Checking Account Fees: How Much They Are And How To Avoid Them (2024)

Checking accounts offer a safe place to receive direct deposits and keep spending money, and the debit cards they come with make everyday purchases easy and fast.

But this convenience can come at a cost. Many checking accounts charge fees for everything from overdrafts to ATM usage to just keeping your account active. These checking account fees can chip away at your hard-earned cash. Luckily, they’re entirely avoidable.

Account details are accurate as of June 24, 2024.

Checking Account Fees

There are several different types of checking account fees, including recurring fees you pay on a regular basis and one-time fees you pay for different activities. Common fees include monthly service fees, overdraft fees, non-sufficient funds fees and ATM fees.

Monthly Service Fees

A monthly service fee is a fee you pay each month to maintain your account, and many checking accounts charge them. These fees typically run between $5 and $15 per month. Premium checking accounts with more banking perks may cost $25 per month or more.

Many checking accounts allow account holders to waive monthly fees by meeting certain requirements. Waiver requirements might include maintaining a minimum balance, completing a certain number of debit card transactions per month or receiving a specified amount in qualifying direct deposits each statement period.

Here are a few examples of monthly fees, and requirements for waiving them, on popular checking accounts with five of the largest banks in the U.S.

• Chase Total Checking®: $12 monthly service fee, waivable with $500 or more in electronic deposits per month, a minimum daily balance of $1,500, or an average combined balance of $5,000 across qualifying Chase accounts
• Bank of America Advantage SafeBalance Banking®: $4.95 monthly service fee, waivable for qualifying student account holders under 25 years old, all account holders under 18 and Preferred Rewards members
• : monthly service fee, waivable with $250 or more in Enhanced Direct Deposits, for Citi Savings accounts, or for Citigold Private Client, Citigold or Citi Priority customers
• Wells Fargo Everyday Checking: $10 monthly service fee, waivable with a $500 minimum daily balance, $500 or more in qualifying electronic deposits, and for account holders aged 17 to 24 or students with a linked Wells Fargo Campus ATM Card or Campus Debit Card
• U.S. Bank Smartly® Checking: $6.95 monthly service fee, waivable with $1,000 or more in direct deposits, a minimum daily balance of $1,500, for account holders over 65 or under 24, for military members, and for eligible U.S. Bank credit card holders or qualifyingSmart Reward® tier members.

Though a lot of bank accounts carry monthly fees, many banks and credit unions offer free checking accounts for everyone or dedicated free accounts for certain groups such as students or seniors.

Overdraft

An overdraft occurs when a transaction causes your account balance to dip into the negative, typically because you spent more money than you have available in your account. The majority of banks charge overdraft fees. The average overdraft costs around $35 per transaction, per day—meaning you’ll get hit with a fee every day your balance stays negative.

Many banks offer overdraft protection and overdraft transfer services to help you avoid these fees. These services let you link qualifying accounts to automatically cover transactions that would cause your checking account to become overdrawn. Such services may also cost money, but often less than overdraft fees.

Non-Sufficient Funds (NSF) Fees

Like overdraft fees, non-sufficient funds (NSF) fees occur when you don’t have enough funds to cover a transaction. NSF fees are charged when a check you wrote bounces or an electronic payment you made is returned unpaid. The average NSF fee is $34.

ATM Fees

While most banks allow you to make free deposits and withdrawals at in-network ATMs, you’ll typically pay a fee if you use a non-affiliated ATM. This is often a flat rate of between $3 and $5 or a small percentage of the withdrawal (generally whichever is greater).

Some checking accounts waive your first few fees per month or offer reimbursem*nt for third-party fees. Many hybrid and online banks are part of large ATM networks shared by other institutions, making it easy to find surcharge-free ATMs.

High-Yield Checking Account Fees

Many of the best high-yield checking accounts charge very few fees and pay competitive interest rates on top of that. These accounts may also waive other common checking account fees.

For example, the EverBank Yield Pledge Checking account earns interest, has no monthly fees and does not charge for its overdraft transfer service. The Axos Bank Rewards Checking account also earns interest and offers unlimited domestic ATM fee reimbursem*nts.

Keep in mind that while interest checking accounts at online banks and credit unions tend to have minimal fees, this isn’t usually the case with national banks. Interest-bearing checking accounts at big banks like Chase have higher monthly fees than their basic checking accounts.

Other Checking Account Fees

In addition to the fees discussed above, here are other checking account fees you may encounter.

• Check fees: This fee is charged when you order paper checks. Some checking accounts still offer free checks, but it’s increasingly less common. Other common check-related fees include fees for cashier’s checks, counter checks and money orders.
• Foreign transaction fees: When you use your debit card abroad, whether to make a withdrawal at an ATM or a point-of-sale purchase, you may be charged a foreign transaction fee. This fee can range from 1% to 3% of the purchase total, though some accounts charge none at all.
• Wire transfer fees: When you send or receive a wire transfer, you’ll usually pay a fee to process the transaction. Domestic wire transfer fees can range from $0 to $30, and international transfers often cost more.
• Stop payment fees: When you write a check or initiate a transfer and need to cancel payment before it’s processed, you’ll generally pay a stop payment fee. Many checking accounts charge between $25 and $30 per stop payment order.
• Paper statement fees: In an effort to reduce waste and save on printing and mailing costs, banks often encourage customers to opt into digital statements. If you want paper statements, you may pay a paper statement fee—typically around $2 each.
• Card replacement fees: If you lose the debit card attached to your checking account, you may be charged to replace it. Some accounts charge more for expedited shipping.

How To Avoid Checking Account Fees

Though most bank accounts charge fees, there are many ways to avoid them. Look for an account at an online bank, as they’re known for charging very few fees.

If you already have a checking account that charges fees, here are some ways to avoid those.

Set Up Direct Deposits to Your Checking Account

Some checking accounts waive monthly fees when you receive enough eligible direct deposits every month. If you have your paycheck deposited into your checking account, you can easily avoid fees and may also be eligible to receive perks like interest or cash back on spending. You can always transfer funds to savings or other accounts later.

Maintain a Minimum Balance

Because many checking accounts have minimum deposit and minimum balance requirements, maintaining a balance is usually the best way to avoid monthly fees. Often, checking accounts only charge a monthly fee if you don’t meet minimums. Plan to leave at least the minimum requirement for your bank in your account at all times. Scheduling automatic deposits can help you build a buffer without thinking about it.

Enroll in Overdraft Protection.

Overdraft protection is an optional service offered by many banks to help you avoid overdrawing your account. Usually, you have to opt into overdraft protection. You may still have to pay a fee when your bank schedules a transfer on your behalf, but doing so helps you avoid overdraft and NSF fees—which can be charged multiple times. If you find that you aren’t using this service or you’re paying too much for it, you can always opt out.

Avoid Wire Transfers and Foreign Transactions

Certain transactions, including wire transfers and purchases made abroad, can incur additional costs. To avoid having to pay extra fees, be mindful of how you’re moving money. External and internal bank transfers are often free and peer-to-peer payment apps are ideal for inexpensive international money transfers.

When traveling internationally, you can avoid foreign transaction fees by using a no foreign transaction fee credit card or paying for purchases in cash with the local currency.

Switch to a No-Fee Checking Account

If you’re open to switching banks, there are plenty of no-free checking accounts. These accounts charge no monthly maintenance fees and often have no minimum deposit or balance requirements. On top of that, many of them don’t charge overdraft or ATM fees either. Online banks like Discover even offer free paper checks and free debit card replacement, and you can earn debit card rewards.