When managing savings accounts, there are several common fees you should avoid to maximize your savings:

Account Fees to Avoid with Savings Accounts

• Monthly Maintenance Fees: These are recurring fees charged simply for having the account open, typically ranging from $5 to $25 per month. You can avoid these by maintaining a minimum balance, linking your savings to a checking account, setting up automatic transfers, or choosing banks that offer no-fee savings accounts

• Excessive Transaction Fees: Many savings accounts limit the number of withdrawals or transfers per month (often six). Exceeding this limit can lead to fees between $2 and $15 per transaction, and repeated violations may cause your account to be converted to a checking account. Avoid these fees by minimizing withdrawals and keeping track of your transaction count

• Overdraft Fees: Although less common on savings accounts, overdraft fees can occur if linked accounts are overdrawn. These fees average around $27 and can add up if repeated. Avoid overdrafts by setting up low-balance alerts or linking a line of credit for overdraft protection

• Stop Payment Fees: If you cancel a scheduled payment from your savings account, you may be charged around $30. Avoid this by ensuring sufficient funds are available and using checking accounts for recurring payments instead

• Returned Item Fees: If a deposited check bounces, banks may charge fees ranging from $5 to $19. Avoid this by only accepting checks from trusted sources

• Wire Transfer Fees: Sending or receiving wire transfers can cost from $0 up to $50 or more, especially for international transfers. Use alternative free services like Zelle, Venmo, or certified checks to avoid these fees

• Inactivity Fees: Some banks charge fees if your savings account is unused for several months (typically 6 months), usually around $5 to $20. Avoid these by making regular deposits or using the account periodically

How to Avoid These Fees

• Choose banks or credit unions that offer no-fee savings accounts or waive fees when you meet certain criteria.
• Maintain minimum balances required to waive monthly fees.
• Limit your withdrawals to stay within transaction limits.
• Set up automatic transfers and alerts to monitor balances.
• Use checking accounts for frequent transactions and bill payments.
• Opt for electronic transfers through no-fee platforms instead of wire transfers.
• Regularly use your account to avoid inactivity fees.

By understanding these common fees and taking proactive steps, you can keep your savings account free of unnecessary charges and maximize your returns