Banks have a history of imposing small fees on the average checking account. If too many of these fees are regularly charged to a person’s account, the sum of these charges can add up to a hefty amount at the end of the year. With a few small adjustments, anyone that owns a checking account can save hundreds of dollars a year in unnecessary fees.
The monthly fee should be the first information everyone should inquire about before opening a new checking account. Some banks charge monthly maintenance fees on checking accounts and others may require a minimum balance or the account will be charged a fee.
Many banks will waive the monthly service or maintenance fee if the customer uses direct deposit with their checking account. There are also many banks available that do not charge any monthly fees for checking accounts.
Overdraft fees have become a popular subject of conversation lately. If a person overdraws their account, the bank may cover the amount overdraft (depending on the case) and then charge an overdraft fee. This fee varies from bank to bank (usually in the $10-$30 range) – per overdraft transaction.
The recently enacted “Opt In” law gives consumers a choice whether to participate in this program. If the bank customer does not choose to “Opt In” then any transaction that puts the account in the red is denied, so that person can only spend the money they actually have in the account and not have to incur an overdraft fee.
When using a debit card to withdraw money from an ATM, everyone should be aware of all the fees associated with this transaction. Depending on the terms, a bank customer may be charged twice….Once by their bank, and another fee from the company or bank that owns the ATM. What this means is if your bank charges $2 and the bank that owns the ATM charges $2 you could be paying $4 for just 1 cash withdrawal.
To avoid fees from other banks, only withdraw money from your bank’s ATM. If available use the cash back option when you make a purchase with your debit card to avoid ATM fees. Also, consider taking advantage of using the “cash back” option when making a debit card purchase instead of going to the ATM.
There are some banks that refund fees charged by other banks and that don’t charge a fee for ATM usage.
With a little research, the average bank customer can save hundreds of dollars a year on checking account fees just by doing a little research beforehand. Most fees associated with checking accounts are unnecessary and can be avoided completely. Also, just a few smart habits can make the difference in keeping more of your hard earned money for yourself.