https://www.unitedway.org/nourishing-community https://www.unitedway.org/resilient-communities
×

Sign me up for updates. Sign up now

×
Donate Take Action

Fees to Watch Out For

 

Early Account Closure Fee

  • Definition: If you open an account and then close it quickly (within a specified number of months) your bank may charge you an early account closure fee.
  • How to avoid this fee: When opening an account ask about this fee and plan to keep your account open for longer than this period of time.

Certified Check Fee

  • Definition: This is a fee charged by your bank or credit union for writing a check on your behalf, validating to the payee that you have sufficient funds in your account.
  • How to avoid this fee: If you know that you will need certified checks, look for banks, credit unions, and accounts that offer this product for free or at a very low cost.

Foreign Transaction Fee

  • Definition: This is a fee that your bank or credit union charges to make a conversion of foreign currency if you make a debit card purchase abroad.
  • How to avoid this fee: Look for banks, credit unions, and accounts that offer this service for free or at a very low cost.

Human Teller Fee

  • Definition: Some banks will charge you a fee for the ability to speak to a human teller rather than interacting only with the ATM or website.
  • How to avoid this fee: Ask a prospective bank or credit union if this is a fee that they charge.  If you are interested in speaking to a human teller look for a bank that offers this for free.

Lost Debit Card Fee

  • Definition: If you happen to lose your debit or ATM card, your bank or credit union may charge you a fee to replace it.
  • How to avoid this fee: Keep you debit card in a safe place! If you do lose your debit card, as your bank or credit union if they will consider a one-time waiver of the fee.

Inactivity Fee

  • Definition: This is a fee that you bank or credit union charges for having zero transactions in your account over a specified number of months.
  • How to avoid this fee: When shopping for an account, consider the frequency with which you will use it and choose and account that fits your lifestyle.

Maintenance Fee

  • Definition: Many accounts will charge you a monthly maintenance fee, which they will waive if you adhere to a number of provisions.
  • How to avoid this fee: Ask what will waive the maintenance fee, such as a direct deposit, a minimum balance, or a certain number of transactions per month. Choose the account that offers the best deal for you.

Minimum Balance Fee

  • Definition: This fee is charged if your account falls below a stated balance, sometimes even if the balance drops below that threshold for even one day during the month.
  • How to avoid this fee: Choose an account whose minimum balance requirement is realistic for you to maintain.

Out-of-Network ATM Fees

  • Definition: This is a charge that you bank or credit union will levy if you use an out-of-network ATM. Note that the out-of-network ATM may charge you a fee as well.
  • How to avoid this fee: First think about your lifestyle and what type of ATM usage you foresee having.  If you make frequent ATM withdrawals, make sure to choose a bank or credit union with easily accessible ATM machines.

Overdraft Protection Fee

  • Definition: This is a voluntary service in which you allow your bank or credit union to cover a payment in the event that your account balance falls below zero.  This service comes with a fee, often per transaction.  You may also have to pay interest on the amount the bank has covered until you repay it.
  • How to avoid this fee: Many experts advise against using overdraft protection, as debit purchases will be refused at the point of sale (with no fee incurred) and checks will bounce with a lower fee than that overdraft protection fee.  Instead, link to your savings account, credit card, or get approved for a line of credit and attach it to your checking account.

Paper Statement Fee

  • Definition: Some banks or credit unions will charge you a monthly fee if you elect to receive a paper account statement.
  • How to avoid this fee: If you prefer paper statements, look for a bank, credit union, or an account that offers them.

Returned Check Fee

  • Definition: If you write a check that bounces and is then returned to your bank or credit union unpaid, you may be charged this fee.
  • How to avoid this fee: Keep track of the money coming in and going out of your account so that you know that when you write a check you will have sufficient funds to cover it.

Return Mail Fee

  • Definition: If you happen to move and do not tell your bank or credit union, they may charge you a fee if they send you mail and it is returned to them.
  • How to avoid this fee: Let your bank or credit union know when you move.

Stop Payment Fee

  • Definition: This is a fee that your bank or credit union charges when you tell them to stop payment on a check that you have already sent.
  • How to avoid this fee: Make sure you are writing check for which you have enough money or one that must be written. You may also have to put a stop payment on a check that is lost.  If that’s the case, you may want to ask the payee to cover the fee. 

Wire Transfer Fee

  • Definition: This is a fee charged when you are either sending or receiving a wire transfer into our out of your account (fees may differ depending if you are sending or receiving).
  • How to avoid this fee: If you know that you need this service, shop around at different banks and credit unions to learn about their wire transfer fees and find the best deal for you.