Banks earn money in a variety of different ways, and one of them is through bank fees charged on checking accounts, savings accounts and other financial products. These fees can kick in when you’re not expecting it, like if you inadvertently use an out-of-network ATM or go over a monthly transaction limit you didn’t even know about.

If you’re trying to keep more of your money in your pocket, you’ll want to know about bank fees that could come into play with your account. This guide will break down the most common fees charged by banks and credit unions, when they are charged and how you can avoid them.

9 common bank fees

Monthly maintenance fees

Some banks and credit unions charge monthly maintenance fees (also called service fees) on their checking and savings account products. These fees apply just for having an account, although they can often be waived if you keep a certain amount of money on deposit or meet minimum direct deposit requirements.

Monthly service fees vary by financial institution but often fall between $5 and $15 per month.

Out-of-network ATM fees

Most banks and credit unions have a network of ATMs you can use without fees, although these networks vary dramatically in size. Not surprisingly, getting cash out of an ATM that’s not in your network can result in an extra fee.

Out-of-network ATM fees usually fall between $1.50 and $3.50 but can be higher when you access cash at an international ATM. In that case, you can be charged an out-of-network ATM fee and a foreign transaction fee that adds another 1% to 3% of your withdrawal amount. The ATM operator may even use dynamic currency conversion, which often results in a suboptimal conversion to your own currency.

Excess transaction fees

Excess transaction fees are charged if you make too many withdrawals or automatic transactions with a savings account or money market account. These fees were historically mandated under a federal law called Regulation D, but this law was loosened during the COVID-19 pandemic in 2020 for the benefit of consumers.

Some banks still charge excess transaction fees in 2024, whereas others no longer do. When banks charge these fees, they usually apply when consumers make more than six limited transaction types within a calendar month and typically fall between $3 and $25 per transaction.

Overdraft fees

Bank overdraft fees kick in when you don’t have the funds in your account to cover a transaction, but it still goes through. If you charge $200 in groceries on a debit card and your checking account only has $197, you would owe the bank the $3 shortage plus an overdraft fee.

The Federal Deposit Insurance Corp. (FDIC) says overdraft fees vary by bank but typically cost around $35. The FDIC also notes that overdraft fees can create “ripple effects” that lead to significant costs. This often comes about with banks that charge daily overdraft fees until enough money is added to the account to get it over a $0 balance.

If you really want to avoid these charges, consider one of these best banks with no overdraft fees.

NSF fees

NSF fees for non-sufficient funds are also charged when a consumer tries to make a transaction in an amount that’s more than they have in the bank. However, these fees are charged when over-limit transactions are denied.

According to the Consumer Financial Protection Bureau (CFPB), most banks and credit unions had dropped NSF fees by 2023, leading to nearly $2 billion in consumer savings annually. The largest financial institutions have taken the lead in this action, the CFPB says, with almost two-thirds of banks with more than $10 billion in assets having eliminated NSF fees already.

Wire transfer fees

Wire transfers happen when a banking customer directly sends or receives money electronically. Banks and credit unions charge fees for these transactions, which are referred to as wire transfer fees.

Wire transfers can be domestic (between U.S. banks) or international (between financial institutions from different countries) and fees typically vary based on this factor.

While federal law doesn’t set a maximum amount banks can charge for wire transfers, they are often between $0 and $35 for outgoing domestic wire transfers and $0 to $15 for incoming domestic wire transfers. International wires typically cost $35 to $50 for outgoing transfers or $0 to $16 for income transfers.

Foreign transaction fees

Bank foreign transaction fees apply when you use a credit card or debit card overseas, or when you use an ATM card to get cash from an international ATM. These fees can reach 2% to 3% for each transaction, and potentially higher.

Inactivity fees

Bank inactivity fees (also called dormancy fees) can apply on accounts that haven’t had deposits, withdrawals or activity of any kind for a specified length of time. These fees are often between $5 to $20 per month, but they vary by financial institution. Some banks charge inactivity fees as low as $15 per year.

Account research fees

Account research fees apply when consumers ask their bank to research a transaction or examine their historical banking details to uncover information. These fees are typically charged for the time it takes a bank employee to research an issue, either in half-hour or hour-long increments. Account research fees vary by bank but often range from $25 to $40 per hour.

How to avoid pesky banking fees

Most bank fees can be avoided completely, either by being selective when choosing a bank or completing a qualifying activity. Consider these tips to avoid unnecessary fees with your bank or credit union.

Look for accounts without monthly service fees

First and foremost, you should compare financial institutions to find out which fees they charge and when. This is especially true with monthly service fees that are charged just for having an account.

Financial advisor R.J. Weiss, founder of the personal finance site The Ways to Wealth, says there are so many quality banks offering exceptional rates and great service these days without monthly fees that it makes no sense to pay them if you don’t have to. Examples of financial institutions that offer accounts without monthly maintenance fees include Chime and SoFi.

Meet requirements to have monthly fees waived

Some banks that do charge monthly maintenance fees will waive them if you meet qualifying criteria, such as maintaining an average daily balance or setting up direct deposits.

As one example, Chase waives the $12 monthly service fee on its Total Checking® account when consumers set up $500 per month or more in direct deposits, maintain at least $1,500 in the account at the beginning of each day or have an average beginning day balance of $5,000 or more across eligible Chase accounts.

Sign up for overdraft protection

Oliver Manzano-Perez, who serves as assistant vice president and branch manager at Addition Financial Credit Union, says that opting into free or low-cost overdraft protection service can help avoid costly overdraft fees if you’re worried about accidentally spending more than you have.

You can also look for a financial institution that doesn’t charge overdraft fees or NSF fees when overlimit transactions are declined.

Pay special attention to ATM networks and fees

Banking industry expert Ken Tumin of DepositAccounts.com says you should look for a bank with a large ATM network that includes ATMs in your immediate area.

“This may be a large ATM network owned by the bank or a large third-party ATM network such as Allpoint or Co-op ATM Network,” he said.

Tumin adds that some banks will even reimburse out-of-network ATM fees you’re charged by other banks. An example is Ally Bank, which reimburses up to $10 per month of out-of-network ATM fees charged within the U.S.

Focus on avoiding the fees you’re paying the most

If you’re considering switching banks to cut down on unnecessary fees, Weiss says your best bet is finding a way to avoid the fees you’re currently paying. This means looking for a new bank with a fee structure geared to the services you personally use.

For example, if you frequently use wire transfers, look specifically for banks that offer them at the lowest possible cost. If you struggle to meet minimum account balance or direct deposit requirements to avoid monthly service fees, look for accounts that don’t charge them.

Editorial Disclaimer: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airlines, hotel chain, or other commercial entity and have not been reviewed, approved or otherwise endorsed by any of such entities.

This content is for educational purposes only and is not intended and should not be understood to constitute financial, investment, insurance or legal advice. All individuals are encouraged to seek advice from a qualified financial professional before making any financial, insurance or investment decisions.

Note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed or may no longer be available.