Key takeaways
- The average overdraft fee is $26.77 and the average out-of-network ATM withdrawal costs $4.86 (Bankrate’s 2025 study, the latest available).
- 47% of non-interest checking accounts have no monthly fee, and about 95% are free or can be made free, usually with direct deposit.
- Saying no to overdraft “coverage” for debit card and ATM transactions is the single easiest way to stop most overdraft fees.
- A household paying a $12 monthly fee, two out-of-network ATM withdrawals a month and three overdrafts a year spends about $341 a year on fees it could avoid.
The quickest way to avoid bank fees is to use a checking account with no monthly fee and no overdraft fees, take cash only from in-network ATMs, and turn on low-balance alerts. Those three moves stop the fees that cost Americans the most: monthly maintenance charges, ATM surcharges and overdrafts.
Bank fees look small one at a time, but they add up. Bankrate’s most recent checking account survey found the average overdraft fee at $26.77 and the average total cost of using another bank’s ATM at a record $4.86. A few of those a month and you’re paying for a streaming service you never signed up for.
This guide covers every common fee, what it typically costs, and the exact steps to stop paying it. It’s part of our complete guide to banking in America.
The most common bank fees and what they cost
Not every bank charges every fee, and amounts vary by bank and account. The table below shows typical U.S. figures so you know what’s normal and what’s a red flag.
| Fee | Typical cost | Fastest way to avoid it |
|---|---|---|
| Overdraft fee | $26.77 average; $34–$35 at some big banks | Decline debit/ATM overdraft coverage; use a no-overdraft-fee bank |
| Nonsufficient funds (NSF) | $16.82 average (61% of banks still charge it) | Low-balance alerts; link savings as backup |
| Out-of-network ATM | $4.86 total ($3.22 owner surcharge + $1.64 your bank’s fee) | Use in-network ATMs or a bank that reimburses ATM fees |
| Monthly maintenance | Common at big banks; interest checking averages $15.65 | Meet the waiver (direct deposit or balance) or switch to free checking |
| Outgoing domestic wire | $25–$30 | Use Zelle, ACH or a bank with free wires |
| Outgoing international wire | $40–$50 or more | Compare a money-transfer service’s total cost |
| Foreign transaction fee | About 3% of the purchase | Use a debit or credit card with no foreign fee |
| Paper statement | $1–$5 a month | Switch to e-statements |
| Stop payment | $20–$35 | Cancel recurring payments with the merchant first |
| Inactivity / dormancy | $5–$25 | Make one small transaction every few months, or close the account |
| Early account closure | $5–$50 (within 90–180 days of opening) | Read the fee schedule before you open a bonus account |
Sources: Bankrate checking and ATM fee study (survey June–July 2025, published Sept. 10, 2025) and Bankrate’s checking account fees guide (updated Sept. 1, 2026).
How to avoid overdraft and NSF fees
An overdraft happens when your bank pays a transaction you don’t have the money for, then charges you for the favor. An NSF fee is what some banks charge when they decline the payment instead. Either way, you pay for being short.
Federal rules don’t cap overdraft fees. The CFPB finalized a rule in late 2024 that would have limited fees at the largest banks to as little as $5, but Congress repealed it under the Congressional Review Act, and President Trump signed the repeal in May 2025. So the fee you pay depends entirely on your bank’s policy.
Bank policies vary a lot. As of June 1, 2026, Chase charged $34 per item on overdrafts of more than $50 (up to three a day), Wells Fargo charged $35 per item (up to three a day), Bank of America charged $10 on some accounts, and Capital One charged nothing. Citi dropped overdraft fees in 2022. Check your own bank’s current fee schedule, because these change.
Six ways to stop overdraft fees
- Opt out of overdraft coverage for debit cards and ATMs. Under federal Regulation E, a bank can’t charge an overdraft fee on everyday debit card purchases or ATM withdrawals unless you’ve opted in. If you opt out (or never opt in), the card is simply declined. Call your bank or check the app’s overdraft settings.
- Link a savings account as backup. Many banks will pull money from your linked savings for free or a small transfer fee, which beats a $35 charge.
- Set a low-balance alert. Pick a number that covers your next few bills, such as $200, and get a text when you drop below it.
- Use the grace period. Several large banks now give you until the end of the next business day to bring the account back to positive before the fee hits. Find out whether yours does.
- Time your bills to payday. Ask billers to move due dates a few days after your direct deposit lands.
- Move to a no-overdraft-fee account. Many online banks and some big banks charge no overdraft fees at all. Our overdraft protection guide compares the options in detail.
From the banking desk: In our team’s experience working in bank branches, a polite request to reverse a first-time overdraft or monthly fee is often granted, especially if you have a long history with the bank and the account is now positive. Ask once, say it was a mistake you’ve already fixed, and ask whether a different account type would avoid the fee in the future. Front-line staff usually have limited authority to waive fees, so if the first person says no, it’s reasonable to ask whether a branch manager can review it.
How to avoid ATM fees
Using another bank’s ATM usually means paying twice: the ATM owner’s surcharge and a separate fee from your own bank. Bankrate’s 2025 study put the combined average at $4.86, the third record high in a row.
- Stay in network. Your bank’s app has an ATM locator. Online banks often belong to large surcharge-free networks such as Allpoint or MoneyPass with tens of thousands of machines.
- Pick a bank that reimburses ATM fees. Some online banks and credit unions refund other banks’ surcharges up to a monthly limit.
- Get cash back at checkout. Grocery stores, pharmacies and big-box stores often give cash back with a debit purchase at no charge.
- Take out more, less often. One $200 withdrawal costs the same fee as one $20 withdrawal.
If you’re not sure where your bank’s branches and ATMs are, our bank and branch finder can help.
