How to Avoid Bank Fees: 7 Tips to Save Money on Your Accounts in 2025

Bank fees can be a significant drain on your finances, often eating into your hard-earned money without you even realizing it. From monthly maintenance fees to overdraft charges, these costs can add up quickly, leaving you with less money to save, invest, or spend on the things that matter most.

The good news is that with a little knowledge and planning, you can avoid many of these fees and keep more of your money in your pocket. In this comprehensive guide, we’ll explore 7 practical tips to help you avoid bank fees in 2025. Whether you’re looking to minimize monthly maintenance fees, dodge overdraft charges, or simply optimize your banking habits, this article has you covered.

Why Bank Fees Matter

Before diving into the tips, let’s take a moment to understand why bank fees are such a big deal. According to a recent study, the average American pays over $200 per year in bank fees. For some, this number can be much higher, especially if they frequently incur overdraft fees or use out-of-network ATMs.

These fees may seem small on their own, but over time, they can add up to a significant amount. By avoiding unnecessary fees, you can save hundreds—or even thousands—of dollars each year, giving you more financial flexibility and peace of mind.

Tip 1: Choose the Right Bank Account

One of the easiest ways to avoid bank fees is to choose the right account for your needs. Many banks offer fee-free or low-fee accounts, but you’ll need to do some research to find the best option.

What to Look For:

• No Monthly Maintenance Fees: Look for accounts that don’t charge a monthly fee or offer easy ways to waive it, such as maintaining a minimum balance or setting up direct deposit.
• Free ATM Access: Choose a bank that offers free access to a large network of ATMs or reimburses out-of-network ATM fees.
• Low Overdraft Fees: Some banks charge exorbitant overdraft fees, while others offer more reasonable rates or even overdraft protection.

Pro Tip: Online banks and credit unions often have lower fees than traditional brick-and-mortar banks. Consider switching to one of these institutions if you’re tired of paying high fees.

Tip 2: Maintain the Minimum Balance

Many banks waive monthly maintenance fees if you maintain a minimum balance in your account. This balance can vary widely depending on the bank and account type, so be sure to check the requirements.

How to Do It:

• Set up alerts to notify you when your balance falls below the minimum.
• Keep a buffer in your account to avoid accidentally dipping below the threshold.
• Consider linking your checking and savings accounts to meet the combined balance requirement.

Pro Tip: If maintaining the minimum balance is challenging, look for accounts with no minimum balance requirement or lower thresholds.

Tip 3: Set Up Direct Deposit

Another common way to avoid monthly maintenance fees is to set up direct deposit. Many banks waive fees if you have a certain amount deposited into your account each month, such as your paycheck or government benefits.

How to Do It:

• Contact your employer’s HR department to set up direct deposit.
• If you’re self-employed, consider setting up recurring transfers from your business account to your personal account.
• Check with your bank to see how much you need to deposit to qualify for the fee waiver.

Pro Tip: Some banks also offer bonuses for setting up direct deposit, so be sure to ask about any promotions.

Tip 4: Avoid Overdraft Fees

Overdraft fees are among the most expensive bank fees, often costing $35 or more per transaction. Fortunately, there are several ways to avoid these fees.

How to Do It:

• Opt Out of Overdraft Protection: By opting out, your bank will decline transactions that exceed your account balance, avoiding overdraft fees.
• Set Up Alerts: Use your bank’s mobile app or online banking platform to set up low-balance alerts.
• Link Accounts: Link your checking account to a savings account or line of credit to cover overdrafts automatically.

Pro Tip: Keep a buffer in your checking account to avoid accidentally overdrawing.

Tip 5: Use In-Network ATMs

Using an out-of-network ATM can result in fees from both the ATM operator and your bank. These fees can add up quickly, especially if you frequently withdraw cash.

How to Do It:

• Find a bank with a large network of ATMs or one that reimburses out-of-network ATM fees.
• Use your bank’s mobile app to locate in-network ATMs near you.
• Plan ahead and withdraw cash when you’re near an in-network ATM.

Pro Tip: Consider switching to a bank that offers fee-free access to a large network of ATMs, such as Ally Bank or Charles Schwab.

Tip 6: Monitor Your Accounts Regularly

Many bank fees can be avoided simply by keeping a close eye on your accounts. Regular monitoring can help you catch potential issues before they result in fees.

How to Do It:

• Check your account balance daily using your bank’s mobile app or online banking platform.
• Review your monthly statements for any unexpected charges or fees.
• Set up alerts for low balances, large transactions, and other important account activity.

Pro Tip: Use budgeting apps like Mint or YNAB to track your spending and account balances in one place.

Tip 7: Negotiate with Your Bank

If you’ve been hit with a fee, don’t be afraid to ask your bank to waive it. Many banks are willing to reverse fees, especially if you’re a long-time customer or have a good track record.

How to Do It:

• Call your bank’s customer service line and explain the situation.
• Be polite but firm, and emphasize your loyalty as a customer.
• If the first representative says no, ask to speak with a supervisor.

Pro Tip: Some banks offer a one-time fee waiver as a courtesy, so it’s always worth asking.

Additional Strategies to Save on Bank Fees

While the tips above cover the most common ways to avoid bank fees, here are a few additional strategies to consider:

1. Switch to a Credit Union: Credit unions are not-for-profit institutions that often have lower fees and better customer service than traditional banks.
2. Use Cashback Rewards: Some banks offer cashback rewards for using your debit card, which can help offset any fees you do incur.
3. Bundle Services: Some banks offer discounts or fee waivers if you bundle multiple services, such as checking, savings, and credit cards.
4. Avoid Paper Statements: Many banks charge a fee for paper statements, so opt for electronic statements instead.

Common Bank Fees to Watch Out For

To help you stay vigilant, here’s a list of common bank fees and how to avoid them:

1. Monthly Maintenance Fees: Avoid by maintaining the minimum balance or setting up direct deposit.
2. Overdraft Fees: Avoid by opting out of overdraft protection or linking accounts.
3. ATM Fees: Avoid by using in-network ATMs or switching to a bank that reimburses fees.
4. Foreign Transaction Fees: Avoid by using a credit card with no foreign transaction fees when traveling abroad.
5. Paper Statement Fees: Avoid by opting for electronic statements.
6. Inactivity Fees: Avoid by making at least one transaction per month.
7. Wire Transfer Fees: Avoid by using alternative methods like ACH transfers or peer-to-peer payment apps.

Conclusion

Bank fees may be a common part of modern banking, but they don’t have to be a burden on your finances. By following the 7 tips outlined in this guide, you can avoid unnecessary fees and keep more of your money where it belongs—in your pocket.

From choosing the right bank account to negotiating with your bank, these strategies are designed to help you save money and take control of your financial future. So why wait? Start implementing these tips today and enjoy the benefits of fee-free banking in 2025 and beyond.