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Bank Account Service Charges, Savings Transactions, and Statement Rights

This guide presents selected U.S. government consumer education from CFPB. References to “we” or “us” in the source material refer to the issuing agency. Source dates and links appear below.

Does my bank/credit union have to send me a monthly statement for my checking account?

Not necessarily. Most banks or credit unions will send a statement every month. However, banks and credit unions only have to send a monthly statement if you made at least one electronic fund transfer that month.

Electronic fund transfers include ATM transactions, transactions using your debit card, and payments you make through online bill payment. It also includes direct deposits and any recurring payments automatically deducted from your account.

If you have made no electronic fund transfers, some banks or credit unions may send you a quarterly statement instead of a monthly statement. Many banks and credit unions also offer the option to sign up for electronic statements.

Why am I being charged a monthly maintenance fee for my bank or credit union account?

Banks and credit unions can charge a monthly maintenance or service fee, although sometimes they don’t charge the fee as long as you meet their requirements—like keeping a minimum amount in your account or choosing direct deposit for your paychecks. They must tell you up front what the fees are and how you can avoid paying them.

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. Many banks and credit unions offer several types of accounts with different fees or requirements so you can compare them.

After you’ve opened an account, the bank or credit union can change the amount of or types of fees, and they must send you a notice in writing notifying you about the change.

How to avoid the charge

Many banks and credit unions do not charge a monthly maintenance or service fee for accounts where you consistently keep a specified amount of money, called a minimum balance, or where you have your paychecks or benefit checks directly deposited.

You can ask if the bank or credit union offers low-cost checking accounts, such as a senior or student account. Some banks and credit unions offer a basic checking account with a low minimum balance and a limited number of free checks and withdrawals.

To avoid fees from your bank or credit union, you can move your money to a different bank or credit union that offers accounts with a low maintenance fee or no fee.

Why am I being charged for transactions in 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. After you make the maximum number of withdrawals or transfers, or withdraw the maximum amount of money, the bank can charge you an excessive use fee or withdrawal limit fee. In some cases, the amount of the fee increases with each withdrawal you make.

How to avoid fees on your savings account

Instead of using a savings account alone, consider opening a checking account for day-to-day transactions and cash withdrawals so you won’t have to pay additional fees. Use your savings account to hold money for emergencies and infrequent purchases.

I opened a "free" checking account but there are fees charged on my account. Can my bank/credit union do that?

If an account is described as “free” or “no cost,” it cannot have any monthly service fees, fees for exceeding a specified number of transactions, or any fees to deposit, withdraw, or transfer money.

A “free” or “no cost” account also means that the bank or credit union cannot charge you a fee for not meeting a minimum balance.

However, a “free” account may still have certain fees such as ATM fees, overdraft fees, bounced check fees, balance inquiry fees, fees to stop payment on a check, fees on a dormant account, or check-printing fees.

I opened a "free" checking account. I received a notice from the bank/credit union stating that it had decided to start charging monthly fees. Can the bank/credit union do this?

Yes. A bank or credit union can start charging you fees on your account as long as the bank or credit union notifies you in writing at least 30 days before it starts charging fees and explains the change to your account.

However, once it starts charging these fees, the bank or credit union can no longer advertise that particular account as a “free” checking account.

Banks and credit unions have multiple types of accounts available, so make sure you review your own account terms. If you feel your bank has violated a promise to you, you may file a complaint.

How do I avoid ATM fees?

Generally, you can avoid ATM fees by using your own bank or credit union’s ATMs because most banks and credit unions don't charge a fee for this service.

Usually, when you use another bank or credit union’s ATM, both the operator of the ATM and your bank or credit union charge you a fee.

Some banks and credit unions offer to rebate ATM fees. Check with your bank or credit union to find out what ATMs you can use without an additional fee.

Can my bank/credit union charge me a fee to use another bank or credit union's ATM?

Yes. Both your bank or credit union and the owner of the ATM can charge you a fee.

Your bank or credit union must disclose its fee in writing when you open your account or when it adds a new fee. The ATM operator must disclose its fee in writing at the ATM itself.

What is the difference between a checking account, a demand deposit account, and a NOW (negotiable order of withdrawal) account?

A demand deposit account is just a different term for a checking account. The difference between a demand deposit account (or checking account) and a negotiable order of withdrawal account is the amount of notice you need to give to the bank or credit union before making a withdrawal.

Most demand deposit accounts (DDAs) let you withdraw your money without advance notice, but the term also includes accounts that require six days or less of advance notice.

NOW accounts are essentially checking accounts where you earn interest on the money you have deposited. With a NOW account, the bank or credit union has the right to require at least seven days written notice of a withdrawal, though this is rarely done.

Not all accounts that give you checks are “checking accounts.” Other deposit products, such as money market accounts, may allow you to write checks, but they are not generally suited for day-to-day business, given the restrictions on their use. In addition, a lender may give you checks to access credit, such as a personal loan, home equity loan, or other lines of credit. These types of checks allow you to access your loan.

Sources and publication details

The federal agency source text is U.S. government work in the public domain. Fynoptic selected, adapted, and formatted it for this guide. No agency endorsement is implied. Follow the linked sources for current program details and the rules applicable to your circumstances.

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