Paying Too Much in Bank Fees? Here’s What You Can Do

Let’s set the scene: you check your bank account one fine Monday morning and see it’s $12 lower than it was yesterday. You haven’t made any purchases, haven’t paid any bills—and yet, there it is. That annoying little line: Monthly Maintenance Fee. Or maybe Out-of-Network ATM Fee. Or my personal favorite: Excess Transaction Fee.

Bank fees are one of those sneaky little financial landmines that slowly chip away at your hard-earned cash. And unless you’re keeping a watchful eye, they can add up faster than a late-night Uber ride surge-priced during a rainstorm.

So let’s talk about it—how to know if you’re overpaying in bank fees, why it’s more common than most people realize, and exactly how to take control without moving to a shoebox of cash under your mattress (although some days, I get the appeal).

Define the Culprits: What Exactly Are You Paying For?

Bank fees come in many flavors. Some are baked into the fine print (so fine you’d need a microscope to catch them). Others seem to pop up out of nowhere, like glitter after a kid’s birthday party.

Here’s a non-overwhelming breakdown of the most common ones that could be nibbling at your money:

• Monthly Maintenance Fees – A fee just to keep your checking or savings account open. Why? Great question.
• ATM Fees – Charged for using an out-of-network ATM. Sometimes double charged—once by your bank, once by the ATM owner.
• Overdraft and NSF (Non-Sufficient Funds) Fees – Charged when a transaction exceeds your balance. Some banks "helpfully" spot you the difference, then charge you $35 for the favor.
• Minimum Balance Fees – A charge for not keeping a certain amount in your account.
• Foreign Transaction Fees – For purchases made outside the U.S. (or online in foreign currencies).
• Excess Withdrawal Fees – Often tied to savings accounts, especially if you move money too frequently.

In 2022 alone, U.S. banks collected over $7.7 billion in overdraft and NSF fees, according to the Consumer Financial Protection Bureau (CFPB).

Are You Overpaying? Here’s How to Know

If you haven’t looked closely at your bank statements in a while (no judgment), now’s the time. Log in to your online banking or pull up a recent statement and scroll through with an eye for any of the following:

• Monthly service charges
• ATM withdrawal fees
• Overdraft or insufficient funds charges
• Paper statement fees (yes, they charge for paper)
• Transfer or wire fees
• Foreign transaction fees

Tally up the charges from the last 6–12 months. If it’s more than $60 a year, you’re likely overpaying. And if it’s pushing $100+? Time to hit the brakes and reassess.

What To Do About It: Real Strategies That Work

1. Switch to a Fee-Free Account

Many online banks and credit unions offer completely free checking and savings accounts—no maintenance fees, no minimums, no strings.

Look for:

• No monthly maintenance fee
• No minimum balance requirement
• Free in-network ATM usage
• Low or no overdraft fees
• Free transfers and mobile check deposit

Some banks even reimburse out-of-network ATM fees, which is a major win if you travel or live in an area without convenient branches.

Weekly Nugget: Many offer high-yield savings and checking accounts with no fees—and better customer service to boot.

2. Call and Ask For a Fee Waiver

This is one of those tricks I wish more people knew: just ask.

Call your bank, and say something like:

“Hi, I noticed I was charged a maintenance/overdraft/ATM fee on my account. I’d like to request a one-time courtesy refund.”

More often than not, they’ll remove it—especially if you haven’t called before or if you’ve been a long-time customer.

And don’t just stop at one call. If your account consistently racks up fees, ask what options you have to avoid them entirely. Many banks have secret “no-fee” options or can change your account type over the phone.

3. Rethink Overdraft Protection (It’s Often a Trap)

Overdraft protection sounds helpful—but it often ends in a $35 charge for covering a $3 coffee.

Here’s the thing: some banks link your checking to your savings and transfer the funds with a fee. Others just charge you every time your balance dips below zero—even by a few cents.

Instead, consider:

• Turning off overdraft altogether (yes, this means transactions may be declined—but also means no fee)
• Using a bank that offers no-fee overdraft protection up to a certain amount
• Setting up low balance alerts to stay ahead of potential overdrafts

Weekly Nugget: Is the “convenience” of overdraft protection really worth $30+ a pop? Or could it be training you to avoid better money habits?*

4. Be Strategic With ATM Use

Those $3–$5 ATM fees add up fast. Combine one from your bank and one from the ATM operator, and you're basically paying 10–15% just to access your own money. According to Bankrate, the average out-of-network ATM withdrawal fee in 2024 was $4.77, the highest in U.S. history.

A better move?

• Use your bank’s ATM locator app before heading out
• Get cash back at grocery stores (often free)
• Switch to a bank that reimburses ATM fees automatically

Or, simply go old-school and carry enough cash for small expenses—then avoid ATMs altogether.

5. Automate and Optimize

If you're paying paper statement fees or missing minimum balance thresholds because of timing, automation can fix that.

• Schedule automatic transfers to your savings (even small ones)
• Use recurring payments for bills—on-time payments help avoid late fees and improve your credit score
• Set calendar reminders to review your statements monthly—it doesn’t have to be tedious. Think of it as a “money health check”

Also: track your fees. Some budgeting apps will flag recurring charges or random fees you might not notice.

When It Might Be Time to Break Up With Your Bank

Sometimes, despite your best efforts, the fees keep coming. That’s a sign.

Here’s when to move on:

• Your bank keeps charging fees you can’t avoid
• They refuse to refund one-off charges even with a clean history
• You’ve found a better option with significantly better terms
• You need features your current bank doesn’t offer (high-yield interest, mobile tools, 24/7 support)

Switching banks doesn’t have to be a nightmare. Set up your new account, move over your direct deposit, switch any recurring payments, then let your old account breathe its last.

I once stayed with a big-name bank out of habit. After realizing they charged $96 in fees over six months for… literally nothing, I moved to an online bank. That $96 now lives happily in a high-yield savings account.

You Work Hard—Your Money Should Too

Bank fees are one of those quiet drains on your finances that often go unnoticed until you step back and look at the bigger picture. And let’s be honest: in today’s world, you shouldn’t be paying to access your own money.

You don’t need to overhaul your entire financial life overnight. Just start with one thing:

• Review your last two statements.
• Identify any avoidable fees.
• Call your bank and ask for a refund—or, better yet, make a plan to avoid them next month.

Little moves like this build momentum. And financial momentum? That’s how people start traveling more, investing smarter, saving faster—and sleeping better.

So the next time your bank tries to slide a $12 “service fee” past you, smile. You know better now. And better yet? You’re doing something about it.

Jasmine Lee, Senior Contributor

Jasmine's been diving into finance for over a decade and still gets a kick out of finding smart ways to save. Whether it's budgeting hacks or investment insights, she's got the tools to make your money goals feel doable.