What Your Bank Isn't Telling You: Hidden Fees vs. Credit Union Transparency

You check your bank balance and notice it's lower than expected. Again. You scroll through your statement and find small charges scattered throughout: $5 here, $15 there, maybe a $35 overdraft fee you didn't see coming. Sound familiar? You're not alone. According to recent consumer research, 63% of banking customers have been hit with hidden fees they weren't expecting.

The reality is that many traditional banks depend on these fees to boost their profits. In fact, research shows that bank customers pay more than double what credit union members pay in annual checking account fees. But here's the good news: it doesn't have to be this way.

The Hidden Cost of "Free" Banking

That "free" checking account at your bank might not be so free after all. Most major banks advertise no-fee accounts, but the fine print tells a different story. Monthly maintenance fees can range from $5 to $25 per month, costing you up to $300 annually. And that's just the beginning.

Common hidden fees at traditional banks include:

Monthly Maintenance Fees: Banks often waive their fee if you keep a minimum amount in your account or meet other requirements such as linking checking and savings accounts, but one slip-up and you're charged.

ATM Fees: The big brick-and-mortar banks charge customers an average of $2.50 for using a non-network ATM, while out-of-network ATM operators charge customers an average fee of $4.77. That's over $7 per withdrawal if you're not careful.

Overdraft Fees: Each time your account goes into overdraft will typically cost you around $35. That means if five different purchases or debits were made on the same day that you have insufficient funds, you'd be charged $35 per instance. Even worse? Some banks charge up to $5 just to automatically transfer money from your savings to cover an overdraft—charging you to access your own money.

Account Closure Fees: Try to close your account within 90-180 days of opening it? Some banks charge up to $25 for that privilege.

These fees aren't always clearly disclosed when you open your account. They're often buried in lengthy terms and conditions that most people never read. And banks count on that.

The Credit Union Difference

Credit unions operate on a fundamentally different model. As not-for-profit financial cooperatives, they exist to serve their members—not to maximize profits for distant shareholders. This means fewer fees, lower costs, and more transparency.

Research shows that on an all-in basis credit union members pay less than one-half the amount bank customers pay on their checking accounts annually. Even more impressive? Credit union members with low balance accounts paid less in annual total checking account fees than bank customers with high balance accounts.

Why the difference? It comes down to mission and structure. As a not-for-profit, credit unions are in the business of saving members money—not helping stockholders get rich. Any revenue generated from fees gets reinvested to improve services, lower loan rates, and offer better savings rates.

How Public Service Credit Union Keeps It Transparent

At Public Service Credit Union, we believe you deserve to know exactly what you're paying for—and we work hard to keep those costs as low as possible. Here's how we stack up:

Our Surge Checking Account offers an industry-leading 10% APY on your first $1,000, meaning we're paying you to bank with us, not the other way around. The monthly maintenance fee? Just $5, and it's easily waived in two ways:

• Enroll in e-statements (our preferred method—it's better for the environment too!)

• Be age 60 or better

No Minimum Balance Requirements: Unlike many banks that require $1,500 or more to avoid fees, you can maintain any balance that works for your budget.

Transparent ATM Access: Through the Shazam Network, you have access to thousands of surcharge-free ATMs nationwide. No surprise $7 charges when you need cash.

Fair Overdraft Practices: We call our overdraft fee "courtesy pay" because that's exactly what it is—when your account goes negative, we've essentially provided you a short-term loan by paying someone on your behalf until you bring your account positive again. We work with members to set up overdraft protection and provide alerts before you go into the red—helping you avoid fees altogether. And unlike many banks, we don't charge you to transfer money from your savings to cover an overdraft. It's your money, after all.

Free Digital Services: Online banking, mobile banking, and our mobile app come at no cost to you. No hidden "convenience" fees for accessing your own money.

Services That Actually Cost Us: We're upfront about the few fees we do charge—like our $20 wire transfer fee for domestic transfers. These fees cover real costs for specialized services, not everyday banking.

“As a not-for-profit, credit unions are in the business of saving members money—not helping stockholders get rich.”

The E-Statement Advantage

One of the easiest ways to avoid the $5 monthly fee on our Surge Checking Account is by enrolling in e-statements. Beyond the fee waiver, going paperless offers real benefits:

Instant Access: Get your statement the moment it's ready, not days later in the mail.

Better Security: No paper statements sitting in your mailbox or getting lost in transit means less risk of identity theft.

Easy Record-Keeping: Statements are stored digitally, making it simple to find what you need for tax time or budget reviews.

Environmental Impact: Save trees and reduce waste with digital delivery.

Setting up e-statements takes less than two minutes in your online banking portal—a small step that saves you $60 annually.

What to Look for When Comparing Financial Institutions

Whether you're considering a move to a credit union or evaluating your current bank, ask these questions:

What are the monthly maintenance fees, and how can they be waived? Get specifics in writing.

What's the overdraft fee policy? Look for institutions that offer free overdraft protection or at least reasonable fees.

How extensive is the fee-free ATM network? Count up your typical ATM usage and calculate potential savings.

Are there fees for basic services? Things like online banking, mobile deposits, or bill pay should be free in 2025.

What's in the fine print? Read the fee schedule carefully—not just the marketing materials.

The Bottom Line

Consumers not only benefit from lower credit union fees, but also from lower loan rates and higher savings rates. When you choose a credit union like Public Service Credit Union, you're choosing transparency, fairness, and a financial partner that's truly on your side.

Those small fees at traditional banks add up to big money over time—money that could be working for you instead of padding a corporation's bottom line. With our Surge Checking Account earning 10% APY on your first $1,000 and a simple e-statement enrollment waiving the monthly fee, you're not just saving money—you're earning it.

Ready to Ditch the Hidden Fees?

If you're tired of surprise charges and fine-print fees, we're here to help. As a member-focused credit union, we put people before profits every single day. Join the Public Service Credit Union family and experience what transparent, honest banking should feel like.

Have questions about our fee structure or how to maximize your savings? Our team is here to help—reach out to us at info@publicservicecu.org or call (715) 842-9865.

Because at Public Service Credit Union, what you see is what you get. And that's a promise.