Junk fees are hidden or undefined charges attached to goods and services not revealed until it's time to pay. They can show up as an overdraft fee on a bank account, a service fee when you buy concert tickets, a resort fee at a hotel or as a convenience charge when selecting your airline seat ahead of time.
The Federal Trade Commission estimates Americans pay tens of billions of dollars in junk fees each year. In October 2023, the FTC proposed regulations banning what it called "hidden and bogus fees." If the rule is approved, businesses would have to include all mandatory fees up front and disclose their purpose and whether they are refundable.
You don't have to wait for the government to act to get a handle on surprise charges, however. Here's what you can do to avoid junk fees.
Choose the right bank account
If you don't have enough funds in the bank to cover a transaction, you may be charged a fee. While they're still common in the industry, a growing number of banks have eliminated overdraft fees.
One of our top picks in this category, Capital One 360 Checking®, also has no insufficient funds or monthly maintenance fees and there are no minimum deposit or balance requirements.
Capital One 360 Checking®
Monthly maintenance fee
$0
Minimum deposit to open
$0
Minimum balance
None
Annual Percentage Yield (APY)
0.10%
Free ATM network
70,000+ Capital One®, MoneyPass and Allpoint® ATMs
ATM fee reimbursement
None
Overdraft fee
$0
Mobile check deposit
Yes
Terms apply.
The Ally Bank Spending Account doesn't have overdraft or monthly maintenance fees, either, and doesn't require a minimum deposit or balance. Ally is an online-only bank but members have access to a vast network of free ATMs and can get reimbursed up to $10 a month for out-of-network ATM charges.
Ally Bank Spending Account
Monthly maintenance fee
$0
Minimum deposit to open
$0
Minimum balance
None
Annual Percentage Yield (APY)
0.10% less than $15,000 minimum daily balance; 0.25% over $15,000 minimum daily balance
Free ATM network
43,000+ Allpoint® ATMs
ATM fee reimbursement
Up to $10 per statement cycle
Overdraft fee
$0
Mobile check deposit
Yes
Terms apply.
If you're looking for a higher return, CNBC Select suggests the Wealthfront Cash Account, which also has no overdraft or account fees. The company's robo-advisor lets account holders earn 4.50% APY on all account balances — which is competitive with what high-yield savings accounts offer.
Wealthfront Cash Account
Annual Percentage Yield (APY)
3.50% APY
Minimum balance
None
Monthly fee
None
Maximum transactions
Unlimited transfers and free same-day withdrawals
FDIC insurance coverage
Up to $8 million
Terms apply.
Pros
- Above-average APY
- No minimum balance or deposit
- No monthly fee
- Unlimited transfers and free same-day withdrawals
- FDIC insurance up to $8 million
Cons
- Limited customer support
Do your homework before booking hotels and flights
While consumers have less control when it comes to fees for concert tickets, flights and accommodations, you can avoid some if you do research.
Several hotel chains, including Marriott, list resort fees on their advertised rates. If you don't see them, ResortFeeChecker lets users look up resort charges by city or hotel name. If you're ever in doubt, call the front desk and ask what charges are added to the bill.
You may get a better rate by booking directly via a hotel or airline website versus a third-party platform like Expedia.
For cardholders with the right status, airline-branded credit cards often eliminate extraneous charges for things like priority boarding, seat selection and checked baggage.
Here are some of CNBC Select's top picks for airline credit cards:
Best for American Airlines
The Citi® / AAdvantage® Platinum Select® World Elite Mastercard® is worth considering if you fly with American Airlines once or twice a year because you'll get your first checked bag free on domestic American Airlines itineraries.
- First checked bag free on eligible American Airlines flights for the cardholder and up to four travel companions on the same reservation
- No foreign transaction fees
- Preferred boarding
- American Airlines Flight Discount has a high spending requirement
- Has an annual fee
Best for JetBlue
JetBlue Plus Card
Rewards
6X points on eligible JetBlue purchases; 2X points at restaurants and eligible grocery stores; 1X points on all other purchases
Welcome bonus
Earn 70,000 bonus points after you spend $1,000 on the card and pay the annual fee in the first 90 days.
Annual fee
$99
Intro APR
0% APR on eligible balance transfers that post to account within 45 days of account opening, for the first 12 billing cycles; 19.49% to 29.49% variable thereafter depending on creditworthiness
Regular APR
19.49% to 29.49% variable
Balance transfer fee
Either $5 or 5%, whichever is greater.
Foreign transaction fees
None
Credit needed
Excellent/Good
Terms apply.
Pros
- 5,000 bonus points on your account anniversary
- 10% rebate on JetBlue award flight redemptions
- First checked bag free for you and up to three companions
- 50% off in-flight purchases
Cons
- $99 annual fee
- Limited bonus spending categories
Best for Delta Air Lines
The Delta SkyMiles® Platinum American Express Card is a good fit for anyone who wants Delta elite status and isn't interested in airport lounge access.
