ChatGPT Explains Banking Fees Like I’m 12
Written by
Laura Bogart
Edited by
Kristen Mae
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Whether you’re scrolling through your phone or flipping through TV channels, you’ve probably seen ads for banks promising things like “low or no banking fees.” Cue the visuals: people laughing over salad or riding bikes into the sunset.
That might get you thinking: Do I pay banking fees? How much are they? And what even are banking fees, really?
It’s a lot to unpack — and most of what you’ll find online is either buried in fine print or too jargony to decipher. So, instead of diving into a rabbit hole of definitions, I turned to ChatGPT for help.
I asked it to explain banking fees to me like I’m 12. And while ChatGPT isn’t perfect, it can be good at providing clear, quick summations of complicated topics — information you can actually use to make smarter money decisions.
Here’s what it had to say, with some expert context added along the way.
Banking Fees Described via a Pizza Delivery Analogy
ChatGPT opened by likening banking fees to the fees associated with pizza delivery:
“Banking fees are extra charges the bank takes from you for certain things you do (or don’t do) with your bank account. It’s kind of like a ‘service charge’ — like when you pay for delivery with pizza.”
Yum, pizza. Not so tasty? The most common bank fees you can typically expect to encounter. These can include:
- Monthly maintenance fees: A charge just for keeping your account open.
- Overdraft fees: If you spend more money than you have in your account, the bank may cover the difference, for a fee.
- ATM fees: Some banks charge you for using an ATM that isn’t in their network.
- Minimum balance fees: If your balance drops below a certain amount, you might get charged.
- Paper statement fees: Some banks charge you if you want a paper statement instead of a digital one.
- Foreign transaction fees: If you use your card outside the country, you may be charged a percentage of the purchase.
How To Avoid These Fees
If all these fees are giving you a bad case of financial indigestion, ChatGPT has some remedies, starting with the advice to choose a low- or no-fee bank.
To avoid those pesky overdraft charges, use your bank’s app or website to track what you’re spending. You should also monitor your balance to make sure you’re not dipping below the minimum required. Meanwhile, use your own bank’s ATMs to avoid getting hit with those obnoxious ATM fees.
You Have More Power Than You Think
ChatGPT also had some unexpected advice about how to handle bank fees: “If you’re ever not sure why a fee was charged, ask your bank! Sometimes they’ll even refund it, especially if it’s your first time.”
It’s good advice. The best option is to avoid banks with high fees in the first place.
I asked ChatGPT how to comparison shop for banks with low or no service fees. ChatGPT advises you to decide what kind of accounts you’ll need (checking, savings, etc.) and whether you’re a regular user of ATMs or prefer to bank digitally.
You should also create a wish list of what you want from a future bank or credit union and make a detailed comparison between the options you’re looking at — even create a chart if it helps you visualize the pros and cons.
ChatGPT also gave the wise advice to look at that bank’s “fee schedule,” which lists every possible fee. Be on the lookout for fees tied to excessive transactions, early account closure, and maintenance or inactivity.
Also, don’t hesitate to ask friends and family for advice about their banks. Or use your friend ChatGPT to do some foundational research.
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