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Palmer, who is best known for playing Bianca Jackson in the long-running soap between 1993 and 2009, told fans they could pay £17.99 per month to follow her "A Good Life" page where she will be posting about her life in Malibu.
On her personal account, Palmer wrote a lengthy message about the new project and what it would involve: "I’ll be sharing exclusive curated content with people that are on this wellness journey to creating a good life for themselves . I have a lot of life experience to share in various things all leading back to inspiring you to create a GOOD LIFE for YOU!!"
Palmer, who describes herself as a "mum, wife, entrepreneur, actress, haircare brand/wellness owner, DJ, writer, influencer and public figure" also said the account will detail how she deals with stress, mental health tips and her new life in America.
Palmer also said: "I’m so happy that Instagram have created a space for creators to give exclusive time and content to their loyal fans/followers."
She also asked fans to tell her what kind of "content" they would like to see on the account.
Many of the star's fans criticised her for charging for an Instagram account, particularly at a time where the cost of living has increased dramatically.
One user commented on the post: "Read the room Patsy. People are struggling to pay their bills at the moment. Very disappointed in this."
Another also noted that a yearly subscription to the account costs more than a TV license.
Palmer originally joined EastEnders in 1993 as the fan-favourite Bianca Jackson. She initially played the character until 1999 and then had two further stints on the show.
She was supposed to return to EastEnders again in 2020 but the move was cancelled following the beginning of the Covid-19 pandemic.
Palmer relocated to Malibu, California in 2014.
Watch below: Patsy Palmer abruptly ends Good Morning Britain interview