Bank fees are almost always avoidable once you know what triggers them. Most fees exist because of a small, specific condition — an account dipping below a minimum balance, an out-of-network ATM, a payment that overdraws your account — and each has a straightforward fix.
Monthly maintenance fees
Many checking and savings accounts charge a monthly fee unless you meet a requirement, such as maintaining a minimum balance, setting up direct deposit, or making a minimum number of transactions. Read your account's fee schedule (usually on the bank's website) to find your specific requirement, and set up direct deposit if that's the easiest condition to satisfy.
Or skip the requirement entirely
Overdraft fees
An overdraft fee is charged when you spend more than what's in your account and the bank covers the difference. These fees are often $30–$35 per transaction and can stack up quickly if multiple charges hit an overdrawn account in the same day.
- Turn on low-balance alerts through your bank's app so you know before you overdraw.
- Opt out of 'overdraft coverage' for debit card purchases — without it, the transaction is simply declined instead of approved with a fee.
- Link a savings account for automatic overdraft transfers, which usually cost less (or nothing) compared to a standard overdraft fee.
- Keep a small buffer (even $100) in checking specifically to absorb timing mismatches between bills and paychecks.
ATM fees
Using an out-of-network ATM often triggers two fees: one from the ATM's owner and one from your own bank. Use your bank's app to find in-network ATMs, or choose a bank that reimburses out-of-network ATM fees — a common feature at online banks that don't operate their own branch network.
Other fees worth checking for
| Fee | Common trigger | How to avoid it |
|---|---|---|
| Paper statement fee | Not enrolled in e-statements | Switch to electronic statements |
| Wire transfer fee | Sending or receiving a wire | Use a free transfer method like ACH when possible |
| Foreign transaction fee | Using a card abroad | Use a card or account with no foreign transaction fees |
| Excessive transaction fee | Too many transfers out of savings in a month | Keep transfers under your account's monthly limit |
A five-minute fee audit
- Pull up your last two months of bank statements.
- Search for the word 'fee' and note each charge and its cause.
- For each one, check whether your bank offers a way to waive it (direct deposit, minimum balance, enrollment in e-statements, etc.).
- If your current bank charges fees you can't avoid, compare it against a fee-free online bank or local credit union.
