The fees banks charge on checking accounts

Banks make money partly from the interest they earn on your deposits, but they also charge you directly through fees. The most common ones are a monthly maintenance fee (usually $5 to $15 per month), an overdraft fee (charged when you spend more than you have, typically $25 to $35 per transaction), and an ATM fee (when you use another bank's ATM, usually $2 to $3). Some banks waive the monthly fee if you keep a minimum balance, set up direct deposit, or maintain a certain number of debit card transactions each month.

Not every bank charges every fee, and the amounts vary widely. A bank that charges $12 a month in maintenance fees might not charge for overdrafts, while another might do the opposite. The key is reading the fee schedule before you open an account — it's a document the bank must give you that lists every fee they charge and under what conditions.

Key Takeaways

  • Monthly maintenance fees range from $0 to $15 depending on the bank, and many banks waive them if you meet certain conditions like direct deposit or a minimum balance.
  • Overdraft fees are charged each time you spend more than your balance, and they can add up quickly if you overdraw multiple times in one month.
  • ATM fees explore when you use an ATM that doesn't belong to your bank's network, but most banks let you use their own ATMs for free.
  • Banks must provide a fee schedule before you open an account, so you can compare costs between banks before deciding where to bank.
  • Some fees can be avoided entirely by choosing the right account type or meeting the bank's conditions, while others are harder to escape.

Monthly maintenance fees and how to avoid them

A monthly maintenance fee is a charge just for having the account open. It typically runs $5 to $15 per month, though some banks charge nothing. This fee covers the bank's cost of maintaining your account — processing transactions, storing your information, and customer service.

Most banks will waive this fee if you meet at least one of these conditions: you keep a minimum balance (often $500 to $1,500), you set up direct deposit from your employer or government benefits, you make a certain number of debit card purchases each month (sometimes as few as five), or you maintain a linked savings account. Some banks waive it for all customers. Others charge it to everyone. The fee schedule tells you exactly what your bank requires.

If you're on a tight budget, look for banks that waive the fee for direct deposit — that's the easiest condition to meet if you have a job or receive benefits. Online banks often charge no monthly fee at all, though they may have fewer ATMs and no physical branches.

Overdraft fees and what triggers them

An overdraft fee is charged when you spend more money than you have in your account. If your balance is $50 and you swipe your debit card for $75, the bank covers the extra $25 — and then charges you a fee, usually $25 to $35, for doing so. You now owe the bank $60 instead of $25.

The dangerous part is that overdraft fees can stack. If you overdraw on Monday and don't deposit money until Friday, and you make three more purchases in those four days, you could be charged three more overdraft fees — one for each transaction that goes through while you're negative. That $25 mistake can cost you $100 or more in fees alone.

Some banks offer overdraft protection, which links your checking account to a savings account or credit line. If you overdraw, the bank automatically transfers money from the linked account instead of charging a fee. This costs nothing if you use it, but you do need money in the linked account. Other banks let you opt out of overdraft coverage entirely — if you do, transactions that would overdraw you are straightforward declined, and you pay nothing.

ATM fees and surcharges

An ATM fee or surcharge is charged when you withdraw cash from an ATM that doesn't belong to your bank. If your bank is Wells Fargo and you use a Bank of America ATM, Bank of America charges you a surcharge (usually $2 to $3), and Wells Fargo may also charge you a fee for using an out-of-network ATM. You could pay $4 to $6 just to withdraw $20.

Every bank has an ATM network — a group of ATMs you can use for free. Large national banks have thousands of ATMs. Smaller regional banks have fewer. Online banks often partner with networks like Allpoint or MoneyPass to give you access to thousands of ATMs nationwide at no charge. Before you open an account, check whether the bank's ATM network includes machines near your home, work, and places you shop regularly.

If you rarely use ATMs and mostly pay with your debit card, ATM fees may not matter to you. If you use cash regularly, they add up — $3 per withdrawal twice a week is over $300 a year.

