Avoiding bank fees

Getting a loan from a bank may be tough, but bank fees certainly aren’t hard to come by. Here’s how you can avoid giving banks even more of your money.

1) Watch for fees

Here are some fees you should be on the lookout for:

–ATM fees: According to the latest bankrate.com study, ATM fees average $1.97. That’s 11 percent higher than the prior year

–Overdraft fees: Overdraft fees kick in when you don’t have enough money in your account to cover a transaction

–Maintenance fees: Some banks charge a monthly fee regardless of your balance, while others will ding you only if you fall below a minimum balance

–Teller fees: Some banks will charge you just for going to the teller –perhaps if you have an express, or an online account.. you could even be dinged for writing too many checks

2) Avoiding fees

Don’t use another bank’s ATM. 99.2 percent of ATMs surcharge according to bankrate.com. So, to avoid these ever-growing fees, use your debit card to make a purchase, and just ask for cash back. If you really just need an ATM, make sure you avoid the ones at airports, casinos or any other place where the machine is the only way you can access money. Overdraft fees can be brutal. As high as $40 in some cases and Consumer Reports estimates that translates to over 1000 percent interest rate. Here’s how you can avoid them. First, link your checking account to your savings account. Next, keep track of your deposits/withdrawals and finally, keep a cash cushion (especially if you have companies that withdraw money from your account automatically) .

3) Join a credit union

Credit Unions generally have lower fees and higher saving rates on its products. Plus, if you’re looking for a credit card, the terms and conditions are generally easier to understand compared to large commercials banks. A Credit Union membership may be set up through your employer, a neighborhood association or a church group. You may even be able to join a credit union that serves just your local community. To find out where the credit unions are in your area, go to the National Credit Union Association Web site at ncua.gov.

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