Lorie Konish -
CNBC
Despite the wide availability of free checking services, more than a quarter of checking account holders (27%) pay fees every month.
For consumers who don't take advantage of free checking accounts, those fees average $24 a month, or $288 a year, according to a new Bankrate.com survey.
The personal finance website conducted its online survey from December 7 to 12 and included 3,657 adults, of whom 3,069 have a checking account.
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The charges come from routine services or ATMs and overdraft fees, according to the investigation.
The average overdraft fee is $29.80, according to Bankrate research, while the average non-sufficient funds fee is $26.58.
The annual amounts may not seem like much, says Sarah Foster, an analyst at Bankrate.com, but they can add up to $5,000 if you keep the checking account for 17 years, as the average consumer does.
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Skipping bank fees is an easy way to free up a little more money in your budget, especially amid high inflation and rising recession expectations.
Paying those additional costs can weaken consumers' budgets and make them more vulnerable in the event of a recession.
“It's an important and easy way to make sure you're not spending more money than necessary,” says Foster.
Which generations spend the most on checking account fees?
The youngest are the most likely to pay commissions, according to the Bankrate.com survey.
Generation Z, whose ages range from 18 to 26, tops the list, with 46% of checking account holders from that generation paying monthly fees.
This group pays about $25 a month, according to Bankrate.com.
Millennials
, who range in age from 27 to 42, are
next, with 42% of checking account holders paying monthly fees, according to Bankrate.com.
They tend to pay the most compared to other generations, at $28 a month, according to the study.
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The older cohorts — Generation X, ages 43 to 58, and
baby boomers
, ages 59 to 77 — are less likely to pay checking account fees.
Only 22% of Gen Xers and 14% of
baby boomers
pay $17 and $22 a month, respectively.
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More than half of Gen Z (56%) and
millennial
(52%) account holders say they are sacrificing their recession preparation because of the monthly fees they pay.
By comparison, 46% of Gen Xers and 35% of
baby boomers
say the same.
According to the survey, monthly commissions are delaying consumer goals such as paying off debt, saving for emergencies, or saving for major goals like buying a home or car, paying for college, or putting money aside for The retirement.
Measure the real cost of your checking account
To know what you're paying for your checking account, you need to check your statements at least once a month, according to Bruce McClary, a senior vice president at the National Foundation for Credit Counseling.
Start with the basics: check that your transactions are correct.
Next, evaluate your transactions and withdrawals and any account maintenance fees that arise.
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If you think you are being charged in error, you should talk to your bank.
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Please note that there may be adjustments that your bank or credit union is willing to make.
If you tell your financial institution about your personal situation, they may be willing to waive certain fees, particularly a first-time fee.
“There's no guarantee it'll work, but it never hurts to get in touch,” says Foster.
look for opportunities
Also consider whether there are fees you can avoid, such as by eliminating out-of-network ATM withdrawals or maintaining a required minimum balance.
When you can, try to find free checking and savings services, says McClary.
“Look for opportunities,” McClary says.
"If your bank or credit union doesn't offer them, it could be an opportunity to move your business elsewhere where it might be more affordable."
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Opening a new account at another institution can seem arduous, especially if it requires an office visit and physically moving cash.
But the savings over time can more than make up for the inconvenience.
“While changing banks can be quite a hassle, it can help you build wealth in the long run if it means not paying for a service you can get for free elsewhere,” says Foster.
And if you find you're not happy with your new account, you can always move your money elsewhere.