It’s easy to overlook occasional small banking fees, like ATM withdrawal fees or the couple of dollars your bank charges for each paper statement. Over time, however, these add up. According to a survey by EY-Parthenon, Americans, on average, pay $311 in bank fees each year.
If, like most consumers, you’ve had the same accounts for years, you might not realize how many fees are avoidable or how quickly these costs stack up. Many people end up paying more than they should, often because they don’t know that these costs can be reduced or eliminated.
With the right checking account and a few smart habits, you can keep more of your money where it belongs. Here’s what to watch for, how to avoid common fees with a checking account, and how Colonial Bank makes it easier to avoid unnecessary account charges.
Some banking fees are easy to spot, while others only appear after a transaction has been processed. Still others are buried in the fine print, leaving you wondering why your balance is lower than expected.
Knowing which fees apply to your checking account can help you avoid unpleasant surprises and discover ways to avoid nonessential costs. Below are some of the most common fees with a checking account and why they’re charged.
Monthly maintenance fees are among the most frequent charges consumers encounter. Banks often charge a flat fee simply to keep an account open. While some accounts waive the fee under certain conditions, others apply it regardless of account activity.
Overdraft and non-sufficient funds (NSF) fees are triggered when there isn’t enough money in your account to cover a payment. If your bank covers the transaction, you’re charged an overdraft fee. If it’s declined, an NSF fee may apply instead. Both can cost you over $30 per instance.
These often go unnoticed until they show up on your statement. When you use a machine outside your bank’s network, you may be charged twice: once by your own bank and once by the ATM operator. These charges can quickly add up, especially if you withdraw frequently.
Many banks now charge customers who request paper statements rather than downloading them through online banking. Depending on the bank, these fees are typically small, around $2 to $5, but they add up over time. If you prefer printed statements, it’s worth checking whether that option comes with a monthly cost, and if saving around $24 to $60 per year per account is worth switching to digital.
Beyond the standard checking account fees, some banks include lesser-known charges for account inactivity, stop payments, and early closures. These fees can be triggered even with no suspicious or unusual activity. Reading the full fee schedule is the only way to know what may apply.
While you might be unable to avoid all checking account fees, like incoming wire transfer fees, most can be avoided. Knowing how your account works and using its features to your advantage can help you stay ahead of charges that quietly reduce your balance.
Here are some easy-to-do steps to help you reduce or even completely eliminate common checking account fees.
The most effective way to avoid fees is to select a checking account that doesn’t charge them in the first place. Some banks offer accounts with no monthly maintenance fees or minimum balance requirements.
If you’ve had the same account for a while, it’s worth reviewing the terms to see if they’ve changed or if your bank has introduced new fee-free options. Older accounts may include conditions that no longer suit your financial habits, such as high minimum balances or limited ATM access. Switching to a more flexible account can help you avoid recurring charges without sacrificing convenience.
Direct deposit can streamline your banking experience while also helping you avoid common fees with a checking account. Some banks waive monthly charges if your paycheck or benefits are deposited into your account regularly. This setup also gives you faster access to your money and reduces the risk of delays with mailed checks.
Certain checking accounts offer fee waivers if you maintain a specific minimum balance. These thresholds vary by bank and may apply as a daily minimum or a monthly average. Setting account alerts can help you avoid dipping below the requirement.
Overdraft fees often happen because of timing. For instance, unexpected charges or deposit delays can leave your account temporarily short. Setting up real-time alerts for low balances gives you a chance to correct the issue before a fee is charged. Some banks also allow you to link a savings account to cover shortfalls automatically.
You can avoid multiple charges per withdrawal simply by using only ATMs in your bank’s network. Banks typically list participating machines on their website or mobile app. Taking a moment to check before withdrawing cash can help you save money over the long term.
Paperless statements are not only convenient: they can also help you avoid recurring fees. Enrolling in eStatements is often free, and it gives you quicker access to monthly account summaries. Digital tools also usually have other helpful features, like alerts, budgeting tools, spending insights, and easy bill pay, that make it worth the switch to paperless.
Colonial Savings, F.A. is a full-service community bank headquartered in Fort Worth, Texas. A local institution that has served North Texas for over 70 years, Colonial is dedicated to meeting the everyday needs of its customers. That includes offering checking options and digital tools that are easy to use and may help customers minimize or avoid unnecessary charges.
These include the following:
Colonial Free Checking is a no-frills checking account with zero fees. You just need to deposit a minimum of $100 to open. You can then benefit from:
A Colonial Free Checking account also comes with the following features:
It’s a straightforward option for anyone who wants to avoid standard charges without going through hoops.
Colonial customers have access to free online banking and a mobile app with helpful financial management features. These tools, like transaction history, low balance alerts, and mobile check deposit, make monitoring account activity and avoiding surprise fees easier.
Colonial customers can withdraw cash surcharge-free at thousands of ATMs in the MoneyPass® network. Nationwide access to MoneyPass® ATMs reduces the likelihood of paying third-party ATM fees, even when you’re traveling or away from a local branch.
Colonial Bank offers Colonial Protect, an optional line of credit that helps cover overdrafts without triggering standard NSF or overdraft fees. When a check or transaction exceeds your available balance, funds are automatically advanced in $100 increments, up to your approved credit limit, to cover the difference. You repay this revolving loan monthly, with a minimum payment of either 10% of the outstanding balance or $25, whichever is greater.
Customers receive a monthly Colonial Protect activity summary with their checking account statement and can also monitor activity through online banking. For help setting up overdraft coverage or understanding how it works, reach out to Colonial. The staff at your local branch and our customer service teams are happy to answer questions and walk you through the process.
Avoiding checking account fees doesn’t require major changes. It just takes a little awareness and the right tools. For instance, choosing a checking account designed to minimize costs can reduce your stress and protect your money from unnecessary charges month after month.
Colonial offers a range of checking account products to meet different needs. Colonial Free Checking is an excellent option for everyday banking with no monthly fees, no minimum balance, and no direct deposit requirement. For those who want added features, like interest-earning balances, other products like Colonial Edge and Interest Checking are available. Each comes with clear terms and no hidden conditions.
No matter which account you choose, Colonial provides the digital tools and local support to help you manage your money. Learn more about Colonial Free Checking and our other products by reaching out to us or visiting your nearest branch today.
