What are junk fees and how can you avoid them?

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.

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.

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.

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 5.00% APY on all account balances — which is competitive with what high-yield savings accounts offer.

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

Best for JetBlue

Best for Delta Air Lines

Best for Southwest Airlines

Best for United Airlines

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.

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.