Types of bank fees and the services they provide
The type and amount of fees vary by institution, so it is always important to do your homework. Here are some common and less common fees charged by banks and other financial institutions.
Monthly service fees
This is a flat monthly fee to keep your account active. You can expect to spend around $ 4 on a no-frills account and more on perks like checks or unlimited transactions. Some accounts require you to maintain a minimum balance at all times or incur additional fees.
Transactions include deposits, withdrawals, Interac e-transfers, or bill payments – basically anything that involves transferring funds through your account. You might think these would be covered by a monthly service fee, but unless you have unlimited transactions (which usually come with a premium), you pay extra. Transactions completed above your monthly limit typically cost $ 1 to $ 1.50 each.
While many banks include ATM transactions in their packages, you will usually be charged for using an ATM that is not on your bank’s network. This may show up as a “network access fee” of approximately US $ 2 charged by your bank and / or a “convenience fee” (US $ 4 to 5) charged by the ATM operator – or both. That’s an additional $ 6 to $ 7 for the convenience of using an ATM.
Lost Card Fees
If you lose your bank card, replacements can cost around $ 5 per card.
Insufficient Funds Fees (NSF)
If you make a withdrawal from your account and don’t have enough funds to cover it, you will be charged an NSF fee. These usually run around $ 35 each. Of course, you can avoid this by holding a positive balance, but many of us have at one point written a check that we forgot or overestimated our funds. You can avoid this fee by adding overdraft protection (see below) to your account – but that too usually comes with a monthly fee.
Overdraft Protection Fees
Establishing overdraft protection (a financial product that covers check and direct debit withdrawals that exceed your account balance to avoid insufficient charges) varies from institution to institution, but you can usually find a package that will only be billed to you when you use it. The price can be as low as $ 5 or $ 10 per month or more.
Paper Draft Fees
Since most documents have been moved online, it is not surprising that banks typically no longer automatically offer paper statements. Getting one can cost you around $ 5.