The 3 Bank Fees Retirees Pay Without Realizing — And How to Eliminate Every One
Many retirees are careful about big expenses, but small bank fees can quietly drain money month after month.
These three bank fees likely won’t make or break your finances, but a few hundred dollars per year in additional costs can sting. Conducting a brief audit of your bank accounts can help you avoid fees, so go back to the past three months of bank statements to see which fees show up. Then, you can create a plan to avoid each one and call the bank if you have any questions. Here are three common bank fees retirees encounter that are easy to avoid with some simple planning.
Must Read
1. Monthly maintenance fees on checking and savings accounts
Many bank accounts have monthly maintenance fees that you can waive if you make a certain amount of monthly deposits or have a sufficient balance. However, retirees don’t have regular paychecks to fulfill direct deposit requirements, and spending money on various living costs can put them below the minimum balance requirements.
Social Security and pension deposits might count as direct deposits, but you should reach out to your bank to confirm. You can also switch from an older account to a no-fee account that has fewer features but protects you from monthly maintenance fees.
Where People Are Buying Gold Right Now
2. Overdraft and nonsufficient funds fees
A single overdraft fee can come to more than $30, depending on your bank. These fees show up if you overdraw your bank account. Nonsufficient funds fees are similar.
Automatic bills, medical copays, subscriptions and delayed deposits can lead to timing issues that trigger overdraft and nonsufficient funds fees. Even a careful budgeter can incur this fee when income arrives on a fixed schedule but expenses are often scattered throughout the month.
Some banks have reduced or eliminated overdraft and nonsufficient funds fees. It's often worth switching to a bank that has done away with these fees to save money in retirement.
3. ATM and paper statement fees
Often, out-of-network ATM withdrawals will result in extra fees, and you may also have to contend with a monthly fee if you want paper statements. These convenience fees add up over a year, and they are easy to avoid.
E-statements are generally free, and switching over is easy. You can download and print e-statements to ensure physical copies without the monthly fee. ATM fees are also easy to avoid if you only use your bank’s ATM locator. Some accounts have out-of-network ATM fee reimbursements as well. Check with your bank to see if it reimburses some out-of-network fees and if it has a vast ATM network. Some banks have more than 60,000 ATMs in their networks, making it much easier to avoid out-of-network fees in the first place.