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Most banks provide several ways to waive their checking account fees. We'll take a look at what you need to know about common checking account fees and how you can avoid them.
Common checking account fees include:
A typical brick-and-mortar checking account can have a monthly maintenance fee in the $10 to $15 range. If you're paying $15 per month, that's $180 per year and $1,800 over a decade.
We recommend comparing checking accounts to make sure you're getting the best fit for you. Here's a list of our favorite accounts.
Checking accounts that charge monthly maintenance fees often give you several options to waive them. The most common way is to maintain a certain minimum balance. The monthly or daily balance requirements will vary by account. Some will also waive your fee if you meet one or more of the following criteria:
Review your bank's fee waiver options if you're not familiar with them. Make sure there's at least one you feel confident you can accomplish every month. Remember, you can qualify for a fee waiver one month and owe it the next. So if you want to avoid fees altogether, you must consistently meet one of the checking account's requirements.
It's also worth seeing whether a credit union checking account might work for you. Credit unions may not charge an account fee, and other charges are often lower than with regular banks.
You can also avoid a lot of checking account fees by going with an online checking account instead. Online banks don't have branch networks to maintain, which saves them a lot of money. This means they can offer free checking accounts, while brick-and-mortar banks often can't afford to do so. Online checking accounts are also more likely to offer interest and out-of-network ATM fee reimbursements. As long as you're comfortable with online banking, it's a good way to get out of paying a monthly service fee.
It's rare to find a checking account that forces you to pay a monthly fee without any way out. But if you pay a monthly service fee, it's probably time to think about a switch. Look for a free checking account or a bank account with a minimum account balance you can meet.
You don't have to go with an online bank if you're not comfortable with online and mobile banking. Just look around for a brick-and-mortar checking account that has reasonable fee waiver requirements.
As for other types of checking account fees, a lot of them are easy to avoid as long as you know they're there and avoid the behaviors that would trigger them. Take some time to familiarize yourself with your checking account's fees if you don't already know what they are.
Don't get caught paying nuisance checking account fees. Check out The Ascent's top checking account picks to open a fee-free checking account that earns a high interest rate.
Here are some other questions we've answered:
Checking account fees differ from bank to bank; however, many charge a $10 to $15 monthly maintenance fee that can be waived if you maintain a minimum daily balance, you transfer a certain amount of money each month, or you're age 24 or younger. Out-of-network ATM fees and foreign transaction fees are also common.
Not all banks charge monthly maintenance fees, but even banks that advertise "free" checking accounts will also have other fees, like overdraft fees and out-of-network ATM fees.
Many banks offer checking accounts without monthly maintenance fees or overdraft fees. Examples of free checking accounts include Ally Spending Account, Capital One 360 Checking, Discover Cashback Debit, and SoFi Checking and Savings.
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