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$33 billion in bank fees charged in 2022

US consumers paid $33 billion in bank fees in 2022, more than the GDP of 101 of the world’s 193 countries. Here’s what banks charge for, and how to avoid it.

The fees paid by US consumers to banks in 2022 were greater than the GDP of 101 out of 193 countries in the world. Compared to 2021, bank fees decreased by 3% to $33 billion, reflecting a 12% decrease in overdraft fees to $7.7 billion.

Service charges collected in 2022, six largest banks
  1. JPMorgan Chase Bank$5.27B
  2. Wells Fargo Bank$4.72B
  3. Bank of America$4.26B
  4. PNC Bank$1.45B
  5. US Bank$1.13B
  6. Citibank$1.09B

Source: FFIEC call reports

The average charge per deposit account decreased by 9% to $38, reflecting a 36% decrease per account at JPMorgan Chase to $50 and a 19% decrease at Bank of America to $36, as well as growth in the market share of “no-fee” banks. The charges for a depositor with a single bank account were enough to cover about 50% of an annual Netflix subscription.

Bank feesChange vs. 2021Charge per accountChange vs. 2021
$33B↓ 2.8%$38↓ 8.8%

What banks charge fees for

  1. Maintaining deposit accounts, so-called “maintenance charges.”
  2. Failing to maintain a specified minimum deposit balance.
  3. The number of checks drawn on, and deposits made to, an account.
  4. Checks drawn on so-called “no minimum balance” accounts.
  5. Withdrawals from non-transaction deposit accounts.
  6. Closing a savings account before a specified minimum period has elapsed.
  7. Accounts that have been inactive for an extended period, or have become dormant.
  8. Deposits or withdrawals through ATMs or remote service units, so-called “ATM fees.”
  9. Processing checks drawn against insufficient funds, so-called “NSF check charges,” whether the bank pays, returns or holds the check.
  10. Overdrawn accounts: an “overdraft fee” is charged when a bank honors a check or draft without enough funds in the account to cover it.
  11. Issuing stop payment orders.
  12. Certifying checks.
  13. Accumulating or disbursing funds in Individual Retirement Accounts (IRAs) or Keogh Plan accounts when not handled by the bank’s trust department.

How to avoid them

Read the fine print, or ask about every fee before opening a new account. Alternatively, switch to a “no-fee” bank or an online-only bank, such as Goldman Sachs Bank or American Express National Bank. Both have a lower operating cost than traditional “brick-and-mortar” banks, so they don’t need to charge customers as much in service fees.

When you need a specific bank for a particular service, try to meet the conditions for avoiding its fees, and consider opening additional “no-fee” accounts. There is no limit to how many deposit accounts you can have, and opening them has no effect on your credit score, a common misconception (unless you need an overdraft service, which is unusual).

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