Financial institutions may charge monthly maintenance fees in exchange for their services. You may be thinking, why should I have to pay to keep an account open if I’m storing my money there? Sadly, both online and brick-and-mortar accounts may charge monthly maintenance fees, which can easily add up over time.
Many financial institutions will charge a monthly maintenance fee if you don’t meet certain requirements. While some banks don’t have monthly fees associated with their accounts, there are ways to avoid the ones that do.
You should be aware of maintenance fee charges as a consumer. Let’s jump in and help you avoid these fees if you can.
What is a monthly service fee?
A monthly maintenance fee, or a monthly service fee, is a fee charged by a financial institution to a customer using a checking or savings account if certain requirements aren’t met. This fee is sometimes automatically withdrawn from your account. For example, some banks may charge a monthly maintenance fee if your account balance is under a certain threshold.
Financial institutions are for-profit businesses and need to make money to stay open. Monthly bank service charges contribute to this profit and can help cover day-to-day operating costs.
Banks that do charge monthly maintenance fees often allow account holders to avoid them by meeting certain requirements. The ability to waive fees might also attract new customers to make larger deposits each month, hold larger balances, and even use their accounts more frequently.
Monthly maintenance fees charged by the largest U.S. banks
Not all banks charge monthly maintenance fees for checking accounts or savings accounts. However, several large financial institutions have these account charges.
Banks will add on different amounts for their monthly maintenance fee, as it’s part of how they make their money. Here’s a closer look at some of the bank service charges at the biggest banks in the U.S. and how you can avoid them.
Disclaimer: Fees for each bank may vary based on location.
Bank of America monthly maintenance fees1
| Account Type | Monthly Fee | How to Avoid Bank of America Monthly Maintenance Fee |
|---|---|---|
| Checking | $14 |
|
| Savings | $5 |
|
Chase monthly maintenance fees²,³
| Account Type | Monthly Fee | How to Avoid Chase Monthly Maintenance Fee |
|---|---|---|
| Checking | $12 |
|
| Savings | $5 |
|
U.S. Bank monthly maintenance fees⁴,⁵
| Account Type | Monthly Fee | How to Avoid U.S. Bank Monthly Maintenance Fee |
|---|---|---|
| Checking | $6.95 |
|
| Savings | $4 |
|
TD Bank monthly maintenance fees⁶,⁷
| Account Type | Monthly Fee | How to Avoid TD Bank Monthly Maintenance Fee |
|---|---|---|
| Checking | $15 |
|
| Savings | $5 |
There’s no fee for the first year with a recurring transfer of $25. |
Citibank monthly maintenance fees⁸,⁹
| Account Type | Monthly Fee | How to Avoid Citibank Monthly Maintenance Fee |
|---|---|---|
| Checking | $15 |
|
| Savings | $4.50 |
|
Wells Fargo monthly maintenance fees¹⁰,¹¹
| Account Type | Monthly Fee | How to Avoid Wells Fargo Monthly Maintenance Fee |
|---|---|---|
| Checking | $10 |
|
| Savings | $5 |
|
PNC monthly maintenance fees¹²
| Account Type | Monthly Fee | How to Avoid PNC Monthly Maintenance Fee |
|---|---|---|
| Checking | $7 |
|
| Savings | $5 |
|
7 smart ways to avoid maintenance fees
Monthly maintenance fees can add up quickly, especially if you have multiple accounts. You may want to choose a financial institution that allows you to waive monthly fees. Typically, this involves meeting certain requirements.
Some banks make it possible to waive monthly maintenance fees, and they’re required to disclose any fees upfront. If you are looking to open a new checking account, make sure you read the account disclosures.
Here are some smart ways to avoid maintenance fees:
- Maintain the minimum balance. The most straightforward way to avoid monthly maintenance fees is by keeping a minimum balance in your account. Some financial institutions will waive your checking account maintenance fee as long as you maintain the minimum daily balance.
- Switch to online banking. Many banks offer mobile banking apps that let you deposit checks, transfer funds, and pay bills with just your phone. This can help you manage your account more easily and maintain the minimum balance needed to avoid a monthly fee.
- Set up an additional account at the same institution. Some banks waive monthly maintenance fees if you already have another account with them.
- Stay above the minimum debit card usage limit. Another way to avoid a bank’s maintenance fee is to stay above the minimum debit card usage limit, which means you’ll have to use your card a minimum number of times per month.
- Try getting the fee forgiven. Some banks waive certain charges, like overdraft fees, if you typically pay your bills on time and have a good relationship with them. It’s worth contacting customer service to see if this option is available to you.
- Use only ATMs in your bank’s network. Use your bank’s network of ATMs to avoid out-of-network ATM fees. You could also avoid this bank charge by signing up for an account that offers ATM fee reimbursement.
- Make monthly direct deposits. Some banks waive the monthly maintenance fee when you make a certain number of direct deposits or deposit a certain amount of money each statement period.
Maximize your savings by avoiding bank fees
Monthly maintenance fees will ultimately vary, depending on the type of account you open and the financial institution you choose to hold your money. Each bank also has different requirements and ways to avoid these fees.
To help you maximize your savings and avoid bank fees, we’ve gathered some of the best online checking accounts you can open for free. Some of these checking accounts even allow you to earn interest on your balance.
FAQs
How do I know if a bank charges a monthly maintenance fee?
Whether you’re opening an account online or in person, the monthly fees associated with that account are usually listed on the company’s website or at the brick-in-motor branch. Financial institutions are required to let you know about any monthly fees upfront so that you aren’t surprised down the line. It’s a good idea to first do your research and compare fees before opening an account.
Are there other banking products that have monthly maintenance fees?
Monthly maintenance fees are commonly associated with personal checking and savings accounts and sometimes with business accounts as well. Other types of accounts, such as certificates of deposit (CDs), may charge fees or have monetary penalties.
How much are the average overdraft, maintenance, and out-of-network atm fees?
Overdraft fees vary by bank, but they’re typically around $35 per transaction.¹³ The average monthly maintenance fee for non-interest accounts charged by banks in the U.S. was around $5.31, and the average out-of-network ATM transaction fees were $4.73.¹⁴