How to Avoid Bank Fees: Step-by-Step

1. Review Your Statements for Recent Fees
   Identify which fees you’re being charged—like overdraft, ATM, maintenance, or paper statements.
2. Choose a No-Fee or Low-Fee Account
   Switch to a checking or savings account with no monthly fees or minimum balance requirements.
3. Set Up Balance and Payment Alerts
   Use text or email alerts to avoid overdrafts or low balances.
4. Use Only Your Bank’s ATMs
   Avoid ATM surcharges by using your bank or credit union’s machines whenever possible.
5. Opt Out of Overdraft Protection
   Ask your bank to decline debit purchases that would overdraw your account to avoid costly fees.
6. Go Paperless
   Enroll in electronic statements to avoid paper statement fees.
7. Monitor Your Account Regularly
   Check your account online or with your bank’s app to catch and address any fees quickly.

What to Expect When Avoiding Bank Fees

• Most fees are easy to reduce or eliminate: A few simple changes can save you hundreds of dollars each year.
• Banks may waive fees if you ask: Always call and request a refund, especially for a first offense.
• Switching accounts can pay off quickly: Many banks offer free accounts with no hidden fees.
• Setting up alerts makes a big difference: Notifications help you catch low balances and avoid overdrafts.
• Review your account regularly: Staying on top of fees makes it easier to spot problems before they add up.

Pro Tips & Common Mistakes to Avoid

• Shop around for fee-free accounts: Credit unions and online banks often offer free checking and savings options.
• Set up automatic transfers to avoid minimum balance fees: Moving a small amount regularly can help you qualify for fee waivers.
• Use your bank’s app for instant alerts: Stay aware of low balances or suspicious activity to stop fees before they happen.
• Don’t ignore fee notices: Contact your bank as soon as you see a fee—many will refund it if you ask.
• Avoid using out-of-network ATMs: Plan ahead and use your bank’s ATMs to skip extra charges.

Cutting Costs: Marcus Gets Smart About Bank Fees

Marcus, a 33-year-old city bus driver, was shocked when he realized he’d paid over $250 in bank fees last year. Between overdrafts, ATM charges, and paper statement fees, the small amounts were quietly adding up and shrinking his balance every month.

Determined to turn things around, Marcus took a close look at his bank statements and made a list of all his recurring fees. He switched to a fee-free checking account at a local credit union, set up balance alerts on his phone, and started using only in-network ATMs. Marcus also enrolled in electronic statements to stop the $3 paper fee each month, and he opted out of overdraft protection so transactions would be declined instead of incurring hefty charges.

When he accidentally got hit with another fee after traveling, Marcus called his bank right away and politely requested a refund—something he’d never done before. They reversed the charge as a courtesy, and he added a reminder in his phone to check for fees every month.

The result? By the end of the year, Marcus had cut his banking fees to almost zero and felt empowered knowing he was keeping more of his money for himself and his family.

Frequently Asked Questions

Ready to Stop Paying Bank Fees?

Money Fit’s certified counselors can help you spot hidden charges, choose a better account, and set up habits that save you money—so you keep more of every paycheck.