Bank fees.
How much you're paying and how to pay zero.

What banks charge and how much

Monthly maintenance fee

Average at large US banks: $12 to $15/month. Annual cost: $144 to $180. Usually waivable with direct deposit or minimum balance, but many people don't meet the conditions.

Overdraft fee

Average per occurrence: $26 to $35. Heavy overdraft users incur 7+ events per year, totaling $180 to $245 annually. Often triggered by debit-card purchases under $20. Some banks add extended overdraft fees per day the account stays negative verify×DON'T TRUST, VERIFYClaim: CFPB has documented average overdraft fees in the $26 to $35 range and that a small minority of accounts incurs the majority of overdraft revenue.Verify at: CFPB research reports on overdraft ↗ Source 1 in the list belowSeveral banks have lowered or eliminated overdraft fees since 2022 in response to regulatory pressure. Verify your specific bank's current fee..

ATM fee

Out-of-network fee from your bank: average $1.50 to $3.50 per transaction. Fee from the ATM owner: average $2.50 to $3.50. Combined: $4 to $7 per out-of-network ATM use. At twice per month: $96 to $168/year.

Minimum-balance fee

Charged when balance falls below a threshold, often $1,500 to $2,500. Typically $5 to $12/month.

Wire transfer fees

Domestic outgoing: $20 to $30. Incoming: $10 to $15. ACH transfers are free at most institutions; use ACH instead of wire for non-urgent transfers.

How to pay zero in bank fees

Fidelity Cash Management Account

No monthly fee. No minimum balance. Unlimited ATM fee reimbursements worldwide. SPAXX sweep earns yield on idle cash. Same login as your Roth IRAIndividual Retirement Account (IRA)A retirement account with tax advantages and eligibility rules. Traditional IRA contributions may be deductible; taxable withdrawals generally enter income. Roth contributions use after-tax money, and qualified Roth withdrawals are tax-free.Full definition and brokerage verify×DON'T TRUST, VERIFYClaim: Fidelity Cash Management Account has no monthly fee, no minimum balance, and reimburses ATM fees worldwide.Verify at: Fidelity CMA overview ↗ Source 2 in the list belowAccount terms can change. SPAXX yield floats with the federal funds rate..

Schwab Bank Investor Checking

No monthly fee. No minimum balance. Unlimited ATM fee reimbursements globally. Widely available debit card.

Online banks (Ally, Marcus, SoFi, etc.)

No monthly fees. No minimums. Higher yields than traditional banks. ATM reimbursements vary; check the network.

Federal credit unions

Member-owned, typically lower fees than commercial banks. CO-OP and Allpoint ATM networks provide fee-free access at thousands of ATMs. Anyone in a geographic area can usually join at least one credit union. Find one at mapping.ncua.gov.

Community banks

Local banks that take deposits and lend in a limited area. The FDIC counted 4,750 of them at year-end 2019 and says their business, commercial property and farm lending tends to rely on local knowledge and individual analysis rather than a score alone verify×DON'T TRUST, VERIFYClaim: The FDIC counted 4,750 community banks at year-end 2019 and defines them by business plan, geographic footprint and number of branches, not by asset size alone. It says community banks tend to focus on loans as relationships, originating loans that require local knowledge, a greater personal touch and individual analysis.Verify at: FDIC Community Banking Study 2020, Executive Summary ↗ · FDIC Community Banking Study 2020, Chapter 4 ↗ Source 3 in the list belowStudy published December 2020 with data through year-end 2019; the count has changed since. Lending description: Chapter 4, page 4-1.. Fee schedules vary bank to bank, and many banks and credit unions skip the monthly fee when you keep a set balance or use direct deposit verify×DON'T TRUST, VERIFYClaim: Many banks and credit unions do not charge a monthly maintenance fee on accounts that keep a set balance or receive direct deposit; the CFPB says you can move to a bank or credit union with a low or no maintenance fee.Verify at: CFPB: monthly maintenance fees ↗ Source 4 in the list belowCFPB answer last reviewed September 13, 2024. Waiver conditions differ by account; read the fee schedule.. What to check before opening: the ATM network, and the savings rate against the online banks above. Hold one to the same standard as any account here: no monthly fee, no minimum, or a waiver you meet every month. See Banking: community banks.

How to switch banks (about 30 minutes total)

1. Ask your bank first. Call and ask it to waive fees you've already been charged, especially if you rarely pay them, and to move you to an account without the fees you keep hitting. Monthly fees can be lowered or waived with direct deposit, a minimum balance, or a set number of transactions each month. If the answer is no, switch verify×DON'T TRUST, VERIFYClaim: The FDIC tells customers to call their bank and ask it to waive fees they have incurred; if it cannot, to ask for a different account without fees for the services they need, then shop around. Monthly maintenance fees may be lower or waived with direct deposit, a minimum balance, or a certain number of transactions each month.Verify at: FDIC Consumer News: Overdraft and Account Fees ↗ · CFPB: monthly maintenance fees ↗ Source 5 in the list belowFDIC article from December 2021, last updated August 17, 2022. CFPB answer last reviewed September 13, 2024..
2. Open the new account first. Do not close the old account yet.
3. Redirect direct deposit. Update your employer payroll portal with the new account number. Takes 1 to 2 pay cycles to switch.
4. Move automatic payments. List every automatic debit (subscriptions, utilities, loan payments) and update each one. Leave the old account funded until all automatics have cleared at least once at the new bank.
5. Close the old account in writing. Get written confirmation of closure. Watch for the final statement confirming zero balance.

Eliminating overdraft fees specifically

Opt out of overdraft coverage

Federal regulations require banks to get your permission before enrolling you in overdraft coverage for one-time debit transactions. If you opted in, opt out. Without coverage, debit transactions are declined when funds are insufficient. Declined purchases have zero fee verify×DON'T TRUST, VERIFYClaim: Reg E requires opt-in consent before banks can charge overdraft fees on one-time debit-card and ATM transactions.Verify at: CFPB overdraft opt-in ↗ Source 6 in the list belowThe 2010 Reg E amendment created the opt-in rule. Recurring debits and checks are not covered by the opt-in requirement..

Link a savings account as backup

At most banks, linking a savings account as overdraft backup costs $0 to $12 per transfer, far less than $35 per overdraft.

Maintain a $200 to $300 buffer

Treat your actual minimum balance as $200 to $300 above zero. A small buffer eliminates most accidental overdrafts entirely.

What this changes for tomorrow

• Pull last 12 months of statements. Total bank fees paid. That number is your savings if you switch.
• Call your bank. Ask it to waive recent fees and move you to an account without the fees you keep paying. If it says no, switch.
• Open a Fidelity CMA or Schwab Investor Checking before closing your current account.
• Opt out of overdraft coverage today. Declined purchases cost nothing; overdraft fees cost $35 each.