Key takeaways
The average checking account holder pays $24 per month, or $288 per year, in banking fees.
The most common fees are ATM charges, monthly maintenance fees, and overdraft fees.
Simple strategies like setting up alerts, using in-network ATMs, and enrolling in overdraft protection can help you keep more of your money.
If you're frequently paying fees, switching to an online-only financial institution with no monthly or overdraft fees could save you each year.
Most people don't plan for bank fees in their budget, yet these charges can add up quickly. In 2025, the average out-of-network ATM fee reached a record-high $4.86 per transaction, while the average overdraft fee remained $26.77. Altogether, Americans paid an estimated $12.1 billion in overdraft and non-sufficient fund fees in 2024, according to a 2025 Financial Health Network analysis.
These fees can come as a surprise, and a surprise bank fee is more than a financial hit – it can cause stress, frustration, and anxiety about future charges. We surveyed 2,000 Americans to learn about the emotional toll of unexpected bank fees and how to avoid them going forward. In fact, 28% of people who have faced an unexpected fee report feeling extremely or very worried about future charges.1
Below, we break down the most common bank fees Americans are paying and share six specific strategies to avoid them.
How to avoid bank fees when living paycheck to paycheck
The most effective way to avoid bank fees on a tight income is to choose an account with no monthly maintenance fees, no overdraft fees, and access to a large fee-free ATM network. When every dollar counts, even small charges can throw off your entire budget.
If switching accounts isn't an option right now, there are steps you can take to reduce fees:
Set up low-balance alerts: Get notified before your balance drops to a level that would trigger a fee.
Enroll in direct deposit: Many financial institutions waive monthly fees if you set up direct deposit or maintain a modest minimum balance.
Use overdraft protection: Link a savings account or enroll in a fee-free overdraft program like SpotMe®, which provides fee-free overdraft up to $200 on the Chime Visa® Debit Card and Chime Secured Visa® Credit card purchases and cash withdrawals for eligible members.
What unexpected fees are people running into?
Over the past year, here is the share of consumers who reported running into the following fees, according to our survey:1
Bank fees:
ATM fees: 18%
Monthly service/maintenance fees: 12%
Overdraft fees: 9%
Credit card fees:
Annual membership fees: 10%
Late payment fees: 9%
Cash advances: 7%
How to avoid unexpected bank fees
The most effective way to minimize the financial hit is by preventing bank fees in the first place. Use these strategies to avoid fees whenever possible.
1. Learn account rules for fee waivers
Bank accounts typically require a minimum balance each month, or you get charged a monthly maintenance fee. You understand you should keep your balance above the minimum requirement, but life can have other plans.
Check whether your account offers other ways to qualify and avoid the monthly maintenance fee. Some accounts may waive the fee if you set up a direct deposit, make a minimum number of monthly debit card purchases, or have other accounts at the same institution.
2. Use email and text alerts
Many financial institutions let you set up account alerts online or through your mobile app. You could set it up so you get an email or text reminder if your balance falls below a certain level or after large transactions above a specific threshold.
That way, you can see your balance is running low sooner and slow down your spending or deposit more money, rather than risking fees.
3. Plan your ATM withdrawals
In 2025, the average out-of-network ATM fee was $4.86 per transaction.2 A few of those a month can set back any budget.
Pull up a map of your institution's ATM network and find locations close to your job, grocery store, or gym. Planning withdrawals in advance helps you avoid out-of-network charges. You could also get cash back at the register when you make a purchase at your favorite department or grocery store.
4. Set up overdraft protection
Your financial institution could offer overdraft protection or coverage if you link a savings or other checking account. If a purchase accidentally puts you over your balance, overdraft protection covers the difference using your other account, which may help you avoid overdraft fees.
For example, SpotMe by Chime provides fee-free overdraft up to $200 on debit and credit card purchases and cash withdrawals for eligible members.
5. Review your monthly statements for patterns
Every month, review your statement for unexpected fees and identify what triggered them – a late deposit that caused an overdraft, or out-of-network ATM use. Once you spot the pattern, adjust your habits for the following month. Small changes add up over time.
6. Consider switching accounts
Some accounts are much better for fees than others. Some no-fee checking accounts may reimburse out-of-network ATM fees, don't charge overdraft fees, and have no minimum balance requirements.
Consumers know fees matter when shopping for a new checking account. Roughly 90% review the fee schedule before enrolling, while nearly 40% study it in detail.1
What to do when you're charged a surprise fee
Most people don't accept an unexpected bank fee without giving pushback. Only 9% of consumers reported doing nothing after facing a surprise fee – the majority had some reaction.
Contact your financial institution: 63% of respondents said they reached out for an explanation, while 50% asked for the fee to be removed. Your institution might be willing to waive a fee, especially if you have a reasonable excuse and it's your first fee.
File a dispute or complaint: 34% of consumers escalated the situation further by filing a formal dispute over the charge. 5% filed a complaint with a third-party service, like the Better Business Bureau or Consumer Affairs.
Consider changing banks: 17% of people considered switching immediately after the unexpected fee. People who faced an unexpected fee over the past year are more than twice as likely to have closed an account or switched: 41% vs. 20% of those who were not charged.1
Where you bank makes a big difference
National brick-and-mortar institutions might charge more for account fees. Online-only options like Chime are another alternative. Chime doesn't charge overdraft, monthly maintenance, or foreign transaction fees, so you can keep more of your hard-earned money.
Online financial services providers like Chime can also be more generous with paying interest on your deposits. For example, Chime's high-yield savings account offers a 3.75% Annual Percentage Yield (APY) for Chime Prime™ members3, which is significantly higher than the national average.4
72% of consumers are aware of online-only options that charge lower or no fees, and 38% of people surveyed would consider using one as their primary account. People who faced an unexpected fee were more likely to consider a primary account at an online-only provider, with 44% of respondents saying they would consider this.
Take control of your banking fees
Bank fees don't have to be a regular part of your financial life. By understanding what triggers common charges and taking a few proactive steps – like setting up alerts, using in-network ATMs, and choosing an account built around fewer fees – you can keep more of your hard-earned money where it belongs.
If surprise fees have been a recurring frustration, it may be worth reviewing the strategies above or considering an account with fewer built-in fees.