Bank Fees

Bank fees are what financial institutions charge customers to set up and maintain their accounts. Bank fees can include monthly service charges to keep the account running, penalties for certain activities (like overdrawing funds), and fees for certain transactions (like using out-of-network ATMs).

The types of bank fees you can be charged – and the dollar amount for each – vary from bank to bank. Some financial institutions offer “fee-free” accounts, meaning customers may not have to pay monthly maintenance fees, minimum balance fees, and overdraft fees.

Before opening a new account, research all the fees the bank might charge you. Here are some of the most common bank fees to look out for:

1. Monthly maintenance fees
2. Minimum balance fees
3. Non-sufficient funds fees
4. Overdraft fees
5. ATM fees
6. Foreign transaction fees
7. Excess funds fees

Some financial institutions charge a monthly fee to keep the account open. Monthly maintenance fees typically range from $5 to $12, but some banks waive the charge if you meet certain requirements, like keeping a high enough minimum average balance or getting your paycheck via direct deposit.

Some accounts aren’t charged these fees at all. You can get all your favorite checking account features – peer-to-peer payments, mobile check deposit, getting your paycheck early, and more – without paying monthly fees.

Banks may also charge you if you don’t keep enough money in your account. Read the fine print to find out how much you need to keep in your checking account to avoid minimum balance fees – or look for a bank that doesn’t charge minimum balance fees at all.

Non-sufficient funds (NSF) fees, also called insufficient funds fees, are what some banks charge if you spend more money than you have in your checking account, whether it’s with a debit card, paper check, or automatic bill pay.

When you don’t have enough money to cover the purchase, your bank will decline the transaction and may charge an NSF fee (an average of $34¹). Some banks may continue to charge a fee for every declined transaction. Take care to fund your account when your balance runs low. 

Some banks offer overdraft protection, meaning they’ll let transactions go through, even if you don’t have enough money in your account. 

However, many banks charge you for this service. It’s called an overdraft fee, and it typically costs $35 per transaction², even if you only overdrew your account by a few cents.

Overdraft fees can add up quickly. Find an account that offers fee-free overdraft to avoid these costs.

Using an ATM is convenient – but it can also be costly. When you use an out-of-network ATM, your bank might charge you a fee, and you might also pay a fee to the ATM operator. 

To avoid ATM fees (they average $4.66 per transaction³), choose an account that has access to a large network of fee-free ATMs.

Traveling abroad can be expensive, from flights to hotels to all the good eats. But you may also need to spend a portion of your vacation budget on foreign transaction fees.

Some institutions and card issuers charge these fees as a percentage of every card transaction in another country (usually 2% to 4%).

If you plan to travel outside the U.S., look for a financial institution that doesn’t charge foreign transaction fees.

These charges can occur when you make too many withdrawals – typically more than six, based on previously established Regulation D requirements⁴ – from your savings account in a single statement period.

You can avoid these fees by primarily relying on your checking account for everyday spending, but you can also find savings accounts that don’t include these fees.

Financial institutions can charge a range of fees outside the ones mentioned above. Here are some other bank fees you might encounter:

• Paper statement fees: Banks may charge you if you get your monthly account statement in the mail. Opt into e-statements to avoid this fee.
• Check ordering fees: Some banks give you free checks; others charge you when you need to order more.
• Card replacement fees: Hold on tight to your debit card. You may have to pay a fee if you lose yours and order a new one.
• Wire transfer fees: You’ll typically pay a fee for outgoing domestic and international wire transfers. Depending on your bank, you may also pay a fee if you’re on the receiving end of a wire transfer.
• Account closing fees: Some banks charge early closure fees (if you close your account too soon after opening it).

When looking for a new spot to bank, you should compare interest rates, customer reviews, account requirements, and any fees you might be charged.

Chime’s mission is to provide helpful and easy banking services to those underserved by traditional banks. That’s why Chime doesn’t charge monthly fees for checking and savings accounts.

You won’t pay minimum balance fees, foreign transaction fees, or overdraft fees through Chime accounts either. To make banking on the go more convenient, Chime customers also have access to more than 60,000 fee-free⁵ ATMs in the U.S.

Check out our competitor fee pages to see how Chime compares: