What situation typically allows clients to receive fee-free services in their bank accounts?

Clients typically receive fee-free services in their bank accounts when they maintain compensating balances, which are minimum balances required to be kept in specific accounts as a condition for certain services to be provided without additional fees. This practice is common among banks in order to incentivize clients to keep a minimum amount deposited, which benefits the bank’s liquidity and customer retention strategies.

In the case of compensating balances, the bank often waives fees based on the understanding that the customer is maintaining a balance that supports the bank’s operations. This balance can offset fees for services such as monthly maintenance fees, transaction fees, and other banking services, allowing customers to benefit from fee waivers.

Other scenarios, such as having higher than average account balances or using multiple banking products, may result in lower fees or preferential terms but are not specifically designed as a structure for waiving fees. On the other hand, frequent ATM transactions typically incur fees regardless of the balance or account type unless covered by specific agreements or perks associated with the bank’s policies.