By Jennifer Tucker
October 25, 2024 | 3 Min. Read
Navigating checking account fees can be tricky. While many accounts claim to be free, there are often conditions you must meet to avoid fees altogether.
So, how can you avoid checking account fees? Understanding the requirements associated with your account is a crucial step toward gaining financial freedom.
A key aspect of effectively managing your finances is knowing how to avoid fees that can eat into your balance. Here’s a guide to common fees and how you can steer clear of them:
Some banks charge a monthly maintenance or minimum balance fee, which you’ll incur if your checking account balance falls below a certain threshold.
How to avoid it: It’s best to look for an account that doesn’t have a monthly maintenance fee or requires a low minimum balance. If an account like that proves hard to find, know that many banks and credit unions will waive the monthly maintenance fee if you maintain a minimum balance or have direct deposits exceeding a certain amount.
Overdraft fees occur when you create a negative balance in your account, and the bank covers the transaction. These fees can add up quickly and may result in a sustained overdraft fee if your account remains negative for a certain period of time.
How to avoid it: Planning and budgeting are the best ways to manage your spending and avoid overdrafts. You can also manage your account by using online or mobile banking to keep an eye on your balance, transactions, and more.
Many banks and credit unions offer overdraft options, like enrolling in debit card overdraft protection. If you plan to enroll in overdraft protection, ask how much the bank charges if you make a transaction that takes your account negative.
Savings overdraft protection is also an option at some banks. With savings overdraft protection, you can use a linked savings account or money market account to fund a transaction that would take your checking account balance negative. This type of overdraft may cost less than other overdraft charges.
It’s common to incur a charge for using an out-of-network ATM to withdraw funds or check your account balance.
How to avoid it: You can reduce or avoid ATM fees by opening an account with a bank with a large, convenient ATM network. Know which ATMs are in- or out-of-network for your bank or credit union, and ask how much it will cost to use an out-of-network ATM. Certain banks will also waive or reimburse some or all out-of-network ATM fees.
You can also look for alternative ways to withdraw money from your account, like selecting cash back when you make a debit card transaction at the grocery store or pharmacy. Keep in mind there are usually limits to how much cash back you can receive, just like there are limits on ATM withdrawals.
Many banks charge a fee if you want to receive a paper statement in the mail.
How to avoid it: In our digital world, there are a lot of ways to go paper-free. You can opt for paperless statements through online or mobile banking for a convenient, fee-free experience.
Marine Credit Union’s Mobile App and Online Banking offer a faster, easier banking experience with digital banking tools that help you set and manage savings goals, view your spending habits, set up auto-pay, make transfers, and more.
When you open a Marine Credit Union Checking Account, you open new possibilities. We can help you reach your financial goals with the checking account that’s right for you.