The main bank charges you will encounter
Banks charge you in two ways: for services you use, and for breaking the rules they set. The most common charges are overdraft fees (when you spend more than you have), monthly maintenance fees (for keeping an account open), ATM fees (for withdrawing cash outside your bank's network), and wire transfer fees (for sending money electronically). Some banks also charge for paper statements, account closure within a certain timeframe, or stopping a check payment.
The amount varies by bank and account type. A large national bank might charge $35 for an overdraft, while a credit union might charge $25 or nothing at all. Monthly maintenance fees range from $0 to $15 depending on whether you meet conditions like keeping a minimum balance or setting up direct deposit. ATM fees typically run $2 to $3 per withdrawal at an out-of-network machine, though your own bank's ATM is usually free.
The charges that hurt most are the ones you do not see coming. Overdraft fees pile up quickly if you are living paycheck to paycheck — one mistake can trigger multiple charges in a single day. Wire transfer fees are usually $15 to $30 and hit you when you are already moving money you need elsewhere. Account closure fees penalize you for leaving, usually $25 to $100 if you close within the first 6 to 12 months.
Key Takeaways
- Overdraft fees are the single largest charge for most people and can stack multiple times in one day if your account goes negative.
- Monthly maintenance fees disappear if you meet simple conditions like direct deposit, minimum balance, or online statements only.
- ATM fees add up fast if you use out-of-network machines regularly — switching to your bank's network or a bank with more branches saves money.
- Wire transfer fees and early account closure fees are avoidable if you plan ahead and choose the right account type from the start.
How overdraft fees work and when they trigger
An overdraft fee hits when your account balance goes below zero. This happens when you swipe your debit card, write a check, or set up an automatic payment that exceeds what you have on hand. The bank covers the transaction anyway (if you have overdraft protection turned on), then charges you a fee for doing so.
The timing matters. Some banks charge one fee per day, others charge one fee per transaction. If you go negative on Monday and stay negative until Friday, you might pay one fee or five fees depending on the bank's rules. Some banks also charge a "sustained overdraft fee" if your account stays negative for more than a few days — an extra charge on top of the initial overdraft fee.
You can turn off overdraft protection to prevent this. If you do, transactions that would overdraw your account simply decline instead, and you pay nothing. The tradeoff is that your card gets rejected at the checkout, which is embarrassing but costs you zero dollars. Many banks let you turn this on and off in your mobile app.
Monthly maintenance fees and how to avoid them
A monthly maintenance fee (also called a service charge) is what the bank charges just for having an account with them. It typically ranges from $5 to $15 per month, though many accounts charge nothing. The fee appears on your statement every month unless you meet a waiver condition.
Most banks waive the fee if you do one or more of these things: set up direct deposit, keep a minimum balance (often $500 to $1,500), maintain a certain number of debit card transactions per month, or switch to paperless statements. Some banks waive it for customers over 65 or under 25. Read the account terms before you open — the fee structure is always listed there, and so are the ways to avoid it.
If you are paying a monthly fee, you are likely in the wrong account. Switching to a checking account with no monthly fee costs nothing and saves you $60 to $180 per year. Online banks and credit unions almost always offer no-fee checking.
ATM fees and network access
Using an ATM that does not belong to your bank costs money. The fee is usually $2 to $3 per withdrawal and comes out of your account immediately. If you use an out-of-network ATM twice a week, that is $16 to $24 per month in fees alone.
Your own bank's ATM is always free. The question is whether your bank has enough ATMs near where you live and work. Large national banks like Chase, Bank of America, and Wells Fargo have thousands of ATMs nationwide. Smaller regional banks and credit unions have fewer, which means you will hit out-of-network machines more often.
Some banks reimburse out-of-network ATM fees if you maintain a high balance or pay a premium monthly fee. Online banks like Ally and Charles Schwab reimburse ATM fees nationwide, which makes them attractive if you travel or live in an area with limited branch access. Before opening an account, map out where you actually withdraw cash and check whether the bank's network covers those locations.
