Finance & Money
Overdraft and maintenance fees, and how to avoid them
Most routine bank charges are avoidable. The conditions for avoiding them are published, but rarely explained when an account is opened.
Overdraft coverage on everyday card transactions is generally something you opt into. Where you have not opted in, a transaction that would overdraw the account is usually declined at no cost rather than paid and charged for. Checking which setting applies to your account takes one phone call.
Monthly maintenance fees are commonly waived on conditions set out in the account documents: a minimum balance, a direct deposit, a number of card transactions, or being under a certain age. Many people already meet one of these without the waiver having been applied.
Credit unions and several online institutions offer accounts with no monthly fee and lower overdraft charges. Moving an account is administratively tedious rather than difficult, and the recurring payments are the part that needs planning.
Where fees have already been charged, asking for a reversal is ordinary practice and often succeeds, particularly on an account that has not been charged before. It is a request rather than an entitlement, and it costs nothing to make.
What to do next. Check whether overdraft coverage is switched on, and ask which condition would waive your monthly fee.
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