Bank fees can quietly drain your account over time. The average American pays over $300 a year in bank fees. The good news? Most of these fees are completely avoidable with a little knowledge and planning.
Avoid Monthly Maintenance Fees
Many banks charge $10-15 per month just to maintain your account. Here's how to avoid them:
- Meet minimum balance requirements: Keep the required minimum balance to waive the fee
- Set up direct deposit: Many banks waive fees with direct deposit from your employer
- Switch to a no-fee account: Online banks rarely charge maintenance fees
- Link accounts: Some banks waive fees when you have multiple accounts linked
Eliminate ATM Fees
ATM fees hit you twice—your bank charges for using an out-of-network ATM, and the ATM owner charges too. Here's how to avoid them:
- Use your bank's ATM network: Find in-network ATMs before you need cash
- Get cash back: Get cash back when shopping at grocery stores or pharmacies
- Choose banks with ATM fee rebates: Some online banks refund ATM fees up to a certain amount
- Plan ahead: Get the cash you need at your bank before you'll need it
Prevent Overdraft Charges
Overdraft fees average $35 per transaction—and they can stack up quickly. Protect yourself:
- Link a savings account: Set up overdraft protection that pulls from savings instead
- Enable low balance alerts: Get notifications when your balance drops below a certain amount
- Opt out of overdraft coverage: Transactions will be declined instead of incurring fees
- Keep a buffer: Maintain a $100-200 cushion in checking that you consider "zero"
- Track your spending: Use your bank's app to monitor your balance regularly
Skip Wire Transfer Fees
Wire transfers can cost $25-50. Unless you need the money to arrive the same day, there are better options:
- Use ACH transfers: Free transfers between bank accounts (takes 1-3 days)
- Payment apps: Zelle, Venmo, or PayPal for person-to-person payments
- Same-bank transfers: Transfers within the same bank are typically instant and free
- Bill pay: Use your bank's bill pay feature for recurring payments
Avoid Paper Statement Fees
Some banks charge for mailing paper statements. Go paperless:
- Switch to e-statements: Access statements online or through your bank's app
- Download and save: Keep digital copies for your records
- Set up email alerts: Get notified when statements are ready
Total Potential Savings
By following these tips, you could save $300-900 per year in bank fees. That's money that can go toward your savings goals instead.
Bonus: How to Get Fee Refunds
If you do get charged a fee, you can often get it refunded:
- Call customer service: Simply call and ask politely for a refund
- Mention your history: Long-time customers with good standing have more leverage
- Ask for a one-time courtesy: Banks often grant one courtesy refund per year
- Be prepared to switch: If they refuse, mention you're considering switching banks
Consider Switching Banks
If your bank charges multiple fees that are hard to avoid, consider switching to:
- Online banks: Generally have no monthly fees and refund ATM fees
- Credit unions: Member-owned and typically have lower fees
- Student accounts: If you're in school, these often have no fees