Tips For Avoiding Banking Fees
| August 20, 2008 | Posted by Roshawn Watson under Uncategorized |
By: Roshawn Watson
Image Credit: Steven Rhodes
Don’t Pay for Having a Checking Account
You should not be paying for checking (unless perhaps if you are receiving interest from the account). Some banks offer free checking if you are a student, have direct deposit, or do everything electronically. It is worth investigating, so ask your bank which of their accounts have free checking.
Challenge Paying for Their Mistakes
Identifying and challenging banking errors can save you money too. For example, when a bank misspells your name or your state of residence on checks, request a corrected set but without additional fee. Also, I once wrote a check to someone for $95 but when the recipient cashed the check, he received $99. On principle alone, I challenged the fee, and the bank made up the difference.
Shop Banks to Avoid Out-of-Network ATMs
If your bank charges for out-of-network ATMs, consider switching to a bank that reimburses ATM fees. In fact, having convenient ATMs is one of my requirements for selecting a bank in the first place.
Remember Some Fees are Negotiable
Don’t think twice before asking your bank to remove fees for receiving canceled checks with your monthly statement, having a live representative (instead of using phone tree), receiving a replacement ATM card, or making too many monthly transfers fee. All of these fees are typically negotiable gotchas, and your banks is counting on you not challenging them!
Avoid the Insufficient Funds Fee
Get overdraft protection. Link your bank account to your savings account (or another account at that bank). The $5-10 for using or triggering this services is typically less than the $30 banks charge for insufficient funds. Also remember, the best way to avoid an overdraft altogether is to balance your checkbook on a regular basis.
Savvy Consumers Avoid Banking Fees
Here’s what the American Banking Association said in a 2006 press release. “Fifty-seven percent of consumers spend $3 or less in monthly fees for banking services, according to a recent survey by the American Bankers Association. Within that group, almost half (43 percent) said they pay no monthly fees at all.” Become one of these savvy consumers today!
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Copyright 2008, Roshawn Watson, Pharm.D. All Rights Reserved.
Thanks for the article, I'm glad I'm not alone with my dislike of banking fees. I am actually going to take a few of your tips into consideration the next time I'm looking for a new checking account.
Thanks for the comments. Believe it or not, last week BOA recently charged me a fee. I got a chance to put my advice into practice. I challenged the fee, and they quickly reversed it with no questions asked. Friendly regards!