Bank Fee

What are bank fees?

Bank fees are charges your bank applies for various services and situations. They can eat into your profits if you're not paying attention, so understanding what you're being charged—and why—helps you minimize unnecessary costs.

For small businesses, bank fees are a regular operating expense that should be tracked and recorded in your bookkeeping.

Common types of bank fees

Business accounts may encounter fees for:

• Monthly maintenance — Flat fee for having the account, often waived with minimum balances
• Wire transfers — Charges for sending or receiving wire payments
• ACH transfers — Fees for electronic bank-to-bank transfers
• Overdraft fees — Penalties when you spend more than your balance
• Transaction fees — Per-transaction charges if you exceed a monthly limit
• Foreign transaction fees — Extra charges for international payments
• Returned check fees — When a deposited check bounces

Reducing bank fees

Compare business accounts to find lower-fee options. Maintain minimum balances to avoid maintenance fees. Use ACH instead of wire transfers when possible. Review your statements monthly to catch unexpected charges and dispute errors.