Types of Bank Fees
Bank fees include many charges associated with your checking and savings accounts. These fees can include general maintenance fees, check fees, ATM usage fees, overdraft costs, and more. Generally, these fees are deducted directly from your bank balance, and you may not notice them at the moment, but they can add up over time. While some fees can be avoided by changing your card habits, excessive fees can be a sign that you need a new bank. Therefore, we asked financial experts what you can do to avoid fees and how to determine if your bank meets your financial needs.
How to Avoid Excessive Bank Fees
Conduct a review of your bank fees and rules related to your accounts. Adam Davis, Vice President of Financial Health and Integration at Capital One, suggests these best practice tips:
– Do your research and check the required minimum balance from the bank and ensure there are no associated fees, Davis says: “There are offers available, such as Capital One’s 360 Checking account, which does not include fees for opening, maintaining, and usage.”
– Utilize the tools available to you, check all the free features your bank may offer on mobile. From depositing checks from your phone to setting up instant alerts, there are many ways your checking account can save you time and money.
– Use free ATMs, withdrawing cash from an out-of-network ATM can cost you around $5, which adds up to $260 a year if you do it once a week. Instead, choose ATMs that belong to your bank’s network whenever possible. (You can often use your bank’s app to find network ATMs). Or try to get cash back when checking out at stores that offer this option.
Should You Change Banks?
If your bank no longer fits your financial lifestyle, it may be time to switch to another bank. Greg McBride, Chief Financial Analyst at Bankrate, advises: “If you need access to branches and local branches are closing, look for another community bank or credit union with a local presence.” And if your bank does not offer free checking accounts or a way to avoid fees without maintaining a large balance, free checking accounts are widely available elsewhere. A Bankrate study found that 46 percent of banks offer a free checking account not tied to interest, and most banks that do not offer a free account will waive monthly fees based on direct deposit for account holders, account balance, transaction activity, or a combination of direct deposit and transaction activity.
If you are feeling financial pressure and need to make some changes, review the fees you are currently subject to and see if there is a better option that can save you money.
Was this article helpful?
Source: https://www.realsimple.com/how-to-keep-your-bank-fees-to-a-minimum-6753765
Leave a Reply