Why would anyone pay for checking when he or she can get it free? Customer loyalty is one reason, and another is the fact that someone has held an account at a particular bank for many years and does not want to start over. These are good reasons, but those who are shopping for a checking account should check the terms carefully. Banking has become a very competitive business and there are some great offers available.
Are you paying any of these -or other- fees?
- Monthly fee
- Fee for every check you write
- Fee for having an ATM card
- Fee for having a debit card
- Fee for not keeping the required balance in your account
Instead of paying fees for the privilege of letting a bank use your money, check with other banks in your area for a better plan. Many offer completely free checking, along with internet access to your account(s). They may charge a minimal fee for ATM and Debit cards, but usually only if you fail to use your cards within a given month.
NOTE: Make sure your computer is well protected before revealing banking information online.
While most of these fees seem miniscule, they do add up in time. If your monthly checking account fee is $7.50, the ATM fee is $1.50, and the debit card fee is also $1.50, that’s $10.50 each month or $126.00 a year. In ten years, that’s over $1,200.00, which could have been added to your savings account collecting interest.
Something else to watch out for is fees that are applied when you use your ATM or debit card. If you use your card at a machine that does not belong to your bank, you will often be charged not only a fee by the bank that owns the machine, but also by your own bank. This can add up to between 1-5 dollars per transaction. Your bank may also charge a dollar or two for using your cards at certain establishments, so make sure you’re not losing money this way. You’ll be surprised how quickly all these little charges add up, and you be aware of these things so you can subtract the amounts from your check register. Otherwise, you could become overdrawn, and then you’ll get hit with big fees!