the amount may be as small as $5, especially for basic checking and savings accounts. (Money market and other investment accounts may have higher minimum deposits.)
Why do banks ask for this in the first place? The reasons vary but may include:
- Funds investments. Even small initial deposits help cover costs for the bank and help it remain profitable. It may become part of the money lent to other customers or be used for insurance, paying employees, or developing and launching new services.
- Shows commitment. Since accounts require some maintenance to keep open, banks want to know if you intend to come back to the account after opening. Customers are less likely to abandon an account if they put some of their own money into it, and deposits help ensure you stick around.
- Deters fraud. While it can be easy to open an account, a small deposit may keep criminals from opening multiple accounts and using them for crimes or money laundering. A deposit can also be used for verification purposes.
Brick-and-mortar or traditional banks are more likely to require a deposit. Online-only banks and banks considered "neobanks" or fintechs may not require any money to open an account. (Neobanks are financial technology companies that provide banking services through a partnership with an actual bank.)
Online and neobanks may skip the deposit requirement because they have lower overhead costs and need to stay competitive in a sea of growing online-only banking tools.
Banks and fintechs that offer $0 minimum deposit accounts
Many banks and financial institutions let you open an account with no minimum cash amount. We've broken down this list by brick-and-mortar banks, online banks, and neobanks/fintechs that offer no-deposit accounts.
- Capital One: It operates physical branches with both full-service locations, Capital One Cafes with limited offerings, and a range of online-only services. Its 360 Performance Savings account offers a competitive annual percentage yield (APY).
- Forbright Bank: This full-service bank focuses on sustainability and supporting green technology, while its growth savings account pays competitive interest rates. (Must be funded within 30 days to avoid closure.) Note that physical locations are currently limited to the D.C. metropolitan area.
- Discover Bank: This is an online-only bank that offers a savings account with no minimum deposit, no monthly fees, and no balance requirement. It also offers a 24/7 100% U.S.-based customer service team.
- American Express: Available to existing credit card holders of 35 days or longer, this no-deposit checking account pays interest on balances and cashback rewards for debit card purchases. It is an online-only bank.
- Synchrony Bank: While it doesn't offer checking, this online-only bank has a high APY and no minimum balance requirements for its savings account.
- Chime: This neobank offers free, no minimum checking account services, which are provided by partner banks. Services are available online only.
Fine print to watch out for
Banks with no minimum deposit requirements can make it very convenient to open an account in minutes. They may give you time to figure out funding, such as setting up direct deposit for your paychecks.
However, you should still read all the terms and conditions before opening your account to make sure there are no surprises. Things to look for include:
- Funding deadlines. While some banks have no minimum account balance and will let you keep your account at $0 indefinitely, others have deadlines for depositing funds, such as 15, 30, or 90 days. Banks may not provide notice of closure if you don't deposit after this time.
- Inactivity and low balance rules. The bank can also close your account if you deposit money but let your account balance get too low. Look for minimum balance requirements, which may be as low as a dollar. Banks may also require activity (deposits, transfers, withdrawals, or bill pay) every so many days to keep your account from being closed.
- Policy violations or suspicious activity. Banks can use their discretion on whether to keep an account open and can close your account if they suspect fraud, misuse, or unusual activity.
- Bonus requirements. Banks may attract new customers with promotional offers like a cash bonus. Carefully read what you have to do to earn the bonus, which may include setting up direct deposit, linking a savings account, or using a debit card within so many days of account opening.
- Variable interest rates. Some savings and even checking accounts pay interest on money left in the account, and these rates tend to reflect market conditions. That means they can go up and down, and you may also need a minimum balance to earn any interest at all.
- Fees. Banks that don't charge minimum balance fees often ask for fees in other ways, such as ATM fees, excessive withdrawal fees on savings accounts, and fees for printing statements. Read the terms and conditions to know how these fees affect your balance.
Even after you read the terms and open your account, you should monitor it to check for fees or charges. Ask the bank about anything you don't understand, and try to fund your account properly as soon as you can after opening. Also, banks do change their policies. When you get a notice either in the mail or via email, read it right away to see what's new with your account and service terms.
Tips for choosing the right zero-deposit checking or savings account
While a bank account with no minimum balance may seem like a good idea, it's not the only feature to look at when choosing a bank. Other features to consider include:
- ATM access. Make sure the bank includes fee-free access to ATMs close to where you shop and live.
- Mobile banking apps. Does the bank have an app you can use from any device? Look for mobile features that make it easy to deposit checks, transfer funds, and pay friends and family.
- Budgeting and savings tools. The right bank provides additional resources to help you manage money and meet both short- and long-term goals.
- Great customer service. Whether you have questions about a transaction or want support transferring funds, look for a bank that has online, phone, or chat access when you need it most.
- Security. Bank websites and apps should require secure logins, including two-factor authentication (2FA) and fraud alerts.
Also, think about whether you prefer an online-only bank or would like to visit a branch from time to time. While most physical banks have seamless online banking tools, online-only banks don't offer in-person banking services.
Best practices for managing your bank account
Setting up your bank account is just the start of a fruitful relationship with a new bank. You should also set up account alerts to let you know when your balance gets low or when large transactions are posted to your account. This way, you can keep tabs on your money and never be surprised by overdrafts or declined purchases.
A secure password also matters for protecting your account against hackers and fraud. Use a secure, unique password that you don't use with any other accounts and store it in a safe place. Change it often (every 90 days or so), and make sure it's connected to a 2FA method like a second email or your cell phone number. Only log into banking services from a secure Wi-Fi network; avoid banking from public networks like those at hotels, coffee shops, or airports.
Consider automated savings, deposits, and other transfers that keep your balance healthy and help you meet budget goals. For example, if you want to save for an upcoming vacation, consider an automated savings of $25-$100 to keep adding to the goal without moving money manually. You're more likely to stick to a plan if you don't need to think about it!
Finally, stay opted in to promotional offers and news from your bank. When a new account feature becomes available, you'll be the first to know. You can also keep tabs on cash bonuses and other ways to save money without having to shop around with other banks.
No minimums, fewer barriers to banking
With so many no-minimum bank accounts available, there's one less reason to put off opening up a checking or savings account. These tools can keep your money secure and give you a way to manage funds throughout the week or month.
