Definition of Bank Account Fee Schedule
A bank account fee schedule is a list published by banks that outlines any fees and conditions that come with opening a deposit account, as well as the ways you can avoid specific fees.
Alternative Name: Account Disclosures
Understanding the fees charged by banks makes it easier for you to research and find the right account for you.
How Does a Bank Account Fee Schedule Work?
When you open a new checking or savings account, the bank is required to provide you with a fee schedule that explains all potential fees.
You can also request the fee schedule before opening a bank account so you can compare costs and terms across different banks.
For example, online banks tend to have lower costs, so they often charge lower fees compared to traditional banks that have physical branches. You will see these differences when comparing the fee schedules from each type of bank.
The fee schedule should also include explanations on how to avoid certain fees. For instance, you might be able to avoid some fees by maintaining a minimum monthly balance in your checking account. You might also avoid ATM fees by using ATMs within the bank’s network only.
Types of Bank Fees
It is important to understand some standard fees charged by banks and how you can avoid them. By understanding your options, it will be easier to find the best account for you.
Overdraft Fees
If you do not have enough money in your bank account to cover a check or debit card transaction, the bank may allow the transaction to go through and charge you an overdraft fee. Overdraft fees can cost up to $35 per transaction, and these fees can add up quickly.
Minimum Balance Fees
Depending on the type of account you open, the bank may require you to maintain a minimum monthly balance. If you cannot maintain this balance, the bank will charge you a minimum balance fee.
Maintenance Fees
The bank may charge a monthly fee, known as a maintenance fee, for servicing and maintaining the account. Some banks allow you to avoid these fees by setting up direct deposit to your account.
ATM Fees
If you use an out-of-network ATM, you may be charged an ATM fee. To avoid these fees, it is best to use ATMs within the bank’s network. You can also look for banks that offer accounts that reimburse these fees for you.
Why Is a Bank Fee Schedule Required?
Disclosures like bank account fee schedules are required under the Truth in Savings Act. This law took effect in 1993 and is designed to help consumers make more informed decisions when opening a bank account. Part of it, Regulation DD, requires banks to provide disclosures to consumers regarding any terms and fees associated with their accounts.
If you feel that your bank has not been transparent about the fees it charges, you can file a complaint with the Consumer Financial Protection Bureau (CFPB). The CFPB has the authority to oversee and enforce compliance with the Truth in Savings Act.
The Truth in Savings Act applies to deposit institutions that offer deposit accounts to consumers in any state. Deposit credit unions are also subject to Truth in Savings provisions, but under a different regulation. The National Credit Union Administration publishes Part 707 of the Truth in Savings, which is very similar to Regulation DD.
All of these account-related disclosures make it easy for customers to compare fees, interest rates, and terms offered by multiple banks. You have the right to receive a disclosure any time you open a new account, receive a statement, request a new fee schedule, or if the bank changes its terms.
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Source: https://www.thebalancemoney.com/what-is-a-bank-account-schedule-of-fees-5442968
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