Bank Fee

What is a bank fee?

Bank fees are charges your bank applies for various services. These might include monthly maintenance fees, wire transfer fees, overdraft charges, or fees for using out-of-network ATMs. For businesses, bank fees are a normal operating expense, but they can add up if you're not paying attention.

Common bank fees for businesses

Fees you might encounter include:

• Monthly maintenance — Fixed fee for having the account
• Transaction fees — Charges per deposit, withdrawal, or transfer
• Wire transfer fees — Costs for sending or receiving wires
• Overdraft fees — Charges when you spend more than your balance
• Cash handling fees — Fees for depositing or withdrawing large amounts of cash
• Statement fees — Charges for paper statements

Minimizing bank fees

Compare business checking accounts to find one that matches your transaction patterns. Maintain minimum balances to waive monthly fees. Use your bank's ATMs. Set up overdraft protection or alerts to avoid overdraft charges. Track fees in your bookkeeping—they're a deductible business expense.