5 secrets about money American banks don’t want you to know — plus how to beat them at their own game

1. Sneaky fees

From maintenance fees to overdraft charges, one of the main ways banks make their money is through various fees. Even ones that seem negligible at first glance can add up over time.

For example, personal finance celebrity Dave Ramsey once called maintenance fees “some of the sneakiest,” adding that, “you agree to them when you open an account, and you may not even realize it until they show up on your statement six months later.”

But it may be possible to avoid paying maintenance fees. For instance, some banks may waive the fee if you maintain a certain minimum account balance.

However, fees on big loans, such as a mortgage, are often hiding in the fine print of your contract. Although it may feel tedious, always read the fine print before you open any account.

If you come across any fees, in general, you should feel empowered to contest it. After all, a bank is like any other business — they don’t want to lose you as a customer, especially if there’s a risk that they’ll lose you to a competitor.

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2. Credit cards offer more protection than debit cards

Using a debit card over a credit card can be beneficial, especially since many businesses impose a surcharge on customers for credit card purchases. However, credit cards tend to offer more protection than debit cards.

Often, when there's a fraudulent transaction on your credit card account, you can dispute it. Typically, the charge will be removed from your balance while it's being investigated, or you'll receive a credit for that charge so you don't have to pay for it.

But when your debit card is used fraudulently, you have less protections in place. You generally only have a small window of time to report a fraudulent transaction on a debit card — and that window may depend on the rules and regulations your bank has in place.

If your debit card or PIN number is stolen, you may find yourself responsible for up to $500 in unauthorized transactions if you notify your bank after two business days, according to the FDIC.

With a credit card, on the other hand, you could report fraud several weeks later — on average, around 60 days after the fact. In some situations, it can be even longer.

For this reason, it could pay to use a credit card more often than your debit. As an added bonus, credit cards let you rack up points or cash back on your purchases, which debit cards don't.

3. Banks can re-order your transactions

You might transact in your bank account in a certain order — for example, deposit a check first and then use your debit card to make a purchase.

The problem, however, is that banks have the option to post transactions to your account in a variety of ways. They can do so in chronological order or by transaction size — and this can make it difficult to manage your balance.

If your bank posts a deposit after you make a purchase even though you made the deposit first, it could leave you with insufficient funds temporarily. That, in turn, could lead to overdraft fees.

The Consumer Financial Protection Bureau (CFPB) reports that consumers paid more than $5.8 billion in 2023 in overdraft fees/fees for non-sufficient funds.

However, some banks have, in recent years, done away with overdraft fees, so you may want to switch to one with this practice already in place in order to avoid losing money.

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4. Banks want you to have debt before you take on more debt

Banks make money by collecting interest, so it’s beneficial to them to lend you money when you qualify. The problem, though, is that if you have no borrowing history, you may struggle getting a loan.

Your bank can’t evaluate how risky or trustworthy a borrower you are if you have no track record of paying debts off. So even though it wants to make money off of you, if it’s not sure you’re likely to pay back a loan, it will probably deny your application.

If you want the option to borrow money, one of the safest ways to build a credit history is to open a secured credit card.

Normally, when you charge expenses on a credit card or take out a loan through your bank, you’re given a line of credit that’s based on your income, credit history, and credit score.

With a secured credit card, you put down a deposit that serves as your credit limit. Because you’re borrowing against funds you have, you’re not at risk of defaulting on your debt.

At the same time, that small amount of debt could help you build a credit history so that a bank is willing to write you a loan in the future.

5. It's possible to negotiate with banks

Banks make money by collecting interest on loans and charging various fees, but these things aren’t always set in stone. Therefore, it pays to negotiate with your bank to maximize your savings.

If you’re offered a personal loan, for example, at a certain rate, you can try asking your bank to knock off half a percentage point rather than just accepting it.

Or, if you're charged a fee for letting your balance dip below the minimum requirement by your bank, you can ask to have that fee waived — especially if it's a first-time offense.