Bank fees eating your budget? Low-cost accounts and free help

Paying fees every month isn't a fact of life. A few requests can stop most of them.

The answer in 2 lines. The US has no special legal status that caps bank fees for people on a tight budget, but you have options. Turn off overdraft coverage for debit and ATM transactions, so a purchase you can't afford is declined instead of costing a fee. Ask your bank for its lowest-cost account, or move to a Bank On certified account: these have no overdraft or insufficient-funds fees, and most cost $5 or less a month. If you were turned down for an account, you can get your report for free and dispute errors.

The first 3 steps

Ask your bank to turn off overdraft coverage for ATM and one-time debit card transactions. This is your right under federal rules, and you can change it at any time.
Ask for its lowest-cost or no-overdraft account and its fee schedule in writing. Many banks and credit unions offer "checkless" accounts with only a debit card and online bill pay.
Compare with a Bank On certified account: open the Bank On account list (linked from the FDIC's Get Banked page), check whether an account is limited to your state or to members, then open it online or at a branch.

Your options at a glance

Option	What it does	Good to know
Opt out of debit and ATM overdraft coverage	No overdraft fee on those transactions: they're declined instead	Checks and recurring payments can still lead to overdraft or NSF fees
Bank On certified account	No overdraft or insufficient-funds fees, low and clear costs	Most cost $5 or less a month; some are limited to certain states or members
Lower-risk or "second chance" account	Designed to prevent overdrafts, for people with past banking problems	May be easier to get after being turned down; can help rebuild your banking history
Fee refund request	The bank may refund some recent fees	Ask by phone, then confirm in writing

What not to do

Waiting for the bank to offer a cheaper account: in the US it has no obligation to, so ask.
Covering fees with a high-cost loan or cash advance: the debt can grow faster than the fees did.
Trusting the word "nonprofit" alone: the FTC warns that it doesn't guarantee a credit counseling service is free or affordable.
Leaving a negative balance unpaid: an account closed by the bank can be reported and block you from opening a new one.

Turned down for an account?

Ask why: if a bank turns you down because of a checking account report, it must send you a notice naming the reporting company it used.
Get your report for free: you're entitled to a free copy after being turned down, and the nationwide checking account reporting companies must also give you one free report a year if you ask.
Dispute errors in writing with the reporting company and with the bank that reported the information. Use the CFPB's sample dispute letter: fill in your details, list each error and attach proof.
Old information: the CFPB says most negative information older than seven years generally can't be reported.
Try elsewhere: each bank and credit union has its own policy. Some offer lower-risk or second-chance accounts.

Free help

FDIC Get Banked: fdic.gov/getbanked explains how to pick a low-cost account. Some banks let you open one with as little as $25, and you can use an ITIN instead of a Social Security number. FDIC helpline: 1-877-ASK-FDIC (1-877-275-3342).
Debt that's getting out of hand: a reputable nonprofit credit counselor can help you build a budget. The CFPB explains what credit counseling is and what to ask before you sign up.
A bank that won't fix an error: file a complaint with the CFPB, or call (855) 411-2372.

Good to know

Deposits at an FDIC-insured bank are insured to at least $250,000 per bank, and that includes low-cost accounts.
Struggling with energy bills too? See our guide on LIHEAP heating assistance.

In Memphis, Keisha has paid about $70 in fees a month for three months. She calls her bank and turns off debit overdraft coverage. Then she finds a Bank On certified account at a local credit union on the Bank On list, opens it with $25 and moves her paycheck there. Her purchases are now declined instead of costing her a fee, and she pays $4 a month.

A made-up story, for illustration.

Bobby

Sources, verification, confidence

Verified on November 5, 2026, for the United States. Confidence: high for the opt-in rule and your rights after being turned down for an account; medium for Bank On account costs, which come from the Bank On listing page and can change from one account to another. No bank is recommended here. This is general information, not personal financial advice.