A Guide to Banking Fees

In order to be fully financially literate, you have to understand all of the expenses and fees associated with your financials. Many banks will charge small nominal fees for things like monthly maintenance, overdrafts, and wire transfers. While you may not do these things on a consistent basis, you still need to be aware of the possibility of banking fees and factor them into your budget. 

Monthly Account Maintenance Fees

A Monthly Account Maintenance Fee is the most common charge you’ll find in checking and savings accounts. This fee is typically between $15 and $20 per month, but is often waived by banks as long as you keep a minimum balance.

At Encore Bank, our Essential Checking Account is free of fees, and our Premier Checking Account fee can be waived if your daily balance stays over $1,000. If your balance falls below the $1,000 threshold, our fee is only $10, making it less than our competitors. As for Savings Accounts, a traditional savings account at Encore Bank charges a $5 service fee per quarter if your balance falls below $100. 

Overdraft and NSF Fees

An overdraft fee can occur when you overspend on your account, or “bounce a check.” Your bank will determine if they want to cover the overdraft or decline the transaction. If they choose to cover it, you will be charged an overdraft fee. If they decline, you may still be charged a Non-sufficient funds (NSF) fee. The average overdraft fee is around $30, but can be anything from $10 to $50 depending on your bank. If it was a bill or a creditor, they may also charge you a fee in addition to the one from your bank. 

Transfer Fees

Transfer fees can occur when you’re sending money from one account to another, whether it be from your savings account to your debit, or to a completely different account completely. Each bank will have their own set of transfer fees, so it’s important to ask what those fees may be before starting a transfer.

At Encore Bank, you are given six free withdrawals or transfers from your savings account per month, with a $1 service fee per transfer occurring once that threshold is passed. In order to dodge these fees, make sure you are transferring everything you need to within your six free transfers. 

Out of Network ATM Fees

If you withdraw money from your account from an ATM that does not belong to your bank you may be charged an Out of Network ATM fee, both by the owner of the ATM and your personal bank. This fee can be anything from $2 to $3.50 depending on the bank. Some banks will offer no-charge ATM withdrawals or rebate up to a certain amount, so check with your bank regarding their policies on this.

At Encore Bank, we NEVER charge a fee for using an Out of Network ATM in the United States.

Wire Transfer Fees

Wire transfers happen faster than traditional transfers, but they are also more expensive. These fees stand anywhere between $15 to almost $50 per transfer, but for larger transactions that need to happen quickly, they are a beneficial tool. 

Account Closing Fees

Many banks will not charge an account closing fee as long as you’ve had the account for a while, but closing an account too early can result in a service fee. Before you open an account with a bank, determine if the waiting period for closure without a fee will line up with your timeline.

Overall, knowing what fees you may run into throughout your banking experience is essential to becoming financially literate. Many brick-and-mortar banks are conveniently located a short drive away, but these banks often come with large service fees. On the other hand, primarily online banks often have smaller or no fees for their accounts. Before choosing a bank to open an account with, check the bank’s rules and regulations to ensure that their policies line up with your goals.

If you are ready to bank with a bank that couples highly-experienced and talented bankers with innovative technology to offer unprecedented levels of personal service and experiences to its clients through a hospitality-inspired concierge approach, you’re ready to choose Encore Bank.

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