News & Tips
Common Checking Account Fees to Avoid
Did you know that Americans with a checking account pay nearly $300 each year in fees on average? That money could have gone towards emergencies, debt, or discretionary spending. Many financial institutions find ways to nickel and dime consumers to a lower checking account balance.
We’ll list all the checking account fees to avoid to help you pocket more money along with information about getting a Free Checking account at Space Coast Credit Union (SCCU).
#1 Monthly Maintenance Fee
A monthly maintenance fee, also known as a “service fee,” is a charge that some financial institutions issue simply for having an account with them. You could investigate ways to get this fee waived such as setting up a direct deposit or having multiple accounts at the same institution.
A better solution? A checking account that’s truly free without having to jump through hoops—like the one available at SCCU. We have no direct deposit requirements and no minimum balance requirements tied to our Free Checking accounts.
#2 Minimum Balance Fee
Some financial institutions charge a minimum balance fee if an account’s financial figure drops below a certain amount. If that happens, the bank’s description of a monthly maintenance fee might come with this tagline: “If your balance goes below $X, the monthly maintenance fee of $X will be charged for each month until the balance goes above the minimum balance.”
So when does a minimum balance fee apply? The criteria vary by financial institution. Here are some different types:
- An account balance dipping below a specified amount at any time during the statement period could result in a fee.
- If your balance falls below the minimum daily balance, you have until the end of the business day to meet the required amount to avoid paying the fee.
- With a minimum average balance, the financial institution would add up your balances at the end of each business day and divide that number by the days in the statement cycle. If the quotient is below the required minimum, the fee is charged.
We make it way simpler at SCCU. You can open your Free Checking account with as little as $25. You don’t have to worry about any minimum balance requirements or low balance fees.
#3 ATM Withdrawal Fees
Withdrawing from an ATM is a fast and easy way to get cash in hand—but it can come with a high price tag. Consumers were paying an all-time high of $4.73 in 2023 for an out-of-network ATM withdrawal!
SCCU helps members avoid this situation. In addition to having free access to our SCCU ATMs, they have access to more than 20,000 fee-free Allpoint ATMs across the country. Plus, we make it quick and easy to find SCCU ATMs and surcharge-free ATMs on our convenient map.
#4 Insufficient Funds/Returned Check Fee
Some financial institutions charge insufficient funds if an account doesn’t have enough to cover a transaction, such as an ATM withdrawal, automated bill payment, or check—and they can be costly. Returned check fees usually apply to the writer of the check not having enough funds.
Monitoring account balances and setting up low-balance alerts (which you can do at SCCU!) before writing a check or performing transactions can help ensure enough money is available to avoid these fees.
#5 Overdraft Fee
Even with the best intentions, it’s possible to overdraw your checking account. Perhaps a deposit arrived too late or a math error occurred with the check register. In any case, if your financial institution offers overdraft protection, a savings account or line of credit transfer may be able to cover the amount overdrawn—but there’s often a fee attached to that transfer.
There’s no additional cost to sign up for SCCU’s automatic overdraft transfer service.
#6 Bank Statement Fee
Some banks and credit unions charge a fee for paper bank statements. In most cases, you can avoid this fee by enrolling in e-statements in your Online or Mobile Banking account. While SCCU doesn’t charge statement fees, e-statements help cut clutter, save trees, and keep account information out of your mailbox.
#7 Inactivity Fee
An inactivity fee (or dormancy fee) may result when your account starts hearing crickets—in other words, if you don’t use your account for a certain amount of time. You don’t have to worry about this fee with a Free Checking account at SCCU!
Although these are among the most common checking account fees to avoid, this isn’t a list of all the potential fees. Financial institutions, including banks and credit unions, are required to list the fees they charge, so read the fine print before opening an account and ask questions when you don’t understand something or can’t find the answer to a question.
Free Checking Accounts: Beginner’s Guide
If you’re new to getting a checking account or want to learn more about how they work, check out “A Beginner’s Guide to Free Checking.”
The benefits of a free checking account are their convenience, savings, and peace of mind. Not all checking accounts listed as free really are, though, and they can come with hidden fees, strings attached, and other restrictions. So be sure to take your time reviewing the features, requirements, and disclosures for their free checking accounts.
There are other things to review, too, including:
- Insurance: With a bank, make sure that the institution is FDIC insured; with a credit union, ensure that they are NCUA insured.
- Online and mobile app services: Explore the features of the financial institution you’re considering.
- Fraud prevention features: Look for account alerts, including but not limited to those that provide you with balance-related information.
Finally, people matter—a lot. So, when choosing a financial institution, be sure to pick one where a knowledgeable staff treats you with courtesy and respect. Check out the convenient methods they offer for getting in touch with them. At SCCU, you can chat with our Team Members in person, by phone, Live Chat, WhatsApp, and secure messages.
SCCU: Open Your Free Checking Account
As a credit union, our goal isn’t to make profits for shareholders. Instead, we serve our owners: our members. Our Free Checking is really free with no hidden fees or restrictions, no monthly maintenance/service fee, and no minimum balance requirements.
When you open a Free Checking at SCCU, you’ll benefit in all these ways without having to meet a direct deposit requirement. Even better, if you choose to have direct deposit, you can get your funds up to two days early42! For an effortless transition, check out our handy Switch Kit.
If you have any questions or need help with your application, feel free to get in touch with us. One of our friendly Team Members will be more than happy to assist.
