Almost everyone in the US relies on the banking system to receive, store, and move our money where we need it to go. Using a Bank provides safe and secure ways to store money, invest money, and make payments when needed.

But banks aren’t just out there to help us. Banks are businesses. Actually, they are some of the biggest businesses in the world. They know how to make a lot of money, and one of the main ways they do this is with bank fees.

Of course, you can’t really get mad at banks for charging fees. After all, they are offering products and services that make our lives better. That’s worth paying for, right?

Regardless, it’s nice to know what types of fees exist. And more importantly, it’s nice to know how to avoid paying fees if we can. So keep reading to learn about the most common bank costs you are likely to incur. 

Checking and Savings Account Fees

Every bank is different and can choose to charge for their products and services if they want. That said, some banks charge for the privilege of opening a checking or savings Account, while others don’t. 

Fees associated with checking and savings accounts are generally intended to pay for maintenance and security expenses, along with customer support. 

However, even though many banks do charge fees for these accounts, there are often easy ways to waive these fees. Some banks might charge as little as $5 per month for these accounts, while some might charge more.

Either way, it’s nice to avoid these fees. Generally, if you maintain a minimum account balance, set by your bank, you can avoid paying these fees. But you’ll want to ensure this balance is held all month long. If you end just one day with a low balance, you may incur bank balance fees. 

Some banks will waive the fee if you set up a direct deposit to your account, likely coming from your employer. And still, others waive the fee if you make a certain amount of purchases using your debit card each month. 

Overdraft Fees

If you end up spending more money than you have available in your account, you can incur an overdraft fee. This can happen because not every transaction posts to your account right away. 

If you have just $50 in your checking account, but used your debit card to make two $40 purchases in quick succession, you might get away with it. But now your account has a negative balance, and thus, you might need to pay an overdraft fee, which is usually around $25. 

This is easily avoidable by knowing how much money is in your account and controlling your spending habits. You can also set alerts so that you are notified when your account balance reaches a certain threshold. 

Returned Deposit Charge

If you ever try to deposit a bad check, you might get stuck paying a returned deposit charge. If the check bounces, for any number of reasons, your bank may charge you for the inconvenience. 

Paper Fees

Most banks prefer to provide documentation and account statements via email, rather than printing papers and sending them through snail mail. This saves banks lots of money.

However, there are still some old-fashioned people that like getting paper statements in the mail. If that’s you, you might end up paying a small fee for this. 

ATM Fees

Most banks have their own ATMs that you can use to deposit and withdraw cash and checks. But if you ever need to use an out-of-network ATM, you can expect to pay a fee.

If you end up doing this, try withdrawing more money than you think you need, to ensure you won’t have to come back and make another transaction. 

Foreign Transaction Fees

Using ATMs, or making purchases using a debit or credit card in another country, can often incur foreign transaction fees. Making transactions in other countries requires a more complex process of sending money and converting those funds. 

Banks love passing these fees onto their clients. However, some banks offer certain checking accounts or credit cards without any foreign transaction fees, which are best suited to frequent travelers. 

Credit Card Annual Fees

For most people, credit cards are optional. But they are a good idea, as they help you to build credit. And they can provide you with rewards or cashback. But the only way for these rewards to be valuable is if you ensure you avoid paying interest.

Regardless, the credit cards with the best rewards are those that charge annual banking fees. Annual fees can range from $50 to $450, and provide a wide range of benefits.

The most popular are travel rewards credit cards, where the points earned usually outweigh the associated cost. 

Late Payment Fees

If you have a credit card, you’ll need to make monthly payments on time. If you don’t, you can incur late payment fees, and eventually suffer from a lower credit score. 

Avoiding Bank Fees

One of the easiest ways to avoid fees, in general, is to stay on top of your finances. This is hard to do if you only check your bank account once a week, or once a month on your computer.

To better update yourself on your finances, you should choose to bank with a company that offers a fast, effective, easy-to-use mobile app. Many of the biggest banks have had mobile apps for a long time.

But today, more and more local banks are also launching their own apps for their clients. If you live in Idaho, for example, you can visit https://www.farmersbankidaho.com/ for one of the most trusted banks in the state that offers a mobile banking app.

Using an app will mean you are more likely to make payments before they are late, and see when your account is low on funds, so that you don’t incur any overdraft fees. 

You can also avoid credit and debit card fees when shopping by purchasing with cash whenever buying from smaller retailers. 

Bank Smarter

Yes, we need banks. They make our lives so much easier. But if you are smart and a little savvy, you can enjoy the best services that banks have to offer, while paying very little money directly to them.

Even if you don’t pay any bank fees whatsoever, the bank is still making money off you. But that’s a topic for another day. Until then, bank smarter and avoid those fees!

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