How to Avoid Checking Account Fees

Find a financial institution that offers free checking accounts

Yes, they do exist! There are still institutions out there that offer totally free checking accounts. Many may  require you to maintain a minimum balance in a savings account but if opening a checking account, it's free. Psst... Many financial institutions may offer free checking if you set up direct deposit or if you make a certain number of transactions on your debit card.

Are you a student?

Financial institutions don't charge fees if you're in college, high school or under a certain age.

You may come across checking accounts called student checking which are accounts that don't charge fees or waive most common fees. For this account, the institution will ask you to verify your student enrollment and ask when you'll graduate to set a period where the student checking account is active.  

If you’re a student, ask your financial institution if this type of checking is available. 

Review your account statement and make sure you are aware of all the fees that are charged. 

It's important to keep tabs on your checking account and make sure you're aware of all the fees that are being charged. Although most checking accounts offer free basic services, there may be additional fees for things like using out-of-network ATMs or making stop payments. Be sure to review your account statement regularly and contact your bank if you have any questions about the fees being charged. By taking a proactive approach, you can avoid being surprised by unexpected fees and keep your checking account in good standing.

Set up a budget and make sure you have enough money in your account to cover all your expenses. 

One of the most important things you can do to manage your finances effectively is to budget your expenses. Setting up a budget involves creating a budget and sticking to it to ensure that you have enough money to cover all your necessary expenses.

Budgeting can be difficult, but there are a few key tips that can help you get started. Here are some tips that'll help. 

Make more than one deposit each month to avoid monthly service fees.

Many banks charge their customers a monthly service fee if they do not maintain a certain minimum balance. To avoid this fee, you need to make at least one deposit each month. This deposit can be in the form of cash, checks, or electronic transfers.

The best way to avoid monthly service fees is to set up a direct deposit from your paycheck into your checking account. That way, you can be sure that you will always have enough money in your account to cover the fee. Another good strategy is to keep a close eye on your account balance and make a deposit as soon as it starts to get low. By taking these simple steps, you can avoid paying unnecessary fees and save yourself some money each month.

Use online banking to keep track of your account activity and avoid overdraft fees. 

One of the best ways to avoid overdraft fees is to keep track of your account activity. Online banking makes it easy by providing a real-time view of your balance and recent transactions. This way, you can always know how much money you have available and avoid spending more than you have.

Additionally, online banking often offers tools that can help you budget and track your spending. This can be a helpful way to stay on top of your finances and avoid accidentally overdrawing your account. Whether you're managing a personal account or a business account, online banking is a valuable tool for avoiding overdraft fees.

Psst... You can also sign up for email or text alerts to keep track of activity as soon as it happens. This will help with knowing your activity in real time and can catch any fraudulent charges.

Opt for paperless statements to save on mailing costs. 

By opting for paperless statements, you’ll save on the cost of paper, postage, and envelopes. In addition, it will help to reduce clutter and make it easier to keep track of your finances. Paperless statements can be sent via email or accessed online through your account portal, and switching to paperless statements is a simple and effective way to reduce some expenses.

Spending more than what you have in your checking account will cause your account to go in the negative. You'll get hit with an overdraft fee.

Remember - when you spend more than your account balance, many financial institutions may charge a fee ranging from $25 and up.

Close any unused accounts to avoid monthly maintenance fees. 

Most people are aware that there are fees associated with keeping a bank account. Monthly maintenance fees are common and can vary depending on the type of account you have. However, what many people don't realize is that these fees can be avoided by simply closing any unused accounts.

Maintenance fees are typically charged when there is no activity in an account for a certain period of time, so by closing any accounts that you're not using, you can avoid being charged these fees.

but didn’t you say there were account closure fees?

This is true! But, if you’re not using your account, the cost of getting hit with monthly maintenance fees or inactivity fees month after month can be greater than paying a flat closure fee.