The main charges your bank will deduct from your account
Banks charge you for specific actions and services, and the amount varies by bank and account type. The most common charges are overdraft fees (when you spend more than you have), monthly maintenance fees (for keeping the account open), ATM fees (for withdrawing cash outside your bank's network), and wire transfer fees (for sending money electronically to another bank). Some banks also charge for paper statements, stop payments on checks, returned deposits, and account research when you dispute a transaction.
Overdraft fees are the largest source of bank revenue from consumers. When a transaction pushes your balance below zero, your bank either declines it or covers it and charges you a fee—usually between $25 and $35 per overdraft. Some banks charge multiple overdraft fees per day if several transactions go through while your account is negative. A few banks charge a separate "overdraft protection" fee if you link a savings account or credit line to cover the shortfall.
Monthly maintenance fees range from $5 to $15 depending on the account type and bank. Many banks waive this fee if you maintain a minimum balance (often $500 to $2,500), set up direct deposit, or use their debit card a certain number of times per month. Checking accounts aimed at students or seniors often have no monthly fee at all.
Key Takeaways
- Overdraft fees are charged when a transaction exceeds your balance, and most banks charge $25 to $35 per overdraft, sometimes multiple times per day.
- Monthly maintenance fees can be waived by maintaining a minimum balance, setting up direct deposit, or meeting other account requirements your bank sets.
- ATM fees apply when you withdraw cash from a machine outside your bank's network, typically $2 to $3 per withdrawal plus a fee from the ATM operator.
- Wire transfer fees, stop payment fees, and returned-item fees are charged for specific transactions and typically cost $15 to $50 each.
- You can reduce or eliminate most charges by choosing an account type that matches your habits and reading your bank's fee schedule before opening the account.
ATM fees and out-of-network withdrawals
When you withdraw cash from an ATM that does not belong to your bank, you pay two fees: one from your bank and one from the ATM operator. Your bank's fee is usually $2 to $3 per withdrawal. The ATM operator's fee (the bank or network that owns the machine) is typically $1 to $3 more. If you withdraw $20 from an out-of-network ATM, you might pay $4 to $6 in fees total.
Banks with large branch networks (like Bank of America, Wells Fargo, or Chase) have fewer out-of-network ATMs because they own more machines. Banks with smaller networks or online-only banks often reimburse ATM fees or belong to shared networks where you can use thousands of machines for free. If you frequently need cash, check whether your bank participates in an ATM network like Allpoint or MoneyPass, which let you use partner machines without a fee.
Wire transfer and money-sending fees
A wire transfer is an electronic instruction to your bank to send money to another bank account, usually the same day. Domestic wire transfers (within the United States) typically cost $15 to $30. International wire transfers cost more—usually $35 to $50—because they move through multiple banks and currency exchanges. Some banks charge the same fee whether you send $100 or $10,000.
ACH transfers (Automated Clearing House) are slower but cheaper. These are the electronic transfers used for direct deposit, bill pay, and peer-to-peer transfers. Most banks offer ACH transfers for free or charge $1 to $3. An ACH transfer takes one to three business days, while a wire transfer settles the same day or next business day.
If you send money through a third-party service like PayPal, Venmo, or a money transfer app, you may pay a separate fee on top of your bank's fee. Some apps charge a flat fee ($1 to $3), others charge a percentage of the amount sent (1% to 3%), and some offer free transfers if you use a debit card but charge if you transfer from a bank account.
Stop payment, returned check, and dispute fees
A stop payment is an instruction to your bank not to cash a check you wrote. This costs $25 to $35 and is useful if you lose a check or need to cancel a payment. You must request it before the check clears, which is usually within 30 days of writing it. Some banks charge less if you request it online versus by phone.
A returned item fee (also called a bounced check fee or NSF fee) is charged when a check you deposit does not clear because the other person's account has insufficient funds. Your bank charges you $15 to $25 for this, and the person who wrote the check is also charged by their bank. If you deposit a check and it bounces weeks later, you may not notice the fee until you reconcile your account.
If you dispute a transaction and your bank investigates, some banks charge $25 to $100 for the research, though many waive this if the dispute is found in your favor. Banks are required to investigate disputes within 60 days, but they may charge you if the investigation shows the transaction was legitimate.
