Beware of Bank Fees: Tips for Keeping More of Your Money
Bank fees can subtly take away from your savings without you even noticing. From maintenance fees to ATM charges, banks have a variety of ways to dip into your funds.
By simply understanding common bank fees and why they are charged, you can ensure that you keep more of your money.
Understanding Common Bank Fees
Maintenance and Service Fees
Most banks charge a monthly fee just for having an account. Most of these fees can be avoided by maintaining a minimum balance or meeting other criteria such as direct deposits. Rest assured that while you probably can’t avoid these fees, some financial institutions offer discounts or loyalty perks that can help reduce these costs.
ATM Fees
Using an ATM outside of your bank’s network can lead to charges from both the ATM operator and your bank. These can add up quickly, especially if you frequently withdraw cash. The easiest way to avoid these is to plan ahead and to always keep in mind where the closest ATMs of your branch are located.
Overdraft Fees
Perhaps the most dreaded of all, Overdraft fees occur when your spending exceeds your account balance. These fees can be avoided by maintaining a minimum balance and using bookkeeping practices to keep track of your spending. Beware: banks often charge fees for each transaction that exceeds your balance.
Paper Statement Fees
Some banks charge a fee for mailing your monthly statement. But don’t worry, opting into electronic statements can avoid this fee. Remember most times you are in charge of requesting this change, so be sure to do it.
Foreign Transaction Fees
These fees are unavoidable while traveling because as the name suggests, these fees apply to transactions made in a foreign currency. The best way to avoid them is by withdrawing cash prior to traveling or by understanding the fees associated with foreign transactions to better manage your expenses.
Strategies to Avoid Bank Fees
Choose the Right Bank: Start by choosing a bank that offers no-fee checking accounts. Credit unions and online banks often have lower fee structures compared to traditional banks.
Monitor Your Balances: Keep a close eye on your account balances to avoid overdrafts. Setting up alerts to notify you when your balance is low is an effective strategy.
Understand the Fee Structure: Read the fine print when you open an account, and be aware of any potential fees. Knowing what triggers fees can help you avoid them.
Negotiate with Your Bank: If you’ve been hit with a fee, don’t hesitate to call your bank. Sometimes, especially if you’re a good customer and it’s a first-time occurrence, they might be willing to waive the fee.
Leverage Professional Bookkeeping Services: Professional bookkeeping services can help you manage your finances more effectively. By keeping detailed records of transactions and understanding the flow of your money, you can avoid unnecessary fees and optimize your financial health.
At Simplifi Bookkeeping, we understand that navigating bank fees and managing your finances efficiently can be challenging. Our professional bookkeeping services are designed to offer you peace of mind and financial clarity.
We're committed to helping you keep more of your money through strategic financial management that aligns with your personal and business goals.