While there may be a wide variety of incidental charges from banking, there are three banking costs and fees that consumers should always avoid.
Checking Account Fees
Many banking institutions charge a monthly fee for checking accounts. These fees can vary between $12-$20 monthly, which can add up to hundreds of dollars during the course of a year with multiple accounts.
Some banks allow for a waiver of monthly fees if specific criteria are met, such as having a significant amount of money in a savings account or maintaining a high monthly checking account balance.
When shopping around to open an account, the best checking accounts are ones that do not charge a monthly maintenance fee and have few depository restrictions such as those that require maintaining a high balance. A quick internet search can help you get a sense of options that are available around you.
For example, say you live in La Vista, Nebraska; a simple google search for ‘free personal checking account in La Vista Nebraska’ will yield a variety of banks and credit unions you can choose from.
Some banking companies design their accounts, so their monthly fees are waived when their customers have a direct deposit set up for paychecks or monthly income from sources like Social Security.
Account Transfer Fees
Many people choose to have multiple checking and savings accounts in today’s hectic and complex financial world. In some cases, people want to have two or three primary checking accounts and savings accounts to better manage their funds.
Those who choose to have multiple separate checking accounts usually do so to try to avoid confusion with funds for bills and expenses.
Having a specified account for monthly expenditures can be vital in ensuring that the money is kept aside specifically for those items without unexpected payout disruptions.
Couples who choose to have their own separate checking accounts usually do so for better money management. Couples who have two different checking accounts for personal funds and a third account for expenses often have fewer arguments over money management.
Individuals who choose to get separate personal checking accounts, in addition to a monthly bill accounts will allow themselves greater freedom to access their funds without money mix-ups. This can be an especially wise choice since money management issues can cause great strife.
However, having multiple banking accounts often requires the ability to have easy money transfer options between accounts. This can apply to transfers to or from checking or savings accounts. Depending on the banking institution, transferring funds between accounts can include a fee.
If transfers are frequent, these costs can add up. By using a banking institution that does not charge a fee for transfers, banking customers can save a significant amount of money annually.
For people that choose an account with overdraft protection that allows funds to be taken transferred into another account during an overdraft, these fees can be costly, depending on the bank. They can range from $10-$30 per transaction.
ATM, Notary and Money Order Fees
Another set of fees that can add up is ATM, notary, and money order fees. While the amount spent on this can vary widely, people can avoid many of these fees by using a bank with lower costs for these services. When it comes to a notary fee, most banking institutions will waive this fee for their customers. They may do this for money order fees as well.
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How Software Can Wave Banking Fees for You
One of the areas of banking fees that are common for adding up is ATM fees. Individual banking institutions may charge for ATM transaction print outs as well as fees for using another bank’s ATM’s or credit card cash withdrawals in addition to the fees charged by the credit card or user bank.
Understanding what a banking company charges for these fees can be essential in helping to choose the right banking company to help curb expenditures for these transactions.
Consumers that shop around for the best rates on all their banking fees can make a positive impact on their finances. Saving money with the right bank is easy and can add up to hundreds of dollars a year in savings that is better served in your wallet. For most individuals, finding a banking institution that offers a free checking account and ways to perform the most needed services is a great way to avoid unnecessary fees.
Most families are looking to find as many ways as possible to save money because of the current economic climate. While some banking expenses are unavoidable, there are several bank fees and monthly banking expenses that consumers can avoid by choosing the right banking institution.
Image Credit: banking services by envato.com
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