Checking account fees can quietly reduce your balance even when the individual charges seem small. A monthly maintenance fee, an out-of-network ATM charge or an overdraft fee can make a low-cost account more expensive than expected.
The good news is that many common bank fees are avoidable. Knowing what your bank charges, what triggers each fee and which requirements can waive them can help you decide whether your current account is still a good fit.
What are the most common checking account fees?
Banks can charge different fees depending on the account and how you use it. Some appear every month, while others only apply after a specific transaction.
Common checking account charges include:
- Monthly maintenance fee: a recurring charge for keeping the account open.
- ATM fee: a charge for using an ATM outside your bank’s network. The ATM owner may also charge a separate fee.
- Overdraft fee: a charge that may apply when the bank pays a transaction even though you do not have enough money available.
- NSF fee: a charge that may apply when the bank does not pay a transaction because there are insufficient funds.
- Stop-payment fee: charged when you ask the bank to stop a check or certain payments.
- Wire transfer fee: applies to some domestic or international transfers.
- Paper statement fee: some banks charge for sending printed statements.
Not every account has all of these charges. Your bank’s fee schedule should explain which ones apply and when.
How much can checking account fees cost?
The cost varies significantly between banks and account types.
Bankrate’s latest data puts the average monthly maintenance fee for non-interest checking accounts at $5.47. If you pay that amount every month, the annual cost reaches about $65.64.
Other fees can be more expensive when they happen repeatedly. Bankrate reports an average $4.86 total cost for an out-of-network ATM withdrawal and an average $26.77 overdraft fee.
Consider a customer who pays the average maintenance fee for six months, uses an out-of-network ATM three times and has one overdraft:
- Monthly fees: $32.82
- Three ATM fees: $14.58
- One overdraft fee: $26.77
- Total: $74.17
The amounts vary by bank, but the example shows how several ordinary charges can create a meaningful expense.
Why are you paying a monthly maintenance fee?
A monthly maintenance fee usually comes with conditions that allow you to avoid it.
For example, a bank may waive the charge if you:
- receive a qualifying direct deposit;
- maintain a minimum balance;
- meet certain account activity requirements;
- link another eligible account.
Banks and credit unions must disclose the applicable fee and the conditions for avoiding it.
This means a monthly charge does not automatically mean you need a different bank. First, check whether you are missing a requirement that would remove the fee.
If your income or account balance has changed, however, a requirement that once worked for you may no longer make sense.
Can you avoid ATM fees?
Usually, yes. An out-of-network withdrawal can create two separate charges: one from your own bank and another from the ATM operator. Bankrate’s latest study puts the average combined cost at $4.86 per withdrawal.
You can reduce this cost by:
- using your bank’s ATM network;
- checking the ATM locator in your banking app;
- choosing an account that reimburses some ATM fees;
- getting cash back when making a purchase at a participating retailer.
If you withdraw cash frequently, ATM access can be more important than a small difference in monthly maintenance fees.
How can you avoid overdraft and NSF fees?
Overdraft and NSF charges can have a bigger effect on your budget because a single transaction can trigger a fee that is much larger than a normal monthly charge.
An overdraft generally occurs when the bank pays a transaction even though there is not enough money available. An NSF situation occurs when the bank does not pay the transaction because there are insufficient funds.
To reduce the risk:
- turn on low-balance alerts;
- check upcoming automatic payments;
- keep a small buffer in the account;
- know when deposits become available;
- ask whether your bank offers an overdraft protection option.
Federal rules also give consumers the ability to opt out of overdraft coverage for certain one-time debit card and ATM transactions.
The right option depends on whether you would rather have a transaction declined than risk an overdraft charge.
Is a “free” checking account really free?
A bank can still charge some fees even when it describes an account as “free” or “no cost.”
The CFPB explains that an account described as free cannot charge certain monthly service fees, minimum-balance fees or fees for basic deposits, withdrawals or transfers. However, some charges can still apply, including ATM, overdraft, stop-payment and other specific fees.
So before opening an account, look at the full checking account fees, not just the monthly maintenance charge.
An account with no monthly fee may still be a poor fit if you regularly use out-of-network ATMs or need services that carry separate charges.
When should you consider switching accounts?
You may not need to change banks because of one occasional fee. A switch becomes more interesting when the charges are recurring and difficult to avoid.
Consider comparing other accounts if:
- you regularly pay a monthly maintenance fee;
- the waiver requirements do not fit your situation;
- you frequently use out-of-network ATMs;
- overdraft charges are common;
- your bank charges for services you use regularly;
- another account offers similar features with fewer fees.
You can also look at another checking account at the same bank. Different account types may have different requirements and pricing.
Online banks and credit unions can also be worth comparing because many offer fewer account fees, although you should still check ATM access, customer service and other limitations.
How do you know if your checking account costs too much?
Start with your own statements.
Review the last three to six months and write down every fee connected to the account. Separate recurring charges from fees caused by specific actions.
For example, you might discover that most of your costs come from ATM withdrawals rather than the monthly account fee. In that case, switching to an account with better ATM access could save more than simply finding one with no maintenance charge.
A simple way to check
Add up:
- Monthly maintenance fees
- ATM fees
- Overdraft or NSF fees
- Wire and transfer fees
- Other recurring account charges
Then multiply the average monthly cost by 12.
That number gives you a better picture of what the account is actually costing you each year.
What should you compare before choosing a checking account?
The lowest advertised fee does not necessarily make an account the cheapest option for you.
Check these points before opening an account:
- monthly maintenance fee;
- minimum balance requirement;
- direct deposit requirement;
- ATM network and out-of-network charges;
- overdraft and NSF policies;
- minimum opening deposit;
- wire and other service fees;
- ATM fee reimbursement;
- access to branches or customer support.
Your own banking habits should guide the comparison.
Someone who rarely uses cash may care more about overdraft policies, while someone who regularly withdraws cash may save more with a larger ATM network.
Small charges can reveal a bigger problem
The goal is not to avoid every possible bank fee. Some charges may be reasonable when you use a specific service.
The bigger question is whether you are paying repeatedly for things you could get elsewhere for less.
Reviewing your statements can reveal whether the problem is one expensive fee or a pattern of smaller charges. Once you know where the money is going, it becomes easier to decide whether to change your habits, ask for a fee waiver or choose a different account.
Frequently Asked Questions
Can a bank charge a monthly fee on a checking account?
Yes. Banks and credit unions can charge monthly maintenance or service fees as long as they disclose the applicable fee and its conditions. Many institutions also offer ways to waive the charge.
Can I get a checking account with no monthly fee?
Yes. Some accounts have no monthly maintenance fee, while others waive the charge when you meet requirements such as qualifying direct deposits or minimum balances.
Can I avoid ATM fees without changing banks?
Often, yes. Use your bank’s ATM network, look for an account that reimburses ATM fees or use cash-back options at participating retailers.
Can I stop overdraft fees?
You can reduce the risk by monitoring your balance, setting alerts and understanding your bank’s overdraft options. For certain one-time debit card and ATM transactions, you can also opt out of overdraft coverage.
Should I switch banks because of checking account fees?
Not necessarily. If the fees are rare and easy to avoid, switching may not be worthwhile. If you regularly pay charges that another account could eliminate, comparing alternatives could reduce your banking costs over time.