When squirreling away your hard-earned dollars, be aware of your bank’s fee schemes. These days, added fees are a source of income for many financial institutions and a major headache for those harbouring their funds in bank accounts. Between account fees and ATM transaction fees, banks are collecting a small fortune ever year from all their customers.But as with most things, there are a few loopholes that can help you hold on to those dollars and cents. Get to know the common fees that banks charge, and how to reduce or avoid them altogether.Account feesThe first step is to determine what types of chequing and/or savings accounts you currently have with your bank. Each bank has a variety of both accounts that are suited for your financial needs.Some accounts limit the number of debit and/or ATM transactions each month and every transaction beyond that number will incur a fee. Even what constitutes as a “transaction” varies from bank to bank. Other account types waive the transaction fee but require you to maintain a high minimum balance in the account. Do your homework to figure out what type works for your profile. The Financial Consumer Agency of Canada offers a helpful guide to the types of accounts available and which are best for your banking profile.ATM feesWe’re all familiar with the message that pops up on ATMs – it warns that withdrawing money from a private ATM will cost between $1 to $3 as a “convenience fee”. And if you withdraw cash from an ATM that belongs to a competing bank, the fees are even higher, often hitting the $6-mark for a single withdrawal.How do you combat these unecessary ATM fees? There are a couple of solutions. First, do your best to stick to your own bank’s ATMs. And remember that many major banks stash their ATMs in a number of private businesses, such as gas stations and pharmacies.If visiting an ATM isn’t possible, take advantage of cash-back options at private businesses. Many stores allow you to get cash back when making a purchase with an Interac debit card. For example, if you buy a pack of gum for 50-cents and want $20 cash back, the clerk will charge you $20.50 on your debit card and give you $20 from their cash drawer.If neither of these options are available, just limit the number of transactions at private ATMs. So, instead of withdrawing $20 five times, just take out $100 once. That decision alone can save you almost $20 in ATM fees.Take advantage of special discountsIf you have multiple accounts, it’s best to have them all with the same financial institution. Not only does that make moving money around from account to account much easier, but some banks (such as RBC) provide customers with a multiple product discount.Also, if you’re a student or are retired, make sure you let your financial advisor know. Many banks offer free or low-fee accounts for young and elderly customers.