Bank fees rarely feel like a major expense when they first appear. $5 here or $10 there can be easy to overlook, but repeated charges can quietly take a noticeable bite out of your account over a year.
What makes these fees particularly frustrating is that you can avoid many of them once you know what triggers them. From using the wrong ATM to falling just below a balance requirement, these are eight banking fees worth watching for.
Monthly Maintenance Fees
Some checking and savings accounts charge a monthly maintenance fee unless you meet certain requirements, such as maintaining a minimum balance or receiving qualifying direct deposits. Missing one of those requirements can suddenly turn what you thought was a free account into one that costs you money every month.
Overdraft Fees
Spending more money than you have available can become considerably more expensive when an overdraft fee is added to the transaction. Setting up low-balance alerts and understanding how your bank handles overdrafts can help prevent a small purchase from becoming a much bigger expense.
Out-of-Network ATM Fees
That convenient ATM around the corner may not be so convenient once the fees appear. You could be charged by the ATM operator as well as your own bank, so it’s worth finding an in-network machine whenever possible.
Paper Statement Fees
Receiving a statement in the mail may seem like a basic banking service, but some financial institutions charge customers for paper statements. Switching to electronic statements can eliminate the charge at banks that waive fees for going paperless.
Wire Transfer Fees
Wire transfers can be fast, but that speed may come at a price, especially when sending money internationally. Check the fee before approving the transfer and see whether a less expensive option, such as an ACH transfer, will accomplish the same thing.
Minimum Balance Fees
Some accounts waive monthly charges only as long as your balance remains above a particular threshold. If your account frequently falls below that amount, you could repeatedly pay a fee simply because you don’t keep enough money sitting in the account.
Foreign Transaction Fees
You don’t necessarily have to leave the country to encounter a foreign transaction fee, as certain purchases processed internationally can trigger one as well. Before traveling or ordering from an overseas retailer, check your card’s terms and consider using a card that doesn’t charge this type of fee.
Inactivity Fees
Certain accounts and financial products may charge fees after an account goes unused for an extended period, making forgotten accounts worth checking. Review old accounts periodically and consider closing ones you no longer need so a small remaining balance isn’t gradually eaten away by fees.
