A bank should keep your money save at all times. Is that what you thought? If so, then you’re not aware of the hidden fees and how to avoid them in the long run.
Be smart enough and careful, and you’ll surely avoid most bank hidden fees and save more money in your bank account.
Here are some significant hidden bank fees and how to avoid them.
Overdraft is that cost incurred when you have surpassed the amount of money in your account, and you’re still using the debit card to pay for stuff. It means that you’re spending more money than what you have in your bank account.
Most bank charge about $35 and they give you a maximum of about four times a day. Let’s say you’re not aware that you don’t have any money in your account. And when you enrolled in that bank you signed an overdraft protection. When you purchase an item for $2, you’ll be charged another $35. For instance, if you make four payments in a day of $2 each, that’s $8, and since your account has no money you’ll pay an overdraft of $35, four times, that’s about $140. In total, you will have spent approximately $148 for a payment of $8.
How to avoid?
- Opt out from the overdraft protection.
- Always keep watching your balance before you buy or pay for anything.
- You can set up mobile alerts for your bank account.
- You can even link your bank to a credit card; the fee is much less than the overdraft one.
These are the most common bank hidden fees, and they increase over time. The banks in the 90s used to charge a fee less than one dollar, and nowadays they charge about two and a half ($2.50). And if you decide to use another bank’s ATM, you pay about $4 for just a single withdrawal. That’s known as out-of-network ATM.
How to avoid?
- Stick your own bank ATM.
- Bank online.
- Get cash back where you can pay in a store and ask for that payment in cash with no fees.
These are fees put in place to maintain your bank account and keep it open and not dormant. The average pay is about $15 per month, and that’s why you should look out for ways to avoid maintenance fees.
How to avoid?
- Being a student since their accounts are free from any maintenance fees.
- Use your debit card more often.
- Direct deposits once in a while
Lost Card Fees
When you lose your debit card, you’ll be required to replace almost at the same amount of money you acquired it. How to avoid?
- The best way is not to lose it or choosing a bank that does not charge the replacement fee.
If you find your bank is eating up more of your money, then you need to avoid or at times minimize the fees. There are many bank fees, and they include foreign transaction fees, paper statement fees, inactivity fees as well as excess activity fees. Learn how to avoid or reduce the Hidden bank fees.