Banky team Reviewed editorial answerYes, it can. Recurring fees such as the account maintenance fee are a fixed amount each period, while the return is a percentage of the balance. The smaller the balance, the larger the share of the return the fees take, and if they exceed it the balance shrinks over time.
Hypothetical example: a balance of 600 pounds at a hypothetical 10% a year earns about 15 pounds every 3 months. If the hypothetical fee is 20 pounds every 3 months, the fee exceeds the return by about 5 pounds each quarter.
Two more things matter: some accounts have a minimum balance that earns a return, and below it the return can be zero while fees are still deducted; and some deduct an extra fee in periods when the balance falls below a threshold.
The return after the account maintenance fees the bank publishes depends on the exact balance, so no single figure fits everyone. Check the key-facts statement for the rate, the minimum balance that earns a return, every fee and how often it is charged, and the below-minimum fee. Your account statement shows what was actually credited and deducted.