Some offers on this page are from advertisers who pay us, which may affect which products we write about, but not our recommendations. See our Advertiser Disclosure . 6 common bank fees, and how to avoid them Bank fees can eat away at your balance and wipe out interest earnings. S Stephanie Colestock Fri, September 11, 2026 at 1:29 PM PDT 5 min read Bank accounts are important financial tools that help protect your money and even allow you to earn interest. But depending on where you bank and how you use your account certain fees can chip away at your balance. From monthly maintenance charges to overdraft penalties, these costs can add up quickly if you're not paying attention. Understanding the most common bank fees, why financial institutions charge them, and how to avoid them can help you keep more of your money. Why do banks charge fees? Fees serve as added revenue for banks . If a bank charges a fee for account maintenance or an optional service, the institution can put those funds toward operational expenses and even generate additional income at the customer's expense. After all, a bank is a business, and a business's goal is to earn money. Recent data shows that banks have become increasingly dependent on fees over the years, especially those charged for overdrafts and non-sufficient funds (NSF). In fact, according to the Consumer Finance Protection Bureau (CFPB), NSF and overdraft fees account for about two-thirds of a typical bank's fee-based revenue. 6 common bank fees to watch out for Even though consumer watchdog groups and the Consumer Financial Protection Bureau (CFPB) are keeping a close eye on certain bank fees, it means that these added costs probably aren't going to disappear anytime soon. You can often find ways to avoid these fees altogether based on the accounts you choose and how you manage them. 1. Monthly maintenance fees Monthly maintenance fees , also known as service fees, are commonly charged by banks to offset the administrative costs associated with servicing your account. They're commonly charged for checking accounts and can range from around $5 to $15, though they may be higher for premium accounts. How to avoid monthly fees Many banks waive maintenance fees if you meet certain requirements, such as: Maintaining a minimum balance Setting up direct deposit Making a minimum number of monthly transactions You can also consider switching to a no-fee checking account , or moving to an online bank where these charges are rare. 2. Overdraft fees An overdraft fee occurs when you spend more money than you have in your account and the bank covers the transaction. Overdrafts represent short-term credit risk for banks, so these fees compensate for covering the transaction and processing the negative balance. Overdraft fees can be steep, too, typically around $30 to $35 per transaction. How to avoid overdraft fees There are several steps you can take to avoid overdraft fees. First, you can opt out of overdraft coverage for debit...
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