Wire transfer and money movement fees
Sending money electronically costs money. A domestic wire transfer (money sent within the United States) typically costs $15 to $30. International wires cost more, usually $35 to $50. Some banks charge the same fee whether you initiate the wire or receive it; others charge only the sender.
ACH transfers (automated clearing house transfers, used for things like paying bills or sending money to another person's bank account) are usually free or cost $1 to $3. They are slower than wires — typically 1 to 3 business days — but much cheaper. If you are not in a hurry, ACH is the better choice.
Mobile payment apps like Venmo, PayPal, and Cash App let you send money to friends for free (though they may charge a fee if you want the money instantly or if you are sending to a business). These are not bank transfers, so the fees are different. Check what your bank charges before you wire anything.
Fees for closing accounts and other services
Some banks charge you to close an account, usually $25 to $100, but only if you close within a certain window — often 6 to 12 months after opening. This is designed to discourage people from opening accounts just to get a sign-up bonus and leaving immediately. If you plan to keep the account open for at least a year, this fee will not apply.
Other fees include stop payment fees (usually $25 to $35 to cancel a check you wrote), paper statement fees (if you request printed statements instead of online), and overdraft protection setup fees. These are less common now, but they still exist at some banks. Always read the fee schedule before you open an account.
The fee schedule is a document the bank is required to give you. It lists every charge, when it applies, and how much it costs. You can usually find it on the bank's website under "Pricing" or "Disclosures." If you cannot find it, call the bank and ask them to email it to you.
How to compare banks by their fee structure
Start by listing the services you actually use. Do you withdraw cash multiple times a week? Do you send wire transfers? Do you keep a low balance? Do you overdraft occasionally? Once you know your habits, you can calculate which bank's fees will cost you the least.
For example, if you withdraw cash twice a week at out-of-network ATMs, a bank with a large ATM network saves you $32 to $48 per month compared to a bank with few ATMs. If you keep a low balance and overdraft once a month, a bank with no overdraft fees saves you $35 to $420 per year depending on how often it happens. These savings add up.
Use a spreadsheet to compare three to five banks you are considering. List the fees each one charges for the services you use, then add them up for a year. The bank with the lowest total is usually the right choice. Do not just pick the bank with the lowest overdraft fee — pick the one with the lowest total cost for your actual behavior.
Frequently Asked Questions
Can a bank charge me multiple overdraft fees in one day?
Yes. If your account goes negative and you make multiple transactions while it is negative, some banks charge a separate overdraft fee for each transaction. Others charge one fee per day regardless of how many transactions occur. Check your bank's overdraft policy — it is in the fee schedule or account terms.
What is the difference between overdraft protection and overdraft fees?
Overdraft protection is a service that covers transactions when your balance is too low, then charges you a fee for doing so. Without overdraft protection, transactions simply decline and you pay nothing. You can usually turn overdraft protection on or off in your mobile app or by calling the bank.
Do credit unions charge the same fees as banks?
Credit unions typically charge lower fees than large banks. Many credit unions have no monthly maintenance fees, lower overdraft fees, and participate in shared branching networks that give you access to other credit unions' ATMs nationwide. However, fees vary by credit union, so check the fee schedule before you join.
Are there banks that charge no fees at all?
Some online banks and credit unions offer truly free checking with no monthly fees, no overdraft fees, and no ATM fees (or ATM fee reimbursement). However, "no fees" usually comes with tradeoffs like fewer physical branches, lower interest rates, or requirements like direct deposit. Read the fine print to understand what you are getting.
How do I know if a fee was charged by mistake?
Check your account statement or mobile app — all fees appear there with a description. If you do not recognize a fee, call the bank and ask what it was for. If the bank made an error, they will reverse it. If you violated the account terms (like overdrafting), the fee is usually valid, but you can ask the bank to waive it as a courtesy, especially if it is your first time.