You’re careful with your spending, your budget, but then at the end of the month, the numbers in your account don’t add up. What happened? Shoot – surprised by another bank fee.
If that sounds familiar, you aren’t alone. The average checking account holder pays $24 per month for fees, or nearly $300 a year, according to Bankrate.¹ Altogether, Americans paid over $5.8 billion just for overdraft and non-sufficient fund (NSF) fees in 2023, according to the Consumer Financial Protection Bureau.² That massive total doesn’t even include other costs like ATM and monthly maintenance fees.
These fees can come as a surprise, and a surprise bank fee is more than a financial hit. For many, it can feel like an intrusion and a loss of control.
We surveyed 2,000 Americans³ to discover the emotional toll of unexpected bank fees and the actions people took in response. These lessons could help you prevent bank fees in your own life.
Bank fees turn into ongoing stress
61% of consumers say they aren’t worried at all about bank fees, or at least not very worried. However, that changes after someone experiences a surprise charge. 28% of people who have faced an unexpected fee report feeling extremely or very worried over future fees.³
People who have faced unexpected fees are understandably upset. 36% think banks are not transparent about their fees, and 40% believe they have increased over the past few years.³
While industry data shows bank fees have decreased in some ways, notably that overdraft fees have decreased, it may not feel that way for people recently caught off-guard by a charge.
What unexpected fees are people running into?
Over the past year, here is the share of consumers who reported running into the following fees, according to our survey:
Bank fees:
ATM fees = 18%
Monthly service/maintenance fees = 12%
Overdraft fees = 9%
Credit card fees:
Annual membership fees = 10%
Late payment fees = 9%
Cash advances = 7%
Consumers can fight back against fees
Most people don’t accept an unexpected bank fee happily. Only 9% of consumers reported doing nothing after facing a surprise fee – the majority had some reaction.
Contacting the bank: 63% of respondents said they reached out to their bank for an explanation, while 50% asked for the fee to be removed. This is a simple, quick reaction that could lead to results.
Your institution might be willing to waive a fee, especially if you have a reasonable excuse and it’s your first fee. For example, your paycheck was late to arrive, leading to an overdraft from a monthly bill.
Filing a dispute or complaint: 34% of consumers escalated the situation further by filing a formal dispute over the charge to see whether it was incorrect. 5% filed a complaint with a third-party service, like the Better Business Bureau or Consumer Affairs.
Changing banks: 17% of people considered changing banks immediately after the unexpected fee. In fact, people who faced an unexpected fee over the past year are more than twice as likely to have closed an account or switched banks because of fees: 41% vs. 20% of those who were not charged.³
How to avoid unexpected bank fees
While you can try pushing back against fees after you’ve been charged, the most effective way to minimize the financial hit is by preventing bank fees in the first place. Use these strategies to avoid fees when you can.
1. Learn account rules for fee waivers
Bank accounts typically require a minimum balance each month, or you get charged a monthly maintenance fee. You understand you should stay above the minimum balance requirement, but life can have other plans.
Check whether your account offers other ways to qualify and avoid the monthly maintenance fee. Some accounts may waive the fee if you set up a direct deposit, make a minimum number of monthly debit card purchases, or have other accounts at the bank, like a savings account. These alternatives could help you avoid getting dinged when your account balance dips.
2. Use email and text alerts
Many financial institutions allow you to set up account alerts online or through your mobile app.
You could set it up so you get an email and/or text reminder if your balance falls below a certain point or after large transactions over a specific size (like over $500). That way, you can see your balance is running low sooner and slow down your spending or deposit more money, rather than risking fees.
3. Plan your ATM withdrawals
In 2024, the average out-of-network ATM fee was $4.77 per transaction.⁴ A few of those a month can set back any budget.
Pull up a map of your bank’s ATM network. Which ones are most convenient for your daily routine, whether close to your job, at your grocery store, or by your gym?
Visualize each week when you will drop by to take out cash so you aren’t forced to go out of network later. You could also see if your favorite department or grocery store lets you get cash back as part of a purchase.
4. Set up overdraft protection
Your financial institution could offer overdraft protection or coverage if you link a savings or other checking account. If a purchase accidentally makes you go over your balance, the overdraft protection covers the difference using your other account, often for free.
To date, Chime has covered members over $32 billion in transactions through SpotMe®, which provides fee-free overdraft up to $200 for eligible members.⁵ Chime spots eligible members up to $200 on card purchases and cash withdrawals with no overdraft fees, a major difference versus the average $27.08 per transaction overdraft fee charged by banks in 2024.⁴
5. Review your monthly statements for patterns
Every month, go after your bank statement and see if you run into any unexpected fees. Think through what happened. Was it an overdraft because your check was late? Did you use several out-of-network ATMs? Visualize how you’ll improve next month to wipe out these fees.
6. Consider switching accounts
In the end, some bank accounts are much better for fees than others. Some accounts reimburse you for out-of-network ATM fees, don’t charge for overdrafts, and have no minimum balance requirements. If you’re fed up with fees, it could be time for a switch.
Consumers know fees matter when shopping for a new checking account. Roughly 90% review fees before enrolling, while nearly 40% study the fee schedule in detail.
Where you bank makes a big difference
National brick-and-mortar banks might charge more for account fees. Online-only options like Chime are another alternative.
Chime doesn’t charge overdraft fees, monthly maintenance fees, or foreign transaction fees.
Fintechs like Chime can also be more generous with paying interest on your deposits. For example, the Chime’s high-yield savings account offers 2% Annual Percentage Yield (APY), which is 4.8 times higher than the national average.⁶
72% of consumers are aware of online-only banking options that charge lower or no fees, and 38% of people surveyed would consider using an online-only bank as their primary account. People who faced an unexpected fee were more likely to consider a primary account at an online-only bank, with 44% of respondents saying they would consider this.
As unexpected bank fees continue to take their toll, people want to do something about it. With better habits and perhaps a new account, you can regain control and move past these fees.
Ready to Unlock Financial Progress™? Learn how to set up direct deposit through Chime.