Two common fees that banks typically charge on checking accounts are:
- Monthly Maintenance Fee: This is a regular fee charged monthly for maintaining the account. Banks often waive this fee if the account holder maintains a minimum balance, sets up direct deposit, or meets other criteria such as a certain number of debit card transactions per month.
- Overdraft Fee: This fee is charged when you spend or withdraw more money than is available in your checking account. Overdraft fees can add up quickly if multiple overdrafts occur.
How to avoid these fees:
- For the monthly maintenance fee, choose a bank or checking account that does not charge it or meet the bank’s waiver requirements by maintaining the minimum balance, setting up direct deposit, or using the debit card as required.
- To avoid overdraft fees, monitor your account balance regularly, set up low-balance alerts, and consider linking a savings account or line of credit to cover shortfalls automatically.
Using in-network ATMs can also help avoid ATM fees, which are another common charge. Additionally, opting for paperless statements and reviewing account terms can help prevent unexpected fees.
