Category: Household Finances

Keywords: bank account credit union bank fees fees banks online banks overdraft fee

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Article Summary:

Don’t waste your money – use these five tips to avoid excessive bank fees. Click through for a few simple steps to keep more money in your wallet.

Full Article

Federal banking rules and regulations are becoming stricter with overdraft fees, meaning banks are coming up with other ways to gain back the lost income. Banks are employing maintenance fees, minimum balance fees and excessive activity fees to recoup lost money from overdrafted accounts. These fees can add up, with maintenance fees from $4+ and overdraft fees costing $35 or more. Make sure you avoid excessive bank fees with these five tips.

Educate Yourself

When you receive a letter from your bank in the mail – don’t throw it in the recycle pile, read it! You need to educate yourself by knowing how new regulations have changed when it comes to what banks can and can’t charge. For example, your credit may not have had an annual fee, but it now does. You wouldn’t know this information and may be surprised when you are charged for it if you don’t keep up with letters from your bank.

Use Online Banks

If you’re looking to save on hefty bank fees, consider switching to an online bank. Online banks aren’t trying to give you a run for your money and won’t charge you excessive fees. By switching to an online bank you can avoid paying for excessive fees on your bank accounts.

Meet with a Banker

Sifting through bank brochures and websites will cause you to waste hours of time. Pick up the phone or visit the bank to speak with a bank representative to understand how much bank fees will cost and the parameters under which they can justify those charges. Many bank representatives will look up your account and study the pattern of your banking and give you suggestions on the best account options for you. Simply looking at bank websites and brochures often won’t give you enough explanation to understand the fees. Talk with a bank representative one-on-one and you can avoid paying for unnecessary bank fees.

Learn to Negotiate

Great customers can often have bank fees waived if they negotiate, ask politely and have a strong history with the bank. Banks don’t want to lose a valuable customer worth hundreds of dollars over a $30 overdraft fee. If you have been a loyal customer to a bank for years and experienced your first overdraft, a banker will likely drop the charge for you, all you have to do is pick up the phone and negotiate.

Switch to a Credit Union

Credit unions are great alternatives to traditional banks and can help you avoid bank fees. Credit unions are service-driven rather than profit-driven and are member-owned and operated. All of the profits are returned to members through better services and better rates.