Have you ever checked your banking history and noticed a fee had been charged to your account? We know that there isn’t much room in your budget to afford these banking fees so we have created a list of the most common bank fees & how to avoid them.
Checking Account fee– When opening a checking account make sure to ask about origination & monthly fees. When possible use a free checking or savings account. There are many banks that still offer free accounts so just ask your bank!
Overdraft fee– An overdraft fee is charged when you aren’t able to complete a payment that has been charged to your account. Take your car payment for instance. If you are billed for your monthly car payment, but there aren’t enough funds to cover it, you will receive an overdraft charge. If you have overdraft coverage, your bank will cover the amount you weren’t able to, & charge you the fee. If you don’t have overdraft coverage, the payment will return to the company or person who sent it and you will probably receive an insufficient funds fee. These types of fees are typically range from $10-$36. Learn more about overdraft fees here!
Minimum Balance fee– When you receive an overdraft fee it is because you are charged for going in the negative. A minimum balance fee is charged if you go below a minimum balance that your bank has previously established. This could be checked as a monthly balance, ending month balance or any specific date during the month. To avoid this fee make sure to always have enough funds in the account to cover the minimum balance. You can also set up direct deposit so you don’t lose time between when you get paid and actually depositing your check.
Hard Copy Statement fee– If your bank is sending a hard copy of your monthly statement, odds are that they are also charging you. To avoid this, you will need to call your bank and ask for electronic statements instead.
ATM fee– If you use an ATM that isn’t your specific banks, the actual ATM owner will charge you a fee. Avoid this fee by only using your actual banks ATM!
Lost Card fee– If you have lost your debit or credit card, you will be responsible to replace it. Your bank will charge you a fee before they send it and if you have it rushed it will be even more. Avoid this fee by keeping good track of your debit or credit card!
Inactivity fee– If you are no longer using an account and it has become inactive, you might still accrue fees. Give your bank a call to see if you will receive any fees if your account is inactive for a period of time.
Account closing fee– Some banks will require a fee to close an account within a certain period of opening it. Reach out to your bank before closing to see what the cost would be and closing procedures.
The last thing you can do to avoid a fee is to call your bank and see if you can get it waived. It never hurts to ask and if you have been a loyal and great customer, your bank just might waive the fee!