Bank fees are charges your bank takes from your account for services, account maintenance, or when you break the bank's rules

A bank fee is money the bank removes from your account. It happens when you use certain services, keep too little money in your account, overdraw, or fail to meet account requirements. Unlike interest, which is money the bank pays you, fees go the other direction—the bank takes from you. Most fees range from $5 to $35 per occurrence, though some accounts charge monthly maintenance fees of $10 to $15.

The fees you pay depend on your account type, your bank, and your behavior with the account. A checking account at one bank might charge $35 for an overdraft while another charges $25. Some banks charge monthly fees; others waive them if you keep a minimum balance or set up direct deposit. Understanding which fees apply to your account means reading your account agreement or asking your bank directly—the fee schedule is usually available online or at a branch.

Key Takeaways

  • Overdraft fees occur when you spend more money than you have in your account, and most banks charge $25 to $35 per overdraft.
  • Monthly maintenance fees apply to some checking and savings accounts if you don't meet requirements like keeping a minimum balance or receiving direct deposits.
  • ATM fees happen when you withdraw cash from an ATM that doesn't belong to your bank's network, typically $2 to $3 per withdrawal.
  • Late payment fees, returned check fees, and wire transfer fees are charged for specific actions, and the amount varies by bank.
  • Many banks waive certain fees if you meet conditions like maintaining a minimum balance, setting up direct deposit, or keeping the account open for a set period.

Overdraft fees and how they happen

An overdraft occurs when you spend more money than you have in your account. Your bank may allow the transaction to go through anyway, then charge you a fee—usually $25 to $35—for covering the shortfall. Some banks charge multiple overdraft fees in a single day if you make several purchases while overdrawn. A few banks charge a daily fee for each day your account stays negative.

You can overdraw your account by writing a check, using your debit card, setting up an automatic bill payment, or withdrawing cash. Not all banks charge overdraft fees the same way. Some charge a fee only if the overdraft is over a certain amount (like $5). Others charge a fee for every transaction that causes an overdraft, even if the amounts are small. A few banks do not allow overdrafts at all and simply decline the transaction.

Overdraft protection is an optional service some banks offer. If you link a savings account or credit line to your checking account, the bank can transfer money automatically when you overdraw, avoiding the fee. However, this transfer may come with its own fee, usually smaller than an overdraft fee. You can also opt out of overdraft coverage entirely, which means transactions will be declined if you don't have enough money.

Monthly maintenance fees and minimum balance requirements

Some banks charge a monthly fee just for keeping an account open. These maintenance fees typically range from $10 to $15 per month. They are most common on checking accounts, though some savings accounts charge them too. The fee appears on your statement each month unless you meet a condition that waives it.

Banks often waive monthly fees if you maintain a minimum balance—commonly $500 to $2,500, depending on the bank and account type. Other ways to waive the fee include setting up direct deposit, making a certain number of debit card purchases per month, or keeping the account open for a minimum period. Some banks waive fees for customers over a certain age or for students. Read your account agreement or ask your bank what conditions apply to your account.

ATM fees and out-of-network withdrawals

When you withdraw cash from an ATM that does not belong to your bank's network, you may pay a fee. Your bank charges you an out-of-network ATM fee, usually $2 to $3 per withdrawal. The ATM's bank may also charge a separate fee, called a surcharge, which appears on your receipt. Together, these can add up to $4 to $6 per withdrawal.

Banks that are part of a shared network—such as Allpoint, MoneyPass, or CO-OP—allow their customers to use each other's ATMs without fees. If your bank is part of a network, you can find participating ATMs through the bank's website or app. Using your bank's own ATMs is always free. If you frequently need cash, choosing a bank with many branches or ATMs near your home or workplace can save you money.

Returned check fees and late payment fees

A returned check fee is charged when a check you wrote bounces—meaning the account it was drawn on did not have enough money to cover it. Your bank charges you a fee, typically $25 to $35, for processing the returned check. The person or business you wrote the check to may also charge you a fee for the bounced check.

Late payment fees are charged by creditors, not banks, when you miss a payment deadline on a credit card, loan, or bill. However, some banks charge a fee if you miss a payment on a bank-issued credit card or line of credit. Late fees typically range from $25 to $40, depending on the creditor. Paying on time is the only way to avoid this fee.

Wire transfer fees and other transaction fees

A wire transfer is a way to send money electronically to another bank account, often to someone outside your bank. Banks charge for this service because it requires manual processing and verification. Domestic wire transfer fees typically range from $15 to $30. International wire transfers cost more, often $35 to $50, because they involve currency conversion and coordination with foreign banks.

Other fees you may encounter include stop payment fees (charged when you ask the bank to cancel a check you wrote), account closure fees (charged if you close an account within a certain period), and foreign transaction fees (charged when you use your debit or credit card in another country). Some banks charge fees for paper statements, though most offer free electronic statements. Cashier's check fees and money order fees are also common, typically $5 to $10 each.

How to avoid or reduce bank fees

The easiest way to avoid fees is to choose a bank whose fee structure matches your habits. If you rarely use out-of-network ATMs, an ATM fee does not matter to you. If you keep a high balance, a monthly maintenance fee is easy to waive. If you never overdraw, overdraft fees are not a concern. Read the fee schedule before opening an account, or ask a banker to walk you through it.

Once you have an account, monitor your balance to avoid overdrafts. Set up alerts through your bank's app or website so you know when your balance drops below a certain amount. Use your bank's ATMs or partner ATMs to avoid out-of-network fees. Pay bills on time to avoid late fees. If you do incur a fee, call your bank and ask if they will waive it—many banks will remove one or two fees per year as a courtesy, especially if you have been a customer for a long time or have a good history with the account.

Frequently Asked Questions

Can a bank charge multiple overdraft fees in one day?

Yes. If you make several purchases or withdrawals while your account is overdrawn, your bank may charge a separate fee for each transaction. Some banks limit the number of overdraft fees per day, while others do not. Check your account agreement or call your bank to learn their policy.

What is the difference between an overdraft fee and a non-sufficient funds fee?

An overdraft fee is charged when the bank allows a transaction to go through even though you do not have enough money. A non-sufficient funds (NSF) fee is charged when the bank declines the transaction because you lack the funds. The fee amount is usually the same, but NSF fees apply only if you have opted out of overdraft coverage.

Do savings accounts have the same fees as checking accounts?

No. Savings accounts typically have lower fees than checking accounts because they are designed for storing money rather than frequent transactions. However, some savings accounts do charge monthly maintenance fees or fees for excessive withdrawals. The fee structure depends on the bank and account type.

Can I get a refund if my bank charged me a fee I did not expect?

Many banks will refund one or two unexpected fees if you call and ask, especially if you have been a customer for a while or have a good account history. There is no may provide, but it is worth asking. If the bank refuses, you can file a complaint with your state's banking regulator or the Consumer Financial Protection Bureau.

Why do banks charge fees if I use another bank's ATM?

Banks charge ATM fees because they must pay the other bank for using their machine and network. The fee covers the cost of processing your transaction and maintaining the ATM. Banks that are part of shared networks pass these costs to all members, which is why some customers can use out-of-network ATMs for free.