3 Bank Charges Retirees Often Miss — and How to Avoid Each One

Many retirees watch major expenses closely, but small bank charges can quietly chip away at savings month after month.

These three fees may not devastate your budget, but they can still add up to several hundred dollars a year. A quick review of your bank accounts can help you spot them. Look back over the last three months of statements to see which charges appear, then make a plan to avoid them and contact your bank if anything is unclear. Below are three common fees retirees run into, along with simple ways to sidestep them.

1. Monthly maintenance charges on checking and savings accounts

Many accounts come with monthly maintenance fees that can be waived if you meet a minimum deposit or balance requirement. Retirees, however, may not have regular paychecks that satisfy direct deposit rules, and everyday spending can cause balances to fall below the threshold.

Social Security and pension payments may qualify as direct deposits, but it is best to confirm that with your bank. Another option is to move to a no-fee account, even if it offers fewer features, so you can avoid monthly maintenance charges.

2. Overdraft and nonsufficient funds fees

An overdraft fee can top $30 at some banks. These charges occur when you spend more than is available in your account. Nonsufficient funds fees work in a similar way.

Automatic bills, medical copays, subscriptions and delayed deposits can create timing gaps that lead to overdraft and nonsufficient funds fees. Even a careful budgeter can run into them when income comes on a fixed schedule but expenses are spread throughout the month.

Some banks have lowered or removed overdraft and nonsufficient funds fees altogether. Switching to a bank that has done so can be a smart way to save money in retirement.

3. ATM and paper statement fees

Using an out-of-network ATM often brings extra charges, and choosing paper statements can also mean a monthly fee. These convenience charges are easy to overlook, but they can add up over a year.

Electronic statements are usually free, and making the switch is simple. You can download and print them if you still want paper copies without paying the monthly fee. ATM fees can also be avoided by using your bank’s ATM locator. Some accounts reimburse out-of-network ATM charges as well, so check whether your bank offers that perk and how large its ATM network is. Some banks have more than 60,000 ATMs in their networks, which makes it much easier to avoid extra fees in the first place.