10 Sneaky Fees to Avoid in Your Checking and Savings Accoun

Banking should be simple, but hidden fees can quickly eat away at your hard-earned money. Many financial institutions charge sneaky fees that may not be obvious at first glance. These fees can add up over time, reducing your savings and making it harder to manage your finances effectively. Being aware of these fees and knowing how to avoid them can help you keep more of your money where it belongs— in your account.

Here are some of the most common sneaky fees to watch out for in your checking and savings accounts, along with tips to avoid them.

1. Monthly Maintenance Fees

Many banks charge a monthly fee just for maintaining a checking or savings account. These fees typically range from $5 to $25 per month, depending on the bank and type of account.

How to Avoid It:

  • Choose a bank that offers no-fee accounts.
  • Maintain the required minimum balance to have the fee waived.
  • Set up direct deposits, as some banks waive fees for customers with recurring deposits.

2. Overdraft Fees

Overdraft fees occur when you spend more than you have in your checking account. Instead of declining the transaction, the bank covers the difference and charges you a hefty fee— often around $35 per transaction.

How to Avoid It:

  • Opt out of overdraft protection to prevent transactions from going through if your balance is too low.
  • Monitor your account balance regularly.
  • Set up alerts to notify you when your balance is low.

3. ATM Fees

Using an out-of-network ATM can cost you anywhere from $2 to $5 per withdrawal. Some banks also charge additional fees on top of the ATM provider’s fee.

How to Avoid It:

  • Use ATMs within your bank’s network.
  • Choose a bank that reimburses ATM fees.
  • Withdraw cash in larger amounts to minimize frequent transactions.

4. Excessive Withdrawal Fees

Savings accounts are often subject to withdrawal limits. Many banks charge a fee (typically $5 to $10) if you exceed the allowed number of withdrawals per month.

How to Avoid It:

  • Keep an eye on your withdrawal limits and plan accordingly.
  • Transfer money to your checking account in larger sums to minimize the number of withdrawals.
  • Use an account that doesn’t impose these limits.

5. Paper Statement Fees

Some banks charge a fee for mailing paper statements, which can cost around $2 to $5 per month.

How to Avoid It:

  • Opt for electronic statements instead of paper statements.
  • Check if your bank offers free paper statements upon request.

6. Inactivity Fees

If you don’t use your account for an extended period (typically 6 to 12 months), some banks charge an inactivity fee, which can be as much as $10 per month.

How to Avoid It:

  • Make small transactions or deposits regularly to keep your account active.
  • Set up automatic transfers or bill payments from your account.

7. Returned Deposit Fees

If you deposit a check that bounces, your bank may charge you a returned deposit fee, typically around $10 to $20.

How to Avoid It:

  • Ensure checks you deposit are from reliable sources.
  • Use mobile banking to verify check deposits before spending the funds.

8. Account Closing Fees

Some banks charge a fee if you close an account within a certain period, often within 90 to 180 days of opening it.

How to Avoid It:

  • Check the terms before opening an account.
  • Keep the account open for the required period before closing it.

9. Wire Transfer Fees

Sending or receiving wire transfers can cost between $10 and $50, depending on whether it’s a domestic or international transfer.

How to Avoid It:

  • Use free alternatives like ACH transfers, Zelle, or Venmo for domestic transfers.
  • Compare wire transfer fees across banks before initiating one.

10. Foreign Transaction Fees

If you use your debit card abroad, your bank may charge a foreign transaction fee of around 1-3% per transaction.

How to Avoid It:

  • Use a bank or credit card that doesn’t charge foreign transaction fees.
  • Withdraw larger amounts of cash at once to minimize transaction fees.

Conclusion

Hidden bank fees can add up quickly, costing you hundreds of dollars per year. The best way to protect your money is by staying informed, monitoring your accounts regularly, and choosing a bank that offers transparent, low-fee services. By taking proactive steps, you can avoid these sneaky fees and maximize your savings.