Checking Account Fees: What to Know and How to Avoid Them

Checking account fees are charges banks apply to keep your account open or in response to something you did, like overdrawing your balance or using another bank's ATM. Almost all of them are avoidable, and usually with one change rather than several.

Setting up direct deposit clears the monthly maintenance fee at most banks. Opting out of overdraft coverage means a debit purchase gets declined rather than covered for a fee. Sticking to in-network ATMs avoids a charge that lands twice, once from each bank. And if your bank won't budge, plenty of accounts charge no monthly fee at all.

Key Takeaways

• Overdraft fees do the real damage. The average is $26.77 per transaction and 94% of accounts still charge one. Banks can hit you multiple times in a single day, so a few small purchases on a low balance can cost more than $100.

• Most fees are optional once you know the rules. Nearly half of non-interest checking accounts are free outright, another 48% waive the monthly fee for direct deposit, and you can opt out of debit card overdraft coverage entirely.

• Watch the fees moving in the wrong direction. Out-of-network ATM costs hit a record $4.86 in 2025, and the balance needed to avoid a fee on interest checking climbed to $10,705.

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What Are Checking Account Fees?

Checking account fees are charges banks apply either to keep an account open or in response to specific activity. Nearly all fall into two groups, and each is avoided a different way.

• Recurring fees arrive every month whether you do anything or not, like monthly maintenance, paper statements and inactivity. You avoid these by meeting a waiver requirement or switching accounts.

• Activity-based fees are triggered by something specific, like overdrafts, returned payments, out-of-network ATM withdrawals, wires and foreign transactions. You avoid these by changing a habit or a setting.

Recurring charges are the ones people miss, because they're small enough to scroll past. Pull up three months of transactions and look for the same dollar amount landing on the same day each month.

What Are the Most Common Checking Account Fees?

Nine categories account for nearly everything banks charge on a checking account. The figures below reflect the latest industry averages where available, though individual banks vary widely.

Foreign transaction fees are the outlier, since they're charged as a percentage rather than a flat amount, typically 1% to 3% of each purchase made abroad.

Why Are Overdraft Fees the Most Expensive?

Overdraft fees cost the most because they stack. The average charge is $26.77, but one low balance can trigger a separate fee for every transaction that clears afterward, so four small purchases can cost more than $100.

• Banks charge per transaction, not per day, and many allow three to six before capping

• Some add extended overdraft fees if your balance stays negative for several days

• You can opt out of coverage on debit and ATM transactions, so those get declined instead of covered for a fee

• A number of banks, including Capital One, Citi and Ally, have eliminated the fee entirely

How Can You Avoid Monthly Maintenance Fees?

Most banks waive the monthly fee if you meet one qualifying condition, and you usually only need to satisfy one. Check your account's fee schedule for which of these applies.

• Setting up a qualifying direct deposit, which is the most common waiver by a wide margin

• Maintaining a minimum daily or average balance

• Making a set number of debit card transactions each month

• Linking another account at the same bank

• Qualifying based on age or student status

Direct deposit is the easiest to meet and the most misunderstood. Transfers from payment apps generally don't count, since the deposit usually has to come from an employer, government agency or benefits administrator.

How Do You Stop Paying ATM Fees?

Stick to your own bank's network, since out-of-network withdrawals usually get charged twice, once by the ATM owner and once by your own bank. That combined cost reached a record $4.86 in 2025, the third straight year it hit a new high.

The ATM owner's surcharge averages $3.22 and isn't negotiable. Your own bank's share averages $1.64 and depends entirely on which bank you picked.

• Get cash back at checkout, which is free at most grocery and drug stores

• Choose a bank that reimburses out-of-network ATM fees, which many online banks do

• Withdraw larger amounts less often instead of making repeated small trips

• Check your bank's ATM locator before you need cash rather than after

What Other Fees Should You Watch For?

Smaller fees are easy to miss precisely because they're small, but each one is simple to eliminate once you spot it on a statement.

• Switch to paperless statements, which usually takes one click in your account settings

• Keep the account active with any small recurring transaction to avoid dormancy charges

• Ask about wire alternatives before sending money, since ACH transfers are often free and only slightly slower

• Check foreign transaction fees before traveling, and consider a card that doesn't charge them

Once a year, read a full monthly statement line by line and question anything you don't recognize. It takes about 15 minutes and it's the most reliable way to catch a charge that started small and became routine.

Can You Get a Checking Account Fee Refunded?

Banks will often refund a fee if you call and ask, particularly for a first-time mistake or a long-standing customer. Most institutions give front-line representatives discretion to issue a courtesy reversal without escalating.

