Checking account fees can become a trap that you may not realize you’ve fallen into until it’s too late. It is possible to be charged fees simply for keeping your account open, or for services or features you may have assumed came standard with the account. Being charged a fee does not necessarily imply that you did anything wrong, but it is a hassle that you can avoid with proper research.
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Here is a list of some of the most common checking account fees:
- Monthly fees for account maintenance or service
- Fees for overdrafts or insufficient funds
- ATM charges
- Fees for ordering checkbooks
- Fees for online bill payment
- Fees for stopping payments
- Fees for replacing a debit card
Not sure what checking account fees you’re paying? To obtain a copy of your deposit account agreement, contact your bank or visit its website. This document will typically include a list of fees associated with your checking account that may apply to you.
According to Riley Adams, “If your monthly bank statement breaks down monthly, quarterly, and annual fees, then your account is truly fee-free.”CPA and financial analyst at Young and the Invested, a site with financial independence strategies.
It is critical to review your statements on a regular basis to identify which fees you are being charged and how this affects your budget.
Three advantages of a no-fee checking account
Now that you’ve identified all of the possible checking account fees, you’ll discover that the advantages of a no-fee checking account go beyond simply freeing up some cash in your budget. A no-fee checking account gives you a financial advantage in the following ways, in addition to the features you’re used to with a regular checking account:
- More money for your financial objectives. Adams says no-fee checking accounts can help you gain financial independence. Instead of paying monthly service fees or even overdraft fees, you can put that money into a savings account toward your own financial goals.” Fee savings could be used to pay down debt, increase savings, or fund an education, business venture, or vacation.
- Flexibility. A no-fee checking account gives you the freedom to bank on your own terms. If you’re just starting out, a no-fee checking account with no minimum opening deposit allows you to fund the account with whatever amount makes sense for you. Do you need to make a large deposit from checking to savings? You won’t have to worry about falling below a minimum balance threshold because you won’t have to. You can even use ATMs in your bank’s network without incurring fees, and if you accidentally overdraw, the flexibility of your no-fee account may save you the stress of a ding for insufficient funds.
There are no surprises. “Should I get a no-fee checking account?” Accounts with no fees give you peace of mind that unexpected or unaccounted-for fees won’t push you into overdraft.
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Discover the best no-fee checking account for you.
Although the benefits of a no-fee checking account are important, don’t get too carried away and overlook other checking account features that suit your lifestyle. If customer service is a deal breaker for you, make sure the bank provides it around the clock and is well-known for providing excellent service. If you’re always on the go and have your phone with you, mobile features and mobile check deposit may be at the top of your priority list. If you frequently withdraw cash, look into the bank’s network of no-fee ATMs and see if an ATM locator is available to help you find them.
Begin your journey to smarter checking.
Clearly, there are numerous advantages to a no-fee checking account and a no-fee checking account without an opening deposit requirement. Simply do your research and then carefully compare your findings. The no-fee checking account you select should ultimately assist you in meeting your personal financial objectives. Saving money on fees and reducing financial stress may be just what you need to get your checking account on the right track.
- There is a service charge for incoming wire transfers. A non-Discover ATM may charge you a fee if it is not one of the 60,000+ ATMs in our no-fee network.
- The program does not offer cash back rewards on ATM transactions, money orders or other cash equivalents, cash over portions of point-of-sale transactions, or Peer-to-Peer (P2P) payments made with your debit card (such as Apple Pay Cash), loan payments, or account funding Purchases made with third-party accounts and certificates of deposit are also permitted.
