How Can You Save on Bank Fees and Charges?

OlufisayoFebruary 6, 202001,020 views

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Banks are supposed to provide all services to their account holders, but they do charge a fee. For instance, when you open a checking account, they will charge a specific amount. When they lend you money for a loan, they will deduct from the total a certain percentage as a “service fee.”

Though, the Federal Reserve and the Federal Deposit Insurance Corporation do not put a cap on the amount of bank fees for specific services. It is up to the public if they are willing to pay or transfer banks.

While the form you sign will have a disclosure somewhere on the page, and they encourage you to read it first, the text is written in fine print. However, you can file a complaint with the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau if you consider that you are being charged exorbitant fees.

Here are some ways on how you can save on bank fees:

1. Monitor your maintaining balance — Most banks have a standard minimum balance in different accounts. You have to make sure you know yours. For instance, if the maintaining balance amount for your savings account is $500, you need to see to it that the balance will not be less than that. If that happens, they will deduct a specific rate each month. The rate may be equivalent to your maintenance, which is $13.47 a month on average.

2. Make sure to patronize your own bank — When you withdraw using an ATM, find a machine owned by your own bank. Cross-banking fee is between $2 and $3, which can add up, especially if you make several withdrawals. According to estimates, 4 in 10 Americans withdraw from the ATM about 8-10 times a month. It translates to $20 or $30 in fees. Also, make sure you have enough in your balance as ATMs also charge a rejection fee for insufficient funds.

3. Make sure to fund your checking account — When you issue a check with insufficient funds in your account, you are liable for overdraft Make sure you have enough lead time when depositing money into the account. There may be times when the bank has yet to clear the deposit, but the check is already due. The national average for overdraft fee charges is around $33.00.

4. Use an app — Did you know that there are apps available that will help facilitate the bank fees? You simply have to sign up for an account and let the solution do the rest. It will identify the fees that can be renegotiated with your bank.

The process is fully automated, so you do not have to do anything. You will even be able to pay your fees using the same app. It uses a machine-learning algorithm to determine which of the charges are costing you so much. It can also look for overcharged fees so that you can demand a refund.

These are some of the doable ways you can reduce the bank fees. Do not expect your bank to waive the fees, however. They will probably do an exemption on their high-profile clients. But total fees make up a significant chunk of their revenues, and the numbers are in the billions.

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