Is your account being drained by bank fees? In a previous blog post, Are You Throwing Money Away?, I wrote about overdraft fees.
Two additional bank fees I frequently see are ATM and Account Maintenance fees.
ATM Fees
Each time you use an “out of network” ATM, you are zapped with two surcharges: the first from your own bank, and the second from the bank that owns the ATM, referred to as the “foreign bank.”
Using a foreign ATM is inevitable once in a while, such as in an emergency when your own bank is not nearby or when you are travelling. If you regularly incur ATM fees, however, you can be draining your account unnecessarily.
You can slow or stop the ATM fee drain out of your account:
- Use only ATMs in your bank’s network. Visit your bank’s website to locate them.
- If your bank is hard to get to, move to a bank that is easier for you to access.
- Use an on-line bank that refunds ATM fees. An internet search will bring up on-line bank options.
- Move to a bank or credit union that belongs to the Allpoint Network which offers a network of 55,000 surcharge-free ATMS across the country and abroad.
Account Maintenance Fees
Many banks charge consumers monthly fees just to have an account. Banks charge these fees to help cover their expenses. They can be avoided if you meet certain requirements.
The requirements vary from bank to bank and usually are things like maintaining a certain minimum daily balance, having a regular direct deposit to your account, using on-line banking and ATMs only, and giving up paper and receiving your statement electronically.
If your bank statement lists bank charges, you can take steps to avoid these fees:
- Talk to a representative at your current bank to learn how you can stop maintenance fees. Perhaps you can switch to an account with different requirements.
- Look at other banks. Credit Unions and community banks frequently have lower or no minimum balance requirements and, in general, are more customer friendly.
Switch Kits
Does the idea of switching banks make you groan? Ask your new bank whether it has a “switch kit” to help streamline the process.
Switch kits include checklists to collect the necessary information to smoothly transition to your new account. They may include form letters to change your direct deposits and redirect your automatic payments.
Whether it is ATM fees or monthly bank charges draining your account, you can take steps to avoid or mitigate these unnecessary fees.
