Identify two fees that banks typically charge on a checking account and how you can avoid them

Payable and debited when the transaction occurs or service is provided.

Inhaltsverzeichnis Show

International Payments
NAB Foreign Currency Account
Other Banking Services
Monthly service fees
Why are checking account fees rising?
Bottom line
Learn more:

International Payments

Outward

Drawn on banks with currency/AUD arrangement with NAB	$30
Refund/Reissue (this charge covers the cost of placing a 'stop' where the original cheque has been lost/stolen)	$301
Repurchase	$201

1 Any overseas bank charges incurred will be charged to the customer.

International money transfer via NAB Internet Banking (in foreign currency)	$102
International money transfer via NAB Internet Banking (in Australian dollars)	$302
Banker assisted	$30
Requested by email or fax - email and fax written instructions will only be acted on where Email/Fax Authority is held	$35
Request for cancellation of international money transfer - any cancellation request will be subject to the agreement of the beneficiary, whether that beneficiary is the intended beneficiary or not	$201

1 Any overseas bank charges incurred will be charged to the customer.

2 In most cases, NAB will pay overseas bank charges on your behalf. However, in some instances beyond NAB’s control, overseas banks will directly deduct these overseas bank charges from the money you send instead.

Inward

Cheque proceeds advanced for immediate credit of funds (purchased) - cheques in foreign currency and payable overseas	$25 per item
Cheque sent for collection, credit of funds upon clearance - cheques in foreign currency or in Australian dollars payable overseas	$401 per item
Dishonour of overseas cheques	$302

1 Any overseas bank charges incurred will be charged to the customer.

2 Where overseas bank charges more than one fee, all overseas fees are to be paid. Where multiple dishonours are received and all items are processed at the same time, only one NAB charge is to be levied.

Overseas parties that direct a payment to NAB may charge NAB a commission in respect of these transfers, which are included in our fee. Our fee also depends on the currency of the transfer. This fee is usually deducted from the amount paid. In some cases, the sending party may instruct NAB to charge our fee to them. Where NAB does this, NAB will not charge the payment beneficiary and may charge the sending bank a higher amount than set out below.
Transfers to NAB in Australian or overseas currency
Deposited to NAB account	Up to $15
Deposited to non-NAB account (NAB acting as intermediary)	Up to $30
Transfer of overseas currency received by NAB and transferred to another bank unconverted	Up to $35

General enquiries or investigations, at a customer request, that require messaging to/from an overseas or correspondent bank

$251

1 Any overseas bank charges incurred will be charged to the customer.

NAB Foreign Currency Account

Intra account transfers

$30 Banker assisted

Deposit / Withdrawal of overseas currency notes

2% of deposit/withdrawal amount (minimum $20)

Foreign currency holding fee

A fee may be charged on large balances in currencies where market conditions and interest rates are such that the bank makes a loss on the currency.

Find the relevant fee and threshold amounts over which the fee is charged.

The threshold amounts and currencies may change as market conditions change.

Other Banking Services

Issuing fee	Available on application
Service fee/half-yearly fee	Available on application
Foreign currency bank guarantee fees	Available on application

Bank confirmation audit requests Bill holdings Comprehensive certificates supplied for audit Deeds and documents held Goods shipped	Each certificate at an hourly rate of $90 per hour (minimum $70 per certificate)
Note: Charge will apply whether documents are held as security or otherwise, and for confirmation of previous certificates.

1 This fee does not apply to any credit contract with NAB to which the National Credit Code applies.

	Customer	Non-Customer
Transfers to other bank	$5	$5
Plus cash handling fee	$0	1.50% (minimum $1)

Fee	$20 per advice. Free for accounts without cheque access.

Fees incurred with external lawyers may be at your cost.

Charge rate for services not otherwise provided for in this guide.

