Avoid New Checking Fees

Some say that free checking accounts are a thing of the past. It’s not as easy as it used to be to bank without checking fees, but you can still do it. This page describes ways to avoid monthly maintenance fees in your checking account (but not how to avoid ATM fees or other transaction-related fees).

Sticking With Your Bank

The easiest thing to do is to eliminate checking fees at your current bank because switching banks is a chore. If your bank has changed the rules, find out what the new rules are and decide whether or not you’re willing to play along. In most cases, you can avoid increased checking account fees by:

• Keeping a minimum balance in your account ($1,500 or $5,000, for example)
• Making automatic monthly deposits (direct deposit from your employer, for example)
• Using your debit card a certain number of times per month
• Opting-in to online document delivery (instead of getting old-fashioned mail)

Sometimes you can avoid checking fees by bringing more business to your bank. It’s not easy -- especially if you’re unhappy with your bank for raising fees -- but it might be easier than switching banks. For example, you might be able to meet minimum balance requirements using several bank products: checking accounts, savings accounts, investments, and loan balances. Consider consolidating if it will save you money.

Most banks describe their fee waiver requirements online or in special mailings. If you don’t know where to look for this information, call the bank’s Customer Service department and ask how you can avoid fees.

Change Banks

If you’re ready to change banks -- perhaps as a result of fees that seem unfair -- start shopping around. Plenty of banks and credit unions still exist that do not charge monthly checking fees. Look for local banks and credit unions that operate in your community; they’re your best bet for cheap banking. If you’re web-savvy and willing to live without a branch, online bank accounts offer a great combination of high rates and low fees.

• Credit Union Basics
• Online Banking 101
• How to Switch Banks

If branches are important to you, you may find that credit unions are more convenient than you think. If your credit union is part of a shared branching network, you can use any other network credit union’s branch for deposits, withdrawals, and other services -- whether you’re across town or in another state.

• How to Use CU Service Centers

Checking Fees in Multiple Places

If you have more than one checking account, monthly fees can start to add up. It may be more difficult to meet the fee waiver requirements at several banks (you need a lot of cash on hand to qualify under the “minimum balance” rules, for example). You may have to choose one, or open a new account altogether if it gets too expensive to keep multiple accounts.

Keeping your accounts open (while minimizing fees) is not necessarily out of the question. Your best bet for avoiding checking fees may be to qualify under the “automatic monthly deposit” rules. Try splitting your paycheck -- depositing a portion to each account -- to avoid fees. If that doesn’t work, you can also try to set up automatic ACH transfers from account to account (outgoing ACH transfers are common features of online bank accounts, but your brick-and-mortar accounts may not offer this service). Note that some banks do not count ACH transfers from another bank, so you won’t qualify for a fee waiver.