CUTTING BANK
FEES ALTERNATIVES CHOOSING BANKS FIND RIGHT ACCOUNT ADVICE BANKING INFORMATION
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Watch
out for bank fees you can avoid.
HOW TO CUT BANKING
FEES
Your banking expenditures
are increasing everyday. You need to cut banking costs.
While most people use a bank account to save money,
some of your hard earned money is usually taken by the bank in the form of monthly fee or maintenance charges.
Here is some advice and
tips on reducing the fees you are paying to the bank.
CUTTING BANKING FEES
Combine Accounts
Even if you have an account with no fees, you
often need to always be sure to keep deposited a certain amount in your bank account.
If you do this, then often you miss out on earning
interest in higher yielding accounts. The best solution to curtail this is by using a bank which offers free checking
and
combining a savings account with a checking account. If you
then keep only as much money as required for immediate payment of bills
in your checking account,
you can keep more money in your higher interest
paying savings account.
Use an Average Daily
Balance Account
You need to watch your habits related to
your banking transactions. Free checking will not help you at all
if your balance goes down below its minimum limit, and you
have to pay high fees. If you keep enough in an interest bearing account, then you are advised to keep it in a bank that uses the average daily balance method. This method is used for calculating minimum balance and interest. In this situation, you are not charged for any type of fee, in case your balance goes below the minimum limit
for only a short period of time.
Borrowing Costs
The differences in fees related to
different banks are apparent when you borrow money. You generally borrow money from a bank for purchasing car and real estate. You may find that some banks are charging too high interest rate as compared to others,
and save money by shopping around, rather than using your
current bank.
Avoid ATM Fees
Always use only those ATMs which don't charge any type of transaction fee. Suppose you withdraw $100 and the ATM charged $0.5 for the transaction, than effectively you pay 0.5 per cent as surcharge on withdrawing your own money.
Balance your Checkbook
You also have to pay some money as
a penalty if your checks bounce. Always balance your
checkbook since you may incur a fine of at least $25 for a single bounced
check. If you issue four checks at a time, than also you may loose $100.
Use Free Online Banking
Many banks charge for their online banking
and you may be paying as much as $7 to $8 per month for online banking. They also
may charge an additional amount up to $6 for the payment of each bill.
However, many banks now offer free online banking to avoid
these fees.
You should always keep in your mind that it is
much easier to save money as compared to making money. You need
to work hard to make money. If any banking system is eating into your earned money, than take the money away from that
institution. Always keep yourself well informed about how
much you are paying in fees and other transaction costs.
To
teach and learn more money skills, personal finance, and money
management, please go to the Money
Instructor home page.
Avoiding bank account
fees -
Finding Online Banking - Teachers - High School Students -
Secondary education - Adults -
Special Education - Teens -
Teenagers - Kids - Children - Help
- Practical Curriculum Theme -
Thematic Unit -
Wealth - Middle School - Young
Adults - Classroom - Reducing Fees
for
Household Banking
Alternative Check Writing Checking
Accounts Checkbooks Saving and Investing
Watch
out for bank fees you can avoid.
To
teach and learn more money skills, personal finance, and money
management, please go to the