Banking fees can add up over time, especially if you’re not careful. There are a number of ways to avoid banking fees, however. Here are a few tips:
Choose a free checking account. Many banks now offer free checking accounts. These accounts typically don’t have monthly maintenance fees or ATM fees. However, they may have other fees, such as overdraft fees or foreign transaction fees. Be sure to read the fine print before opening a free checking account.
Keep a minimum balance. Some banks waive monthly maintenance fees if you keep a minimum balance in your checking account. The minimum balance requirement varies from bank to bank, so be sure to check with your bank to find out what it is.
Set up direct deposit. Many banks waive monthly maintenance fees if you set up direct deposit for your paycheck or Social Security benefits. Direct deposit is a convenient way to get your money directly into your checking account each month.
Use your bank’s ATMs. If you withdraw cash from an ATM that’s not owned by your bank, you may be charged a fee. To avoid this fee, use ATMs that are owned by your bank or that are part of a network of fee-free ATMs.
Avoid overdrafts. Overdraft fees can be expensive. To avoid overdrafts, set up overdraft protection or keep track of your balance carefully.
Be aware of other fees. Banks may charge other fees, such as foreign transaction fees, wire transfer fees, and stop payment fees. Be sure to read the fine print before opening a bank account or using a banking service.
Here are some additional tips for avoiding banking fees:
- Shop around for a bank that has low fees. Compare the fees charged by different banks before opening an account.
- Negotiate with your bank. If you’re a good customer, your bank may be willing to waive fees or give you a discount.
- Bundle your accounts. Some banks offer discounts on fees if you have multiple accounts with them, such as a checking account and a savings account.
- Use online banking. Online banking can save you money on fees, such as statement fees and ATM fees.
By following these tips, you can avoid banking fees and save money on your banking services.
DMCC is a 501 (c)3 nonprofit organization committed to educating consumers on financial issues and providing personal assistance to consumers who have become overextended with debt. Education is provided free of charge to consumers, as well as personal counseling to identify the best options for the repayment of their debt. To speak to a certified credit counselor, call toll-free 866-618-3328 or email contact@dmcconline.org.DMCC is located at 1330 SE 4th Ave, Suite F, Fort Lauderdale, FL 33316.