The fees that eat into your savings without you noticing
Most savings accounts charge fees that banks don't advertise on the front page. The ones that hurt most are monthly maintenance fees (usually $5 to $15), overdraft fees (often $25 to $35 per transaction), and excess withdrawal fees (charged when you move money out more than a set number of times per month). Some banks also charge for falling below a minimum balance, for using an out-of-network ATM, or for paper statements.
You can avoid nearly all of these. Most online banks and credit unions charge zero monthly fees and have no minimum balance requirement. Even traditional banks offer fee-free accounts if you know what to look for. The key is understanding which fees your bank actually charges and which ones you can eliminate by switching or by meeting simple conditions.
Key Takeaways
- Monthly maintenance fees, overdraft fees, and excess withdrawal fees are the three most common charges that reduce what you save.
- Online banks and credit unions typically charge no monthly fee and have no minimum balance, while many traditional banks do charge both.
- Some banks waive their monthly fee if you keep a certain balance or set up direct deposit, so read the account terms before opening.
- Overdraft fees can be avoided by turning off overdraft protection or by keeping a small buffer in your checking account instead of your savings account.
- Federal rules limit excess withdrawal fees to six per month, but many banks have stopped charging this fee altogether.
Monthly maintenance fees and minimum balance requirements
A monthly maintenance fee is a charge just for having the account open. It ranges from $5 to $15 per month at traditional banks, which adds up to $60 to $180 per year. Some banks waive this fee if you maintain a minimum balance—often $500 to $2,500—or if you set up direct deposit of your paycheck.
Online banks almost never charge a monthly maintenance fee, and they rarely require a minimum balance. Credit unions also typically offer fee-free savings accounts. If you bank at a traditional brick-and-mortar bank, ask whether your account qualifies for a fee waiver. If it doesn't and you can't meet the balance requirement, moving to an online bank or credit union costs nothing and saves you money every month.
Read the account disclosure document before you open an account. It will list the monthly fee, the minimum balance (if any), and the conditions to waive the fee. Don't rely on what a teller tells you—the disclosure is the legal record of what you actually owe.
Overdraft fees and how to prevent them
An overdraft fee is charged when you spend more money than you have in your account. A single overdraft can cost $25 to $35, and if you overdraft multiple times in one day, you can be charged multiple fees. Some banks charge an overdraft fee for each transaction that goes negative, which means a few small purchases can result in $75 to $105 in fees.
You can prevent overdraft fees in two ways. First, turn off overdraft protection. This means transactions will be declined if you don't have enough money, rather than going through and charging you a fee. Second, keep your savings account separate from your checking account and don't link them. If your bank tries to automatically transfer money from savings to cover a checking overdraft, you may be charged a transfer fee on top of the overdraft fee.
If you do overdraft, call your bank immediately. Many banks will reverse one overdraft fee per year if you ask, especially if you've been a customer for a while. It costs nothing to ask, and banks know that customers who get hit with overdraft fees often leave.
Excess withdrawal fees and federal limits
Federal rules used to limit you to six withdrawals per month from a savings account. Banks charged an excess withdrawal fee—usually $10 to $25—if you went over that limit. Those rules were suspended in 2020 and have not been reinstated, so most banks no longer charge this fee.
However, some banks still list excess withdrawal fees in their account terms, even though they don't enforce them. Check your account disclosure to see whether your bank charges this fee. If it does and you plan to move money out of savings frequently, that's another reason to switch to a bank that doesn't charge it. Online banks and credit unions almost never charge excess withdrawal fees.
ATM fees and out-of-network charges
If you use an ATM that doesn't belong to your bank, you may be charged a fee by your bank, by the ATM operator, or by both. Your bank's fee is typically $2 to $3 per transaction. The ATM operator may charge an additional $1 to $3. Over a year, using out-of-network ATMs a few times a month can cost $30 to $100.
Online banks solve this by reimbursing ATM fees or by partnering with a large ATM network. Credit unions often belong to shared branching networks that let you use other credit union ATMs for free. If you use a traditional bank, look for one with a large ATM network in your area, or plan to visit a branch for cash withdrawals instead of using ATMs.
Paper statement fees and other small charges
Some banks charge $1 to $2 per month if you request paper statements instead of viewing them online. A few banks charge fees for wire transfers, cashier's checks, or account research (looking up old transactions). These are smaller than monthly maintenance fees, but they add up if you use these services regularly.
Most of these fees can be avoided by using online statements and avoiding wire transfers when possible. If you need a cashier's check, ask whether your bank charges for it before you request one. Some banks issue them free to customers who meet certain conditions, like maintaining a minimum balance or having direct deposit.
How to compare accounts and find the lowest-fee option
When you're deciding between savings accounts, create a simple list of the fees each bank charges and the conditions to waive them. Include monthly maintenance fees, overdraft fees, ATM fees, and any other charges listed in the account disclosure. Then calculate the total annual cost based on how you actually use the account.
For example, if you use an out-of-network ATM twice a month and your bank charges $3 per transaction, that's $72 per year. If another bank reimburses ATM fees, that's $72 you keep. Similarly, if one bank charges a $10 monthly maintenance fee and another charges zero, that's $120 per year in your favor. These small differences compound over time.
Online banks and credit unions almost always come out ahead because they charge fewer fees overall. However, if you need a physical branch nearby or prefer in-person service, a traditional bank with no monthly fee and no minimum balance can work just as well. The key is reading the account terms before you open the account, not after you've been charged.
Frequently Asked Questions
Can a bank charge me a fee just for having a savings account?
Yes, many traditional banks charge a monthly maintenance fee of $5 to $15. However, they often waive this fee if you maintain a minimum balance or set up direct deposit. Online banks and credit unions typically charge no monthly fee at all. Check your account disclosure to see whether your bank charges this fee and what conditions waive it.
What's the difference between an overdraft fee and an NSF fee?
An overdraft fee is charged when your bank allows a transaction to go through even though you don't have enough money. An NSF (non-sufficient funds) fee is charged when your bank declines a transaction because you don't have enough money. Both are ways banks make money from negative balances. Turning off overdraft protection prevents both.
If I get charged an overdraft fee, can I get it back?
Many banks will reverse one overdraft fee per year if you call and ask, especially if you've been a customer for a while and don't have a history of overdrafts. There's no harm in calling—the worst they can say is no. If they refuse and you're unhappy with the bank, switching to one with overdraft protection turned off by default is a better long-term solution.
Do I have to use my bank's ATM, or can I use any ATM?
You can use any ATM, but your bank may charge a fee if it's not part of their network. Online banks often reimburse these fees, and credit unions often belong to shared networks where you can use other credit union ATMs free. If you use a traditional bank, ask about their ATM network before opening an account.
Are there any fees I can't avoid?
Most fees can be avoided by choosing the right bank or by changing how you use your account. The only fees that are truly unavoidable are those charged by ATM operators themselves (not your bank) when you use their machine. Even those can be avoided by using your bank's ATM or withdrawing cash at a store checkout instead.