Along with other costs rising, banking fees are also rising. Many of these fees can be easily reduced.
One of the largest fees charged by banks are overdraft fees. If you write a check or use a debit card and don’t have enough money in your account to cover them they will charge you a fee. This can add up quickly because they charge the fee for each item that cannot be covered. The overdraft fees can be as high at $39 per item, and you don’t necessarily have sufficient funds to pay them. It is important to keep track of how much money you have available in your account before spending it. Even if you check your balance online, you need to take into consideration charges that you may be made that have not cleared the bank yet.
In most cases, if you use an Automatic Teller Machine that is not affiliated with your bank you will be charged a fee. This can be between $2 and $5. It may not seem like a big deal but if you get cash this way numerous times a month or year, it can add up to a considerable amount you could have spent on something else. Some banks will refund the amount if you show them the receipt.
If you find yourself paying a considerable amount in ATM fees there are ways to avoid them or reduce them. If you can, use an ATM machine that is affiliated with your bank or go to the bank in person to get cash. Some stores offer cash back when you make a purchase with your debit card. You enter an amount of the amount of your purchase plus the amount of cash you want.
Another way to cut down on fees is withdrawing a larger amount on each trip. If you have been withdrawing a certain amount and are making multiple trips to the ATM, consider withdrawing a larger amount to reduce the number of fees you incur.
Minimum balance fees
Some banks will charge a fee if your balance in a checking or savings account is below a certain amount. You will be advised of this when you are applying for an account.
If you look at your spending you may find a significant amount is going towards banking fees. There are simple steps you can take to reduce these charges.