3 Bank Charges Retirees Often Overlook — and Ways to Avoid Them

Many retirees keep a close eye on major expenses, yet small bank charges can quietly chip away at savings month after month.

These three fees may not be enough to upend a budget on their own, but they can still add up to several hundred dollars a year. A quick review of recent bank statements can help spot them. Look back over the past few months, identify any charges that appear repeatedly, and then make a plan to avoid each one. If anything is unclear, contact your bank for details. Here are three common fees retirees may run into, along with simple ways to sidestep them.

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1. Monthly maintenance fees on checking and savings accounts

Many bank accounts charge a monthly maintenance fee, but banks often waive it if you meet certain deposit or balance requirements. Retirees may not have regular paychecks to satisfy direct deposit rules, and everyday spending can make it harder to stay above the required minimum balance.

Social Security and pension deposits may qualify as direct deposits, though it is best to confirm this with your bank. Another option is moving to a no-fee account with fewer features, which can help you avoid ongoing maintenance charges.

2. Overdraft and nonsufficient funds fees

A single overdraft fee can exceed $30, depending on the bank. These charges apply when an account is overdrawn, and nonsufficient funds fees work in a similar way.

Automatic payments, medical copays, subscriptions, and delayed deposits can create timing gaps that trigger these fees. Even careful budgeters can be caught off guard when income arrives on a fixed schedule but expenses come due throughout the month.

Some banks have lowered or eliminated overdraft and nonsufficient funds fees altogether. Switching to one of those institutions can be an easy way to save money in retirement.

3. ATM and paper statement fees

Using an out-of-network ATM often brings extra charges, and paper statements may also come with a monthly fee. These convenience costs can add up over the course of a year, though they are usually easy to avoid.

E-statements are typically free, and making the switch is straightforward. You can still keep physical records by downloading and printing your statements without paying a monthly paper fee. ATM charges are also easy to avoid if you use your bank’s ATM locator. Some accounts even reimburse out-of-network ATM fees. Check whether your bank offers reimbursements and how large its ATM network is; some banks have more than 60,000 ATMs, which makes avoiding out-of-network charges much easier.