It is a bit of a pet peeve of mine that banks charge so many fees for the privilege of lending out your money. Interest rates on savings accounts don’t justify all of those extra fees for checking accounts, either.
Fortunately, there are some ways to get those fees eliminated altogether and save more of your own money.
Penalty Fees
If you aren’t careful, penalty fees can add up, and in many cases, the interest on those fees compounds, making things even worse. Consider what happens if you find yourself writing a check when your deposit hasn’t been recorded into your account. You will get a penalty fee for every check you write and can soon owe hundreds of dollars.
A lot of penalty fees can be avoided simply by being a bit more organized. If that just isn’t who you are, create a cushion of extra money in the bank that you forget about as your own form of free overdraft protection.
Be Proactive
Call your bank and tell them that you want to switch to a free checking account with no minimum balance. They should accommodate you, but if they don’t switch banks. One option is to keep your money with a credit union instead of a bank. Credit unions usually offer better interest rates and lower fees throughout.
There are also many options if you choose to bank online. ING and other online banks offer interest-bearing checking accounts without the fees.
Do your research and don’t settle for less than you want. Sometimes all it takes is to tell your bank that you will be switching your business elsewhere if they cannot provide you with that free checking account.
Read the Fine Print
Many of use toss our statements aside or file them without really reading them at all, but this is important to do. You bank may use your statement to notify you of new fees or changes in fees.
When you sign up for a new account, make sure you understand what types of fees may be charged and the when and the whys of those fees. This way you can make sure that you aren’t being drained of money without your awareness.
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