How to Avoid Bank Fees in the U.S.
Introduction
When we open a bank account in the United States, it is easy to assume the account is free.
We deposit our money, use our debit card, pay our bills — and then one month we notice that our balance is slightly lower than expected. We look at our account history and find a charge we did not anticipate. A maintenance fee. An ATM fee. An overdraft fee. A charge we did not know existed until it appeared on our statement.
For immigrants who are new to the U.S. banking system, these fees can be genuinely confusing. In some countries, bank accounts come with very few charges. In others, fees are structured very differently. The U.S. banking system has its own set of common charges — and understanding them is the first step toward avoiding them.
The good news is that most bank fees are avoidable. They are not inevitable costs of having a bank account. They are charges that occur under specific conditions — conditions that we can learn to recognize and prevent.
This guide explains the most common bank fees in the United States and the practical habits that keep them from taking money out of our accounts.
Monthly Maintenance Fees
A monthly maintenance fee — sometimes called a monthly service fee — is a fixed charge that some banks apply to checking accounts each month simply for keeping the account open.
These fees typically range from a small amount to around $15 or more per month, depending on the bank and account type. At the higher end, that adds up to over $100 per year simply for holding an account — money we could keep if we understand how to avoid the charge.
The important thing to know is that most accounts with monthly fees also offer clear ways to have those fees waived. Common waiver conditions include:
Maintaining a minimum daily or monthly balance. If our account balance stays above a certain threshold — for example, $500 or $1,500 — the fee is waived. If our balance falls below that level at any point during the month, the fee applies.
Setting up direct deposit. Many banks waive monthly fees for customers who receive regular direct deposits above a specified amount. For people receiving regular income from employment, this condition is often easy to meet.
Meeting a minimum number of transactions. Some accounts waive fees if we make a certain number of debit card purchases per month.
Before opening any checking account, we should read the fee schedule carefully and understand exactly what conditions must be met to avoid the monthly charge. If the waiver conditions are realistic for our situation, a fee-based account may still be manageable. If they are not, we should look for an account with no monthly fee at all.
Many banks — including online banks and some community institutions — offer checking accounts with no monthly fees under any circumstances. These accounts exist across a range of institutions and are worth seeking out. We discuss how to compare account options in our guide How to Choose Your First Bank Account in the U.S.
ATM Fees
When we withdraw cash from an ATM, we may be charged a fee — and sometimes more than one.
Banks typically allow free withdrawals from ATMs within their own network. These are ATMs owned and operated by our bank. When we use an ATM outside that network — owned by a different bank or a third-party operator — two fees may apply.
Our own bank’s out-of-network fee. Our bank charges us for using an ATM outside their network. This fee varies but is commonly around $2 to $3 per transaction.
The ATM owner’s fee. The bank or company that owns the ATM may charge its own fee for non-customers. This is separate from our bank’s charge and can be an additional $2 to $4 or more.
In some cases, a single out-of-network ATM withdrawal can cost us $4 to $7 in combined fees. For someone withdrawing cash multiple times a month, this adds up quickly.
Practical ways to avoid ATM fees:
Use our bank’s network. Most banks provide a way to find in-network ATMs — through their mobile app, their website, or a location finder. Planning withdrawals around in-network ATMs is the simplest protection.
Withdraw cash at the register. Many grocery stores and retail shops in the United States offer cashback when we pay with a debit card — meaning we can request additional cash as part of a purchase, without visiting an ATM. This is typically free.
Choose a bank with ATM fee reimbursement. Some online banks do not have their own ATM networks but reimburse out-of-network ATM fees up to a set amount each month. This can effectively eliminate ATM fees regardless of which machine we use.
Overdraft Fees
An overdraft occurs when we spend more money than is currently available in our account. For example, if we have $50 in our checking account and we make a $75 purchase, we have overdrafted by $25.
When this happens, some banks cover the transaction — paying the $75 even though our balance was insufficient — and then charge an overdraft fee. This fee can be significant, often ranging from $25 to $35 per transaction. And if we overdraft multiple times in one day, we may be charged that fee multiple times.
There are several approaches to avoiding this.
Monitor our account balance regularly. Checking our account balance before making purchases — especially larger ones — is the simplest protection. Most banking apps make this easy with real-time balance updates.
Set up low balance alerts. Most banks allow us to set up automatic notifications when our balance drops below a specified amount. This warning gives us time to transfer funds or reduce spending before an overdraft occurs.
Opt out of overdraft coverage. Many banks offer optional overdraft coverage — but we must actively enroll in it, and it comes with fees when used. If we opt out, the bank will simply decline transactions that would overdraft our account rather than covering them and charging us. For many people, having a transaction declined is a better outcome than paying a $35 fee.
