The 5 Most Important Things To Know About Bank Fees
How much are you actually paying the bank to use your checking account
? Because banks usually charge fees in very small amounts - $5 to $30 - It's easy to overlook them.
In reality, most Americans spend between $50 to $100 on bank fees every year. Some people actually spend hundreds of dollars every year on bank fees.
Here are the five most important things you need to know about how to avoid costly bank fees.
==> Insufficient Fund Fees
Insufficient fund fees, also known as NSF fees, are the most common fee in the banking industry.
There are a few different ways to avoid NSF charges.
First, if you open a credit card with the bank or have a savings account at the same bank, you can usually get overdraft protection. That means that if you charge $200 to a checking account with $100 in it but have a $500 savings account, they'll take the money out of the savings.
Some banks still charge a smaller fee for overdraft protection. Make sure you get clear on the cost before you open the account.
Believe it or not, one way to get rid of an NSF fee is to just ask the bank manager. Often time's you can get the entire thing waived, or at least reduced significantly.
==> Avoiding ATM Fees
ATM fees are another common expense. Most banks let consumers take money out of their own ATMs for free. However, if you take money out of an ATM belonging to another bank, you'll usually be charged a $3 to $5 fee.
The easiest way to avoid ATM fees is of course to just use a bank that has ATMs near you. Unfortunately, this may not always be geographically realistic.
One great way to avoid ATM fees is to open a fee-refund account. These accounts will refund all ATM fees charged to your account. Charles Schwab and ING Direct both offer ATM refund debit cards.
==> Getting Free Checks
Checks can be another place that banks take your money from.
The easiest way to avoid check fees in the future is to ask about it when you setup your account.
Usually a bank will give you one packet of checks for free. However, if you ask about it, you can often get an annual free checkbook as well.
==> How to Reverse a Bank Fee
If you've been charged a fee that you feel was unfair, there's a good chance you can get that reversed. Remember: Banks want to keep your business. If it comes down to a $20 fee or losing you as a customer, they'll often budge.
Start by printing out evidence that the fee was unfair. Print out statements and print copies of original contracts.
Start by showing these to the bank manager. If he or she won't reverse the fee, try calling the bank. Finally, if that doesn't work, put all your evidence in a letter and physically mail it to your bank.
Just about every fee in your account can be reversed. You just need to be politely persistent.
==> Should You Use a Credit Union?
Credit unions and community banks are usually much, much cheaper than commercial banks. You'll save a lot of money on fees over the lifetime of your relationship with a credit union.
The downside of credit unions and community banks is that they may not have all the extraneous features that "normal" banks offer.
Their online banking may be behind the curve or nonexistent. They might not be able to help you with investments or retirement savings. There might not be safety deposit boxes.
On the flipside, they're out to help you rather than make money off of you. The choice is yours.
If you do choose to use a credit union, make sure it's FDIC insured.
If you follow these five tips, you can drastically reduce the amount of money that flows from your checking account to the
bank's bank account.
by: Angel Noyal
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