$90 per hour (minimum $70)

1 This fee does not apply to any credit contract with NAB to which the National Credit Code applies.

Fee	$35
Note: Where Real Time Gross Settlement instruction is received via letter, email or fax, funds transfer fee - email or fax request will also apply (see Section 5).

Checking account fees are amounts banks charge customers for certain transactions or for failing to maintain a specified balance. Checking account fees can add up but most are also avoidable.

Here are the three checking account fees to watch out for:

Overdraft fees
ATM fees
Monthly service fees

Overdraft fees, also known as nonsufficient funds (NSF) fees, can be some of the most expensive bank fees.

A common overdraft fee is $35. But the average fee is $33.47, according to Bankrate’s 2020 checking account and ATM fee study.

Here are some ways to avoid overdraft fees:

Many banks allow account holders to set up text alerts to let them know when their balance falls below a certain amount. Getting a low-balance text may be enough to help you stop swiping your debit card in time to avoid overdrafting your account.
Check your app before you use your card. Seeing the balance may help you avoid overdrafting your account. However, be aware of transactions that aren’t yet pending, such as an upcoming subscription charge. Once they post, these transactions could cause an overdraft.
Get a checking account from a challenger bank that doesn’t charge you for overdrawing your account.
Try linking a line of credit or a savings account to your checking account to cover overdrafts. You may pay a fee for the service, but it would be cheaper than paying an overdraft fee.

Federal regulations require banks to let customers opt out of overdraft on debit cards. For many people, having their debit card declined when they don’t have the money to cover a purchase is preferable to incurring a string of overdraft fees.

ATM fees

Using an ATM outside of your bank’s network could cost you both a surcharge from the owner of the ATM and a fee from your financial institution. The total combined fee was an average of $4.64 in Bankrate’s latest study.

To avoid ATM fees, here are some steps you can take:

Before you use an out-of-network ATM, check your mobile banking app. Many apps have ATM locators that can help you find a nearby fee-free ATM.
Instead of going to an ATM, head to a drugstore, grocery store or other retailer that gives cash back for debit transactions and make a small purchase.
Skip overdraft protection. Opting in for debit card/ATM overdraft protection may cause your transaction to be declined if you don’t have the balance to cover the transaction, which may be preferable to letting you take money out in exchange for a fee.

Monthly service fees

Service fees, or maintenance fees, are usually billed on a monthly basis. Generally, keeping a certain balance in your account can help you avoid these fees.

To avoid monthly service fees, here are some steps you can take:

Find a bank that doesn’t charge these fees. Online banks are a good place to start looking for accounts that don’t have a monthly service fee.
Some banks might allow you to waive the fee with a direct deposit into your account every monthly statement cycle. The direct deposit may have to meet or exceed a certain amount for the statement cycle.
You might be able to waive the monthly maintenance fee by using your debit cards a certain number of times during the monthly statement cycle.

Why are checking account fees rising?

Fees tend to rise just like the cost of other goods and services. Like any business, a bank may try to generate revenue through fee increases — especially in the current low-rate environment.

“Lower interest rates squeeze bank margins and often lead to a greater reliance on fee income,” says Greg McBride, CFA, Bankrate chief financial analyst. “Consumers see this through higher account monthly service fees, overdraft fees and ATM fees.”

Lower rates also affect lending.

“As banks have seen low interest rates reduce the difference between what they earn on loans and pay on deposits, they’ve diversified the revenue stream into more fee-based activity,” McBride says. “Businesses like wealth management are one way, but account fees or other punitive fees are another.”

The best checking accounts don’t charge maintenance fees and or require a minimum balance. Nearly 90 percent of non-interest checking accounts are free or don’t charge a fee if a monthly direct deposit is made, according to Bankrate’s study.

Bottom line

Checking account fees are avoidable. Look for an account that doesn’t charge a monthly fee or makes it easy to avoid by requiring a minimum number of direct deposits or debit-card transactions. Some banks might offer options to help you avoid overdraft fees, too.