8 Hidden Bank Fees and How Much They’re Costing You
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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Most people need one or more bank accounts to manage their money, but it’s good to be discerning, as some banks have a variety of small, hidden fees tucked into their services you might not know about.
Some of these fees may be waivable up front, others by maintaining a certain balance or paying close attention to bank activities. Either way, the more you know, the more you can save in fees you don’t need to pay.
Here are eight hidden bank fees and how much they could cost you.
Monthly Maintenance Fees
The best scenario for any type of bank account is one where you’re earning interest, not paying fees. However, be careful to read the fine print when you open a new account — some require you to keep a minimum balance, often couched as a “maintenance” fee that can run you between $5 and $25 per month in fees.
You can avoid these fees either by keeping a certain amount of money always in your account or, in some cases, by linking other checking or savings accounts.
Overdraft Fees
Even when you’re diligent about always balancing your checkbook or monitoring your bank account online, overdraft events can happen, where more money is debited from an account than you have money in it. Each time your account goes into overdraft will typically cost you around $35. That means if five different purchases or debits were made on the same day that you have insufficient funds, you’d be charged $35 per instance.
You can take several approaches — carefully monitor your bank accounts daily, set up a buffer of money you never touch or, better yet, link your checking account to a savings account for overdraft protection.
ATM Fees (Out-of-Network)
Banks like to incur loyalty in as many ways as possible, and one of the most common is that you get charged a fee every time you use an ATM that is not within your bank’s network. These may only be a couple of dollars each time, but that can add up if you take out a lot of cash. The simplest solution is to stick to your bank’s ATMs or consider if you might need to switch to a bank with a greater number of ATMs.
Some banks may reimburse for ATM fees, but make sure before you commit.
Paper Statement Fees
In this digital age, more and more banks are shying away from producing paper statements unless patrons explicitly want them. However, some banks are going a step further and charging for each individual paper statement customers request. These can run from a couple of dollars to as much as $5 per statement. Save yourself the extra cash by downloading them digitally and printing at home if you must have paper statements, or skipping the paper altogether.
Check Ordering Fees
While most people know that if you want fancy, customized checks you’re going to have to pay separately for them, it’s natural to expect that a basic set of checks would be included with your account. However, that is not always the case. Even a simple set of checks can run up to $25, and for fancier or business accounts, they can be much more expensive.
Early Account Closure Fees
Though most fees are probably written in the fine print when you open an account, many people might be surprised to learn that there are penalties for closing a bank account too soon. While it varies from bank to bank, an average minimum account commitment is 90 days, though for others it can run between 120 and 180 days. The penalty to close an account early can run you between $24 and $50.
Excessive Withdrawal Fees
While technically you should be able to take money out of your bank accounts as often as you like, many banks have limits on how many withdrawals you can make from a savings or money market account, many limiting them to between three and six withdrawals per month. Each bank may have different specifications on what kinds of withdrawals count, but they may include:
- Electronic funds transfers (EFTs), like when you transfer money from your savings account to checking account (or transfer money from one bank to another)
- Automated clearing house (ACH) payments, including online bill pay
- Preauthorized transfers, like overdraft transfers to avoid overdraft fees
- Wire transfers
- Online and phone transfers
- Debit card and check transactions drawing from the savings account.
After you reach that limit, you may be charged anywhere between $3 and $25 per withdrawal.
Inactivity Fees
Some bank accounts incentivize regular activity by charging an inactivity fee, which is a monthly charge after an account has lain dormant for a set period of time. While that time frame may vary, an average amount is six months, and it can cost between $5 and $20 per month. This is good to be aware of if you are managing the accounts of someone who has become ill or passed away.
Otherwise, if you’re not using an account, it might be time to close it out, or else set up auto-payments or transfers to keep regular activity going.
Pay attention to all the fees in your paperwork when you first open an account, and ask if you’re unsure. Simple habits can keep you from wasting unnecessary money each month.
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