Bank fees can eat away at your wallet, but you don’t have to take them lying down. There are several ways to avoid the most common bank fees, and also there are banks with no fees. Read on for tips on avoiding these common fees and putting more money back into your account (and pocket).
Overdraft Fees
Overdraft fees are charged by your bank when you try to make a purchase or withdrawal after your account balance falls below zero. Banks often charge for overdrafts, but some do not.
The easiest way to avoid these kinds of unexpected expenses is by putting yourself on a budget: Write down all income sources and expenses every month so that you know exactly how much money is coming into your household each month, as well as how much goes out each month (including payments for utilities, student loans and other bills).
SoFi professionals say, “You won’t get charged for overdrafting.”
Monthly Maintenance Fees
Monthly maintenance fees are a common bank fee that can be charged to customers with checking accounts who don’t keep a minimum balance. These accounts usually require you to have a certain amount of money in your account at all times, or else you’ll be hit with the monthly maintenance fee.
ATM Fees
ATM fees are usually charged by the ATM owner and not your bank. However, these fees can be higher than at the bank, and they’re often more than $1 per transaction.
To avoid these charges, use your own bank’s ATM. If you don’t have one nearby, consider using a credit union’s ATM instead of a bank’s—the latter will charge you more for using their machines in most cases.
Account Inactivity Fees
Account inactivity fees are charged when a bank account has not been used for a certain period of time. The amount and frequency of the fee vary by bank, but generally, it’s charged if you don’t make at least one transaction (such as a deposit or withdrawal) every six months or so.
Excessive Transaction Fees
An excessive transaction fee is a charge that’s above and beyond the cost of processing the transaction. Banks may tack on extra fees because they can, or they may be forced to do so by higher-ups who want to make more money from customers.
Early Account Termination Fees
The best way to avoid early termination fees is by not having one in the first place. Many banks will try to convince you that their accounts come with a high APY even though many other options provide a better value for your money. So make sure that when you pick an account, you compare all of the necessary features and make sure it’s good enough for your needs before committing yourself to any long-term contract or charges.
Check Printing Fees
Check printing fees are one of the most common bank fees out there. It’s easy to get caught up in the hype and feel like you need to print checks for everything—but it turns out that there are actually tons of ways to avoid these charges!
It’s clear that there are a lot of bank fees that you can avoid. You can also save money by using tools like the free credit score checker and credit card finder. Unfortunately, there are no excuses for paying too much for your checking account, so take your time to look around at the options available before deciding on one.