How to avoid monthly maintenance fees
Most big-bank checking accounts carry a monthly fee that you can waive by meeting a condition. Bankrate found that while only 47% of non-interest checking accounts are free outright, about 95% are free or can be made free, usually through direct deposit.
Common waiver rules include:
- A minimum amount in monthly direct deposits
- A minimum daily or average balance
- A combined balance across linked accounts at the same bank
- Being a student or under a certain age
- Being enrolled in paperless statements
Interest checking is the trap here. The average monthly fee on those accounts was $15.65, and the average balance needed to avoid it was $10,704. Unless you keep that much in checking anyway, the interest you earn rarely covers the fee. You’re usually better off with free checking plus a high-yield savings account.
If your bank won’t drop the fee and you can’t meet the waiver, it’s time to look at free checking accounts instead.
The other fees people forget
Foreign transaction fees
Many debit and credit cards add about 3% to purchases made abroad or with overseas online merchants. On a $2,000 trip, that’s $60. Use a card that charges no foreign transaction fee, and always choose to pay in the local currency when a card terminal offers to convert it for you.
Wire transfer fees
Outgoing domestic wires usually cost $25 to $30, and international wires $40 to $50 or more. For everyday transfers to people you know, Zelle or a standard ACH transfer is usually free. Save wires for time-sensitive, large payments such as a home closing.
Paper statements, stop payments and inactivity
Switch to e-statements to dodge $1–$5 monthly paper charges. Before paying $20–$35 to stop a payment, try canceling the recurring charge with the merchant. If you have an old account you never touch, either make a small transaction every few months or close it, because inactivity fees of $5–$25 can slowly drain it.
What bank fees really cost: a worked example
Let’s say you pay a $12 monthly maintenance fee, use an out-of-network ATM twice a month, and overdraft three times a year. Using the national averages:
| Fee | How often | Annual cost |
|---|---|---|
| Monthly maintenance ($12) | 12 times | $144.00 |
| Out-of-network ATM ($4.86) | 24 times | $116.64 |
| Overdraft ($26.77) | 3 times | $80.31 |
| Total | $340.95 |
That’s about $341 a year, and the overdraft line can be much worse. At a bank charging $34 per item, three overdrafts in a single bad day would cost $102 on their own. Moving to a free account with ATM access and no overdraft fees could save the whole amount, and you’d likely earn more interest by keeping your cushion in high-yield savings instead.
Should you switch banks to avoid fees?
Switch if your bank keeps charging fees you can’t easily waive, or if it charges overdraft fees and you’ve been hit more than once in the past year. Stay put if your fees are already waived and you value branch access or relationship perks.
Online banks are usually the cheapest: no monthly fees, large ATM networks and often no overdraft fees. Our online vs. traditional banks guide explains the trade-offs. Credit unions also tend to charge lower fees; see our credit unions vs. banks comparison. Whichever you choose, make sure deposits are FDIC- or NCUA-insured.
If you do move, follow a checklist so no automatic payment bounces in the gap. Our step-by-step guide to switching banks walks through it.
Common mistakes that trigger fees
- Opting into overdraft coverage at account opening without realizing it applies to small debit purchases.
- Letting direct deposit lapse after a job change, which quietly ends your monthly fee waiver.
- Keeping money in interest checking just above the waiver minimum, then dipping below it once.
- Closing a bonus account too early and paying an early-closure fee or losing the bonus.
- Not reading the fee schedule. Every bank must give you one; it takes five minutes to skim.
Next step: Pull up your last three statements, list every fee you paid, and match each one to a fix in this guide. Most people can cut their bank fees to zero in an afternoon.
Frequently asked questions
How can I avoid bank fees completely?
Choose a checking account with no monthly fee and no overdraft fees, decline overdraft coverage for debit and ATM transactions, use only in-network ATMs or a bank that reimburses ATM fees, and turn on low-balance alerts. Most online banks and many credit unions make this easy.
Can I ask my bank to refund an overdraft fee?
Yes. Call or visit, explain that it was a one-time mistake and that the account is back in the positive, and ask for a courtesy refund. Banks often grant one, especially for customers with a good history, though they don’t have to.
Are overdraft fees capped by law in 2026?
No. The CFPB’s 2024 rule that would have capped overdraft fees at large banks was repealed by Congress in 2025, so banks set their own fees. Federal rules still require you to opt in before a bank can charge overdraft fees on ATM and one-time debit card transactions.
Which banks don’t charge overdraft fees?
Capital One and Citi are two large banks that don’t charge overdraft fees, and many online banks and some credit unions don’t either. Policies change, so confirm on the bank’s current fee schedule before you open an account.
Is it worth paying a monthly fee for a checking account?
Rarely. About 95% of non-interest checking accounts are free or can be made free, so you only need to pay a fee if the account gives you something you’ll actually use, like premium branch services, that’s worth more than the fee.
Related tools: budget calculator · all free money calculators
Sources: Bankrate checking and ATM fee study (survey June 2–July 3, 2025; published Sept. 10, 2025); Bankrate checking account fees guide (updated Sept. 1, 2026); bank overdraft policies as compiled by Chime (as of June 1, 2026); Congressional Research Service on the repeal of the CFPB overdraft rule (Sept. 2025); Regulation E opt-in rule. Fees change often — check your bank’s current fee schedule. This article is for educational purposes and isn’t financial advice.
Written by Chanchala
Founder & Lead Writer · B.Sc. Mathematics (Honors) · 9 years in banking & lending
Chanchala is the founder and lead writer of FinInfoBlog. She holds a B.Sc. in Mathematics (Honors) and has 9 years of experience in banking and lending. She writes plain-English guides on savings, CDs, loans, credit and personal finance for U.S. readers, and makes sure every example shows the math behind the money decision. How we research and fact-check.
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