Can banks charge maintenance fee?

Asked by: Prof. Winston Monahan I  |  Last update: November 20, 2025
Score: 4.5/5 (57 votes)

Banks and credit unions are allowed to charge you a monthly maintenance fee or service charge for having a savings, checking, or money market account. They must show you this fee when you open the account. The bank or credit union cannot charge you a fee that is higher than the amount you were told.

Are bank maintenance fees legal?

Yes. Federal law allows banks to charge fees, including service fees. The bank is required to disclose to you any fees associated with an account before you open the account.

Why is my bank charging me a maintenance fee?

For example, some banks may charge a monthly maintenance fee if your account balance is under a certain threshold. Financial institutions are for-profit businesses and need to make money to stay open. Monthly bank service charges contribute to this profit and can help cover day-to-day operating costs.

How do I avoid bank maintenance fees?

Here are some proven tips:
  1. Utilize free checking and savings accounts. Many banks still offer them.
  2. Sign up for direct deposit. ...
  3. Keep a minimum balance. ...
  4. Keep multiple accounts at your bank. ...
  5. Use only your bank's ATMs. ...
  6. Don't spend more money than you have. ...
  7. Sign Up for Email or Text Alerts.

How to get monthly maintenance fee waived?

How we make money
  1. Sign up for direct deposit.
  2. Find a bank that doesn't charge monthly fees.
  3. Meet the minimum balance requirement.
  4. Open another account at the same bank.
  5. Take advantage of mobile banking.
  6. Meet the minimum debit card usage.
  7. Ask for fee forgiveness.
  8. Use ATMs in your bank's network.

Is the Riba which is Prohibited in the Quran the same as the Interest of Modern Bank? - Zakir Naik

44 related questions found

What banks don't charge a monthly maintenance fee?

Standout benefits: Ally Bank offers no monthly maintenance or overdraft fees. You can get your paycheck up to two days early when you set up direct deposit and Ally has spending buckets to help with budgeting.

How to ask a bank to waive a fee?

Try taking these steps:
  1. Call your bank. Contact your bank as soon as you realize you've been charged an overdraft fee. ...
  2. Explain what happened. Give a few details as to why you overdrafted. ...
  3. Provide a timeline. ...
  4. Point out your history as a customer. ...
  5. Always be polite. ...
  6. Get a second opinion. ...
  7. As a last resort, try this.

Can bank waive off maintenance charges?

Branch Manager will have the discretion to waive/relax the charges for Non-Maintenance of Minimum Balance, if Average Balance for the preceding 3 Calendar months is 10 times the applicable Minimum Balance for the category.

What is the average maintenance fee for a bank?

For instance, banks may charge lower service fees on basic checking accounts and higher fees on accounts that pay interest. The fee amount varies at every financial institution, but it typically ranges from about $5 to $35 a month. Some accounts may come with no fees at all.

Can you write off bank maintenance fees?

Generally, bank fees that are directly related to your business operations, such as account maintenance fees or transaction fees, are considered ordinary and necessary business expenses and may be eligible for deduction.

How do I avoid account maintenance charges?

Minimum Balance Requirements: Some banks require a minimum balance to avoid maintenance fees. Make sure you maintain the required minimum balance in your account to sidestep these charges.

What's the average maintenance fee?

This means the average homeowner spends roughly $1,400 – $2,300 on regular maintenance per year, not including unexpected home repairs or replacements. But the cost can vary widely due to home size, amenities, and a number of other factors.

Is it normal for banks to charge monthly fees?

Often, the big-name brick-and-mortar banks come with monthly fees tagged onto their accounts — and more. While a few dollars here and there may seem nominal, it all certainly adds up over time. Below, CNBC Select breaks down the seven most common banking fees and how you can avoid them.

What could be the reason you are being charged a maintenance fee?

Also called a monthly service fee, banks charge this fee simply for the privilege of having the account. You're most likely to find one on a checking account or money market account, but some banks may also charge a monthly fee on a savings account if you don't meet certain balance or transfer requirements.

Why are banks allowed to charge fees?

Banks charge fees to help make a profit. Bank fees allow financial institutions to recoup operating expenses. Banks also make money on loans, via interest and other fees.

What happens if I don't pay my maintenance fees?

These unpaid annual maintenance fees can be sent to collection agencies and ruin credit reports. It's important to note that defaulting on your ownership will show up on your credit score, and these penalties can be very harmful in the long run.

Why is my bank charging me a service charge?

Banks and credit unions are allowed to charge you a monthly maintenance fee or service charge for having a savings, checking, or money market account. They must show you this fee when you open the account. The bank or credit union cannot charge you a fee that is higher than the amount you were told.

Can you avoid a monthly maintenance fee?

Avoiding a monthly maintenance fee on your checking account depends on what type of account you have and if certain qualifications are met. Take a look at your statement to identify your account type. Note: There's no option to waive the monthly maintenance fee on a Safe Debit Account.

What bank has no maintenance fee?

BMO Smart Advantage Checking. Make your money go further with our most popular checking account, with no monthly maintenance fee. Plus, get the flexibility to bank from anywhere with our digital tools and enjoy personalized service in-branch - whenever you need it.

What is the new bank rule?

The Lok Sabha passed the Banking Laws (Amendment) Bill on December 3, 2024, allowing bank account holders to name up to four nominees for their savings and locker accounts. The new amendment will help bank customers to nominate up to 4 nominees in their bank accounts, fixed deposits and recurring deposits.

Can I ask my bank to stop a charge?

The payer can contact their credit union or bank and ask for one. They must verify some information to confirm which payment they want to be stopped. If the payment hasn't already gone through, a flag will be added to that payment, alerting any bank from cashing it. The stop payment doesn't last forever, though.

How do banks make money if they don't charge fees?

Many banks make the majority of their money from charging interest on loaned funds, such as home loans, auto loans or personal loans that are issued to consumers. Many banks also offer loans to small and large businesses.

How do you politely ask for a fee waiver?

When requesting a fee waiver, you'll need to explain why you are seeking financial assistance and how a fee waiver would help you pursue your academic goals. For example, you could mention the financial hardships your family is facing.

What is a maintenance fee at a bank?

A monthly maintenance fee (sometimes called a monthly service fee) is money a bank charges you for banking with the company. The fee is usually automatically withdrawn from your account each month. In some cases, you'll pay the fee no matter what. But many banks will waive the fee if you meet certain requirements.

Are NSF fees legal?

Generally, yes. The bank may charge non-sufficient funds (NSF) fees if permitted by the terms of your account agreement. Review your account agreement for policies specific to your bank and your account.