Compare Account Fees - Choose a bank account with minimal fees.

Amanda Peterson

June 19, 2024  •  2 Minute Read

Banking & Investing, Money Saving Tips

It's Wednesday and, you guessed it — it's Wise Spend Wednesday! At CreditSoup, we use this day to provide you with useful tips on how to spend (or save) your money wisely. Today we are going to talk about bank account fees.

More than 25% of Americans with checking accounts are paying an average of $24 per month in banking fees, according to a 2023 Bankrate survey. One area where you can potentially save a significant amount of money is by choosing a bank account with minimal fees. Banks often charge various fees for services like monthly maintenance, ATM usage, overdrafts, and more. These fees can add up quickly and eat into your hard-earned money. To help you make a wise choice, here are some tips for comparing account fees and selecting a bank account that aligns with your financial goals.

Understand Common Bank Fees

Before you start comparing accounts, it's essential to understand the different types of fees that banks may charge. Here are five very common fees to look out for:

• Monthly Maintenance Fees: Some banks charge a monthly fee just for having an account with them. These fees can range from a few dollars to over $20 per month.

• ATM Fees: If you use an ATM that is not part of your bank's network, you may be charged a fee for each transaction. These fees can quickly add up if you frequently use out-of-network ATMs.

• Overdraft Fees: When you spend more money than you have in your account, banks may charge an overdraft fee, which can be as high as $35 or more per transaction.

• Minimum Balance Fees: Some accounts require you to maintain a minimum balance, and if you fall below that threshold, you may be charged a fee.

• Paper Statement Fees: While many banks offer free online statements, some may charge a fee for receiving paper statements in the mail.

Compare Account Options

Once you understand the different types of fees, it's time to compare account options from various banks.

Check Online Banking Portals

Most banks have detailed information about their account offerings and associated fees on their websites. Take the time to review and compare the fees for different account types.

Visit Local Branches

If you prefer in-person assistance, visit local bank branches and ask for fee schedules. Bank representatives can explain the fees and help you choose the right account for your needs.

Consider Online Banks

Online banks often have lower overhead costs, which can translate into lower fees for customers. However, be sure to research their fee structures and customer service offerings.

Look for Fee Waivers

Some banks may waive certain fees if you meet specific criteria, such as maintaining a minimum balance or setting up direct deposit.

Consider Your Banking Habits

Think about how you typically use your bank account. If you rarely use ATMs or overdraft your account, you may be able to choose an account with higher fees in those areas but lower fees in areas that matter more to you.

Make a Wise Choice

Choosing a bank account with minimal fees can save you a significant amount of money over time. By understanding common fees, comparing account options, and considering your banking habits, you can make an informed decision that aligns with your financial goals. Remember, even small fees can add up quickly, so it's essential to be mindful of the costs associated with your bank account.