Link a savings account as a backup. Some banks allow us to link our checking account to a savings account. If our checking balance is insufficient for a transaction, the bank transfers money from savings automatically. This may involve a small transfer fee, but it is typically much lower than an overdraft fee.
Minimum Balance Fees
Some bank accounts require us to maintain a minimum balance — a floor below which our account cannot fall without triggering a charge. This is related to but distinct from monthly maintenance fees.
A minimum balance requirement might look like this: the account requires a minimum of $300 at all times. If our balance drops to $280 on any given day, the bank charges a fee — even if the balance recovers the following day.
For immigrants who are still building their financial footing, maintaining a required minimum balance can be difficult, particularly in months when expenses are higher than usual.
The practical solution is straightforward: choose accounts with low or no minimum balance requirements. These accounts exist at many institutions and are the appropriate starting point for people who cannot always guarantee a consistent balance.
When comparing bank accounts, this requirement should be checked alongside monthly fees and other charges. We cover this comparison process in detail in our guide Checking vs Savings Accounts: What’s the Difference?
Foreign Transaction Fees
For immigrants who travel, send money abroad, or make purchases from international vendors, foreign transaction fees are worth understanding.
Some banks charge a fee — typically around 1% to 3% of the transaction amount — when a purchase or withdrawal is made in a foreign currency or processed through a foreign bank. This can apply to online purchases from international retailers, purchases made while traveling outside the United States, and sometimes international money transfers.
These fees may seem small on individual transactions, but they accumulate for anyone who regularly interacts with financial systems outside the United States.
Before using our bank account for international transactions, we should review the bank’s foreign transaction fee policy. Some accounts — particularly those offered by online banks or institutions with a strong international focus — charge no foreign transaction fees at all. For immigrants who travel or maintain financial ties abroad, choosing a bank with no foreign transaction fees can result in meaningful savings over time.
Paper Statement Fees
This is a smaller fee but worth mentioning because it is easily avoided.
Some banks charge a modest monthly fee — typically a few dollars — for mailing a printed account statement to our address. This is in addition to, or sometimes instead of, the free electronic statements available through online banking.
The solution is simple: opt into electronic statements. Most banks offer this option in the account settings section of their online portal or mobile app. Switching to electronic statements eliminates this fee entirely and gives us instant access to our statements at any time.
Practical Strategies for Avoiding Bank Fees
Looking at the fees above, a clear pattern emerges. Most of them can be avoided through straightforward account choices and simple habits.
Choose the right account from the beginning. Many of the fees described in this guide are features of specific account types — not universal costs of banking. Accounts with no monthly fees, no minimum balance requirements, and ATM reimbursement policies exist at many institutions. Starting with the right account means many of these fees never apply to us.
Our guides Best Banks for Immigrants in the United States and Online Banks vs Traditional Banks: Which Is Better? help us compare institutions and identify which ones are most accessible and cost-effective for immigrants.
Set up direct deposit. For accounts that waive monthly fees with direct deposit, setting up our paycheck to deposit directly into our account is one of the simplest fee-avoidance steps available.
Use in-network ATMs. Planning cash withdrawals around our bank’s ATM network — or choosing a bank that reimburses ATM fees — eliminates one of the most common sources of unexpected banking costs.
Monitor our balance regularly. Checking our account balance frequently — through a mobile app or online banking — is the most effective protection against overdraft fees. Setting up low balance alerts adds an extra layer of protection.
Read the account terms before opening. Fee schedules are available on every bank’s website. Reading them before we commit to an account is the clearest way to understand exactly what we will and will not be charged for.
Switch to electronic statements. A small step that takes less than a minute but eliminates a recurring fee.
Compare options before committing. Banks vary significantly in how they structure fees. Taking time to compare a few accounts before making a decision — rather than opening the first account we encounter — often results in meaningfully lower banking costs over time.
Conclusion
Bank fees in the United States are real, but they are not unavoidable. They are charges that occur under specific conditions — and most of those conditions can be managed with the right account choices and a small number of consistent habits.
We should not be paying monthly maintenance fees if accounts without them are available. We should not be paying ATM fees if we plan our withdrawals around in-network machines or choose a bank with reimbursement. We should not be paying overdraft fees if we monitor our balance and set up alerts.
Understanding how these fees work puts us in control. And with that understanding, we can make sure that our bank account does what it is supposed to do — hold our money securely and help us manage it effectively — without quietly taking a portion of it back each month.
MARVODYN provides financial education for informational purposes only. This content is not financial advice. Bank fee policies vary between financial institutions and account types, and may change over time. Please verify all fee information directly with your financial institution before opening an account. See our full disclaimer at marvodyn.com.
