What Types of Fees Banks Charge

Service fee

Some banks charge a service fee for their savings accounts. You need to pay the savings account service fee just to keep your account open. If a bank charges a service fee, there are usually ways to get the fee waived. In order to get the fee waived, you need to keep the account balance above a certain amount or you can transfer a minimum amount of money into the account each month. If you see an account that charges a service fee that you can’t avoid, go with another bank. There are plenty of options for you.

Minimum balance fee

Your bank might also charge a savings account minimum balance fee. To avoid this fee, your account balance can’t fall below the minimum limit. Generally, savings accounts that pay a higher interest rate usually have a higher minimum balance requirement. When you’re looking for a savings account, make sure to find one with a minimum balance you’d be comfortable maintaining every month.

Savings account excess withdrawal fee

Savings accounts usually limit the number of withdrawals you can make each month. For example, your account might allow six withdrawals each month. If you need to make any additional withdrawals, you’d have to pay an excess withdrawal fee, which can be a few dollars.

Check what kinds of restrictions are on an account and if there are ways around them. For example, some accounts limit the number of teller withdrawals you can make but don’t have a restriction on monthly ATM withdrawals.

Savings account fees are a real headache and can wipe out months’ worth of interest. With a little planning though, you can manage your account and avoid bank fees.