Bank fees have a way of slipping under the radar. The average monthly maintenance fee on a US checking account now sits at $13.51, according to MoneyRates research. That works out to over $162 a year just for the privilege of keeping your money in an account. And that’s before you factor in overdraft charges, ATM withdrawals, or the fees that kick in when you travel abroad.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
Nearly a third of checking accounts charge nothing at all for monthly maintenance. That means the other two-thirds are paying fees that could be avoided with a different account choice. The gap between what banks charge and what you actually need to pay is wider than most people realise. Here’s what you actually need to know.
Before getting into the specifics, it helps to understand one term that comes up constantly in banking. A monthly maintenance fee is the fixed amount a bank charges just to keep your account open. Some banks call it a service fee. Others bury it in the fine print as an “account fee.”
What I tend to notice is that most people don’t realise how many of these fees are optional. The bank sets the rules, but you choose whether to play by them or walk away.
What the average bank fee actually costs you per year
The numbers look small in isolation. A $13 monthly fee doesn’t feel like much until you multiply it by twelve. But the real cost comes from stacking multiple fees on top of each other. One overdraft, two out-of-network ATM withdrawals, and a monthly maintenance fee can easily total $70 in a single month.
Here’s how the most common fees break down across different account types and behaviours.
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| Fee Type | Typical Amount | Annual Cost (if monthly) |
|---|---|---|
| Monthly maintenance | $13.51 | $162.12 |
| Out-of-network ATM (per withdrawal) | $4.64 | $55.68 (once/month) |
| Overdraft (per incident) | $35 | $420 (once/month) |
| Inactivity fee (per month) | $5–$20 | $60–$240 |
| Foreign transaction (per swipe) | 1–3% | Varies by spending |
Notice that the overdraft fee alone can exceed $400 a year if it happens once a month. And banks can charge multiple overdraft fees in a single day. According to Due’s analysis, some institutions allow up to five fees per day, which pushes the daily total past $175.
For anyone who travels internationally, foreign transaction fees add another layer. A 3% fee on every purchase abroad means a $1,000 trip costs an extra $30 in bank charges alone. Some cards waive this entirely, but most standard bank accounts and credit cards don’t.
Where people get caught out by hidden bank charges
Overdraft protection that costs more than it saves
Overdraft protection sounds helpful. When your balance hits zero, the bank covers the transaction and charges a fee. But the fee is typically $35 per incident, and the bank can apply it multiple times in one day if several transactions come through before you top up. Opting out of overdraft coverage means the transaction is simply declined. No fee. No negative balance. The trade-off is that your card gets declined at the register, which some people find embarrassing, but it costs nothing.
Inactivity fees on dormant accounts
Leave an account untouched for six to twelve months and some banks start charging an inactivity fee. These can exceed $20 per month, according to Everybody Loves Your Money. The account slowly drains itself. The fix is simple: close accounts you don’t use, or set up a small recurring transfer to keep the account active.
Minimum balance traps
Many banks waive the monthly maintenance fee only if you keep a minimum daily balance, often $1,500 or more. Drop below that for even one day and the fee applies. For someone living paycheck to paycheck, that condition is nearly impossible to meet consistently. A no-minimum-balance account from an online bank or credit union removes this risk entirely.
Wire transfer and cash advance fees
Sending a wire transfer can cost $25 to $45 per transaction. Cash advances on credit cards often carry a fee of 5% or more of the amount withdrawn. These aren’t hidden in the sense that they’re disclosed, but most people don’t check the fee schedule before hitting send. A quick comparison of bank fee schedules through a finance service can flag these charges before you commit.
How to check your own account and switch to fee-free banking
The process of eliminating bank fees is straightforward once you know what to look for. Most people can cut their banking costs to zero within an afternoon.
Audit your last three statements
Pull up your bank statements for the past three months. Look for any line item that says “monthly service fee,” “maintenance fee,” “overdraft fee,” “NSF fee,” or “ATM fee.” Add them up. That’s your current annual cost of banking. If it’s more than zero, you have options.
Check your bank’s fee waiver conditions
Most banks list their waiver conditions on their website under “pricing” or “fee schedule.” Common waivers include: a minimum daily balance of $1,500, a direct deposit of at least $250 per month, or five or more debit card transactions per month. If you can meet one of these conditions, the fee disappears. If you can’t, it’s time to switch.
Compare no-fee accounts
Online banks like Capital One 360 Checking and SoFi Checking and Savings charge no monthly maintenance fee and no minimum balance requirement, according to CNBC Select. Credit unions and community banks often follow the same model. The trade-off is that you lose access to physical branches, but most everyday banking can be done through an app.
Set up low-balance alerts
Most banking apps let you set alerts that trigger when your balance drops below a certain threshold. Setting it at $100 gives you time to transfer money before a transaction pushes you into negative territory. This single step can eliminate overdraft fees entirely.
Link a savings account for automatic transfers
Some banks offer an overdraft transfer service that pulls money from a linked savings account when your checking balance runs low. The transfer fee is usually much lower than an overdraft fee — often $5 to $10 instead of $35. It’s not free, but it’s cheaper than the alternative.
Use in-network ATMs or get cash back
Stick to your bank’s ATM network. If you need cash and no branch is nearby, most grocery stores and drugstores offer cash back at the register with a debit card purchase. No fee, and you get your shopping done at the same time.
Frequently asked questions about bank fees
Can a bank charge an overdraft fee if I only go negative by a few cents? ▾
Do credit unions charge fewer fees than big banks? ▾
What happens if I close an account with a negative balance? ▾
Are foreign transaction fees charged on debit cards too? ▾
Can I negotiate bank fees with my current bank? ▾
Do online banks charge ATM fees if I use another bank’s machine? ▾
The real cost of staying with a fee-charging bank
The average person who pays monthly maintenance fees, uses out-of-network ATMs occasionally, and has one overdraft per year is losing somewhere between $250 and $600 annually to bank charges. Over a decade, that’s $2,500 to $6,000 that could have stayed in your pocket. Switching to a no-fee account takes about an hour. Setting up balance alerts takes five minutes. The gap between what you’re paying and what you could be paying is almost entirely within your control.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
If this was useful, you might also want to read Budgeting Beyond Excel: Creative Strategies to Manage Your Money Effectively.
Sources and Further Reading
The Ultimate Guide to Emergency Funds — How building a cash buffer protects you from overdraft fees and unexpected bank charges.
CNBC Select (2024). How to avoid bank fees. 🔗
Due (2024). Hidden bank fees that are draining your account and how to avoid them. 🔗
Everybody Loves Your Money (2026). The hidden fees banks don’t always explain to customers. 🔗
MoneyRates (2024). Avoid higher bank fees on checking accounts. 🔗
