Sneaky Bank Fees: How To Avoid Those Extra Charges

My first checking account ever was with Wells Fargo. Well, with my first job keeping me busy, I never had a chance to really pay attention to how things were going with my account until I realized that over time, I was accumulating a whole bunch of pesky bank fees that were being charged “under the radar”. Here was the list of fees I was receiving. Do they sound familiar?

How To Avoid Sneaky Bank Fees and Extra Charges On Your Account

1. Minimum Balance Fees.
Some banks will charge you if your bank balance drops below a certain amount. For instance, EverBank will charge you $8.95 a month if your monthly balance falls below $5,000. If you find it hard to maintain a certain balance in your account and you happen to mind these fees, then your best bet is to go with banks that don’t have a “minimum balance required” clause.

2. Ubiquitous ATM Fees.
These ATM fees are everywhere. You use an ATM machine and before you know it, you’re out $1.25 per transaction. But that’s pretty much an awesome deal when you think of the $2 and $3 hits you may get for using the ATMs of certain banks out there (Bank of America, anyone?). If you use these machines abroad, be prepared to pay up to $5 a transaction! Ouch. To cut down on these costs, visit a teller at your local bank office before going on the road!

3. Return Deposit Charges and Stop Payment Fees.
Have you ever written a check for someone only to be told later on that they’ve lost the check? Many banks will stop payment for you at $25 a pop. Sometimes, it’s just not worth resending that check! If something like this ever happens to you and you are faced with the situation of possibly having to cancel a check, ask your bank manager (or the check recipient) if there’s anything that can be done to remedy this situation outside of doing a stop payment. And with regards to return deposit charges, you can easily avoid these by verifying with your bank that there are available funds in place before you go ahead and cash the check you’ve got in your hand.

4. Research and Statement Balancing Fees (Really?)
I never really was aware of this, but banks offer a service to help balance your statements. They typically charge around $20 for such a service. Hmmm…. why not just do it ourselves? You can also use your own budget programs to do this. A desktop program like Quicken or a browser based tool like Mint.com may be able to help you with this task. The takeaway here is that by staying organized, you avoid getting charged those extra fees.

5. Ornery Overdraft Fees.
This is one of the most annoying fees around. When you’re cutting it close — say writing post dated checks — you run the risk of getting slapped with overdraft penalties. Be aware that banks often process larger checks before they do smaller ones, which can ultimately lead to a series of overdraft fees (and not just a single one, since this type of charge often snowballs). That’s not all: such fees often run between $25 to $35 a pop, so be careful! If you do sign up for overdraft protection service, realize that this may also be just another sneaky way for banks to get money from you. You still have to pay for that service after all. Be wary of what’s called the “courtesy overdraft” service. The best way to avoid such fees and services is to stay on top of your bank account as much as possible.

6. Cash Advance Fees.
Have you checked the interest rate on your cash advances lately? Mine has run over 20% the last time I checked my credit card statement! In some other cases, the fee is a percentage of the cash advance you make (e.g. 3% of your cash advance), and not less than $10. If you’re a good credit card customer, you may want to talk to your credit card company or bank about possibly waiving this charge. Or better yet, try NOT making cash advances if you can.