15 Banking fees you should stop paying right now

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By: Phil Bradford
on 8th Jun,2017

Some bank fees can deplete all your balance if you ignore them. Check out some of the most common banking fees that are draining all your dollars and find out how you can avoid them.

There are some bank fees that we all pay can eat up all our savings if not taken care quickly. If you don’t want to lose your money, it’s high time you should take steps and stop paying these type of fees that’s depleting your savings. Even if the amount is small it can add up fast.

To make your job easier, I’ve made a list of some common banking fees you should avoid paying in order to save your hard earned dollars.

Here you go!

1 Maintenance fee

Your monthly maintenance fees depend on the type of account you have. It is probably the most annoying fees that you’re paying to keep your account open. As per a recent survey carried out by GoBankingRates, banks charge $5 on an average for their maintenance cost.

How to avoid:

By maintaining a minimum balance, using your debit card for certain transactions each month, making direct deposits to your account per month you can avoid paying maintenance fees. Moreover, maintenance charges are free if you’re a full-time college student.

2 ATM fee

You must have heard that every good things come with a price. It holds true for ATM services also. Though ATMs have made your lives easier, you have to pay a price to continue enjoying the service.

You can be charged $2 to $3.50 or more if you use an out-of-network ATM.

How to avoid:

Try to stick to an in-network ATM and online banking services. If you cannot find out an in-network ATM, look for cashback at a grocery store or big retailer. Some of these services don’t charge a fee.

3 Overdraft fee

As per a federal rule of 2010, account holders have given a choice to opt for their bank’s overdraft protection programs. This program will allow you to spend even if you don’t have enough money in your account in exchange for a fee.

These charges usually cost $35.

How to avoid:

Opt out of the overdraft protection program, start direct deposits, and turn off automatic bill payments to avoid wasting your dollars over overdraft fees.

4 Non-sufficient funds fee

Whenever you are paying bills electronically or with a check and the amount exceeds your balance, you may be charged a non-sufficient fee. For instance, Wells Fargo charges a fee of $35 per bounced check.

How to avoid:

Check your account balance on a regular basis and opt for low balance alerts through emails or text messages in order to save your precious dollars.

5 Foreign transaction fee

Banks usually charge between $2 to $7 for overseas ATM withdrawals, plus 3% of the amount withdrawn.

How to avoid:

If you are a frequent traveler, switch to an account that doesn’t charge you high foreign transaction fees.

6 Account closing fee

You’re required to keep your account open for certain time to avoid an early-account-closure fee that may charge you up to $25.

How to avoid:

Check with your bank and find out for how many days you have to keep your account open before closing. Generally, the time period is 90 to 180 days.

7 Debit card replacement fee

You have to give a fee if you want to replace your lost debit card. For instance, Bank of America will charge you $5 for replacing your debit card.

How to avoid:

Switch to a bank that doesn’t charge you these fees and be careful with your card.

8 Cashier’s check fee

Whenever you make large transactions you’re required to pay with a cashier’s check as there’s a guarantee that the check won’t bounce back. But, you’ll be charged a fee for that.

For example, both Wells Fargo and Bank of America charge $10 for a cashier’s check. Moreover, Wells Fargo charges a delivery fee of $8 for online cashier’s check orders.

How to avoid:

Whether or not you’ll be charged a cashier’s check fee depends on the types of account you have. For instance, Bank of America waives this fee for its Preferred Rewards program members.

9 Savings withdrawal fee

According to a federal law, the number of times customers can withdraw and transfer from their savings or money market account has been limited to 6 per month.

Withdrawal or transfer of funds exceeding this limit will charge you a fee, which is usually $5.

How to avoid:

Open an account in a bank with a lower savings withdrawal fee and keep track your transactions.

10 Wire transfer fee

Though wire transfer is a convenient way to send money quickly, banks charge a fee for this service.

You can be charged between $20 to $35 for wire transfers.

How to avoid:

Opt for SurePay services or use person-to-person payment app such as Venmo for free wire transfers.

11 Cash advance fee

You will be charged a cash advance fee if you use your credit card to get cash from an ATM, other financial agencies, or over the counter at a bank.

On an average, you’re required to pay $9 or $4 of the withdrawal amount as a cash advance fee.

How to avoid:

Use your debit card and try to go to an in-network ATM if you need cash.

12 Late payment fees

It is one of the most common charges that we often pay. If you can’t pay your credit card bills within the given time, you’ll be hit with late fees that are usually between $10 to $49.

How to avoid:

Never delay, use text alert services, opt for automatic bill payment, or make phone payment in order to avoid late payment fees.

13 Paper statement fees

If you are not comfortable with online banking, you have to pay a fee between $1 to $2 for receiving paper statements.

How to avoid:

Opt for a bank that doesn’t charge this fee.

14 Inactivity fees

Some banks charge you a fee that’s between $10 and $20 per month if you’re not using your account.

It’s often called the “dormancy fee.”

How to avoid:

Keep your account active or set up automatic money transfer to avoid inactivity. Or, just close your account if you don’t want to use it anymore.

15 Redeeming rewards points fee

You will be charged a fee if you redeem the points accumulated on your rewards card. For instance, Wells Fargo charges $24 processing fee if you pay your air ticket through the bank’s reward card.

How to avoid:

In order to stop paying this fee, shop around and compare policies of various banks.

Though it’s not possible to avoid banking fees all time, yet you can take safety measures to avoid being hit with these type of fees.

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