As news spreads that a major bank is raising its monthly fee in 2025, account holders are left wondering how these changes will impact their finances—and what steps they can take to avoid unnecessary costs. In an era of rising banking fees and increased competition from digital banks, understanding your options has never been more crucial for prudent money management.
Bank Raising Its Monthly Fee: What You Need to Know
Many consumers rely on traditional brick-and-mortar banks for checking and savings accounts, but this convenience now comes at a higher cost. The latest announcement from a prominent national bank—raising its standard monthly maintenance fees by up to 20% starting April 2025—signals a wider trend in the financial sector. This increase could lead to higher yearly out-of-pocket expenses for millions of Americans, especially those maintaining lower account balances.
According to recent industry reports, the average monthly checking account fee in the U.S. now exceeds $15, up from $13 in 2023. Such fee hikes can quickly erode your hard-earned savings, particularly if you’re not meeting minimum balance requirements or qualifying for fee waivers. Staying informed about changes to your account terms is essential, as outlined in our banking basics guide.
Why Banks Are Raising Monthly Fees
Banks cite inflation, evolving technology costs, and regulatory changes as core reasons for adjusting their fee structures. As debit card rewards shrink and interest income tightens, institutions look to maintenance charges as a revenue stream. While digital-only banks and credit unions often offer fee-free options, traditional banks argue that operating physical branches and providing 24/7 customer support justify these increases.
How to Avoid Paying More When Your Bank Raises Fees
Learning how to sidestep new charges when your bank is raising its monthly fee is critical for smart personal finance management. Here are proven strategies to help you save money without sacrificing essential services:
1. Meet Minimum Balance or Deposit Requirements
Many major banks offer fee waivers for customers who maintain a minimum daily or monthly balance—typically between $1,000 and $2,500—or set up a recurring qualifying direct deposit. Review your bank’s updated terms to determine if maintaining a higher balance or scheduling automated deposits can help you dodge increased fees. For personalized tips, check our personal finance planning resources.
2. Switch to a No-Fee Account or an Online Bank
If meeting requirements isn’t feasible, consider moving your money to a no-fee checking or savings account. Many online banks and digital neobanks offer robust services without monthly maintenance charges. Additionally, local credit unions may offer lower fees and competitive rates compared to national banks. Shopping around can yield both savings and enhanced features.
3. Bundle Banking Products
Some banks provide fee waivers if you have multiple products—like a mortgage, credit card, or investment account—under one institution. Ask your bank about bundled offers that could offset new monthly charges. Be sure to compare bundled package terms to ensure you aren’t paying extra for unnecessary features.
Best Practices for Monitoring Banking Fees
Consistently reviewing your account statements and bank notifications is vital. Set up online banking alerts to be notified instantly of any new fees or account requirement changes. Utilize your bank’s mobile app or online portal to regularly monitor transactions and balances, helping you catch unexpected charges early. Refer to our investment insights section for the latest on technology-enabled banking tools.
Negotiating With Your Bank
If you’re a long-term, loyal customer, don’t hesitate to contact your bank directly. In many cases, banks will waive fees if you ask, particularly if you mention your history with the institution or express intentions to switch banks. Keep records of your communications and be prepared to negotiate terms that work in your favor.
What Rising Monthly Fees Mean for Banking in 2025
This move by a major bank raising its monthly fee highlights an industry-wide pivot toward higher account maintenance costs. As consumer advocacy groups lobby for greater transparency, experts urge individuals to periodically review their banking relationships, evaluate fee structures, and prioritize value over routine convenience.
By adopting proactive fee-avoidance strategies—like maintaining eligible balances, leveraging fee-free accounts, and bundling services—you can minimize the financial impact of rising costs. Staying vigilant and informed will empower you to retain more of your money, despite shifting trends in the banking sector.
