How to Stop Paying Bank Fees

Bank fees can quietly cost you hundreds of dollars a year. Most are avoidable with the right account and a few settings.

Overdraft and NSF fees

An overdraft fee is charged when your bank covers a transaction you don’t have enough money for. Many large banks have historically charged about $35 per item.

How to avoid them:

• Opt out of overdraft coverage for ATM and one-time debit card transactions. Those transactions will be declined instead of costing a fee.
• Link your savings account for overdraft protection transfers, which may cost less or nothing.
• Set up low-balance alerts in your banking app.
• Choose a bank with no overdraft fees. Many online banks and credit unions have dropped them.

A federal rule that would have capped overdraft fees at large banks was overturned in 2025, so fee policies still vary widely from bank to bank.

Monthly maintenance fees

Many traditional checking accounts charge a monthly fee unless you meet requirements like a minimum balance or direct deposit. If you can’t easily meet them, switch to a free checking account.

ATM fees

Using an out-of-network ATM can cost you twice: once from your bank and once from the ATM owner.

• Use your bank’s ATM locator.
• Get cash back at the grocery store.
• Choose a bank that refunds ATM fees.

Other fees to watch

• Paper statement fees (switch to e-statements)
• Wire transfer fees
• Foreign transaction fees on debit cards
• Account closing fees within a few months of opening

Ask for a refund

If you get hit with an occasional fee, call and ask the bank to waive it. Banks often refund a first or rare fee for customers in good standing.

Time to switch?

If you’re paying fees every month, it may be time for a new bank. See how to choose a bank.