Some financial institutions eliminate account fees if you maintain more than one account with them. Open more than one account at the same financial institution.To sidestep the minimum balance requirement on the savings account, you might create recurring transfers from your checking account to your savings account. Let’s say you have a checking account and a savings account at the same financial institution, and the savings account comes with a minimum balance requirement. Having your paycheck automatically deposited into one of your accounts might prevent you from dipping below the minimum balance. Some banks and credit unions don’t have these requirements for certain accounts. Look for accounts that don’t come with minimum balance requirements.Typically, you can find balance requirements on the financial institution’s website. Know your financial institution’s minimum balance requirements.You can take a number of steps to avoid minimum balance requirements. How To Avoid Minimum Balance Requirements Or, you may need to keep a minimum balance to earn a certain amount of interest. For instance, you may be hit with a monthly maintenance fee if your balance falls below the minimum. Sometimes, you can face consequences for failing to maintain a minimum balance. What if You Don’t Maintain the Minimum Balance? If a bank includes the word “average” in its requirements, it probably adds all your daily minimum balances for the month and divides that by the number of days in the month. Other institutions use a “daily minimum balance” calculation that tracks your balance at the end or beginning of each business day and uses that amount to determine whether you’ve dipped below the limit. Some banks use a straightforward minimum balance calculation method, where anytime your balance dips below that threshold, you’re automatically charged a fee for the month. There are various ways to calculate the minimum balance on a bank statement. How Is the Minimum Balance Calculated on Bank Statements? To come up with a minimum combined balance, a financial institution averages the amount of money you have each month in various accounts such as checking and savings accounts. A financial institution calculates an average monthly balance by taking the amount of money in your account at the end of each day during a statement period and dividing it by the number of days during the statement period. Financial institutions may require that you keep a daily minimum amount of money in an account to avoid fees or earn interest. Minimum balances requirements come in different forms, and your financial institution may require any one of these three: The amount required for a minimum balance may differ from that required for a minimum deposit. In some cases, maintaining a minimum balance may let you reduce or eliminate fees or earn a higher APY. This is generally known as a minimum balance requirement. Many banks and credit unions require that you keep a minimum amount of money in a checking or savings account. Here are some examples of minimum opening deposit requirements across four different banking products: Checking Accounts Minimum deposit amounts vary among banks and credit unions. For instance, a minimum monthly deposit may be required to earn a higher APY on a savings account, or a minimum monthly deposit may be required to avoid a monthly fee for a savings account. In some cases, a bank or credit union might require you to make a minimum monthly deposit to qualify for certain account benefits. Typically, you can initially deposit more money than is required. You also may be able to make an opening deposit with a debit card, check or money order. To make a minimum opening deposit, you typically can transfer money from another financial institution or transfer money from another account at the same financial institution. For certificates of deposits (CDs), minimum opening deposits could be considerably higher. Some financial institutions do not require a minimum opening deposit. Minimum Opening DepositĪ minimum opening deposit is a certain amount of money-usually $25 to $100-that a bank or credit union requires you to deposit to open a checking or savings account. Generally, a minimum deposit is a set amount of money that a bank or credit union requires you to come up with to open an account or obtain certain benefits.īelow are two common minimum deposit types you may see.
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