7 pesky bank account fees to watch out for

When it comes to bank accounts, not all options are created equal. For example, there are savings accounts that come with much higher interest rates than others. Or, many checking and savings accounts will offer lucrative sign-up bonuses or other perks to new account holders. There are even fully online bank accounts that don't have any access to brick-and-mortar locations.

But no matter what type of account you're looking for, it's important to keep an eye out for pesky account fees. While the fees charged by banks and financial institutions tend to be small — a few dollars on average — they aren't typically necessary, and if you aren't careful, they can slowly chip away at your hard-earned money. 

And, considering that persistent inflation is negatively impacting many people's finances right now, it's particularly important to avoid unnecessary costs if you can. The more money you can keep in your account, the better.

Learn more about the top high-yield savings account options here now.

7 pesky account fees to watch out for 

If you want to stay clear of unnecessary bank charges, keep an eye out for these seven pesky fees.

Maintenance fees

Maintenance fees are charged by some financial institutions to cover the cost of managing your account. These fees are typically applied on a monthly basis and the amounts may vary depending on the type of account you hold. But in most cases, these fees aren't necessary — and they can add up over time.

To avoid these fees, consider choosing an account with no maintenance fees or maintain a minimum balance as required by your bank. There are numerous options to choose from, including high-yield savings accounts that offer rates between 4.5% to 5% or more right now, so compare your choices and find the right fit.

Get started and explore the top high-yield savings account rates available to you now.

Early withdrawal fees

Certificates of deposit (CDs) are popular savings vehicles that offer higher interest rates but come with fixed terms. If you withdraw funds from a CD before its maturity date, you'll likely face early withdrawal penalties — which can vary significantly based on the CD account you choose. 

To avoid this fee, plan your investments to ensure you won't need the money until the CD matures. Or, consider building a CD ladder so that you have access to funds periodically without facing early withdrawal penalties.

Early account closure fees

You may find yourself needing to close an account earlier than expected — and that too can result in unnecessary fees. Some banks impose early account closure fees if you close an account shortly after opening it. To avoid these fees, research the terms and conditions before opening a new account or consider committing to a long-term relationship with the bank. 

Excessive withdrawal fees

Savings accounts are designed to encourage regular saving habits, but they often have limitations on the number of withdrawals you can make in a month. If you exceed the allowed number of withdrawals, your bank may charge excessive withdrawal fees. That's true for both regular and high-yield savings accounts, so watch out.

To minimize this risk, plan your withdrawals strategically or shop around and find a high-yield savings account that offers top-notch interest rates without limitations on your withdrawals. There are plenty of options to choose from, including numerous ones offered by online banks.

Find out what you could earn with a top high-yield savings account right now.

Transfer fees

When you transfer funds between different accounts or financial institutions, some banks may charge transfer fees. These fees can add up if you frequently move money around or add funds to your savings numerous times per month. In many cases, you may be better off choosing an account without these types of fees, but if you can't avoid them, consider using online transfer options or alternative payment methods to keep the costs down. 

Inactivity fees

Believe it or not, some accounts may charge you for not using them frequently. Inactivity fees penalize account holders for leaving their accounts dormant for extended periods. To prevent incurring such fees, maintain regular activity in your accounts, even if it's a simple deposit or withdrawal, and consider consolidating accounts you no longer actively use.

Minimum balance fees

Many accounts require you to keep a minimum balance to avoid monthly fees. If your account balance falls below this threshold, you could face minimum balance fees. 

To sidestep these charges, choose an account without a minimum balance requirement. If you're looking for a savings account in particular, there are high-yield savings options that are fee-free or have minimal balance requirements. 

The bottom line

Being aware of pesky account fees is vital for safeguarding your hard-earned money and maintaining control over your personal finances. By understanding these fees and adopting smart financial practices, you can steer clear of unnecessary charges, allowing your savings and investments to grow more effectively. And remember to compare different account options, read the fine print, and stay vigilant against any hidden fees that may arise.