Are you tired of losing a good portion of your income to bank fees? If so, read our latest blog post discussing the seven common banking fees silently draining your bank account. But worry not. This isn’t the story of financial woes. Rather, it’s a guide created to help you and other African Americans avoid these fees and keep your money where it belongs.
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Excess Transaction Fees
You get charged an excess transaction fee when you withdraw above the federal limit from your savings account. The federal limit is six free withdrawals and transfers a month.
Excessive transaction fees can cost between $3 and $25 for a transaction. However, you can easily avoid these fees if you use your checking account for daily routine withdrawals and paying bills.
Here are books on Amazon on how to bank like a bank that can teach you more about preventing excess transaction charges.
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Out-of-Network ATM Fee
ATM fees from the provider and your bank can add up when you frequently make withdrawals. Traditional banks charge customers around $2.50 for making transactions with non-network ATMs.
You can avoid this fee by using only ATMs within your bank’s network. Banks usually display this information on their official websites. Additionally, many of the banks’ mobile applications help customers find the nearest free ATMS to use.
However, if you need money urgently and can’t find an in-network ATM, withdraw a huge amount so you don’t have to withdraw again. With this strategy, you only get charged a one-time non-network ATM fee.
Monthly Service/Maintenance Fees
Many banks, credit unions, and other financial institutions charge service or maintenance fees to keep your account open. They usually automatically deduct this fee from your account at the end of the month.
Bank monthly maintenance fees can range from $4 to $25. The good news is that you can easily avoid these fees by opening a savings and checking account at the same bank. Maintaining a minimum balance in your account can also help you avoid paying monthly Service or maintenance fees.
Wire Transfer Fees
Wire transfer is a fast way to send money without using physical cash. However, the bank charges you for this convenience.
For this service, banks usually charge from $16 to $35 for local and international transfers. You can avoid these fees by using wire transfers sparingly. It’s wise only to use wire transfers for official transactions, which require a huge amount of money.
Generally, the most cost-effective way to transfer money is through your bank’s online mobile apps. Check out these guides on money and banking at Amazon to learn how the banking system works.
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Nonsufficient Funds Fee
The best way to avoid insufficient funds fees is to always check your account balance to ensure that you have enough funds to cover any transaction you make. You can set up automatic alerts to get notified when your checking account balance reaches or falls below a certain amount.
Banks charge customers for overdrawing their bank accounts. Overdraft fees vary from bank to bank. However, it averages around $30 for a transaction.
To help get rid of the fees, enrol for direct deposits so that money enters regularly and automatically into your bank account. Doing so will help you maintain the minimum balance needed for your account and prevent overdrafts.
Early Bank Account Closing Fees
Closing your bank account too early attracts some fees. Banks usually have a 90 to 180-day timeline for you to operate your account before requesting for closing without a fee. Most banks charge up to $50 for an early account closing fee. So, be sure to check for your bank’s timeline before going ahead to request account cancellation.
Like with insurance and other financial products, you should research different banks before deciding on one to put your funds in. Although traditional banks like Chase Bank, Bank of America, and Wells have physical banking venues where you can visit, the accounts are usually tagged with high fees.
You can easily avoid these high fees by finding FDIC-insured online banks. Then, look for high-yield savings accounts that offer low fees and higher interest rates to save your money.
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