Bank fees are a substantial revenue line for the industry and an avoidable cost for most customers. The fees below are the common ones, ordered roughly by how much they cost people.
Overdraft and insufficient funds fees
Charged when a transaction exceeds your balance. These are among the most expensive charges in retail banking, and because they can be assessed multiple times in a day, a single bad afternoon can produce a striking total.
Federal rules require a bank to obtain your affirmative consent before charging overdraft fees on everyday debit card transactions and ATM withdrawals. If you have not opted in, those transactions are declined at no cost.
Beyond opting out: link savings as overdraft protection, which usually costs a small transfer fee or nothing, and set low-balance alerts.
Monthly maintenance fees
Commonly $10 to $15, frequently waived if you maintain a minimum balance or receive direct deposit. Increasingly, institutions charge nothing at all.
$12 a month is $144 a year for the privilege of holding your money. There is no reason to pay it — plenty of banks and credit unions, particularly online ones, do not charge it under any conditions.
ATM fees
Using an out-of-network ATM typically incurs two charges: one from the ATM's owner and one from your own bank. Together they frequently exceed $5 for a single withdrawal.
- Use in-network ATMs — most banks have a locator in their app.
- Get cash back at a grocery store checkout, which is usually free.
- Choose an institution that reimburses out-of-network fees. Many online banks do.
- Withdraw larger amounts less often if you are stuck with fees.
The rest
| Fee | Trigger | How to avoid |
|---|---|---|
| Wire transfer | Sending or receiving a wire | Use ACH or a transfer app where possible |
| Paper statement | Receiving statements by mail | Switch to electronic statements |
| Stop payment | Cancelling a check | Rare; unavoidable when needed |
| Excess transfer | Too many outbound savings transfers | Consolidate transfers |
| Account closure | Closing soon after opening | Keep the account past the stated window |
| Foreign ATM | Withdrawing abroad | Use an institution that reimburses, choose local currency |
| Inactivity | No activity for a long period | Make one small transaction periodically |
Getting a fee refunded
For a first occurrence on an account in good standing, banks frequently refund a fee as a courtesy. Call, state the fee, note your history with them, and ask for a one-time adjustment. It is a routine request.
It works less well for repeated fees, and not at all if the pattern is ongoing. In that case the fee is a signal that the account is wrong for you.
When to switch
If you are paying more than a token amount in fees annually, switching is worth an afternoon. Move direct deposits first, then automatic payments, and keep the old account funded for a full cycle before closing it.
If a bank has treated you badly on fees, the Consumer Financial Protection Bureau accepts consumer complaints and forwards them to the institution, which is required to respond. It is free and occasionally effective.
