Savings Account Fees to Watch Out for and How to Avoid Them

28 October 2025

Opening a savings account feels like a safe and smart financial move, right? You deposit your hard-earned money and let it grow over time, expecting it to be available whenever you need it. But what if I told you that your savings account might be quietly draining your balance with hidden fees?

That’s right—banks have a way of sneaking in charges that can eat away at your savings. The worst part? Many people don't even realize it until their account balance shrinks unexpectedly.

But don’t worry—I’ve got you covered. In this guide, we'll break down the most common savings account fees and, more importantly, how you can avoid them.

1. Monthly Maintenance Fees

Many banks charge a monthly maintenance fee just for keeping your savings account open. These fees can range from $5 to $25 per month, which might not seem like much at first. However, over time, they can add up and significantly reduce your savings.

How to Avoid Monthly Maintenance Fees:

- Choose a bank that offers no-fee savings accounts—many online banks eliminate these charges.
- Maintain the minimum balance requirement set by your bank. Some accounts waive the fee if you keep a specific balance.
- Set up a direct deposit—some banks will waive fees if you have scheduled deposits coming in.

2. Minimum Balance Fees

Speaking of minimum balances, some banks require you to keep a certain amount in your savings account at all times. If your balance dips below the required amount, they’ll hit you with a minimum balance fee. This can range from $10 to $50, depending on your bank.

How to Avoid Minimum Balance Fees:

- Opt for a savings account with no minimum balance requirement (again, online banks often offer these).
- Regularly monitor your balance to ensure you never fall below the threshold.
- Set up bank alerts to notify you when your balance is getting low.

3. Excess Withdrawal Fees

Did you know that many savings accounts limit the number of withdrawals or transfers you can make each month? Thanks to federal regulations (like Regulation D), banks often allow only six transactions per month before they charge an excess withdrawal fee. This fee can range from $5 to $15 per transaction.

How to Avoid Excess Withdrawal Fees:

- Plan your withdrawals so that you don’t exceed your bank’s limit.
- Consider using a checking account for frequent transactions instead of constantly dipping into savings.
- Look for a bank with higher withdrawal limits or no fees for exceeding them.

4. ATM Fees

Imagine needing quick cash, but the nearest ATM isn’t from your bank. You use it anyway, only to get hit with fees of $2 to $5 per withdrawal—sometimes even more! Not only does the ATM provider charge you, but your own bank might slap on an extra out-of-network ATM fee.

How to Avoid ATM Fees:

- Use only your bank’s ATMs or find one that’s part of a fee-free ATM network.
- Choose a bank that reimburses ATM fees—many online banks and credit unions offer this perk.
- Plan ahead and withdraw cash in larger amounts to reduce the number of transactions.

5. Inactivity Fees

If you’re not actively using your savings account, your bank might consider it dormant and charge an inactivity fee. This can range from $5 to $20 per month if no deposits or withdrawals happen for a set period (usually 6–12 months).

How to Avoid Inactivity Fees:

- Make sure to deposit or withdraw money occasionally, even if it's just a few dollars.
- If you don’t need the account anymore, close it instead of letting it sit unused.
- Set up an automatic transfer to or from your savings account to keep it active.

6. Overdraft Fees

It’s easy to assume that overdraft fees only apply to checking accounts, but some banks allow withdrawals that exceed your savings balance, leading to costly fees. Overdraft fees typically range from $30 to $40 per transaction.

How to Avoid Overdraft Fees:

- Opt out of overdraft protection, so transactions get declined instead of going negative.
- Link your savings and checking accounts to cover overdrafts without extra charges.
- Regularly check your account balance to avoid unintentional overdrafts.

7. Paper Statement Fees

Your bank might charge you anywhere from $2 to $5 per month just for mailing a paper statement. It’s a small charge, but why pay for something you can easily access online?

How to Avoid Paper Statement Fees:

- Opt for electronic statements—most banks waive this fee when you go paperless.
- If you prefer paper statements, ask if the bank has an option to waive the fee.
- Save digital copies of statements to keep track of your finances without printing them out.

8. Wire Transfer Fees

If you ever need to transfer money via wire transfer, be prepared for hefty fees. Domestic transfers typically cost $15 to $30, while international wire transfers can run $45 or more.

How to Avoid Wire Transfer Fees:

- Use free electronic transfer options, like ACH transfers or peer-to-peer payment apps.
- If you need to send money internationally, consider services like Wise (formerly TransferWise) or PayPal, which may have lower fees.
- Choose a bank that offers free or discounted wire transfers.

9. Account Closing Fees

Some banks charge a fee—usually between $10 to $50—if you close your savings account too soon after opening it. This is especially common if you shut it down within 90 to 180 days of opening.

How to Avoid Account Closing Fees:

- Read the fine print before opening an account to understand the bank’s policies.
- If possible, wait until you’ve met the minimum required time before closing.
- Choose banks that don’t have early closure fees.

Final Thoughts

Savings accounts are supposed to help you grow your money, not drain it with unnecessary fees! The good news? Most of these fees are avoidable if you’re proactive and informed.

By choosing the right bank, keeping an eye on your balance, and being mindful of how you use your savings account, you can steer clear of these sneaky charges and make sure every penny stays where it belongs—in your savings.

Have you ever been hit with unexpected savings account fees? Share your experiences in the comments below—let’s help each other keep more money in our pockets!