The 7 Dumbest Fees Americans Pay Every Year
By Anthony Vion
I absolutely hate paying fees, of any kind. You’re basically just giving your money away and getting nothing in return.
In college, we’d go out to the bars on Friday nights. There was always this one bar, The Wheel, that had a $5 cover charge fee. Not to see a band. Not for a deal on drinks. Just to walk through the door.
When I heard that, I asked the bouncer at the door, “So, it’s a $5 fee just to come in and pay for a beer.” He said, “Yes.” I said, “No thank you,” not in those exact words.
Americans are throwing away hundreds of thousands, if not millions, of dollars in really dumb fees every single year. I hope you’ll join me in not being one of them.
1. ATM Fees
If you read my article on 25 Ways To Save $100 This Month Without Feeling It, you know exactly how I feel about this one.
This one is pure crazytown. Using the wrong ATM, the one not associated with your bank, can cost you a lot more than you think.
Do you know what the average out-of-network ATM fee is? $4.86! Yes, four dollars and eighty-six cents for the pleasure of getting your money.
I get that emergencies happen, but the majority of the time these fees are paid because of bad planning or even worse, not knowing you’re getting hit with fees twice when you do this.
One fee from the place you are actually getting the money from and a second fee from your bank. Again, this is just for getting YOUR MONEY!
2. Bank Account Maintenance Fees
Here’s another frustrating one. You get to pay your bank for the privilege of letting them hold your money. Really? Yep, that’s a thing.
Depending on your account, you could be paying your bank between $5-$15 every single month. That’s up to $180 a year in monthly maintenance fees. It hurt me even writing that.
There are different reasons you may be getting hit with these fees like your balance falls below a certain amount, you don’t meet direct deposit requirements or you don’t use that account on a regular basis.
Please check your statements to make sure you aren’t paying these fees. If you are, there are many other banks that offer no-fee accounts. Check them out.
3. Overdraft Fees
Surprise, more banking fees. No wonder the banking industry makes over $268 BILLION dollars a year.
Overdraft fees are among the most expensive, and avoidable, charges people get hit with.
When your account goes into the negative, banks may charge $30 to $35 per transaction. And if multiple transactions go through while your balance is low, those fees can stack quickly.
My neighbor, Vic, was telling me a story about his son being short $1.37 in covering some subscription he had and the bank kept trying to run the charge through four times. Being short less than two bucks cost his son over $120 in fees!
Don’t get me started on money-draining subscriptions, either.
Needless to say, Vic and his son don’t do their business with that bank anymore.
4. Credit Card Interest and Late Fees
Credit cards are a necessary evil. But what’s not is giving the banks even more money because you can’t pay your bills in full or can’t pay them on time.
Miss that due date for your credit card payment? That’s a $30 fee or more.
Set up automatic payments. Add reminders to your calendar when payments are due. Leave yourself notes. Whatever it takes. Just stop throwing money away on late fees which are totally avoidable.
And credit card interest fees are getting to be astronomical. You want that hot new item but can’t pay for it in full. The credit card companies say, no problem. We got you.
Then, when the next bill comes and you are carrying a balance, they say it again. We got you, although this time it’s with interest. You could be paying up to 20% in interest charge fees alone.
Even if your balance is small, you could be paying big fees for using the credit card company’s money. Take a look at your credit card and see for yourself.
Then next time, you may want to rethink that bigger purchase that you’re not absolutely sure you can afford right now.
5. Subscription Auto-Renewals
The dreaded “S” word.
Sure, subscriptions are designed to be easy to start. One click to sign up for big savings, instant access or a limited-time deal. Oh, but how easy we forget them.
Streaming services, apps, memberships, and subscription boxes often renew automatically, with no warning like, “Hey, are you sure you still want to pay for this?”
Just one, and it may only cost you a few dollars a month. But add them up, I can name three right off the top of my head, and they can quietly drain hundreds of dollars each year.
Free trials that convert into paid plans, forgot about that. Services you no longer use, but are still paying for. And when you have multiple subscriptions offering similar value or worse, two of the same accounts under different email addresses or phone numbers.
6. Convenience Fees
Paying extra for convenience doesn’t feel very convenient, now does it. But we do it, more often than you probably realize.
We’re being charged convenience fees for paying some bills online. That’s right, for getting companies or municipalities their money faster, WE are paying extra.
If I try to pay my property taxes online, there’s a 3.5% convenience fee. If you had any idea of what my property taxes are, you’d know that is a ridiculous, ridiculous fee.
And how about buying tickets to shows and sporting events? You know the price you see upfront isn’t what you’re going to pay after the $15+ convenience fee. Thanks, Ticketmaster, for nothing.
7. Airline and Travel Fees
If you fly somewhat regularly, or even just see the commercials, you have an idea already about this one.
Oh, want to check a bag? Pay me more. Want to select your seat? Pay me more. Need to change that ticket date? More money, please.
And then there’s priority boarding. Yes, you get to pay an extra fee to get on the plane first and sit in that cramped seat longer. On the flip side, you get to leave the plane first and get to wait for your luggage longer. It’s a lose-lose.
Final Thoughts On “Dumb” Fees
In my not-so-humble opinion, there are no smart fees. Every dollar you are spending and not getting anything in return for is dumb. And Americans are paying these fees at a record pace.
Take a rough example. If you’re paying $120/year in bank fees, $100/year in ATM fees, $150/year in subscriptions you don’t use and $100 in miscellaneous convenience fees, that’s almost $500 a year you are essentially throwing in the garbage.
We can be wiser than that.
But the good news is that most, if not all, of these fees can be avoided if you just look out for them.
BIO – Anthony Vion is a savings enthusiast from Long Island, NY who focuses on finding the best deals, reducing household expenses and helping consumers avoid unnecessary spending. Known for his careful approach to comparing prices and evaluating products, he enjoys sharing practical strategies that help people stretch their dollars further and make smarter everyday purchasing decisions.
(Disclaimer: This article is for informational and educational purposes only. The advice given isn’t a guarantee for specific money savings.)