What Are Bank Fees You Need To Know?

Are you aware of what bank fees you are paying? Many banks charge fees for actions that customers don’t realize are costing them money. Among the behaviors are foreign transaction fees and fees for receiving paper statements. Budgeting is already tough, so we do not need additional banking fees. The best way to save money is by avoiding unnecessary fees, for example, overdraft charges and minimum balance charges.

Below, you can find out what bank fees you need to know.

Most Common Bank Fees

1. Overdraft Charge:
   • An overdraft fee is charged when you make a financial commitment- a check or debit card charge- you can’t fulfill. This means you have spent more than what is in your account, therefore a fee will be charged.
2. Minimum Balance Charge:
   • If you have a checking and savings account, make sure if there is a minimum balance required
   • This could be regulated by making sure your balance meets the required threshold whether measured on average as a monthly balance, at the end of the month, or at any moment during the month.
3. Monthly Maintenance Fees:
   • One of the most common fees banks charge is a monthly account maintenance fee for your checking or savings account.
4. Account Closing Fees:
   • Banks that charge a fee to close an account typically only do so if your account hasn’t been open very long.
   • The fee varies from bank to bank but can range up to $25 an account.
5. ATM Fees:
   • Most banks let you use their ATMs free.
   • If you use one outside your bank’s network, you may pay that outside bank a fee.
   • Your bank may also charge a similar fee for processing your use of an ATM outside your bank’s network.

How To Avoid Bank Fees

There are a variety of ways to make sure you do not pay any unnecessary fees on your bank accounts.

• Read the fine print before signing up for an account
• Check account statements regularly for unexpected fees and make sure you avoid those fees in the future.
• Meet minimum balance requirements if you can’t find an account with a “no minimum balance” requirement that appeals to you.
• Use a bank that reimburses out-of-network ATM fees, and withdraw cash from the teller or in the drive-thru to avoid ATM fees.
• Don’t elect overdraft protection, but keep tabs on your balance to avoid an overdraft fee.

Conclusion

If you do find yourself with a fee, it never hurts to ask the bank to waive the banking fee. Many banks have policies where they are willing to waive your first fee in certain categories. But don’t count on getting a freebie. The goal is not to do it in the first place and, if you do it once, try not to make a habit of it. In general, ask the right questions when choosing your bank.

Hopefully after reading this you understand what fees you may incur! Be sure to do proper research and learn how to avoid fees to your account!

Additionally, If you are interested be sure to check out our list of bank bonuses and CD rates!