A bank is a establishment which offers financial services. Banks offer many services including a way for individuals to store money in a safe way, checking accounts, saving accounts, ATM services, loan services and currency exchanges just to name a few. Banks like any other successful business charge customers a fee for the service they provide. This being said do banks make too much profit from the services they provide? Let’s take a closer look at some of the services offered and the fees one may incur to decide.
Checking and saving accounts are commodities most all banks will offer. Granted there are going to be fees for any service some are very costly. Checking accounts charge fees for opening the account, fees for balancing the account, and very expensive fees should you overdraft the account. Once the account is open if kept in good standing banks make their profit on frivolous small charges many people over look. Savings accounts likewise comes with an opening fee, a maintenance fee, and if you withdraw your money before you agreement a hefty early withdrawal fee.
ATM machines are all across the country today. These machines are convenient should you run into an emergency and need cash or just decide to pick up a few extra items at the store. The catch to using these machines that most charge a fee every time you withdraw money. Your local bank may offer less fees or waived fees if you have an account but when you venture outside of your bank these fees can be fairly expensive.
Loan services are offered more wisely today than a few years ago but still come with a great price. Loans are often sought for the purchase of a home or automobile. When you obtain a loan you agree to pay back the amount you borrow plus interest. Interest can become very expensive if you are not careful to the terms you agree. Home loans are often the worst for interest inflation being they are over many more years. Homes may have to be refinanced every three to five years at which time your interest rate may increase depending upon the market at that time. Always make sure to understand the interest rate you agree to and the length of term you are locked in for. Banks often trick customers with these fees to make more profit.
Currency exchanges can benefit travelers. It is wise to know the current exchange rate of the currency you have to make sure you get the correct money for your exchange. It is wise to recount your funds as well to insure accuracy. Each exchange you do with your bank, through an ATM, etc will come attached with a service fee make sure you know what fee you will be paying.
Banks being a business are expected to make some profit but often make too much at the expense of their customers. Some banks have higher fees than others but generally offer competitive rates so it is difficult to find one better than the other. Protect yourself and money by being aware of the fees, agreements, and contracts you sign for the services you receive at your bank. Like with any other business do not be afraid to shop around for the best deal for your finances.