Checking Account Fees and How to Avoid Them
Updated
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Most banks provide several ways to waive their checking account fees. We'll take a look at what you need to know about common checking account fees and how you can avoid them.
Common checking account fees include:
A typical brick-and-mortar checking account can have a monthly maintenance fee in the $10 to $15 range. If you're paying $15 per month, that's $180 per year and $1,800 over a decade.
We recommend comparing checking accounts to make sure you're getting the best fit for you. Here's a list of our favorite accounts.
| Account | APY | Promotion | Next Steps |
|---|---|---|---|
Open Account for Discover® Cashback Debit
On Discover Bank's Secure Website.
Rating image, 5.00 out of 5 stars.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
0%
Min. to earn: N/A
|
Earn 1% cash back on up to $3,000 in debit card purchases each month (see details when you click 'Open Account')
|
Open Account for Discover® Cashback Debit
On Discover Bank's Secure Website. |
Open Account for Quontic High Interest Checking
On Quontic's Secure Website.
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
up to 1.10%
Min. to earn: $1
|
High APY when you complete 10 or more qualifying debit card purchases each month
|
Open Account for Quontic High Interest Checking
On Quontic's Secure Website. |
10 debit card point of sale transactions of $10 or more per statement cycle required to earn the maximum APY. If the qualifying activity requirement is not fulfilled, the interest rate paid on the entire balance will be 0.01% APY.
Checking accounts that charge monthly maintenance fees often give you several options to waive them. The most common way is to maintain a certain minimum balance. The monthly or daily balance requirements will vary by account. Some will also waive your fee if you meet one or more of the following criteria:
Review your bank's fee waiver options if you're not familiar with them. Make sure there's at least one you feel confident you can accomplish every month. Remember, you can qualify for a fee waiver one month and owe it the next. So if you want to avoid fees altogether, you must consistently meet one of the checking account's requirements.
It's also worth seeing whether a credit union checking account might work for you. Credit unions may not charge an account fee, and other charges are often lower than with regular banks.
You can also avoid a lot of checking account fees by going with an online checking account instead. Online banks don't have branch networks to maintain, which saves them a lot of money. This means they can offer free checking accounts, while brick-and-mortar banks often can't afford to do so. Online checking accounts are also more likely to offer interest and out-of-network ATM fee reimbursements. As long as you're comfortable with online banking, it's a good way to get out of paying a monthly service fee.
It's rare to find a checking account that forces you to pay a monthly fee without any way out. But if you pay a monthly service fee, it's probably time to think about a switch. Look for a free checking account or a bank account with a minimum account balance you can meet.
You don't have to go with an online bank if you're not comfortable with online and mobile banking. Just look around for a brick-and-mortar checking account that has reasonable fee waiver requirements.
As for other types of checking account fees, a lot of them are easy to avoid as long as you know they're there and avoid the behaviors that would trigger them. Take some time to familiarize yourself with your checking account's fees if you don't already know what they are.
Don't get caught paying nuisance checking account fees. Check out Motley Fool Money's top checking account picks to open a fee-free checking account that earns a high interest rate.
Checking account fees differ from bank to bank; however, many charge a $10 to $15 monthly maintenance fee that can be waived if you maintain a minimum daily balance, you transfer a certain amount of money each month, or you're age 24 or younger. Out-of-network ATM fees and foreign transaction fees are also common.
Not all banks charge monthly maintenance fees, but even banks that advertise "free" checking accounts will also have other fees, like overdraft fees and out-of-network ATM fees.
Many banks offer checking accounts without monthly maintenance fees or overdraft fees. Examples of free checking accounts include Ally Spending Account, Capital One 360 Checking, Discover Cashback Debit, and SoFi Checking and Savings.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page. APYs are subject to change at any time without notice.