How to avoid or reduce bank charges
The easiest way to avoid overdraft fees is to turn off overdraft protection or opt out of overdraft coverage. If you do this, transactions that exceed your balance will simply be declined instead of going through and charging you a fee. You can still use your debit card and write checks—they just will not process if you do not have the money. Contact your bank to opt out; this is a free change and takes minutes.
To avoid monthly maintenance fees, choose an account type designed for your situation. Student checking accounts, senior accounts, and accounts with direct deposit often have no monthly fee. If your current account charges a fee, ask your bank what you need to do to waive it—usually a minimum balance or a certain number of debit card transactions per month. If they cannot waive it, switch to a bank that does not charge for the account type you need.
To avoid ATM fees, use your bank's ATM network or join a shared network. Online banks like Ally, Charles Schwab, and Fidelity reimburse all ATM fees nationwide, which means you can use any ATM and get your money back. If you use a traditional bank, ask whether they participate in a surcharge-free network.
To avoid wire transfer fees, use ACH transfers or bill pay instead when you have time. If you must send money the same day, compare fees across banks—some charge less than others. For peer-to-peer transfers, use free services like Zelle (which most banks offer) instead of paid apps.
What happens when charges pile up
If you overdraft multiple times in a short period, fees can add up quickly. A single day with three overdrafts can cost $75 to $105 in fees alone. Some banks have daily overdraft limits (they will not charge more than one fee per day) or daily maximum fees (they cap total overdraft charges at $35 per day), but not all do. Check your bank's overdraft policy to know your worst-case scenario.
Repeated overdrafts can also trigger your bank to close your account or report you to ChexSystems, a banking history database. If you are reported to ChexSystems, other banks may decline your application for a new account. This is not a credit report—it is a separate system banks use to screen new customers. You can request your ChexSystems report for free once per year at www.chexsystems.com.
If you fall behind on fees and your account goes negative, your bank may charge you an additional fee for the negative balance itself (sometimes called a "sustained overdraft fee"). This can happen if you do not deposit money to cover the overdraft and fees within a certain time, usually 30 to 60 days.
Comparing bank fees across different account types
| Charge Type | Typical Cost | How to Avoid It |
|---|---|---|
| Monthly maintenance fee | $5–$15 | Maintain minimum balance, set up direct deposit, or choose a no-fee account |
| Overdraft fee | $25–$35 per overdraft | Opt out of overdraft coverage or keep a buffer in your account |
| Out-of-network ATM fee | $2–$6 per withdrawal | Use your bank's ATM or join a surcharge-free network |
| Domestic wire transfer | $15–$30 | Use ACH transfer or bill pay instead |
| International wire transfer | $35–$50 | Use a money transfer service or international bank account |
| Stop payment on check | $25–$35 | Request it online if available (usually cheaper than by phone) |
| Returned item fee | $15–$25 | Verify funds before depositing checks or requesting payment |
Frequently Asked Questions
Can a bank charge me multiple overdraft fees in one day?
Yes. Most banks charge a separate overdraft fee for each transaction that exceeds your balance, even if they all happen on the same day. Some banks cap daily overdraft fees at one or two charges, but many do not. Check your bank's overdraft policy to see if there is a daily limit.
What is the difference between opting out of overdraft and having overdraft protection?
Opting out means transactions that exceed your balance are declined—no fee, no charge. Overdraft protection means your bank covers the shortfall by transferring money from a linked savings account or credit line, and charges you a fee for doing so. Opting out is free and prevents fees; overdraft protection costs money but lets transactions go through.
Do I have to pay a fee if my bank makes a mistake and charges me twice?
No. If your bank charges you in error, contact them and ask for a reversal. Banks are required to correct mistakes, and most will reverse an erroneous fee within one to two business days if you report it. Keep records of the error (screenshots, emails, or statements) in case you need to dispute it.
Will switching banks erase fees I already owe?
No. Fees you owe remain your responsibility even if you close the account and move to a different bank. Your old bank can pursue collection or report the debt to a collection agency. If you owe fees, pay them before closing the account or contact your bank to negotiate a settlement.
Are there banks that charge no fees at all?
Some online banks and credit unions charge no monthly maintenance fees, no overdraft fees (if you opt out), and no ATM fees. Examples include Ally Bank, Charles Schwab Bank, and many credit unions. However, no bank charges zero fees for all services—wire transfers, stop payments, and other specialized services typically still cost money. Read the fee schedule before opening an account.