Banks are in the business of making money, and a surprising amount of it comes from fees most customers don’t notice — or assume they can’t avoid. Most banking fees are avoidable once you know what triggers them.
Monthly maintenance fees
Many checking accounts charge a monthly fee — typically $10–$15 — just to keep the account open. What most people don’t realize is that these fees are almost always waivable if you meet certain conditions.
Common ways to waive the monthly fee:
- Set up direct deposit (usually $500–$1,000 per month minimum)
- Maintain a minimum daily or average monthly balance
- Open both a checking and savings account at the same bank
- Be a student, senior, or military member — many banks offer fee-free accounts for these groups
If you can’t meet the waiver conditions, it’s worth shopping for a bank that offers genuinely free checking — many online banks and credit unions do.
Overdraft fees
Overdraft fees are one of the most expensive and common banking fees. The typical charge is $25–$35 per overdraft — meaning if you’re short and three transactions hit at once, you could owe $75–$105 in fees on top of the shortfall.
How to avoid overdraft fees:
- Track your balance actively. Don’t rely only on the “available balance” shown in your app — pending transactions may not be reflected yet.
- Set up low-balance alerts. Most banks let you receive a text or email when your balance drops below a threshold you choose.
- Link a savings account as overdraft protection. If your checking account goes negative, the bank automatically transfers from savings. Some banks do this for free; others charge a small transfer fee, which is still far less than a $35 overdraft fee.
- Opt out of overdraft coverage for debit card purchases. If you haven’t opted in, your debit card transaction will simply be declined rather than going through with a fee. Declining is inconvenient but free.
- Keep a small buffer. Treat a $100–$200 cushion as your “real” zero — don’t spend below it.
Some banks have eliminated overdraft fees entirely in recent years. If overdrafts are a recurring problem, switching to one of these banks is worth considering.
ATM fees
ATM fees stack up in two ways: your bank charges you for using an out-of-network ATM (typically $2.50–$3.50), and the ATM owner charges a surcharge on top of that (often another $3–$5). One out-of-network withdrawal can cost $6–$8.
How to avoid ATM fees:
- Use your bank’s own ATMs — use the bank’s app or website to find them
- Choose a bank with a large ATM network or one that reimburses out-of-network fees — many online banks refund ATM fees up to a monthly limit
- Get cash back at grocery stores or pharmacies when you make a purchase — usually free
- Plan ahead and withdraw enough cash at once rather than making multiple small withdrawals
Minimum balance fees
Some accounts charge a fee if your balance drops below a set minimum — $500, $1,000, or more depending on the account tier. Watch out for accounts that use a “daily minimum” rather than an “average daily balance” — with a daily minimum, one day below the threshold triggers the fee even if your average balance is well above it.
If you’re choosing between accounts, an average daily balance method is more forgiving than a daily minimum.
Wire transfer and ACH fees
Sending money by wire transfer typically costs $15–$30 for domestic transfers, more for international. If you’re sending money to another person’s bank account, Zelle (built into most bank apps) is usually free and transfers within minutes. ACH transfers between your own accounts at different banks are generally free but take 1–3 business days.
Paper statement fees
Some banks charge $1–$3 per month if you receive paper statements by mail. Switching to e-statements is free and eliminates the fee immediately — you can find the option in your online banking settings.
Inactivity fees
Some banks charge a fee if an account goes unused for 6–12 months. If you keep an account open as a backup, make at least one small transaction every few months to avoid triggering this.
Returned payment and NSF fees
If a check you write bounces, or an automatic payment can’t go through because your balance is too low, you pay a non-sufficient funds (NSF) fee — typically $25–$35. The recipient may also charge you a returned payment fee on their end. The fix is the same as for overdrafts: keep a buffer and track your balance before payments go out.
A simple audit
Pull up your last three months of bank statements and search for any fees. List them out. Many people are surprised to find they’ve been paying $10–$15/month for years without noticing. Once you know exactly which fees you’re paying and why, eliminating them is usually straightforward.
Further Reading
- How to Cut Banking Fees
- What Is a Checking Account?
- How to Switch Banks
- Credit Unions: Are They Better Than Banks?
- How to Balance a Checkbook
This article is for general educational purposes only and does not constitute financial advice. Fee amounts and policies vary by bank — review your account terms or contact your bank for specific details.