Understanding Bank Fees
Banks charge various fees for account maintenance, transactions, and services that can add up to hundreds or thousands of dollars annually.
Common fees include monthly maintenance charges ($5-$25), overdraft fees ($25-$35 per occurrence), ATM fees ($2-$5 per transaction), wire transfer fees ($15-$50), and paper statement fees ($2-$5 monthly).
Many fees are avoidable through direct deposit, maintaining minimum balances, using in-network ATMs, or switching to fee-free institutions.
Online banks and credit unions typically offer lower fees than traditional banks.
A careful comparison can reveal that switching banks could save you $200-$500 per year.
Review your bank statements quarterly to identify recurring fees and look for alternatives.
Consider the total cost of banking, not just advertised rates, when choosing where to keep your money.