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You can’t expect something
for nothing. After all, banks are for-profit businesses,
subject to taxes and the demands of stockholders. Still,
there are many things you can do to limit the fees you
pay. Here are some suggestions:
• Review your monthly mailings and see how much you’re
paying in fees. Then ask your banker about ways to reduce
or eliminate those charges. If you write very few checks
each month, for example, consider a cheap, no-frills
checking account, sometimes referred to as a “basic”
banking account. But always read the fine print and think
through the costs of any move, such as what you might lose
in interest by moving money from a savings account into a
checking account just to meet the minimum balance
requirement.
• Every few years, if not
more frequently, compare your bank’s costs to those of a
few competitors. You may find a great bargain elsewhere or
discover a better deal at your current bank. When
comparison- shopping, concentrate on the accounts and
services you actually use. Don’t be concerned about
analyzing every product or fee you see listed. Also be
aware that a low interest rate offered on a credit card or
another loan may just be an introductory “teaser’ rate
that could go up substantially after a few months.
• Your bank might give you a special deal on your checking
account if you arrange for direct deposit of your
paycheck. Having funds automatically deposited into your
account also can help avoid bounced checks.
• Banks want to encourage customers to do most of their
banking with them, so if you have more than one account at
the bank, you may qualify for no-fee or low-fee offers. If
you have money in both checking and savings accounts, ask
whether the balances could be combined for purposes of
meeting the bank’s minimum balance requirements.
• Look into special deals if you keep a certain amount in
your account, arrange for direct deposit, or do a lot of
your banking electronically (ATMs, banking at home by
computer).
• Some banks offer “clubs” with special offers or savings
for certain groups, such as senior citizens. Check these
out.
• Limit or avoid “surcharges” (access fees) at the
automated teller machine by using your own bank’s ATMs or
those owned by institutions that don’t charge fees to
non-customers. If you do pay a fee, consider withdrawing
larger sums each time so you’ll cut down on the number of
transactions. (For more tips on how
to reduce ATM fees.
• If you’re a good customer with a clean record, your
banker might be willing to refund an occasional service
charge for a late credit card or loan payment, a bounced
check or some similar offense. You might also be able to
get a lower interest rate on a credit card or other loan.
• Avoid bounced checks by balancing your checkbook
regularly so you can keep an eye on the bottom line. Jean
Ann Fox, director of consumer protection for the Consumer
Federation of America, says “it’s getting harder and
harder, especially for people with joint accounts, to keep
track of an account balance because there are so many
variables beyond just paper checks.” She said, for
example, that consumers should immediately deduct from
their balance for ATM withdrawals, bank fees, and debit
card purchases at stores.
• With “overdraft” protection, the bank will automatically
honor a check you write even if you don’t have enough
funds in the account. While overdraft protection avoids
bounced check fees (imposed by banks, stores, landlords,
etc.), Fox notes that the service does come with costs, so
be sure it really would save you money.
• Consider buying checks from mail-order companies,
especially if you write a lot of checks each month and the
cost-savings could be significant. Before placing your
order, ask your local Better Business Bureau or state
consumer protection office whether the company is
legitimate.
• If you don’t care whether you get your canceled checks
back each month, you might qualify for a special deal on
your account.
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