You may have a free checking account with your bank but it doesn’t mean that you are free from awful fees. “Free” may be the most appealing word in the word but there might be fees behind your free checking, savings or ATM that you have to worry about. Whether they are for ATM use, negative balances or bounced checks, you have to know what these hefty fees are so you could monitor you finances a little more responsibly.

According to the Federal Deposit Insurance Corporation, banking institutions earned an estimated US$ 80 billion just on banking fees in 2006. That’s 56 percent of total bank income. Flashback to ten years ago, fees only accounted for 3 percent of bank income. It shouldn’t come as a surprise to anyone because everyone is aware of transaction fees. Aside from that, banks also make money from people who mismanage their credit cards and checking accounts. Remember that you keep your money in a bank for yourself and not for the bank. Don’t let them eat up your money just because you have no idea of the fees you are being charged for. Here are some of the banking fees you need to watch out for.

Courtesy Overdraft Fees

Many people consider courtesy overdraft fee the sneakiest of all fees. These bounce protection fees kicks in when the bank provides funds when your check would have bounced. It works like an ordinary overdraft fee but a little nastier. Depending on your bank, your standing as a client and your account type, you can pay anywhere from 20 to 40 bucks per check. And as if it’s not enough, you will also have to pay an additional $2 to $5 per day until you have paid back the bank. If you don’t want to avoid these fees, set up automatic transfers to your checking account from your savings account. There will still be a fee but not as much.

POS Fees

You may not have realized it but you may be paying for POS or Point-of-Sale fees. Some banks charge this fee to process PIN transactions going through a different network instead of being processed as a credit. For example, Wells Fargo charges $1 (flat rate) for each month you purchase something using your PIN. US Bancorp charges its customers in Ohio, Kentucky, Indiana and Colorado 25 cents per PIN transaction. If you want to avoid these fees, get a pen and sign for purchases instead.

Expedited Bill Pay Fees

Here’s another proof that time is gold. Some banks charge an additional $5 to $15 for paying your bills just before your cutoff or due date if you make a transaction at the last minute. In 2006 alone, banks earned $1.6 billion just from expedited bill pay. To avoid this fee, set up a payment processing account online.

ATM Fees

You should know that each time you use another bank’s ATM to withdraw, you are being charged a fee. Aside from the amount that your bank deducts from your account as payment, the “other bank” charges an additional surcharge. ATM fees have been rising consistently. An average bank charges 25% higher than it did six years ago.

Returned Deposit and Stop Payment Fees

Stopping payment on a check can also cost you big time. Apart from the fact that you didn’t really pay anything because the check did not turn out to be good, you also have to pay $25. That’s the typical charge for stop payment nowadays. Moreover, returned deposit fees of anywhere from $5 to $10 have been instituted in addition to a pile of bounced check fees that you might face.

Cash Advance Fees

Getting cash from a credit card has always been expensive but the past years have witnessed how it rose from expensive to very, very expensive. Ten years ago, credit card companies charged their customers anywhere from 2 to 10 percent on cash advances. Today, minimum fees range from 3 to 5 percent. Most banks also do not set a maximum limit.

Aside from these fees, you should also be aware of the other fees that your bank may be charging you. These may include balance transfer fees, foreign exchange fees and paper fees.