9 Banking Fees to Look Out For
Banks are here to hold our money, help us learn how to save and gain interest on certain accounts we may have. Over the years banking has become one of the largest services in the country. Sometimes this is due to credit card processing services fees and other times it is due to other outside factors. Most banks charge fees for taking money out of an ATM, or after a certain amount of transfers to another account. Some savings accounts have a minimum requirement in order to not get charged a fee. Some of these are fees you may already know about, but make sure to look at what else your bank may be charging you for. Here are nine banking fees to look out for:
1. Overdraft Fees – If you use your debit cardto purchase most of your items you need to make sure you aren’t going over what is in your bank account. If you go over what you have you will be charged what is called an Overdraft Fee. If you contact your bank you can opt to get into an Overdraft Fee protection plan. This plan will help you not go over your spending limit, if you try to purchase an item and you do not have the funds, your debit card will be declined. This is a great way to save on overdraft fees. Another great way is to get a prepaid debit card from merchant account services, and these will not work once you have used all the funds on them.
2. Annual and/or Monthly Fees – These fees are standard in most banks. However, if you contact your bank, most banks will waive the fee to help with certain situations. Some fees include the amount of debit card purchases, or how many times you can take out cash from an ATM.
3. Minimum Balance – Some checking accounts require for you to have a minimum balance to avoid monthly fees. You may also have a savings account; there is usually a minimum amount that you need to obtain in your account in order to not get charged a monthly fee. If you go into your local bank, you can sit down with a customer service representative who can help you choose the right banking options.
4. Non-sufficient Funds – If you are still writing checks you may have a check out there that hasn’t been cashed yet, and you may try to withdrawal from your ATM or purchase something with your debit card, not realizing the check has not gone through yet. If you spend over the amount you have in your account that was meant for that check your check may bounce and your bank will charge you a fee for the bounced check. This is a non-sufficient funds fee.
5. Membership Fee – Some banks charge a membership fee each year; try to look for a bank that does not charge you this fee. Some banks charge you a one-time membership fee that can help lower monthly fees. Make sure to ask your bank if this fee is implemented towards your bank account.
6. Transaction Fee – Transaction fees may include withdrawals, deposits, and transfers between accounts. Some banks offer free transactions but may be limited to a certain amount a month.
7. Foreign Transaction – If you purchase something outside of the country using your debit or credit card, you may be getting charged a fee for converting currency. The best way to avoid this fee is to check with your bank in regards to fees and try to take cash.
8. Return Deposit – You may try to deposit someone else’s check into your account, and they may not have the right amount of funds. If this is the case, your bank may charge you the fee instead of the person whose check you are trying to cash. Avoid this fee by accepting cash only or money orders.
9. Closing your Account – Some banks charge you a fee to close your account. Check with your bank and try to avoid this fee if all possible. Some banks only charge you a fee if it is closed within the first 90 days of opening your account.