I’ve learned this the hard way, so here’s a reminder: before opening a bank account, research the fees! A 2023 Bankrate survey found that 25% of Americans with checking accounts pay an average of $24 a month in fees—yikes! These can include maintenance fees, overdrafts, and insufficient funds. While it might not seem like much, it adds up over time.
The good news? You can easily avoid these unnecessary fees with a little research!
In this video, I’ll share common banking fees and how to dodge them. Let’s dive in!
KEY TAKEAWAYS
Out-of-Network ATM Fee:
- Avoid using ATMs outside your bank’s network to dodge $2.50 fees.
- If you need cash, withdraw a larger amount or get cash back at stores.
- Some banks, like Synchrony Bank, may refund ATM fees up to $5 per cycle.
Overdraft Fee:
- Prevent overdrafts by setting up direct deposit to maintain a minimum balance.
- Consider overdraft coverage; it allows banks to cover low funds for a fee (~$35).
Insufficient Fund Fee:
- Avoid $35 fees for insufficient funds by monitoring your account.
- Sign up for notifications for low balance alerts.
Wire Transfer Fee:
- Wire transfers cost $16-$35; use them for significant transactions.
- Opt for online transfers for smaller amounts to save money.
Early Account Closing Fee:
- Closing an account early can incur fees (up to $25).
- Check your bank’s policy before canceling.
Monthly Maintenance/Service Fee:
- Many banks charge monthly fees for accounts.
- Avoid fees by maintaining a minimum balance or exploring no-fee banks like credit unions or American Express.
