Small account charges can add up. Knowing why they happen can make them easier to prevent.
Monthly Maintenance Fees
Some checking and savings accounts charge a monthly fee.
A bank may waive the fee if you keep a certain balance, receive direct deposit, use the account a set number of times, or meet another rule.
Read the account terms. If the fee is hard to avoid, compare accounts with lower or no monthly fees.
Overdraft Fees
An overdraft can happen when a payment is larger than the money in the account.
Some banks decline the purchase. Others may allow it and charge a fee. Rules differ by bank and account type.
Balance alerts can help. So can keeping a small cushion in the account. If overdrafts happen often, ask what lower-cost options the bank offers.
Non-Sufficient Funds Fees
A payment may be returned when there is not enough money in the account.
The bank may charge a fee, and the company that expected the payment may charge one too.
Before a large bill is due, check the balance and any pending transactions. A payment scheduled for Monday can be affected by purchases made over the weekend.
Out-of-Network ATM Fees
Using an ATM outside your bank’s network can lead to more than one fee.
The ATM owner may charge a fee. Your bank may charge another.
Use the bank’s app to find in-network ATMs. Some accounts also repay a limited amount of ATM fees each month, so it is worth checking the account rules.
Wire Transfer Fees
Wire transfers can move money quickly, but they may cost more than other methods.
Domestic and international wires may have different fees. The person receiving the money may also face a charge.
For a non-urgent transfer, compare ACH transfers, bill pay, person-to-person payments, and other options before choosing a wire.
Paper Statement Fees
Some banks charge customers who choose mailed paper statements.
Online statements are often included at no extra cost. If you do not need paper copies, switching to electronic statements may remove the fee.
Download or save important statements if you need records for taxes, housing, or other paperwork.
Foreign Transaction Fees
A debit or credit card may add a fee when a purchase is processed outside the United States.
This can happen while traveling. It can also happen when you buy from a foreign company online.
If you travel often, compare cards and accounts that do not charge foreign transaction fees.
Early Account Closing Fees
Some banks may charge a fee if a new account is closed soon after it is opened.
Check the account agreement before moving money out and closing it. Waiting until the required period has passed may help you avoid the charge.
Also make sure automatic bills and direct deposits have moved before shutting the old account.
How to Compare Checking Accounts
Do not look only at the monthly fee.
Compare overdraft rules, ATM access, minimum balances, mobile banking tools, customer service, interest, branch access, and how easy it is to move money.
A “no monthly fee” account may still have other charges. A low-fee account may be a better fit if it includes services you use often.
Minimum Balance Rules
Some accounts charge a fee when the balance falls below a set level.
The rule may use the daily balance, an average balance, or another method. That is why a quick look at the account name is not enough.
Read the fee schedule and find the exact number. If keeping that amount in the account is not realistic, a different checking account may be a better fit.
Stop-Payment Fees
A stop payment asks the bank to block a check or certain electronic payments.
Banks may charge for this service. Before placing one, ask whether the payment can still be stopped and how long the request will last.
If the problem involves a company that keeps billing after you canceled, contact the company too. A stop payment may block one charge without ending the contract behind it.
Cashier’s Check and Money Order Fees
Some people use cashier’s checks or bank money orders for rent, deposits, cars, or other large payments.
Banks may charge a fee for making them. The amount can vary by account.
If you need these often, include that cost when comparing banks. A checking account with a small monthly fee could still cost less overall if it includes services you use many times each year.
Ask Before Paying a Fee You Do Not Understand
If a fee appears and you do not know why, contact the bank.
Ask what caused it and what would prevent it next time. If it is a first-time mistake, the bank may choose to remove the fee, but that is not guaranteed.
Understanding the rule is more useful than hoping the charge will not happen again.
