5 Tips for Reducing Your Bank Fees

by Miranda Marquit · 0 comments

When it comes to your finances, every little bit can help. This includes your banking fees. When you pay bank fees, that’s a significant money leak that goes right out of your pocket. If you want to reduce your bank fees, here are some ideas that can help you save money:

1. Shop Around for the Best Banks

One of the things you can do is shop around for the best banks. Look for banks that don’t charge fees, or that have low fees. Be choosy. After all, you are the customer! Look for a bank that is likely to have good customer service and that will let you access your money without charging you.

2. Create a Financial Plan

One of the reasons many people incur fees is due to overdrawing their accounts. A spending plan can really help you avoid this state of affairs. Take a look at your monthly income, and plan your monthly spending so that you are living within your means.

Among the biggest reasons that people end up with fees is due to spending more than they earn. The bank may let the transactions go through, but your fees will add up — it’s one of the best ways for banks to make money.

3. Avoid ATMs

Avoid ATMs that charge fees. You might be able to your bank’s ATM fee-free, but other ATMs might not be as inexpensive. You can avoid ATM fees by going into the bank, or even by getting cash back at the store when you use your debit card. For better results, you can even bank with an institution that offers to reimburse you for ATM fees, or use a credit union that belongs to a co-op or network that includes free ATMs.

4. Know Your Bank’s Terms

Keep track of your bank’s terms and conditions. Carefully read bank statements that come your way. These often include notices about changes to fees. Many banks are instituting new fees, and testing out new fees. Pay attention to mail you receive from your bank, and keep track of the kinds of actions you can take to avoid fees.

Some banks will waive fees if you maintain a certain account minimum, or if you have more products, such as loans and investment accounts, with the bank. You can also receive special fee-related treatment if you engage in a certain amount of transactions each month. Make sure you understand the requirements so that you don’t end up paying fees.

5. Opt Out of Standard Overdraft Services

If you really want to reduce your ability to be charged overdraft fees, you can opt out of the standard overdraft protection services. These services allow transactions at ATMs and stores to go through — even though you may not have the money in your account. Opting out, though, means your transaction is rejected. That helps you avoid the related fees.

However, some transactions aren’t included. Many automatic payments, such as when you mortgage payment is automatically deducted from your account, still go through, even if you opt out. But opting out can prevent overdraft fees for every day spending.

Bonus Tip:

Another way to save on your monthly Internet and TV costs is to find a current ATT U-Verse coupon code or at least a promotion to knock down your home service bill.

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