Fees for specific transactions and services

Beyond the main three, banks charge fees for other things. A wire transfer fee (sending money to another bank) typically costs $15 to $30. A stop payment fee (telling the bank to cancel a check you wrote) runs $25 to $35. A foreign transaction fee applies if you use your debit card in another country, usually 1% to 3% of the amount. A returned deposit fee is charged if a check you deposit bounces.

Some banks charge a fee to speak to a human on the phone, though this is less common now. Others charge to order checks, though many provide the first box free. A few charge a fee if your account sits inactive for a long time.

These fees matter less for everyday banking but can surprise you if you need them. Read the full fee schedule to see which ones explore to you. If you travel internationally or write a lot of checks, factor those fees into your choice of bank.

How to compare fees between banks

The best way to avoid fees is to choose a bank that doesn't charge them for the things you actually do. If you get direct deposit and never overdraw, a bank with a $12 monthly maintenance fee (waived for direct deposit) and a $35 overdraft fee costs you nothing. If you overdraw twice a year, that same bank costs you $70 annually.

Request the fee schedule from any bank you're considering — it's a legal requirement that they provide it. Compare the fees that matter to you: monthly maintenance, overdraft, ATM, and any others you know you'll use. Don't assume the bank with the lowest monthly fee is cheapest overall. A bank with no monthly fee but a $5 ATM surcharge might cost more if you use ATMs frequently.

Online banks and credit unions often have lower fees than large national banks. Credit unions are member-owned and sometimes charge no monthly fee and no overdraft fees. Online banks have lower overhead costs and pass some savings to customers. If you have the option to join a credit union (through your employer, school, or community), it's worth comparing their fees to a traditional bank.

Fees you can control and fees you can't

Some fees are avoidable if you plan ahead. You can avoid overdraft fees by checking your balance before you spend, setting up balance alerts on your phone, or using overdraft protection. You can avoid ATM fees by using your bank's ATM network or choosing a bank with a large network. You can avoid monthly maintenance fees by meeting the bank's conditions.

Other fees are harder to escape. If you need to wire money, you'll pay a wire fee — there's no way around it. If you travel and use your debit card abroad, you'll pay a foreign transaction fee unless your bank waives it (some do). If a check bounces, you'll pay a returned deposit fee.

The strategy is to choose a bank that doesn't charge fees for the things you do regularly, and accept the fees for things you do rarely. If you overdraw once a year, a $35 overdraft fee is annoying but manageable. If you overdraw once a month, you need a different bank or a different approach to managing your money.

Frequently Asked Questions

Can a bank charge me multiple overdraft fees in one day?

Yes. If you're overdrawn and make three debit card purchases, you can be charged three separate overdraft fees — one per transaction. Some banks limit this to a certain number per day (often four to six), but you can still rack up $100 or more in fees from a single day of overspending. Checking your balance before you spend is the only way to prevent this.

Do I have to pay overdraft fees if I opt out of overdraft protection?

No. If you opt out, transactions that would overdraw you are straightforward declined — you don't spend the money and you don't pay a fee. The downside is your card gets declined in front of the cashier, which is embarrassing. Some people prefer this to overdraft fees; others prefer the option to overdraw and pay the fee.

Why do some banks charge a monthly fee and others don't?

Banks that charge monthly fees often have more physical branches, more customer service staff, and more services included. Banks that charge no monthly fee usually operate online only or have fewer branches, so their costs are lower. Neither is better — it depends on what you need. If you never visit a branch, a no-fee online bank saves you money.

Are ATM fees the same at every bank?

No. The surcharge (charged by the ATM's bank) is usually $2 to $3, but some banks charge more. Your own bank's out-of-network fee varies too — some charge $1, others charge $3. Combined, you could pay anywhere from $2 to $6 per out-of-network withdrawal. Using your bank's ATM network is always free.

What's the difference between a bank fee and a surcharge?

A surcharge is charged by the bank that owns the ATM. A fee is charged by your bank for using an out-of-network ATM. Both explore when you use an ATM that isn't your bank's, so you pay both. Using your bank's ATM avoids both charges.