featured
2025-07-08
Banking Advice
published
4 Minutes
Bank accounts are a convenient and secure way to manage your money, but many customers are caught off guard by fees that chip away at their balance. Whether it’s a monthly maintenance charge or an unexpected overdraft fee, understanding what you’re paying—and how to avoid it—can help you make smarter financial decisions.
Let’s break down the most common types of bank fees, explain why they exist, and offer tips to help you minimize or eliminate them.
1. Monthly Maintenance Fees
What It Is:
A monthly fee some banks charge just for keeping your account open.
Why It Happens:
Banks use this fee to cover operational costs. Some accounts waive these fees by requiring a minimum balance or recurring deposits.
How to Avoid It:
- Maintain the required minimum balance.
- Set up direct deposit if it qualifies your fees to be waived.
- Choose a no-fee or low-fee account option.
NO MONTHLY SERVICE FEES WITH SIMPLY CHECKING FROM SHORE UNITED BANK
2. Overdraft Fees
What It Is:
A fee charged when you spend more than what’s in your account and the bank covers the difference.
Why It Happens:
The bank is essentially giving you a short-term loan. It’s a convenience fee for covering your transaction instead of declining it.
How to Avoid It:
- Sign up for overdraft protection, which can link to a checking, savings or line of credit and serve as a cushion for these instances.
- Track your balance with mobile banking apps.
- Set up account alerts to notify you when funds are low.
3. ATM Fees
What It Is:
Fees for using out-of-network ATMs.
Why It Happens:
You’re using another bank’s ATM, and both that bank and your bank may charge a fee.
How to Avoid It:
- Use your bank’s ATMs whenever possible.
- Find a bank that is a part of the Allpoint network.
4. Paper Statement Fees
What It Is:
A small charge for receiving printed statements.
Why It Happens:
To cover printing and mailing costs—and to encourage customers to go digital.
How to Avoid It:
- Opt in to e-statements through online banking.
- Download or print your own statements as needed.
5. Excessive Transaction Fees (Savings Accounts)
What It Is:
Many savings accounts are limited to a certain number of withdrawals per month. Going over that can mean being charged a fee.
Why It Happens:
Savings accounts are designed to help you save your money—not frequently spend it.
How to Avoid It:
- Plan your withdrawals in advance.
- Use a checking account for frequent transactions.
6. Inactivity or Dormant Account Fees
What It Is:
A fee charged when you haven’t used your account for a long period.
Why It Happens:
Banks monitor dormant accounts for fraud and sustain costs maintaining them.
How to Avoid It:
- Make at least one small transaction every few months.
- Set up automatic transfers to or from your accounts to avoid these fees all together.
- Close accounts you don’t plan to use.
THE DORMANT ACCOUNT DILEMMA: HOW NOT USING YOUR ACCOUNT IS COSTING YOU
7. Foreign Transaction Fees
What It Is:
A percentage-based fee when you use your debit or credit card abroad or shop with international retailers.
Why It Happens:
Currency conversion and processing through international networks induce costs for banks.
How to Avoid It:
- Use a credit card or account that offers no foreign transaction fees.
- Consider travel-friendly banking options.
MANAGING FINANCES ABROAD: WHAT YOU NEED TO KNOW
Why Bank Fees Matter
Even small fees can add up over time. Being aware of what your bank charges and why gives you the power to take control of your money. While sometimes it can feel frustrating when you see a banking fee appear on your statement, it’s important to keep in mind that banks are usually for-profit entities, and community banks, especially, invest many of those profits back into the communities in which they serve, not to mention employ many members of our communities.
If fees are consistently cutting into your balance, it may be time to shop around for a bank or account type that better fits your lifestyle.
FACTORS TO CONSIDER WHEN SWITCHING BANKS
Final Tip: Review Your Account Terms Regularly
Bank policies and fee structures can change. Make it a habit to review your account’s terms and your monthly statements. If something seems off, don’t hesitate to ask your bank for clarification.
Fees aren’t fun, but they don’t have to burden your bank accounts. By understanding what they are and how they work, you can keep more of your money where it belongs—in your account.
Utilizing online banking features are a great way to monitor your account, set up automatic transfers, and avoid those extra fees. Learn more about how using online banking can streamline your account maintenance.
