Avoid Bank Fees
In the modern financial world, bank fees can insidiously chip away the money you have struggled to come by. Monthly charges for maintaining an account, ATM charges, get their claws on you rather quickly. But with a bit of information in hand and some foresight, these fees can be sidestepped and unspent cash is preserved. This article shall introduce to you useful techniques in the quest to reduce or completely get rid of banking charges and ultimately save some cash for the future.
However before going into tips and ways on how to avoid bank fees, one should be aware of the most common types of bank fees. Monthly maintenance fees are probably the most popular and range from 5 dollars to 15 dollars. Using ATMs outside your branch’s network also attracts a fee and this can exceed 3 dollars. Overdraft fees for covering transaction amounts in excess of the clients’ account balances can also be charged by banks and can amount to 30 dollars per transaction.
Including all the processing and intermediary banks, wire transfer fees can cost anywhere from 15 to 50 dollars and balances on accounts that have not been used for a certain number of months can attract fees charged for inactivity.
Choosing the best suitable type of bank account is also vital in managing bank charges. Opt for accounts that do not incur any monthly fees for account maintenance or accounts that do not stipulate such fees as long as certain conditions are met, for example maintaining a certain balance or enrolling for direct deposits. Considering the fact that traditional banks have more overhead expenses than online banks, most online banks often charge less fees. One such online bank for example, offers checking and savings accounts with no fees.
Avoiding fees can be achieved through the practice of maintaining certain minimum balances. A lot of banks do not charge their clients monthly fees if they maintain a certain minimum balance. If you are able to dedicate yourself in the equipping of a certain deposit amount in your account, make sure that you do that to save yourself from extra charges. Always keep track of the evaluation of your bank account so that you do not go below the minimum threshold.
Avoid ATM fees by restricting usage to ATMs that belong within your bank’s network only. Most banks provide a fare finder on their website or app to assist the customer in locating ATMs closest to them. Therefore, you may want to consider the use of mobile banking apps which allow check deposits without your physical presence at the bank.
Making arrangements with the bank for direct deposits of one’s paycheck may eliminate some bank charges. There are several banks which do not charge their customers monthly service fees if they provide a direct deposit. This gives relief from incurring pointless bank charges because the deposits are already at the checking account as requested. If this is something you would like to pursue, let your employer know and work on getting direct deposit tore checking or savings account instead.
Overdraft fees may seem insignificant at first but within a short period, they can rack up to substantial amounts. Be vigilant with how much is in your account and take care of low balance charges as well as overdraft charges.
You can also consider having a savings account connected to the checking account. This is a facet benefits the account holder where, upon his intensive use of the account and in the event, the account holder runs out of money, a portion of funds from his savings account can be used in order to re-establish positive balance in the checking account typically for a cheaper charge than a regular overdraft penalty.
ensuring that his or her bank statements regularly will allow him or her to review and catch any unsanctioned deductions. Should a particular charge have been levied that you feel is unjustified, do not hesitate to reach out to the bank and contest it. In this case, for the customers, banks do forgive and do not impose such fees recalling that it is not the case with delicate customers. Make sure to create a system of reviewing the statements from the banks you have accounts with after every month.
Generally, credit unions provide lower costs and higher earning rates as compared to typical banks. This is due to the fact that they are member owned organizations that seek to serve their members rather than make money. Check other credit unions in your area and assess how they are different to your current bank.
Banks however have complicated layers of fees and knowing about them eliminates surprise bills. Check also your bank’s fee table which is most likely found in the internet. Over the counter, do not fail to clarify with the bank any unclear charges. This structure can help in charge avoidance.
Over the years, banks have been known to dangle marketing strategies to new customers such as opening free accounts or offering a new customer bonus. Look for such promotional deals and use them to your advantage. Evaluate promotional packages and campaigns of banks to identify the best one.
Various budgeting gadgets and smartphone applications exist, which are helpful in enhancing one’s spending discipline, as well as preventing overdrawing. Banks impose fees that encourage people to control their expenditures, however by determining patterns in spending this becomes unnecessary. Search for these applications that allow real time tracking by connecting with the bank accounts.
The act of building one’s savings through automatic moving of funds from the checking to the savings account can be achieved without any effort. There are other means other than the banks that offer cheaper alternatives, for instance prepaid cards and the internet-based remittances. Talk to the bank about the fees they charge, and do not be afraid to ask for a waiver. It helps to have a cordial chat about your account to produce some positive changes.
You don’t need to be a pessimist since avoiding bank charges comes out as a financial management and cost saving strategy. Simply by selecting the right account, keeping an eye on your balance, and making good use of offered banking services, you can eliminate or greatly minimize the fees that could otherwise eat up your savings
Of course, everything matters; each and every practices that will be undertaken in implementing these practices will improve the financial condition and assurance in the long run. So, take action now and see how savings increase! Adhering to these principles will mean that there will be no undue penalties or expenses and most of the money earned will end up where it is intended to be, which is in one’s pocket.