How much is too much for bank fees?
You‘d think it should be a % of your account amount! But no. Often the people least able to afford these get ding’d the most, because when it comes to fees, it’s as much about the amount of the fees as it is about the TYPES of behaviors that trigger fees. Banks usually charge similar fees types and amounts. Here’s the rundown, so you‘re not caught off guard.
Monthly Maintenance Fees
Basically, rent for a bank’s services. Usually around $5 - $15 a month but different by account type. How to avoid it: these fees aren’t punitive, but you can try to avoid it by carrying a large balance or auto depositing a check per month as banks waive this fee when you achieve an account minimum. When comparing bank accounts, consider where you can meet their fee-avoidance minimums.
Low Balance Fees
Related to the above, if your account is a type that DOESN’T charge a monthly maintenance fee because you promised to keep a minimum, but then you dip below that minimum…DING. How to avoid: maintain that minimum (set yourself a low-balance alert).
Paper Statement Fees
$2 or $3 if you want to hold a statement in your hands. How to avoid it: opt-in to only receiving statements online (via email or just in your bank app).
Overdraft Fees
When you withdraw more $ than you have. Costs around $35 per penalty, but some banks charge you more for each day it takes you to “restock” your account. How to avoid it: don’t opt in to “overdraft protection.” Deal with the OOPS! at checkout when your purchase is rejected (embarrassing maybe but no financial pain), vs paying for pricey “protection” from the bank which lets the transaction go through in the moment, but costs you this penalty.
Card Replacement Fees
When you lose your card. Can be anywhere from $5 to even $25 if you need it rushed. How to avoid it: try not to lose things.
ATM Fees
When you withdraw cash from a machine that isn’t your bank’s ATM. How to avoid it: some accounts (if you’re a VIP who keeps a high account balance) waive this fee; if you’re not a VIP yet, stick with your own bank’s machine.
While I’m a student, can you waive the fees?”
or
“I just graduated; can you waive the fees for 1 more year from my graduation?