5 Common Bank Fees and Advice for Avoiding Them

This list is for you if you’ve ever felt like your bank unexpectedly charged you for something. Here is a list of seven of the most typical fees that banks charge, along with advice on how to avoid them.

1. Account upkeep and a required minimum balance

For keeping checking or savings accounts, many banks charge fees.

The amount? $5 to $25 per month; higher fees may apply to accounts with extra bells and whistles, such as rewards accounts.

Can it be avoided? If you maintain a certain balance in your account or adhere to other conditions, like linking your checking and savings accounts, banks frequently forgo their charge. Some banks might have a minimum balance requirement and may impose fees if you drop below it.

2. ATM

Using ATMs that aren’t connected to your bank could result in fees from both your bank and the ATM supplier.

The amount? You might pay the ATM provider and your bank a total of $4 for a single transaction.

Can it be avoided? Numerous banks have apps that direct you to a fee-free ATM. Alternately, you might take out money in advance at an ATM close to your bank.

3. Overdraft

Even if you don’t have enough money in your checking account, purchases can still be made with overdraft coverage or protection — for a price.

The amount? If you’ve signed up for your bank’s overdraft protection, about $35. Your bank might also provide overdraft protection, which uses a linked credit card, savings account, second checking account, or line of credit to provide funds to cover overdrafts. This cost is frequently less than an overdraft coverage cost.

Can it be avoided? Consider using low-balance warnings to avoid overdrafting.

4. Insufficient Funds

When you make a purchase or other transaction that is more than the amount in your checking or savings account, and you haven’t opted into an overdraft program, the bank may decline the charge or return it unpaid.

How much? An insufficient funds or returned-item fee could be $35. Your payee may charge you a fee as well.

Can you avoid it? Try low-balance alerts to notify you when your account is low.

5. Excess Transactions

Many banks cap the number of monthly withdrawals you can make from some accounts — usually savings or money market accounts. After a certain number, your bank may charge you.

How much? From $3 to $25 per transaction — the amount may increase with additional transactions.

Can you avoid it? Don’t use your savings account for everyday withdrawals and bill pay — use a checking account instead.

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