Opening a savings account can come with various fees. These can range from charges for general account maintenance or how you use your funds. Some of the most common costs on savings accounts include:
Account keeping fee
The majority of financial institutions waive this fee on savings accounts or make it conditional on a minimum balance or monthly deposits. Depending on who you bank with, this charge can reach up to $5 to $10 per month.
Excess withdrawals
Depending on the flexibility of your account, you’ll likely be able to withdraw with no fee. However, some may place limits on how often you can tap into your account, such as five or fewer or none at all. Once you eclipse your limit, you’ll start getting charged a fee of up to $3 each time you dip into your funds. Some banks can also give you two no-fee in-branch transactions per month.
Staff-assisted transactions
A visit to a bricks-and-mortar branch to withdraw money can cost you between $2 and $3. Depending on your financial institution, this fee is also included when cashing a cheque.
Paper statements
Getting a physical copy of your savings account statement in the post can cost up to $2.50. Most banks let you choose to stop receiving paper statements and instead get them emailed directly to you at no fee.
Dishonoured payment
You’ll be charged $5 if a direct debit or cheque payment fails because you have insufficient funds in your savings account. This also applies if your scheduled payments are unsuccessful. Savings accounts don’t come with overdraft facilities, so the amount debited will likely just bounce back.
