Assess How Much You Are Paying In Banking Fees
Since the 2008 financial crisis, banking fees have steady increased each year. This means that consumers are paying higher fees for the use of ATMs and overdraft protection to help banks recoup funds they lost during the crisis and to help banks adjust to the new federal banking laws and regulations. One way to avoid these kinds of unnecessary fees is to plan ahead. If you anticipate needing cash, take the time to go to your bank or a bank affiliated with your lender. Cut out the middleman and pay less. Why pay extra money for using your hard earned dollars. Some banks are charging you as much as $4.00 for the use of their ATM if you are not a customer – Good for the banks, but bad for you!
Another way to avoid overdraft protection fees is to keep track of your spending. Overspending can cost you around $35.00 per transaction. Also, if your checking account is overdrawn for a few days, you can get hit with another fee. Know what your starting balance is and know what you are spending. A monthly reconciliation of your checking and credit card statements are fine, but review your inputs and outputs daily through the use of a banking application. Most banking institutions have apps for the android and apple phones.
Cash and carry is not the optimal solution because this poses a theft risk, while cards carry at least some level of fraud and theft protection in the event of their loss or misuse. Shopping online would be challenging. Additionally, your cash left in the bank could be earning interest. Add to that the cash-back rewards, convenience, and other benefits that many debit cards offer would not be available.
Remember, the banks are looking at ATM use and overdraft protection as services. You only pay these fees if you use the service. For instance, overdraft fees are advanced automatically from the bank to cover a payment when your account is short. Therefore, practice good money management by keeping track of your funds and planning ahead so you won’t need to use those services.