Class is officially back in session! Today, we're spilling the tea ☕ on everything you need to know about fees––and more importantly––how to avoid them.

Let's start with the basics.👇

Why exactly do banks charge fees and where does all of that money go?

Historically, banks have charged fees to help pay for their operating expenses (like branches 🏦) and to make a profit. Although, it's been over 230 years since the first U.S. bank opened in 1791 and yet many have not changed the fees they charge customers. If anything, they've gotten worse.

For example, overdraft fees can cost customers anywhere from $26 to $38 per transaction at traditional banks — and that's just one type of fee. Let's break down all the types of fees to look out for. 👀

4 key banking fees to watch out for:

1. Maintenance fees: Many banks charge this on a monthly basis for simply giving you access to a checking or savings account to store your money. Yes, we're serious…and on average, it's costing consumers $5.47 per month, according to Bankrate's 2024 survey.

2. Overdraft fees: And, if you accidentally spend more than what you have in your account (we've all been there)––even by a dollar or two––you could be charged as much as $38 for this oversight. The average overdraft fee is $26.77 according to Bankrate's 2025 study, and 94% of bank accounts still charge this fee.

3. Late fees: This is another major money-maker for banks. Any time you miss a bank's payment deadline (even if it's only by 5 minutes), you can expect to incur a charge between $25-$50. We know that sometimes life just happens, but some banks don't care.

4. Out-of-network ATM fees: When you visit one of these ATMs, they will clearly state what fee (called an ATM operator fee) you'll be charged for using a machine that's not part of your bank's network (typically $1.50-$5). However, what many banks don't tell you is that they're going to charge you a fee on top of that fee. The average total cost for using an out-of-network ATM hit a record high of $4.86 in 2025, according to Bankrate — and it's been rising every year.

How to avoid paying fees.

The easy answer: Sign up for Step!

Our mission as a company is to help improve the financial futures of the next generation and a core part of this belief is that everyone deserves to have easy access to basic financial products and education. In fact, let's take a second to talk about all of the fees we don't charge:

In fact, we recently partnered with Visa's Plus Alliance network to give you access to more than 30,000 fee-free ATMs in local retail locations across the country so you can access your money, on your terms.