The Low-Down on Higher Banking Fees
Many people have seen a drastic and swift increase in their banking fees. Free checking accounts seem to have almost become extinct. Although plenty of banks have had some fees over the years, it seems that rather suddenly, and during a difficult economic time for the Average Joe to handle it, banking fees have skyrocketed.
It’s not easy to accept these fees and many people…
…have taken their money out of the bank in search of the perfect banking situation. However, as one bank adds a fee, so does another bank… and another. Even if you move your money, it’s highly likely that the bank you move to will eventually have to adopt a system of higher fees.
So why are we all of a sudden being bombarded with so many fees? Well, it probably has something to do with the rules for the bank changing as well. Two of the largest changes are that over-limit fees on credit cards are not allowed anymore and overdraft protection charges are also off the table. Setting aside the fact that it was pretty evil of financial institutions to allow you to continue shopping well beyond your means and then punish you for it, these new rules mean a large drop in revenue for them. To counteract the changes and stay afloat, fees have started popping up.
There are ways to avoid most fees though; local banks and private credit unions are able to do business on a smaller scale than the larger banks, therefore allowing them to offer lower fees or even free banking. Online banks are also a good place to save on fees. Since they don’t have to pay for multiple locations, they save a lot and are able to pass the savings onto the customer.