A credit union or bank can be a safe place to store your money as you plan and build for the future. But if you don’t pay attention, you could get hit with “hidden” banking fees or penalties that hurt your bottom line. Over time, those small fees can add up in a big way. In fact, a recent MoneyRates survey estimated that the average American will pay between $90 – $300 per year on unnecessary banking fees.

Want to hold onto your hard-earned money? We’ll explain the most common (and annoying) banking fees, along with tips for how to avoid them. 

Fee #1: Overdraft Fees  

The money you deposit into your bank account is yours to do with as you please. 

Technically, you may be able to withdraw more funds than you have available, but that puts you at a negative balance. Many banks and credit unions allow such transactions to occur and are willing to cover the difference, but they’ll typically charge a per-item fee for taking that risk—i.e. an overdraft fee.  

Naturally, how much a bank or credit union will charge for an overdraft penalty depends on the institution and the account member. According to the FDIC, the average overdraft fee is around $30. Keep in mind that although a credit union may still have overdraft fees, their policies and fees tend to be more forgiving than a bank’s. 

How to Avoid Overdraft Fees 

Ultimately, you should aim to never exceed your account balance. For that, keep the following tips in mind: 

• Maintain account visibility – Frequently review your balance, expenditures, and budget via your mobile or online banking portals.
• Pay with other means – Pay with cash rather than with a check or debit card.
• Create a cash buffer – Set up a cash buffer in your account—a line in the sand that you won’t allow yourself to cross.
• Use automation – Set up automated notifications to alert you if your balance reaches a set minimum threshold.
• Link other accounts – Link your checking account to another account, like a line of credit or savings account, to cover potential overdrafts. 

Banking Fee #2: Out-of-Network ATM Fees

Most banks and credit unions will allow you to use your card at ATMs unaffiliated with the financial institution’s network. However, they’ll typically charge an out-of-network fee for that service. 

Again, the expected amount varies depending on the ATM, though most will charge between $2.50–$5.00 for using an out-of-network ATM. According to a Bankrate survey, the average fee increased by 1.5% last year to reach $4.66 per transaction.

How to Avoid Out-of-Network ATM Fees

To avoid ATM fees, the most obvious answer is to only withdraw money from ATMs that are in your network. Most banks and credit unions even provide tools that make it easy to find nearby in-network ATMs through online banking or a mobile app. 

But for more specific strategies, consider the following tips: 

• Withdraw larger sums – If you must withdraw money from an out-of-network ATM, the fee will be the same no matter the amount you take out. Therefore, if you are making frequent visits to the ATM, it’s better to take out a large sum and only pay one fee, rather than making several trips, each with their corresponding fees.  
• Try digital payments – Many vendors will accept digital payments like Venmo or Apple Pay in lieu of cash. Paying with these types of apps will allow you to avoid pulling out cash from an out-of-network ATM.
• Ask for cash back – Many grocery stores and retailers allow customers to receive a certain amount of cash back with their purchases made via debit card. This provides an easy way to gather the money you need without incurring any additional fees.

Some financial institutions may also offer reimbursement for out of network ATM fees (especially credit unions). Ask if yours will refund the fees with proof in the form of a receipt.

Banking Fee #3: Excessive Transactions Fees

Some banks or credit unions will charge customers a fee if they exceed a given number of transactions. For most places, this will be a maximum of 6 withdrawals per month and generally applies to savings accounts. Sometimes referred to as a savings withdrawal fee or withdrawal limit fee, financial institutions will typically charge between $5–$15 per transaction over the stated monthly allowance. 

The types of transfers which count toward the monthly allowance will depend on the financial institution. However, transfers or withdrawals made in person, via ATM, or by mail are typically not included.

How to Avoid Excessive Transaction Fees 

If you partner with a financial institution that doesn’t have a set maximum, you can avoid this issue altogether. If that’s not an option, other ways you can avoid these excessive transactions fees include: 

• Knowing your limit – Ask your bank what your maximum limit is and which activities count toward that limit. Then, keep close tabs on your monthly activity. 
• Opening multiple savings accounts – Transaction limits apply to individual accounts. By opening up multiple accounts, you could increase your total monthly limit of possible transactions. 
• Consolidating transactions – Look for instances where you could bundle several transactions into one, rather than making several smaller transactions to the same account. 

Banking Fee #4: Wire Transfer Fees 

A wire transfer fee is typically imposed when you perform a “wire transfer”: when you electronically send money from one account to another (especially if it’s at another financial institution). 

The average domestic wire transfer fee is $15 for incoming wire transfers and $25 for outgoing wire transfers.

How to Avoid Wire Transfer Fees 

Unless you can send money using online bill pay, you’ll typically have one of three options that won’t result in a wire transfer fee: 

1. Partner with a financial institution that waives wire transfer fees.
2. Use a digital payment app.
3. Pay with a personal check or cashier’s check. The latter may also incur a fee, but it is often less than a wire transfer.

Banking Fee #5: Monthly Maintenance Fees

Many banks will charge a monthly maintenance fee, or monthly service fee, for maintaining and operating your account. Typically, this fee—between $3–$10—is automatically withdrawn from your account at the beginning or end of each month. 

How to Avoid Monthly Maintenance Fees

One option is to find a bank that simply does not charge a monthly maintenance fee. However, if you partner with a credit union, you may not have to pay a monthly maintenance fee at all. As member-owned financial institutions, credit unions operate on a not-for-profit basis, which means you avoid many of the fees that a bank would typically nickel and dime you with. 

Cutting Down on Banking Fees is Possible

Banking fees can be a pain in your wallet, but they don’t have to be. By following the tips above and switching to a credit union—which typically has fewer fees—you can keep what’s yours.