- Up to $390 in statement credits annually (Enrollment required)
- Receive a Companion Certificate on a Delta Main round-trip flight to select destinations each year after renewal of your Card. The Companion Certificate requires payment of government-imposed taxes and fees of between $22 and $250 (for itineraries with up to four flight segments). Baggage charges and other restrictions apply. Delta Basic experiences are not eligible for this benefit.
- 15% Delta award flight discount (Not applicable to partner-operated flights or to taxes and fees.)
- High annual fee
- Delta dynamically prices award flights, which makes it more difficult to redeem miles for higher values
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- You may be eligible for as high as 90,000 Bonus Miles after you spend $3,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you're approved and find out your exact welcome offer amount – all with no credit score impact. If you're approved and choose to accept the Card, your score may be impacted.
- Receive a Companion Certificate on a Delta Main round-trip flight to select destinations each year after renewal of your Card. The Companion Certificate requires payment of government-imposed taxes and fees of between $22 and $250 (for itineraries with up to four flight segments). Baggage charges and other restrictions apply. Delta Basic experiences are not eligible for this benefit.
- Receive $2,500 Medallion® Qualification Dollars with MQD Headstart each Medallion Qualification Year and earn $1 MQD for each $20 in purchases on your Delta SkyMiles® Platinum American Express Card with MQD Boost to get closer to Status next Medallion Year.
- Delta SkyMiles® Platinum American Express Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide including takeout and delivery in the U.S., and at U.S. supermarkets.
- Earn 1X Miles on all other eligible purchases.
- $120 Resy Credit: Get up to $10 in statement credits each month after you pay with your enrolled Delta SkyMiles® Platinum American Express Card to dine at U.S. Resy restaurants or make other eligible Resy purchases.
- $120 Rideshare Credit: earn up to $10 in statement credits each month after using your Delta SkyMiles® Platinum American Express Card on U.S. rideshare purchases with select providers. Enrollment required.
- Enjoy your first checked bag free on Delta flights and save up to $70 per person on a round-trip Delta flight.
- Receive either a $120 statement credit for a Global Entry application fee or a statement credit up to $85 for a TSA PreCheck® (through a TSA official enrollment provider) application fee every 4 years, when charged to your Delta SkyMiles® Platinum American Express Card. Card Members approved for Global Entry will also receive access to TSA PreCheck at no additional cost.
- Delta SkyMiles® Platinum American Express Card Members with an eligible ticket will be added to the Complimentary Upgrade list, after Delta SkyMiles Medallion Members and Reserve Card Members.
- No Foreign Transaction Fees.
- $350 Annual Fee.
- Terms Apply.
- See Rates & Fees
Best for Southwest Airlines
The Southwest Rapid Rewards® Priority Credit Card is a perfect fit for serious Southwest fans who can easily maximize its benefits like upgraded boardings and an annual travel credit.
- Valuable welcome bonus
- 7,500 bonus points every card member anniversary
- $75 annual Southwest travel credit
- Limited value when you're not traveling with Southwest
- High annual fee
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn 90,000 bonus points after spending $3,000 on purchases in the first 3 months from account opening.
- 7,500 anniversary points each year.
- Earn 4 points per $1 spent on Southwest Airlines® purchases, including flights, inflight, and Southwest gift cards.
- Earn 2 points for every $1 you spend at gas stations and restaurants
- First checked bag free for Cardmembers and up to 8 additional passengers in the same reservation.
- Select a Preferred seat at booking, at no additional charge, when available.
- Cardmembers and up to 8 passengers in the same reservation will board with Group 5 giving them earlier access to overhead bins.
- No foreign transaction fees.
- Member FDIC
Balance transfer fee
Either $5 or 5% of the amount of each transfer, whichever is greater.
Best for United Airlines
The United℠ Explorer Card is worth it even if you only fly with United Airlines once or twice a year because you can take advantage of two United Club℠ passes per year when the primary cardmember or authorized user is traveling and you can receive free checked bags.
- No annual fee for the first year
- Unlocks upgrades for elite members on award flights
- Two free United Club airport lounge passes every year
- Valuable United Airlines perks, such as in-flight purchase discounts and the ability to earn elite status credit through credit card spending
- First checked bag free benefit requires you to pay for the flight with the card
- United Airlines has a dynamic award chart which can limit the value and flexibility of your miles
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn up to 60,000 bonus miles
- $0 introductory annual fee for the first year, then $150
- NEW! 9x total miles on eligible United flights and 3x miles on all other eligible United® purchases
- 2x miles on dining and hotel stays when booked with the hotel. 1x mile on all other purchases.
- Free first checked bag - a savings of up to $200 per roundtrip. Terms Apply. Plus, priority boarding on United® flights.
- 2 United Club one-time passes per year - over a $100 value
- Over $500 in partner credits each year
- NEW! Save 10% or more when booking flights with miles. Premier members save even more.
- Member FDIC
Bottom line
Hidden fees are commonplace, but you can avoid some by doing your research before choosing a bank account or booking a flight or hotel stay.
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At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every personal finance article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of banking and credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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For rates and fees of the Delta SkyMiles® Platinum American Express Card, click here.
