13 pesky bank fees and how to avoid them

Read the fine print on any bank account and you’ll find plenty of potential fees — even the accounts advertised as “free” often have a catch somewhere. Miss a statement or two and those charges can quietly stack up before you notice.

These fees range from maintenance fees, to overdraft-related costs, nonsufficient funds fees and more. Understanding each one, the cost and what can activate them can help you better safeguard your funds and avoid paying for that so-called free account.

1. Account maintenance fees

Some banks charge a monthly maintenance fee, also called a monthly service fee, just for providing you with the account.

What it could cost you: The average checking account maintenance fee on interest-bearing accounts is $15.65, while the average for noninterest accounts is $5.47, according to Bankrate’s Checking Account and ATM Fee Study.

How to avoid it: Banks that charge these fees usually waive them if you maintain a balance above a specified amount, set up direct deposit or make a certain number of debit card transactions each month. Check the fine print and choose either a bank with no monthly fees or one with requirements you can easily meet. 

2. Out-of-network ATM fees

If you need cash but use an ATM outside your bank’s network, you can end up paying twice — once to your own bank and once to the machine’s owner.

What it could cost you: The total cost of withdrawing money from an out-of-network ATM is $4.86 on average, a record high for the third straight year, according to Bankrate’s Checking Account and ATM Fee Survey. That breaks down to an average surcharge of $3.22 from the ATM’s owner, plus an average fee of $1.64 from your own bank for going out of its network.

How to avoid it: Many banks belong to large ATM networks — and not just the big national banks. Some smaller banks and credit unions belong to networks like Allpoint and MoneyPass. If you can’t find a free ATM nearby, use your debit card to get cash back at a grocery store or other retailer instead.

3. Overdraft fees

When you spend more than you have in an account, this can result in an overdrawn account with a negative balance. When banks cover such a transaction, they often charge an overdraft fee as a result.

What it could cost you: The average overdraft fee is $26.77, and 94% of accounts still charge it. Some banks will also charge the fee up to three times a day, so an overdraft you don’t catch quickly can turn into a hefty bill.

A CFPB rule would have capped overdraft fees at $5 for large banks starting in October 2025, but Congress reversed it that spring, so the fee remains largely uncapped at most banks. Collectively, banks charged over $12 billion in overdraft and nonsufficient funds fees in 2025, according to the National Consumer Law Center.

How to avoid it: Set account alerts that notify you if your checking account dips below a threshold — $50 or $100, for example — so you avoid crossing into the red. Alternatively, it’s possible to turn off overdraft coverage, in which case transactions will be denied if they would have overdrawn your account.

This approach was taken by Emelie H. of Spokane, Washington, who visited her bank and signed a paper to decline overdraft coverage. “What a lot of people don’t know is you can remove this coverage,” she says. “This way, if you have a bill that’s supposed to automatically pull, if there’s no money in the account, it won’t take it and overdraft you.”

4. Overdraft protection fees

Overdraft protection allows you to link bank accounts so that if your account is overdrawn, funds from the linked account are automatically transferred to cover the charge. It’s a good way to avoid those $30 overdraft fees, but there’s a catch: It’s not always free.

What it could cost you: Big banks like Chase, Wells Fargo, Bank of America and U.S. Bank don’t charge a fee when an overdraft protection transfer takes place from an eligible linked deposit account. That said, there are banks that do charge fees for these transfers. Check your bank’s deposit account agreement for its policy.

How to avoid it: Either opt out of the service, or find a bank that won’t charge you if you end up using it. Just be mindful of meeting minimum balance requirements for the linked account.

5. Nonsufficient funds fees

Nonsufficient funds fees (NSF fees) are charged when you don’t have enough money in a checking account to pay for a transaction. NSF fees differ from overdrafts in that you don’t end up with a negative balance — rather, the transaction is simply declined.

What it could cost you: NSF fees can be lofty — $16.82 on average, according to Bankrate’s latest checking account survey. Around 4 in 10 accounts (61%) charge NSF fees, the study found.

How to avoid this fee: The easiest way is simple: Find a bank that doesn’t charge them. If you want to stick with your bank, though, it’s important to regularly check your account balance, especially before making a large purchase. Consider setting up low balance alerts if you use a mobile banking app. Also carefully track any automatic payments that are made from your account and know when these are deducted.

6. Excessive transaction fees

High yield savings accounts and money market accounts are sometimes limited to six withdrawals per month. This limitation exists because of a former federal regulation, Regulation D, which enforced banks to cap withdrawals from nontransaction accounts. The regulation has been removed, but some banks have kept the savings and money market account limitation in place.

What it could cost you: Excessive transaction fees sometimes cost $3 to $5 per transaction.

How to avoid it: Keep track of the number of times that you withdraw from your savings account in a month. Try to use your savings and money market accounts as infrequently as possible so that the funds are there for emergencies and specific goals.

