Avoiding Fees and Earning Rewards with Your Checking Account

Ever been hit with a surprise bank fee? You’re not alone. While checking accounts are essential for managing everyday finances, some accounts cost you more than they help you. The good news? With the right strategy, you can avoid fees, earn rewards, and make your money work harder for you.

Understand the Fee Structure

Why pay extra just to use your own money? Many checking accounts come with avoidable fees, like maintenance charges, overdraft fees, and ATM surcharges. The key is knowing how to bank smarter and keep more money in your pocket. Here’s how:

• Maintain minimum balances to avoid monthly fees.
• Set up direct deposit to avoid maintenance fees if needed.
• Use in-network ATMs when possible to save on transaction fees.

The cost of these types of fees varies greatly between different banks and credit unions. If you'd like to minimize fees, particularly those related to minimum balance requirements and checking account maintenance, you should look for a financial institution that offers those kinds of perks.

For example, OnPath CU's Rewards High Yield and Cash Back accounts have no monthly fees and the monthly maintenance fee for Forward Checking is waived for customers who maintain an average daily balance of at least $500 per billing cycle. Both Rewards accounts also provide up to $10 of out-of-network ATM fee refunds. 

Quick Wins: How to Save on Fees & Earn More

• Use in-network ATMs to avoid surcharges.
• Sign up for a high-yield checking account to grow your balance.
• Set up direct deposit to waive maintenance fees.
• Automate bill payments to avoid late fees.
• Take advantage of cash-back rewards on everyday purchases.

Use Overdraft Protection and Courtesy Pay Wisely

Ever had a payment declined because you were a few dollars short? Overdraft protection helps you avoid that stress. By linking your checking account to a savings account or line of credit, you can cover transactions automatically—without worrying about surprise fees or declined payments.

Take Advantage of Rewards Programs

Getting rewarded for spending money you’d spend anyway? That’s smart banking. Some checking accounts let you earn cashback on everyday purchases, unlock special discounts, and even earn interest on your balance. Here’s how to make the most of it:

• Focus spending on categories that offer the highest rewards.
• Sign up for promotions or partner discounts to boost your benefits.
• Regularly review your statements to track rewards and identify inaccuracies.

OnPath CU offers two rewards checking options, five-percent cashback on up to $200 in debit card purchases per period or a high-yield checking option that offers 7% APY* on average daily balances up to $10,000. 

Automate and Monitor Your Finances

• Set up alerts for low balances or large transactions to stay informed.
• Schedule automatic bill payments to prevent late fees.
• Review your statements regularly to catch errors or unauthorized transactions early.

Consider Opening a Secondary Account

If you’re managing multiple financial goals, opening a secondary checking account could be a smart move. This approach allows you to separate expenses. A secondary account can also make tracking specific financial goals, such as saving for a vacation or managing household expenses, much easier. For example, you could use a high yield checking account to maximize the yield on savings without losing access to the funds while relying on a cash back rewards account for everyday purchases.

Look for Financial Institutions that Offer Checking Features and Rewards That Put the Customer First

There are many ways in which a credit union’s non-profit status benefits members. One of the financial services where the differences are most obvious is checking accounts, where the emphasis is on minimizing fees and maximizing rewards rather than nickel and diming customers.

Find out if your eligible for OnPath membership and start benefiting from our Rewards checking accounts.