An inactivity fee is a charge imposed by many companies, such as banks and other financial institutions, for customers who are inactive or do not utilize their services over a period of time. This fee is meant to encourage account holders to actively use the financial service and products being offered.
Typically these fees range anywhere between $5-$25 per month though they can be much higher depending on the institution’s policy. Not all companies impose an inactivity fee so it’s important to read through contracts carefully before signing up for anything. Additionally, most banking websites will disclose what type of penalty you’ll incur if you’re inactive for an extended period of time so that customers know exactly what costs they’ll be liable for prior to making their decision about how best to use the services available from different providers.