Common Fees and How to Avoid Them

If you’re paying a $3 ATM fee every time you get cash out of your account, this could add up to hundreds of dollars a year in avoidable fees. Unfortunately, fees are everywhere, so it’s a good idea to know where you’ll most commonly encounter them because they’re often avoidable. That’s cash that could be back in your pocket!

Here are some common fees you should know about, and how to be smart about avoiding them.

Bank account fees

When you open a bank account, you may be responsible for monthly maintenance fees, minimum balance fees, withdrawal fees, and check fees.

• Opt for no-fee accounts. The best way to minimize these fees is to sign up for a bank account with no monthly fees or minimum balance fees.

• Ask about withdrawal fees. Often banks will limit the number of savings withdrawals you can make per month. You may incur a small fee for each withdrawal that goes beyond this amount, so plan accordingly.
• Maintain the required minimum account balance for your checking and savings accounts. This will vary depending on your bank, so make sure to ask when you sign up! Some banks may waive fees if you have linked accounts and maintain a minimum balance across combined accounts. 

At Virginia Credit Union, being a not-for-profit means we pass our profits on to our member-owners —  which means you can expect low or no fees. Check out the details for your specific types of checking accounts and savings accounts to understand what minimum balances and activities you should maintain to avoid fees on your accounts.

ATM fees

You might be charged fees for using a non-network ATM as well as additional out-of-network charges when traveling. Luckily, there are lots of ways to avoid ATM fees altogether.

• Use your bank’s ATM or other in-network ATMs.
• Get cash back at the store when you use your debit card and PIN for purchases.
• Pay with your debit card to reduce the need for cash.
• Get more cash per trip if you must use an out-of-network ATM — this helps you avoid multiple withdrawal fees.

VACU members:

• Use our wide network of VACU ATMs including fee-free ATMs at all Wawa® and Sheetz® stores in Virginia.
• Get up to four checking withdrawals from non-VACU ATMs per month without VACU network ATM fees. While other ATM owners may add a surcharge, you can enjoy ATM fee rebates with qualifying checking activity.

Overdraft fees

Your bank may charge you an overdraft fee for spending more money than you have in your account. You can minimize and avoid overdraft fees by following these tips.

• Use online banking or your mobile banking app to check your balances regularly, and sign up for low balance alerts.
• Sign up for overdraft protection from another account. Fees for overdraft protection are typically much less than overdraft or non-sufficient funds (NSF) fees.
• If you use a debit card, stay alert to pending transactions, which reduce your available balance. 

  Pro Tip: A pending transaction is a purchase you’ve made with your debit card that hasn’t fully processed yet. The money may already be deducted from your available balance, even though the transaction still shows as “pending.”

VACU members: Consider signing up for overdraft protection and transaction alerts through online banking or the mobile app. These tools can help you avoid unexpected overdraft fees and keep a closer eye on your balance.
 

Loan and credit card fees

When you choose a credit card or apply for a new loan, it’s important to understand the terms and any fees that may come with it. One of the most common costs to watch for is a late fee. Here are a few ways to avoid or reduce late payment fees:

• Schedule payments with an automatic transfer from your checking account. Set these up as recurring payments so you’ll never miss a payment.
• Use online banking or your mobile app to check balances and make additional payments anytime.
• Avoid interest charges by building a smart budget.

VACU members: Enjoy no foreign transaction fees, no annual fees, and no cash advance fees on VACU credit cards.
 

Inactivity fees

An account inactivity fee may be charged for an account with no transactions or no balance over a set period of time. At VACU, an inactivity fee applies monthly to accounts of members age 23 or older that have no activity for more than one year, no loan or credit card, and balances under $100.

How can you avoid these?

• Review your account terms. Make sure you know the details, including if and when you’d be charged for inactivity.
• Utilize your accounts consistently.
• Close any unused accounts.

Fees may seem small in the moment, but they can add up quickly over time and quietly take a real bite out of your money. The good news is that with a few simple habits and a little awareness, most fees are completely avoidable, meaning more of your money stays where it belongs.