Emily Guy Birken is a former educator, lifelong money nerd, and a Plutus Award-winning freelance writer who specializes in the scientific research behind irrational money behaviors. Her background in education allows her to make complex financial topics relatable and easily understood by the layperson. She is the author of four books, including End Financial Stress Now and The Five Years Before You Retire. If you’re looking to negotiate a fee or ask about a fee waiver, it’s important to call your bank and talk to a representative. This will give you the opportunity to explain your situation and make your case. Emily Sherman is a personal finance freelance writer who has contributed to publications including U.S.

Many online banks, credit unions, and neobanks offer fee-free checking accounts. Be sure to read the full terms and conditions to ensure you aren’t compromising on accessibility by choosing an online-only bank. For institutions with more than one checking account, we’ve listed the monthly maintenance fee for the most basic or popular account option. Now, we know overdrafts sometimes happen when you’re trying to pay bills.

Checking account fees FAQs

This fee may be explained as an administrative fee necessary to cover the labor and costs of closing the account. A service charge is a fee collected to pay for services related to the primary product or service being purchased. Remember, banks exist to make money, and one of the ways they do that is by taking yours. And while there are understandable what are interest rates and how does interest work reasons to charge some of the fees, there are others that are overkill. We’ve covered the most common fees, but there are a ton of other fees banks can get you with. So be sure to read your account agreement information and be aware of all the fees your bank charges.

1. For example, the tenant of a condo unit may be required to pay a condo fee on top of the rent.
2. You might then make a $50 purchase with your debit card, not realizing that your account only has $35 in it.
3. All financial institutions must be transparent about their bank fees.
4. Individual fees may be small but when combined, they can add up quite nicely.
5. Take a look at these helpful tips to keep in mind when choosing a bank.

NSF fees are charged when a check you wrote bounces or an electronic payment you made is returned unpaid. They go by a number of different names depending on the industry, including booking fees (hotels), security fees (travel), maintenance fees (banking), and customer service fees. While bank fees will never disappear completely, you have the power to avoid the majority of account fees that come your way. Good banking habits like planning ahead for when you need cash, keeping an eye on your balance and regularly checking on your account online, all can help you prevent fee-triggering mistakes. And, if it feels as if you can’t avoid the fees at your current bank, don’t be afraid to shop around to find an account that works for you.

Overdraft and NSF fees

If your college days are behind you, consider looking for a checking account through an find a tax preparer online bank, as those institutions are more likely to offer accounts with no maintenance fees. Monthly maintenance fees can be an irritating aspect of modern banking. Banks charge customers these fees simply to keep the account open—to the tune of more than $1 billion in monthly maintenance fees in 2018 at the nation’s five top banks alone. While interest-bearing accounts generally are more likely to charge monthly maintenance fees, keeping your money in a non interest-bearing account doesn’t necessarily save you. In order to avoid overdraft fees, you must bring the available balance in your account to at least $0 before your Extra Time expires.

For that price, you could have had two of what you wanted and still had some money left over—and the bank wouldn’t be taking advantage of you. Overdrawing your account is the kind of mistake that anyone can make. We all tend to keep a running tally of our account balances in our head, but it’s easy to forget about something and assume there’s more in the account than there is. You might then make a $50 purchase with your debit card, not realizing that your account only has $35 in it.

Some checking accounts waive the charge if you make a minimum number of purchases with your debit card each month. Having a linked savings account within the same bank can be another way to avoid overdraft fees. Some banks will allow you to set up an automatic overdraft transfer from your savings account if you accidentally overdraw your checking account. While this service is not free, the fee for this kind of transfer is generally much lower than an overdraft fee—often about $10 to $12. Certain transactions, including wire transfers and purchases made abroad, can incur additional costs. To avoid having to pay extra fees, be mindful of how you’re moving money.

What Are Bank Fees?

If you make a deposit, the time it takes for your deposit to be reflected in your available balance and for those funds to become available to you will vary based on the deposit type and time. Depending on your deposit type or your deposit time, your deposit may not be available before your Extra Time period expires, and you may incur overdraft fees. Less than half (45 percent) of noninterest checking accounts don’t have a minimum balance requirement or a monthly maintenance fee, according to Bankrate’s 2023 checking account and ATM fee study.

Since 2021, PNC’s Virtual Wallet® includes Low Cash Mode®,  technology that gives you more control over your account balance[2]. With Low Cash Mode in the PNC Mobile app[3], you get customized alerts when your balance is low, and there’s a maximum of one overdraft fee per day. Overdraft protection is an optional service offered by many banks to help you avoid overdrawing your account. You may still have to pay a fee when your bank schedules a transfer on your behalf, but doing so helps you avoid overdraft and NSF fees—which can be charged multiple times. If you find that you aren’t using this service or you’re paying too much for it, you can always opt out.

In addition, banks see ATM surcharges as a relatively safe place to maintain or increase their profit without alienating their customers. ATM use is optional, so it is ultimately on the banking customer to decide if the convenience is worth the fee. Service charges are a common aspect of the finance world, and understanding their definition, types, and differences from tips is paramount.

We know it’s a drag, but it’s super important that you read all (yes, all) the materials your bank gives you to really see what they plan on charging you. It costs money to print paper statements and then send them out in the mail. For this reason, sometimes a charge is included when you request to receive paper statements.

The Importance of Emergency Funds and How to Build Yours

Individual fees may be small but when combined, they can add up quite nicely. When the net interest margin for a bank is squeezed in a low-interest-rate environment, bank fees provide a measure of stability to bank earnings. Employers are required to report service charges to the IRS in the same fashion as other wages.

Learn the definition and types of service charges in finance, and discover why they’re not considered tips. Uncover the ins and outs of service charges in this comprehensive guide. If you already have a checking account that charges fees, here are some ways to avoid those. Negotiating or waiving certain bank fees is possible in some cases. Contact your bank, explain your situation, and inquire about fee reductions or waivers.

Be mindful that account owners with higher deposits will have more leverage with the bank. The service charge is meant to cover the cost of service provided and may be used to supplement employee wages, cover operational costs, or be distributed among staff by the company. The tip is specifically intended as a reward for the individual service worker. The service charge is considered part of the business’s revenue and subject to taxation as such. Employees receiving a portion of service charges are typically taxed as regular income. The tip is considered income for the worker receiving it and is subject to income tax reporting by the worker.

By knowing how service charges work, consumers can manage their finances better and businesses can provide transparency. So, the next time you come across a service charge, you’ll be equipped with the knowledge to make informed decisions. When traveling internationally, you can avoid foreign transaction fees by using a no foreign transaction fee credit card or paying for purchases in cash with the local currency. Though most bank accounts charge fees, there are many ways to avoid them. Look for an account at an online bank, as they’re known for charging very few fees. The fee may vary depending on the type of transfer (domestic or international) and the amount being transferred.