Common Bank Fees And How To Avoid Them

Banks impose fees for a variety of reasons, and if you’re not attentive, they may gradually deplete the money in your account. Money at a bank might be costly to keep there. Banks levy fees for everything, including overdrafts, printed statements, and ATM transactions.

However, the majority of bank fees may be avoided. Knowing what these costs are is the first step. Next, either use strategy or choose a bank that doesn’t impose a certain fee.

Maintenance of accounts

Account maintenance fees are pesky and almost every bank has them. Aliza Naiman, marketing manager of Olgam Life states: “Just for having your account open, you are charged account maintenance fees. The average monthly sum is just a few dollars, but this may mount up.

By completing specific conditions, such as having money immediately transferred into your account, you are often offered the opportunity to avoid them.

Account maintenance costs aren’t the end of the world if you can fulfill the criteria for a charge waiver.

But in general, unless the financial organization provides some other extremely great benefits to offset this unneeded expense, you do not want to commit to paying a monthly charge forever merely to be a member of a certain bank.”

Personal checks

Lastly, ordering personal checks may incur a fee from your bank. Nevertheless, you are not required to purchase checks via your bank; all you need is your account and routing number to order checks online. Moreover, some banks provide complimentary checks.

You may reduce the amount you spend on your banking connection and save more money from your own pocket by considering all of these costs when establishing an account.

Fees for overdraft protection

Yes, you can prevent an overdraft charge by using overdraft protection. Yet, some large banks impose a lower price for using overdraft protection.

According to Saj Munir, founder of Chorlton Fireworks: “Making sure that your balance never falls below zero dollars is the simplest approach to prevent having to pay overdraft protection costs.

Both the bank’s mobile app and the internet allow you to check your balance. Inquire with your bank about balance alerts, which notify you of impending overdrafts through text or email when your balance reaches a specific dollar number.

Also, you may choose a bank that doesn’t charge for overdraft protection. Several banks, including Chase, Capital One, and Varo, provide free overdraft protection services.”

Fines for insufficient funds

An overdraft charge and an insufficient funds fee are comparable, however, they vary somewhat. If a purchase will overdraw your account and the bank rejects your transaction, you will be charged an inadequate funds fee.

When a check fails or you don’t have enough funds in your account to meet an automated payment, the bank assesses an insufficient funds fee. Its daily limits and fee amount are often the same as its overdraft fees.

Enrolling in overdraft protection may be beneficial for you since these expenses are comparable to overdraft fees. You might alternatively open an account with a bank that doesn’t impose fees for overdrafts or insufficient amounts.

ATM charges for using machines outside of the network

Rhett Stubbendeck, the CEO of LeverageRx shares: “Usually, banks have a network of ATMs. You may check your balance and make free withdrawals by using an in-network ATM.

But, there may be a $2 or $3 fee from the bank if you use an ATM that is not part of that network. Plus, the ATM provider will likely charge you a few extra dollars.

Choose a bank that has an extensive ATM network and at least one machine near your home or place of business.

You could bank with a company that doesn’t charge you more for using a different network. If an ATM service provider costs you, some banks will also provide you with a refund.

For instance, Alliant Credit Union waives any costs associated with using an out-of-network ATM and reimburses up to $20 in monthly ATM provider fees.”

Foreign exchange fees

Your debit card will be charged a foreign transaction fee if you use it outside of the US.

Foreign transaction fees come in two primary categories: those for using an ATM overseas and those for using your debit card to make purchases.

Visa and Mastercard, which both produce debit cards, impose a 1% international transaction fee. You must pay this fee at many institutions, and others charge an additional percentage on top of that.

Some banks charge a fee for using an out-of-network ATM in addition to the standard percentage they charge for overseas transactions for an ATM transaction.

For instance, TD Bank charges a 3% international transaction fee as well as an extra $3 for using an ATM that is not part of their network.

If you wish to use your debit card overseas, you will normally have to pay foreign transaction fees. But, if you take out more money at once, you may avoid having to visit the ATM again later and save money on international transaction costs.

Yet, you should also think about whether you feel secure carrying a significant amount of cash.

Foreign transaction fees are not always imposed by banks. Choose a bank like Capital One, Charles Schwab, or Discover if you travel often.

Paper statements

As many banks now impose print statement fees, receiving statements in the mail may cost you money. Some banks may not charge a fee for their premium accounts. Usually, there are no fees associated with electronic statements.

When you open your account or log in for the first time to your new account, sign up for paperless e-statements. Be sure there are no monthly fees associated with printed statements by checking online or with your bank.

Costs associated with regular transfers

Carl Jensen, founder of Compare Banks shares: “For legitimate bank checks and wire transactions, banks normally charge a fee.

In certain cases, receiving money by wire transfer can result in a penalty from your bank. Determining if this cost is applied to your account is crucial.

When you need to send money quickly, wire transfers are often employed.

If you plan ahead, you may not need them. Moreover, check to see whether a bank offers free wire transfers or other speedy money transfer solutions like Zelle.

You may be able to compensate people for minor purchases using a program like Venmo.

An ACH (Automated Clearing House Network) transfer option can be available from your bank. Be sure there is no charge or restriction on the amount you may send.”