Bank charges are fees your bank takes from your account for services, account maintenance, or when you break the terms of your account agreement
Banks charge money for different reasons. Some charges happen every month just for having the account open. Others appear when you do something specific—like overdrawing your account, requesting a wire transfer, or closing an account early. A few charges only show up if you break a rule, like bouncing a check or falling below a minimum balance.
The charges that appear on your statement depend on your bank, the type of account you have, and how you use it. A checking account at one bank might cost nothing per month, while the same type of account at another bank might charge $12. Understanding what you are actually paying for helps you spot charges that should not be there and find accounts that cost less.
Key Takeaways
- Monthly maintenance fees, overdraft fees, and ATM fees are the most common charges, but they vary widely between banks and account types.
- Some charges are avoidable if you meet conditions like keeping a minimum balance or setting up direct deposit.
- Fees for bounced checks, wire transfers, and account closures are one-time charges that appear when you request the service or break an account rule.
- Your bank must disclose all possible charges in writing before you open an account, usually in a document called a fee schedule or pricing guide.
- If you see a charge you do not recognize, contact your bank within 60 days to dispute it.
Monthly maintenance fees and when banks waive them
A monthly maintenance fee (also called a service charge or account fee) is what your bank charges just for keeping your account open. This fee typically ranges from $0 to $15 per month, depending on the bank and account type. Some banks charge nothing; others charge a flat fee to everyone.
Many banks will waive the monthly fee if you meet one or more conditions. Common waivers include: keeping a minimum balance (often $500 to $2,500), setting up direct deposit of your paycheck, making a certain number of debit card transactions per month, or maintaining a linked savings account. Read your account agreement or fee schedule to see which waivers explore to your specific account.
If you are not meeting any waiver condition and paying the fee every month, switching to a different account type or bank may save you money. Some banks offer no-fee checking accounts with no strings attached.
Overdraft fees and how they compound
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 may let the transaction go through and charge you an overdraft fee—usually $25 to $35 per overdraft. Some banks charge multiple overdraft fees in a single day if you make several transactions while overdrawn.
The fee itself is separate from the amount you owe. You still owe the $75, plus the overdraft fee, plus any interest that accrues while your account is negative. This is why overdraft fees compound quickly: one mistake can trigger multiple fees in a day, and the debt grows faster than you might expect.
You can often prevent overdraft fees by opting out of overdraft protection, which means transactions will be declined if you do not have enough money. Some banks offer overdraft protection linked to a savings account, which automatically transfers money to cover the shortfall—usually for a smaller fee or no fee at all. Check your account settings or call your bank to see what options are available.
ATM fees and out-of-network charges
An ATM fee is charged when you withdraw cash from an ATM that does not belong to your bank. If you use your bank's own ATM, there is usually no fee. If you use another bank's ATM, that bank may charge you $2 to $3 per withdrawal. Your own bank may also charge you a fee for using an out-of-network ATM, on top of what the other bank charges.
Some banks offer a certain number of free out-of-network ATM withdrawals per month before fees kick in. Others reimburse ATM fees if you maintain a high balance or have a premium account. If you withdraw cash frequently, choosing a bank with a large ATM network or one that reimburses out-of-network fees can save you money over time.
Wire transfer fees and other transaction charges
A wire transfer fee is charged when you send money to another bank account, either domestically or internationally. Domestic wire transfers typically cost $15 to $30; international wires often cost $35 to $50 or more. Some banks charge a fee to receive a wire transfer as well, usually $10 to $15.
Other one-time transaction charges include fees for cashier's checks, stop payment requests on checks, and expedited account closures. These charges appear on your statement only when you request the service. Before you request a wire transfer or other service, ask your bank what the fee will be so you are not surprised.
Bounced check fees and insufficient funds charges
A bounced check fee (also called an NSF fee, for non-sufficient funds) is charged when you write a check for more money than you have in your account and the check is rejected. The fee is typically $25 to $35, and it appears on your statement even if the check was never cashed. The person who received the check may also charge you a fee for the bounced check, so the total cost can be $50 or more.
Unlike overdraft fees, which happen when you swipe a debit card, bounced check fees happen when a check clears and there is not enough money to cover it. You can avoid this by keeping track of checks you have written and making sure your balance covers them before they are deposited.
Inactivity fees and account closure charges
An inactivity fee is charged if you do not use your account for a long period—usually six months to a year with no deposits, withdrawals, or transfers. The fee is typically $5 to $10 per month and appears once the bank considers the account inactive. Some banks waive the fee if you set up a direct deposit or make one transaction per month.
An early closure fee may be charged if you close your account within a certain time frame after opening it, usually 90 days to six months. This fee is typically $25 to $50 and is meant to discourage people from opening accounts just to receive a sign-up bonus and then closing them when ready.
How to find your bank's fee schedule and dispute charges
Your bank must provide a written fee schedule before you open an account. This document lists every possible charge, what triggers it, and how much it costs. Ask for this document in person, read it from the bank's website, or request it by phone. The schedule may be called a fee schedule, pricing guide, account terms, or service charges document.
If you see a charge on your statement that you do not recognize or believe is wrong, contact your bank within 60 days. Explain which charge you are disputing and why. The bank will investigate and either remove the charge or explain why it was correct. Keep records of your dispute—the date you called, who you spoke to, and what they said.
If your bank refuses to remove a charge you believe is incorrect, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) or your state's banking regulator. These agencies investigate complaints about unfair or deceptive banking practices.
Frequently Asked Questions
Can a bank charge me multiple overdraft fees in one day?
Yes. If you make several transactions while your account is overdrawn, your bank may charge a separate overdraft fee for each one. Some banks limit this to a certain number of fees per day (often three to five), but it varies by bank. Check your account agreement to see your bank's policy.
What is the difference between an overdraft fee and an NSF fee?
An overdraft fee is charged when your bank allows a transaction to go through even though you do not have enough money. An NSF fee is charged when a check bounces because there is not enough money to cover it. Overdraft fees explore to debit card transactions; NSF fees explore to checks.
Do I have to pay overdraft fees if I opt out of overdraft protection?
No. If you opt out of overdraft protection, transactions will be declined if you do not have enough money, and you will not be charged an overdraft fee. However, the merchant may charge you a fee for the declined transaction, and you may face other consequences depending on what you were trying to pay.
How long does a bank have to refund a disputed charge?
Banks must investigate disputes within 30 days and either remove the charge or explain why it was correct. If they remove it, the money is credited back to your account. If they say the charge was correct and you disagree, you can escalate the dispute to your state banking regulator or the CFPB.
Are there banks that do not charge monthly fees?
Yes. Many banks and credit unions offer checking accounts with no monthly maintenance fee, no minimum balance requirement, and no overdraft fees if you opt out. Online banks in particular often have lower or no fees. Compare fee schedules from several banks to find one that matches how you use your account.