Bank fees might seem minor, but they can quietly erode your finances over time. According to the 2025 MoneyRates Checking Account Fee Survey, the average monthly maintenance fee for checking accounts is $13.95, totaling $167.40 annually.
Over a decade, that’s more than $1,670 lost to fees. If that money were invested in a high-yield savings account earning 4% interest, it could grow to more than $2,500 in 10 years and over $6,000 in 20 years.
These fees don’t enhance your banking experience—they’re simply wasted money. The good news? With the right strategies, you can avoid many of these charges and keep more of your hard-earned cash.
This guide will walk you through practical steps to identify and eliminate unnecessary fees, helping you take control of your financial future. Let’s get started!
Common Bank Fees and Why They Matter
Banks charge for everything from simply holding your account to declining a transaction. These fees might be routine, but that doesn’t mean you have to accept them.
Monthly Maintenance Fees
Some banks charge a monthly fee just for having an account. It’s often marketed as the price for features like customer service or digital tools. But many banks—especially online ones—offer free accounts with the same perks.
Overdraft Fees
If you spend more than you have, the bank may cover the charge and hit you with an overdraft fee—often up to $35 per transaction. Multiple overdrafts in a day can quickly snowball into a big financial hit.
NSF (Non-Sufficient Funds) Fees
Instead of covering a charge, the bank might just decline it and still charge you. This usually happens with checks or automatic payments and can result in a returned payment fee, even though no money leaves your account.
ATM Fees
Using an out-of-network ATM means you may pay two separate ATM fees—one from your bank and one from the ATM operator. That $20 withdrawal could easily cost you $25.
Foreign Transaction Fees
Foreign transaction fees typically show up when you make a purchase outside the U.S. or with a foreign vendor. They’re often a small percentage of the transaction, but they add up fast.
Paper Statement Fees
If you’re still getting paper statements, some banks may charge you for them. Going digital can cut this cost and give you quicker access to your account info.
Account Closure Fees
Some banks will penalize you if you close an account too soon after opening it, especially if you received a sign-up bonus. Always check the fine print.
How to Avoid Monthly Maintenance Fees
You don’t have to accept monthly service charges. Here’s how to get around them.
Pick the Right Bank Account
Basic checking or online-only bank accounts often have fewer fees compared to premium accounts with more features. Compare options and go with a bank that doesn’t charge for simply holding your money.
Keep a Minimum Balance
Many banks waive monthly fees if you maintain a certain balance. Know your bank’s rules—it could be based on your end-of-day or average daily balance.
Set Up Direct Deposit
Have your paycheck or government benefits direct-deposited into your account. Many banks waive maintenance fees if they see regular deposits coming in.
Ask About Special Waivers
Students, seniors, and military members often qualify for fee-free accounts. Check with your bank to see if you’re eligible.
Overdraft Protection: Helpful or Harmful?
Overdraft protection sounds like a safety net, but it can come at a steep price.
What It Does
When you spend more than you have, overdraft protection lets the transaction go through—and then charges you a fee. While it can help avoid bounced checks or utility shutoffs, it can also drain your account quickly.
Smarter Alternatives
Instead of standard overdraft coverage, consider linking your checking account to a savings account or line of credit. These options usually cost less.
Link to a Savings Account
If you overdraft, the bank will pull funds from your savings. There may still be a small fee, but it’s generally less than a traditional overdraft charge.
Use Account Alerts
Set up text or email alerts for low balances. It’s a simple way to stay on top of your spending and avoid dipping into the red.
Reduce ATM Fees
ATM fees can add up quickly, especially if you frequently withdraw cash from machines outside your bank’s network. Here are some strategies to help you save on these fees.
Use Your Bank’s ATM Network
Always try to use ATMs that are within your bank’s network. These ATMs won’t charge you for withdrawals. Many banks have a locator app or online tool to help you find the nearest in-network ATM.
Look for ATM Partnerships
Some banks form partnerships with other bank networks or ATM consortia to offer their customers wider access to fee-free withdrawals. Check if your bank is part of any such network, and make use of these ATMs when possible.
Plan Cash Withdrawals to Minimize ATM Visits
To reduce the number of times you need to use an ATM, plan your cash withdrawals. Withdrawing larger amounts less frequently can minimize the number of times you pay ATM fees, especially if you must use out-of-network machines.
Use Cash Back Options at Retailers
Many retailers offer cash back when you make a purchase with a debit card. This can be a great way to get cash without paying ATM fees. Just be mindful of your spending – it’s easy to make unnecessary purchases when seeking cash back.
Minimize Foreign Transaction Fees
Foreign transaction fees can sneak up on you when shopping internationally or traveling abroad. Here’s how to avoid them:
- Choose a no-fee account or card – Some banks and credit cards don’t charge foreign transaction fees. Look for travel-friendly options before you book that trip or shop with overseas vendors.
- Use a credit card abroad – Credit cards usually offer better exchange rates and fewer fees than debit cards. Just make sure to pay off the balance to avoid interest charges.
- Try prepaid travel cards – Load these cards with foreign currency and use them like a debit card. They often have better exchange rates and lower fees, but be sure to review all terms before buying one.
Go Paperless to Skip Statement Fees
Switching to digital banking is a quick way to avoid paper statement fees—and it comes with other benefits too:
- Enroll in online banking – Sign up for e-statements through your bank’s website or app. It usually takes just a few clicks and can save you money each month.
- Take advantage of digital tools – Going paperless gives you instant access to transaction history, budgeting tools, and mobile account management.
- Protect your information – Use strong, unique passwords and avoid logging in over public Wi-Fi. Regularly monitor your account for suspicious activity.
Avoid Account Closure Fees
Closing a bank account sounds simple, but it can come with fees if you’re not careful. Here’s how to avoid them:
- Know the rules – Some banks charge fees if you close your account within the first 30 to 90 days. Check the terms before you act.
- Pick the right timing – Wait until all bonuses have posted and no auto-payments or direct deposits are pending.
- Transfer your funds first – Move your money to a new account and confirm all transactions have cleared before closing the old one.
Stay on Top of Bank Fee Policies
Knowing your bank’s rules can help you avoid surprise charges. Make it a habit to:
- Read the fine print – Review fee schedules regularly. Banks often update their terms, and you’ll usually get notified by email or app alert.
- Know what triggers fees – Be clear on what actions can lead to charges, like dropping below a balance threshold or using an out-of-network ATM.
- Push back when needed – If a fee doesn’t seem fair, contact your bank. Many are willing to waive charges for long-time or responsible customers.
Final Thoughts
Bank fees are avoidable if you know what to look for and take a proactive approach. Pick a low-fee account, avoid out-of-network ATMs, go paperless, and use direct deposit when possible. Don’t let banks charge you for basic services.
Stay alert, ask questions, and make sure your bank is working for you—not the other way around. If you’re still paying fees you can’t avoid, it might be time to switch banks or explore alternatives. Every dollar you save in fees is one more step toward greater financial control.