7. Early withdrawal penalties on CDs

Certificates of deposit (CDs) typically charge an early withdrawal penalty if you close them, or take money out, before the specific term ends. Early withdrawal penalties are costly and can reduce your gains or even cut into your principal in some cases. Some banks don’t allow partial withdrawals, so that all-or-nothing mentality needs to be a part of your planning process.

What it could cost you: For short-term CDs — often less than one year — a penalty is sometimes 90 days of interest. On a five-year CD, expect a much stiffer penalty, sometimes around 10 months of interest.

How to avoid it: Determining when you’ll need your money before opting for a term is the best way to avoid early withdrawal penalties. If you’re worried that you may need access to the cash earlier, consider a high-yield-savings account or a no-penalty CD instead. You may earn less interest, but you won’t have to worry about forfeiting any interest.

8. Foreign transaction fees

If you travel overseas or make purchases from foreign sellers using a debit or credit card, you may be charged a foreign transaction fee. 

What it could cost you: This fee is often 3% of the purchase amount. Cash withdrawals from foreign ATMs can cost even more once you factor in cash advance fees, ATM operator charges and your own bank’s international ATM fee.

How to avoid it: To avoid foreign transaction fees, consider using a debit or credit card that doesn’t charge foreign transaction fees. Another option is to make sure you take out sufficient cash in advance to avoid making foreign ATM transactions — just remember that carrying too much cash can be risky, since it’s unlikely that you can get it back if it’s lost or stolen.

Other common bank fees

9. Dormancy fees

Also called inactivity fees, these kick in when an account sits untouched for a set amount of time. Banks use them to nudge customers to either use an account or close it, since unclaimed funds eventually need to be turned over to the state. Not all banks charge this fee, but when they do, they can range from $2 to $25 after a set period of inactivity.

10. Early account closure fees

Some banks charge an early account closure fee — usually $5 to $50 — if you close a checking or savings account within the first 90 to 180 days of opening it. Check the terms before opening any account, and factor in this fee, along with any minimum balance requirements, if there’s a chance you’ll need to close it early.

11. Paper statement fees

As banks push customers toward paperless banking, some now charge for mailing paper statements. PNC, for example, charges $3 for dual delivery of both paper and online statements, though paper-only delivery is free. Signing up for e-statements when you open the account is the simplest way to sidestep this one entirely.

12. Wire transfer fees

Banks typically charge outgoing wire transfer fees, and sometimes they even charge for incoming wires. Domestic outgoing wires average $25 to $30, while international outgoing wires often run $50 or more, according to Bankrate’s research. 

While private banking clients with higher balances can often get these fees reduced, there is a steep barrier to entry. A free alternative like Zelle or a standard ACH transfer can help you avoid the fee, though you may need to send funds in smaller amounts to stay within transfer limits. 

13. Account research fees

If you ask your bank for copies of old statements or help tracking down a past transaction, you may be charged an account research fee for the legwork. The cost can vary based on how much digging is involved. Keeping your own digital records and checking your account regularly for unusual activity can help you avoid ever needing this service.

Comparing fees: big banks vs. online banks

Traditional banks with branches tend to charge more fees — and higher ones — than online-only banks, which cut costs by skipping physical locations. The following table illustrates this by comparing a few large banks — two with branches, and two without — in three common bank fee categories:

* Chase charges no fee if you’re overdrawn by $50 or less at the end of the business day, or if you’re overdrawn by more than $50 and bring your balance to overdrawn by $50 or less at the end of the next business day. Bank of America charges no fee if your account is overdrawn by $1 or less or on items that were authorized when your account had enough funds available.

** Ally’s CoverDraft and SoFi’s Overdraft Coverage are free safety nets that cover transactions up to set limits when set requirements are met. Transactions that exceed limits — or don’t meet eligibility requirements — are simply declined, rather than paid and charged a fee. This is a different model from Chase and Bank of America, which pay the transaction and charge a fee.

Ways to avoid bank fees

Once you know the common fees and which banks charge low (or no) fees, the next step is taking a look at your own accounts.

Evaluate your accounts

Review the fee schedule at least once a year and compare it against what you’re actually paying. If you’re charged a monthly maintenance fee, see if there’s an easy way to waive it — or whether a fee-free account elsewhere would suit you better. The same goes for overdraft and ATM fees: if you’re paying either, seek out accounts elsewhere that won’t charge you for these.

In addition to reviewing your bank’s fee schedule, keep an eye out for notifications from your bank regarding any changes in its fees — which can show up in places like emails or inserts in paper statements.

Shop around before you commit

Fee structures can vary widely by bank, as the comparison table shows above. In addition to comparing fees, be sure to also look at savings account APYs to make sure you’re choosing an account with a competitive yield. Online banks and some credit unions are often where you’ll find high rates and low fees.

Bottom line

While you might be most concerned with monthly service fees and ATM charges, the banking industry’s list of fees is around a mile long. To navigate around those potential charges, read the fine print prior to opening a new account to make sure that your money lifestyle is a good match for the bank’s terms and conditions. If it’s not, look elsewhere. Bank fees don’t need to be part of your everyday routine.