Many banks impose hidden fees for a myriad of reasons that you might not be aware of. This article will list some of those reasons as well as the banks with the fewest hidden costs.
Typical Bank Fees
Some banks charge monthly service fees. These fees can vary in amounts and things such as paper statements, electronic statements and direct deposits can determine what those fees will be. ATM fees are other bank charges that can add up quickly. Overdraft protection fees can add up if you don’t select a bank with overdraft protection coverage. A way to negate this charge is to link your savings account with your checking account. When the balance in your checking account won’t cover a charge, the bank pulls the money over from your savings account. Wire transfer fees are charged when you send or receive money from one bank to another. If you travel out of the country frequently, you should be aware of foreign transaction fees. These fees can range from one to three percent of your transaction, according to NerdWallet. These fees can add up if you aren’t aware of them and know how to avoid them. The banks below rank amongst the best by Consumer Reports for not having these hidden fees.
Ally Bank is an online-only bank which means depositing cash is not an option. It does, however, offer free checking and will pay you $10/month for using other banks ATMs as a way of reimbursing for the costs charged by the other banks. It charges no monthly service fees and actually pays interest each month depending on your balance.
Capital One is another bank with no fees and great overdraft protection options. You can do your banking both online and in their chain of branches. There are no monthly fees or overdraft fees or any fees associated with regular banking activity. This bank also awards monthly interest based on your account balance.
Discover Bank offers a free checking account with no monthly fees for regular activity. It also offers free check reorders and has 60,000 ATMs with no associated fees. It does still charge a wire transfer fee. A nice added feature of this bank is that you can earn one percent cash back on up to $3000 in purchases monthly.
Another online bank that offers free checking is Axos Bank. This bank will also reimburse ATM fees. This online bank has no monthly maintenance fees, no minimum balance requirements and a cash-back rewards program.