The main fees you'll encounter

Banks charge checking account fees in several categories, and most fall into one of these buckets: monthly maintenance fees, overdraft fees, ATM fees, and transaction fees. Not every bank charges all of them, and some charge none. The fees that hit most people are overdraft fees (charged when you spend more than you have), monthly maintenance fees (a flat charge just for having the account), and out-of-network ATM fees (charged when you withdraw cash from an ATM that doesn't belong to your bank).

The size of these fees varies widely. A monthly maintenance fee might be $5 to $15, an overdraft fee typically runs $25 to $35 per transaction, and an out-of-network ATM fee is usually $2 to $3. Some banks charge nothing for any of these; others charge all of them. Your actual bill depends on which bank you use and which account type you pick.

Key Takeaways

  • Monthly maintenance fees range from $0 to $15 depending on the bank and account type, and many banks waive them if you meet a minimum balance or set up direct deposit.
  • Overdraft fees typically cost $25 to $35 per overdraft and can stack up quickly if you go over your balance multiple times in one day.
  • Out-of-network ATM fees are usually $2 to $3 per withdrawal, but you can avoid them by using your bank's ATM network or choosing a bank with a large network.
  • Wire transfer fees, returned check fees, and stop-payment fees are less common but can add up if you use those services regularly.
  • Many banks offer checking accounts with no fees at all, usually online banks or credit unions, though they may have other trade-offs like fewer physical branches.

Monthly maintenance fees and how to avoid them

A monthly maintenance fee is a flat charge just for keeping the account open. It's not tied to how much you use the account or how much money you have in it—it's simply a fee the bank charges every month. Banks that charge this fee typically range from $5 to $15 per month, which adds up to $60 to $180 a year.

Most banks let you waive this fee if you meet one of several conditions. The most common are: keeping a minimum balance (often $500 to $1,500), setting up direct deposit of your paycheck, or maintaining a certain number of debit card transactions per month. Some banks waive the fee for customers over 65 or under 18. If you don't meet any waiver condition, you'll pay the fee every month.

Many online banks and credit unions don't charge a monthly maintenance fee at all. If you're comparing accounts, ask the bank directly what the monthly fee is and what conditions waive it—don't assume it's free just because the bank advertises "no fees."

Overdraft fees and overdraft protection

An overdraft fee is charged when you spend more money than you have in your account. If your balance is $100 and you make a $120 purchase, you've overdrawn by $20. The bank covers the transaction and charges you a fee—typically $25 to $35. If you overdraw multiple times in one day, you can be charged multiple fees, sometimes as many as 4 to 6 in a single day depending on the bank's policies.

Some banks offer overdraft protection, which links your checking account to a savings account or credit line. If you overdraw, the bank automatically transfers money from the linked account instead of charging an overdraft fee. This costs less than an overdraft fee (often $0 to $10 per transfer) but only works if you have money in the linked account or a credit line available.

You can also simply opt out of overdraft coverage. If you do, the bank will decline transactions that would overdraw your account instead of charging you a fee. This prevents overdraft fees but means your card or check might be declined at the register.

ATM fees and network access

When you withdraw cash from an ATM that belongs to your bank, there's usually no fee. But if you use an ATM from a different bank—called an out-of-network ATM—you'll typically be charged $2 to $3 per withdrawal. Some banks charge more, especially in cities or at ATMs in bars and convenience stores.

To avoid these fees, use your bank's ATM network. Large national banks like Bank of America, Chase, and Wells Fargo have thousands of ATMs across the country. Credit unions often participate in shared branching networks, which means you can withdraw cash at other credit unions' ATMs for free. Online banks usually reimburse out-of-network ATM fees, so you can use any ATM without paying.

If you rarely use cash, ATM fees may not matter to you. But if you withdraw cash several times a month, the fees add up—$2 per withdrawal twelve times a year is $24, which is more than some monthly maintenance fees.

Wire transfer, returned check, and stop-payment fees

Banks charge fees for specific services beyond the everyday account maintenance. A wire transfer fee (sending money electronically to another bank) typically costs $15 to $30 per transfer. A returned check fee is charged if a check you deposit bounces—the bank charges you $5 to $15 for processing it. A stop-payment fee is charged if you ask the bank to cancel a check you've already written, usually $25 to $35.

These fees are less common in daily banking than overdraft or ATM fees, but they matter if you use these services. If you send wire transfers regularly for business, the fees add up. If you frequently deposit checks that bounce, returned check fees become a real cost. Most people encounter these fees rarely or never.

Comparing accounts to find lower fees

The best way to avoid fees is to compare accounts before you open one. Look at the specific fees each bank charges and the conditions that waive them. A bank that charges a $10 monthly maintenance fee but waives it with direct deposit might cost you nothing if you get paid by direct deposit. A bank that charges no monthly fee but charges $3 per out-of-network ATM withdrawal might cost you more if you use ATMs frequently.

Create a simple list: monthly maintenance fee, overdraft fee, out-of-network ATM fee, wire transfer fee. Write down what each bank charges and what conditions waive each fee. Then estimate which one you'll actually pay based on your habits. If you use direct deposit, prioritize banks that waive fees with direct deposit. If you rarely use ATMs, out-of-network ATM fees don't matter. If you never send wire transfers, ignore that fee.

Online banks and credit unions often have lower fees overall because they have lower overhead costs than brick-and-mortar banks. But they may have trade-offs—fewer branches, slower customer service, or fewer features. Weigh the fee savings against what matters to you.

Frequently Asked Questions

Can a bank charge me multiple overdraft fees in one day?

Yes. If you make several purchases that overdraw your account on the same day, most banks charge a separate overdraft fee for each one. Some banks cap the number of overdraft fees per day (often 4 to 6), but others don't. Check your bank's overdraft policy to see the limit.

Do I have to pay overdraft fees if I opt out of overdraft coverage?

No. If you opt out, the bank will decline transactions that would overdraw your account instead of charging a fee. You won't overdraw and won't be charged. The trade-off is that your card or check may be declined at the register.

What's the difference between a monthly maintenance fee and an overdraft fee?

A monthly maintenance fee is charged just for having the account, regardless of how you use it. An overdraft fee is only charged when you spend more than your balance. You might pay both in the same month, or neither, depending on your bank and your account activity.

Do credit unions charge the same fees as banks?

Credit unions often charge lower fees than banks, especially for monthly maintenance and overdraft fees. But fees vary by credit union, so you still need to ask. Credit unions may also offer better rates on savings accounts and loans, which can offset any fees they do charge.

Can I get overdraft fees refunded if I call the bank?

Sometimes. If you've been a customer for a long time and rarely overdraw, the bank may refund one or two overdraft fees as a courtesy. But there's no may provide, and banks are not required to refund fees. It's worth asking, but don't count on it.