• Call or use secure messaging as soon as the charge posts, since recent charges are easier to reverse

• Explain briefly what happened and mention how long you've banked there

• Ask directly for a one-time courtesy refund rather than hinting at it

• If they decline and the fees keep recurring, treat that as information about the account rather than the bank

How Do You Find a Checking Account With No Fees?

Free checking is widely available, and you don't have to hunt for it. Online banks, credit unions and Bank On-certified accounts all offer versions with no monthly fee and no minimum balance.

• Online banks carry no branch overhead and pass that on through no monthly fees, no minimums and frequent ATM reimbursement

• Credit unions are member-owned nonprofits, which generally translates to lower fees across the board

• Bank On-certified accounts meet a national standard that prohibits overdraft and NSF fees entirely

• Second chance checking is built for people who've been denied elsewhere, though it sometimes carries a small monthly fee

Before opening anything, confirm the institution is FDIC- or NCUA-insured and read the actual fee schedule rather than the word "free" in the marketing copy. An account can carry no monthly fee and still charge $35 for a wire.

How Do You Compare Checking Accounts Before You Switch?

Compare the full fee schedule rather than the sign-up bonus, since a $200 promotion disappears fast against $150 a year in monthly fees. The cheapest account is the one that matches how you actually bank.

Work through five things for each account you're considering.

1. Monthly fee and waiver terms. What it costs and exactly what you'd have to do to avoid it

2. Overdraft policy. Whether there's a fee, how many they can charge per day, and whether a grace amount applies

3. ATM network and reimbursement. How many in-network machines are near you, and whether outside fees are refunded

4. Minimum balance requirements. Both to open and to avoid ongoing fees

5. Transfer and wire charges. Especially if you send money regularly or spend abroad

Start by adding up what you actually paid in fees over the last six months and noting which kind. If overdrafts are the bulk of it, an account with no overdraft fee will save you more than any interest rate or sign-up bonus on offer.

FAQ

What is the average monthly checking account fee?

Non-interest checking accounts average $5.47 per month, while interest-bearing accounts average $15.65. Most traditional banks waive these charges for qualifying direct deposit or a minimum balance, and 47% of non-interest accounts charge nothing at all.

Can a bank charge multiple overdraft fees in one day?

Banks can charge multiple overdraft fees in a single day, often capping the number somewhere between three and six transactions. If several debit purchases or automatic payments hit an overdrawn balance back to back, the penalties stack quickly.

How do I get my bank to waive a fee?

Contact customer support as soon as the charge posts. Explain what happened briefly, mention how long you've been a customer, and ask directly for a one-time courtesy refund. Banks frequently grant these for first-time mistakes and long-standing customers.

Are online checking accounts really free?

Most online checking accounts are genuinely free of monthly fees, since digital banks avoid the cost of physical branches. You may still encounter standalone charges for wire transfers, out-of-network ATM use or foreign transactions, so read the full fee schedule.

Can I opt out of overdraft coverage?

Federal rules require your explicit consent before a bank enrolls you in overdraft coverage for debit card purchases and ATM withdrawals, and you can opt out at any time. Once you do, transactions that exceed your balance are simply declined at no cost.

How much is the average overdraft fee?

The average overdraft fee was $26.77 in 2025, down about 1% from the prior year. Fees vary widely by institution, with some banks charging over $35 and others, including Capital One, Citi and Ally, having eliminated them entirely.

Do credit unions charge fewer fees than banks?

Credit unions generally charge lower fees than traditional banks because they're member-owned nonprofits that return earnings to members. Deposits are federally insured by the NCUA up to $250,000, the same coverage level the FDIC provides at banks.

Key Terms

• Monthly maintenance fee. A recurring charge for keeping the account open, which most banks waive under certain conditions.

• Overdraft fee. What a bank charges when it covers a transaction that exceeds your balance.

• Non-sufficient funds fee. What a bank charges when it declines and returns a payment instead of covering it.

• Overdraft coverage. An optional service where the bank pays transactions that exceed your balance, for a fee. You can opt out of it for debit and ATM transactions.

• Overdraft protection transfer. Money automatically moved from your savings to cover a shortfall, usually for a smaller fee than an overdraft.

• Out-of-network ATM fee. The charge for using another bank's machine, typically billed twice, once by each institution.

• Direct deposit. An electronic deposit from an employer or agency, and the most common way to get a monthly fee waived.

• Dormancy fee. A charge applied when an account sits unused for an extended period.

• Bank On certification. A national standard for low-cost accounts that bars overdraft and NSF fees.

• FDIC and NCUA insurance. Federal deposit protection covering up to $250,000 per depositor, at banks and credit unions respectively.

Sources

• Congressional Research Service: Congress Repeals CFPB's Overdraft Rule

• Consumer Financial Protection Bureau: Overdraft and NSF fee research

• Federal Deposit Insurance Corporation: Deposit insurance coverage