How much are you paying every month in financial fees?
Fees are a waste. Maintain the money you have by not giving your bank or credit card provider any more money than needed.
Here’s are ways to avoid fees, compiled using tips from U.S. Public Interest Research Group, the Federal Rese
rve Board and the National Foundation on Credit Counseling.
Use a credit union or local bank
This was the research group’s top recommendation in a study on fees at big banks published in April. Credit unions tend to have fewer fees and charge lower amounts on the fees they have than large banks. Many credit unions offer free checking with no minimum balance. Interest rates on loans and credit cards also tend to be lower, the group found.
A few drawbacks of credit unions: They don’t have as many branches as big banks and are less likely to have the latest in banking technology such as text banking.
For more on credit unions, go to the National Credit Union Association’s website: www.ncua.gov.
Watch ATM and debit fees
Some banks charge monthly fees on a debit card if there’s not enough activity on the account. Check the account policies at your bank. Fees for using another bank’s ATM are the most common charges. You may be charged fees both by the other bank and by your own.
Pay on time
The surest way to incur an extra fee is to pay late. You’ll likely not only pay a late fee but you’ll also pay a penalty interest rate. An additional insult to a late payment is what it will do to your credit report.
Be vigilant
Banks send notifications when they’re going to change policies on your account. Keep an eye on your mail and read anything your bank sends regarding your accounts. Check your statements regularly and contact your bank if there’s a fee you don’t understand.
Get bank alerts
If your bank will send electronic messages — text messages or emails — sign up for balance alerts. This will help you avoid overdrafts. Add an alert for your the payment due date on credit card accounts.
Bank electronically
Have your paycheck directly deposited into your account. Most banks lower fees on your account if you deposit your checks electronically. Also, if you haven’t already, sign up to have your monthly statements emailed to you. Many banks charge an extra fee to send statements in the mail.
Shop around
If you’ve tried all the tricks and think you’re still paying too many fees, consider shopping for another bank or credit union. Several websites allow you to compare banks and their fees online: findabetterbank.com or mybanktracker.com.
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