What fees banks charge on checking accounts

Banks charge checking account fees in several categories: monthly maintenance fees (also called account fees), overdraft fees, insufficient funds fees, ATM fees, wire transfer fees, and fees for stopping payment on a check. Not every bank charges all of these, and the amounts vary widely. Some banks charge nothing; others charge $10 to $15 per month just to hold the account open.

The fees John was charged depend on his specific bank, his account type, and what he did with the account during the billing period. A basic checking account at one bank might have no monthly fee but charge $35 per overdraft, while a premium account at another bank might charge $15 per month but waive overdrafts for customers who maintain a minimum balance.

Your bank statement shows every fee charged during the billing cycle, listed separately with the date and reason. If you do not have your statement, you can find it online through your bank's website or app, or call the bank's customer service line to ask what fees were charged in a specific month.

Key Takeaways

  • Monthly maintenance fees range from $0 to $15 or more depending on the bank and account type, and some banks waive them if you maintain a minimum balance or set up direct deposit.
  • Overdraft fees are charged when you spend more than your account balance and typically cost $25 to $35 per transaction, though some banks charge multiple fees in a single day.
  • ATM fees apply when you use an out-of-network ATM and usually cost $2 to $5 per withdrawal, but in-network ATMs are free.
  • Wire transfer fees, stop-payment fees, and expedited shipping fees for checks are one-time charges that appear only when you request those specific services.
  • Your bank statement lists every fee with the date and reason, so you can see exactly what you were charged and why.

Monthly maintenance and account fees

A monthly maintenance fee (or account fee) is a flat charge that appears on your statement every month simply for holding the account open. Banks use this fee to cover the cost of maintaining your account. Monthly fees range from $0 to $15 per month at most major banks, though some specialty or premium accounts charge more.

Many banks waive the monthly fee if you meet certain conditions. Common ways to avoid the fee include maintaining a minimum balance (often $500 to $1,500), setting up direct deposit of your paycheck, or keeping a linked savings account with the bank. Some banks waive the fee for customers under 25 or over 65. If John's account has a monthly fee, his statement will show it as "monthly maintenance fee" or "account fee" on the first or last day of the billing cycle.

If you are charged a monthly fee and do not want to pay it, contact your bank and ask what conditions would waive it. If you cannot meet those conditions, you may want to switch to a bank that offers free checking.

Overdraft and insufficient funds fees

An overdraft fee is charged when you spend more money than you have in your account and the bank covers the difference. Most banks charge $25 to $35 per overdraft transaction. Some banks charge a fee every time you overdraft; others charge one fee per day even if you overdraft multiple times that day.

An insufficient funds fee (sometimes called a non-sufficient funds or NSF fee) is similar but applies when a transaction is rejected because you do not have enough money. The fee is charged even though the bank did not cover the transaction. This fee is typically $25 to $35 as well.

The difference matters: if you try to spend $50 but only have $30, an overdraft fee means the bank let the transaction go through and charged you a fee for covering the $20 shortfall. An NSF fee means the transaction was blocked and you were charged for the attempt. Some banks offer overdraft protection, which links your checking account to a savings account or credit line so overdrafts are covered without a fee or with a lower fee.

ATM fees and out-of-network charges

An ATM fee is charged when you withdraw cash from an ATM that does not belong to your bank's network. Most banks charge $2 to $5 per out-of-network withdrawal. ATMs at your own bank are always free, and many banks have agreements with other banks so their customers can use partner ATMs for free as well.

If John withdrew cash from an ATM that was not his bank's, he may have been charged twice: once by his own bank and once by the ATM operator. This is called a "surcharge" and "foreign ATM fee," and together they can total $4 to $6 per withdrawal. To avoid these fees, use only ATMs in your bank's network or ask your bank which partner networks offer free withdrawals.

Wire transfer, check, and other service fees

Banks charge one-time fees for specific services beyond everyday checking. A wire transfer fee typically costs $15 to $30 per transfer, whether you are sending money out or receiving it. A stop-payment fee (charged when you ask the bank to cancel a check you wrote) usually costs $25 to $35. Ordering checks from the bank costs money, though many banks offer the first order free or at a discount.

Some banks charge for expedited delivery of checks, for closing an account within a certain timeframe, or for paper statements instead of electronic ones. These fees appear on your statement only when you request the service. If John sees a fee he does not recognize, the description on the statement should explain what it was for. If it is unclear, call the bank and ask.

How to find what fees you were charged

Your bank statement lists every fee charged during the billing period. You can view your statement online through your bank's website or mobile app, usually under a tab labeled "Statements," "History," or "Account Details." Statements are typically available within a few days of the end of the billing cycle.

If you do not have online access, call your bank's customer service number (on the back of your debit card or on the bank's website) and ask for a summary of fees charged in a specific month. The representative can read the fees to you over the phone or email a copy of the statement. If you believe a fee was charged in error, ask the bank to explain it and request a reversal if appropriate.

Disputing or reversing fees

If you were charged a fee in error or believe the charge was unfair, contact your bank and ask for a reversal. Banks sometimes reverse fees as a courtesy, especially if it is your first time or if you have been a customer for a long time. Be specific: explain which fee, when it was charged, and why you think it should not have been.

If the fee was an overdraft or NSF fee and you believe the bank made a mistake in calculating your balance, ask the bank to review the transaction order. Banks process transactions in different orders, which can affect whether an overdraft occurs. Some banks process largest transactions first, which can trigger more overdraft fees than processing them in the order they occurred.

If the bank refuses to reverse the fee and you believe it was truly an error, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) online at consumerfinance.gov. The CFPB investigates complaints about bank practices and can sometimes pressure banks to refund fees.

Frequently Asked Questions

Can a bank charge multiple overdraft fees in one day?

Yes. Some banks charge one fee per overdraft transaction, so if you overdraft three times in one day, you could be charged three fees. Other banks charge one fee per day regardless of how many times you overdraft. Check your bank's overdraft policy to understand how it works for your account.

Why was I charged an ATM fee at my own bank's ATM?

This should not happen. ATMs owned by your bank are always free for your bank's customers. If you were charged, contact the bank immediately and ask for a reversal. You may have used an ATM at a different bank or a third-party operator that looks similar to your bank's ATM.

What is the difference between a monthly fee and an overdraft fee?

A monthly fee is charged automatically every month just for having the account open. An overdraft fee is charged only when you spend more than your balance. You can have both fees on the same statement if you were charged a monthly fee and also overdrafted during that month.

Can I get a fee reversed if I call the bank?

Many banks will reverse a fee if you ask, especially if it is your first time or you have been a good customer. There is no may provide, but it is worth calling and explaining your situation. The worst they can say is no.

Where do I find my bank statement to see what fees I was charged?

Log into your bank's website or app and look for "Statements," "History," or "Account Details." Statements are usually available within a few days of the end of your billing cycle. If you cannot find it online, call your bank's customer service number and ask them to email or mail a copy.