How to Avoid Bank Fees as a Small Business

Opening a business bank account is one of the first steps in getting your operations off the ground. It helps you keep personal and business finances separate, manage cash flow, and maintain credibility with vendors and customers. But with that account can come an unexpected cost: bank fees.

The good news? Many of these fees are avoidable with the right approach.

By understanding how bank fees work and making a few smart banking decisions, you can keep more money in your business and avoid unnecessary headaches down the road. To get helpful insights on how to do this, we sat down with our very own Vice President of Commercial Banking, Julie Macaluso.

Understanding Business Banking Fees

Bank fees might seem like a small cost here and there, but for small business owners, they can add up fast. Monthly service charges, transaction limits, and surprise fees can quietly eat into your profits if you’re not careful.

But they can do more than take from your bottom line—they can throw off your entire cash flow.

“When running a small business, cash flow and projections can be difficult to manage,” says Macaluso. “Getting hit with an unexpected fee can alter your forecast and possibly even overdraw your account.”

Unfortunately, these fees aren’t always easy to spot in advance. Some charges are triggered by specific activity in your account, while others can sneak up if you’re not closely monitoring usage. Two of the most common culprits? Balance requirements and transaction limits.

Beyond those two, other common banking fees to watch out for include:

• Monthly maintenance fees
• Wire transfer fees (both incoming and outgoing)
• ATM fees, especially if using out-of-network machines
• Overdraft or non-sufficient funds (NSF) fees
• Paper statement fees for mailed statements

And while understanding which fees apply to your account is the first step toward avoiding them, it isn’t the only thing you should do to prevent overpaying.

How to Avoid Small Business Fees

Equally as important to understanding bank fees is making smart choices when it comes to your accounts and banking habits. How you use your bank matters, and, luckily, there are some simple ways small business owners can cut down on fees and keep more of their money where it belongs.

1. Opt for No-Fee Business Banking

One of the easiest ways to avoid bank fees is to start with a fee-free business account that doesn’t charge them in the first place.

At Amplify, all business deposit accounts are truly fee-free—with no fine print. That includes core business services like online banking, mobile deposits, and bill pay, along with treasury management tools.

“We don’t believe growing our credit union through fee income is in anyone’s best interest,” Macaluso says.

Whether you’re just starting out or scaling your operations, choosing a transparent, fee-free banking partner can help you save money and simplify your finances. When looking for the right financial institution, be sure to do your research.

“Many financial institutions will promote fee-free accounts, but make sure you read the fine print,” adds Macaluso.

While some accounts may only waive fees if you meet certain criteria, others may offer free access to online banking and mobile deposits, but charge for wire transfers, overdrafts, or exceeding transaction limits. Taking time to truly understand a bank’s offerings can help you make an informed decision.

2. Maintain Required Balances

If you can’t bank with an institution that offers truly fee-free accounts, one of the best ways to avoid monthly service charges is to maintain the required minimum balance.

Many business checking accounts waive monthly maintenance fees if you keep a certain average daily balance in the account. The exact amount varies by institution and account type, so be sure to review the requirements carefully when opening your account.

Keeping a buffer in your account can also help you avoid overdraft fees—especially if your cash flow is unpredictable from month to month.

To stay on top of your balances:

• Set up account alerts for low balances
• Link a savings account for overdraft protection
• Use online banking tools to monitor account activity in real time

While it’s not always possible to maintain a sufficient balance, especially in the early stages of running a business, a little planning can go a long way toward reducing avoidable fees.

3. Monitor Transaction and Deposit Limits

Even if you’re mindful of balance requirements, fees can still sneak in if you exceed your account’s transaction or cash deposit limits. Like required balances, these limits and how they are calculated can vary by institution.

“Some banks may include your deposits from your personal accounts, while others will just consider business deposits,” says Macaluso. “Fully understanding how your financial institution calculates these is essential to avoid or minimize fees.”

Additionally, check that your account matches your business’s activity level. If you’re consistently bumping up against limits, it might be time to upgrade your account or explore new banking options that better fit your needs.

4. Use In-Network ATMs and Digital Banking Tools

Out-of-network ATM fees can add up fast, especially if you’re making regular cash withdrawals. Stick to ATMs in your bank’s network whenever possible to avoid those extra charges.

And speaking of in-person transactions— you can also cut costs by using digital tools like electronic transfers, remote deposit capture, and bill pay, which are often free and more convenient.

5. Go Paperless

Many banks charge a small fee for mailing paper statements, but opting into e-statements is usually free. Going paperless not only saves money, but it also makes it easier to keep track of your finances online and reduces paper clutter.

6. Ask About Fee Waivers and Bundles

Some banks offer fee waivers for new accounts, bundled services, or if you meet certain activity requirements. Others may be willing to refund fees occasionally as a courtesy, especially if you’ve been a long-time customer.

It’s worth having a conversation with your bank to understand what options are available.

“Take the time to speak to someone and ask detailed questions,” Macaluso advises. Many fee-saving options aren’t advertised upfront, so asking the right questions can really pay off.

7. Regularly Review Your Bank Statements

It’s easy to miss small fees if you’re not keeping a close eye on your statements. Make a habit of reviewing your account each month to spot unexpected charges, confirm your balance, and track how close you are to any limits.

Catching issues early gives you a chance to fix them—and avoid repeat fees in the future.

8. Build a Relationship with Your Banker

A community-focused financial institution will have bankers there to help you choose the right account, flag potential issues before they cost you, and even advocate for fee reversals or better account terms.

When you work with someone who understands your business, you’re more likely to get the support and flexibility you need. It’s just another reason why putting in the effort to find the right financial institution is crucial for small businesses.

Smart Business Banking = Fewer Fees

Bank fees might have been a regular part of doing business in the past, but this doesn’t have to be the case in today’s financial landscape. By understanding how fees work, asking the right questions, and choosing a banking partner, you can avoid many of the common charges that catch small business owners off guard. A few proactive steps can help you save money, simplify your finances, and focus more on running your business—not fighting surprise fees.