Why is my bank charging me a service fee?

Asked by: Jarrod Lesch  |  Last update: October 30, 2025
Score: 4.9/5 (18 votes)

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 you avoid bank service charges?

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 do I get rid of bank service charges?

Contact Customer Service: Call or visit your bank's customer service. Be polite and concise in explaining your situation. Provide them with the details of the fee and why you believe it should be reversed.

Why do banks charge a service fee?

To make a profit and pay operating expenses, banks typically charge for the services they provide. When a bank lends you money, it charges interest on the loan. When you open a deposit account, such as a checking or savings account, there are fees for that as well.

Is it legal for banks to charge maintenance fees?

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 Chase Charging Me A $12 Service Fee?

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Why did I get a service charge from my bank?

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 fight bank fees?

Contact your bank as soon as you realize you've been charged an overdraft fee. You can call the number on the back of your debit card to speak with a representative, who may be able to help. Explain what happened. Give a few details as to why you overdrafted.

Why am I paying a service fee?

Their Purpose. The service charge is meant to cover the cost of service provided and may be used to supplement employee wages, cover operational costs, or be distributed among staff by the company.

Why is my bank charging me a monthly maintenance fee?

Monthly maintenance fees: Charged by financial institutions for account upkeep. If a bank has multiple types of checking or savings accounts, different ones will probably come with different fees. Often, a more robust account charges a higher maintenance fee.

Why am I getting charged bank fees?

Why have I incurred bank charges? We would apply a charge to your account if you were to exceed the services available to you. For example, if you were to use more money than you have in your account and have not arranged an overdraft in advance, you would be asked to pay set charges.

How to avoid service charges?

These are to do with the way the landlord has issued your service charge demand. You can withhold your service charge payment if: the landlord has not included a summary of your rights and obligations with the demand. the landlord's name and address are not on the demand.

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.

Why do banks charge processing fees?

Usually, it is a small percentage of the principal amount you borrow. Loan companies charge processing fee to cover costs such as documentation, verification, agreement, etc. It is a one-time, non-returnable fee that some loan providers may waive as part of their special offers.

How do I get rid of my monthly service fee?

  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.

How much money should you keep in your checking account?

The General Rule of Thumb: 2-3 Months of Living Expenses

The idea is to have enough to cover your bills and expenses but not so much that you're losing out on potential interest.

Why am I getting a service charge on my savings account?

Banks and credit unions can charge you fees for making too many withdrawals or transfers in a month, withdrawing too much money, or going below a minimum balance. Your bank or credit union is allowed to set a limit on the number of withdrawals or transfers you can make from your savings account each month.

Why am I getting a service charge?

Service charges are usually incurred for transactions not included with your account type or when you exceed the number of transactions that is included with your account.

What is the minimum balance for a US bank savings account?

The minimum balance for opening a Bank Smartly® Savings account is $25. Quickly and easily open a U.S. Bank Smartly® Savings account online or at your local branch in minutes.

How do I get rid of monthly maintenance fees?

7 smart ways to avoid maintenance fees
  1. Maintain the minimum balance. ...
  2. Switch to online banking. ...
  3. Set up an additional account at the same institution. ...
  4. Stay above the minimum debit card usage limit. ...
  5. Try getting the fee forgiven. ...
  6. Use only ATMs in your bank's network. ...
  7. Make monthly direct deposits.

Can you dispute a service fee?

Can I dispute a charge for bad service? Yes, bad service can be a valid reason to dispute a charge. However, you are expected to contact the merchant first and attempt to resolve the problem with the merchant before requesting a chargeback.

Why am I getting charged a monthly service fee?

Financial institutions may charge monthly maintenance fees to pay for its operating costs and help increase profits. So you're more likely to see these fees at for-profit brick-and-mortar institutions that have branches to maintain.

Can you remove service fee?

For a discretionary service charge, a customer simply has to ask to have it removed from the bill before paying. A server may ask why this is, or they may simply do it without question – there is no right or wrong approach.

Can I ask my bank to dispute a charge?

If you see an unauthorized charge or billing mistake on your credit card statement, or if you didn't receive satisfactory goods or services from a merchant, you generally have the right to dispute the charge under the Fair Credit Billing Act (FCBA).

Can you claim back bank fees?

If you're struggling financially or think you were mis-sold a packaged account, you can ask your bank to refund any charges or monthly fees you've paid over the last six years. If that doesn't work, you can take your complaint to the Financial Ombudsman Service (FOS) for free.

Who holds banks accountable?

The Office of the Comptroller of the Currency (OCC) is an independent bureau of the U.S. Department of the Treasury. The OCC charters, regulates, and supervises all national banks, federal savings associations, and federal branches and agencies of foreign banks.