1. Annual Credit Card Fees
I am surprised how many people have this and don`t realize their bank charges them to have their credit cards. Some of the fees include getting more air miles per purchase, and other beneficial things, but it`s important to check what your fee includes to ensure you`re getting your money`s worth. If you don`t need what they are offering for your annual fee, cancel the annual fee. It just takes a phone call to cancel it.
2. Keeping Credit Card Balances
Banks make a killing off of interest rates. Why pay them more than you have to. Paying off your credit card by the end of the month will ensure you don`t pay a dime in interest. If you often keep balances, or if you are paying down your credit card, call your bank and ask them for a lower rate. You may be surprised to see how easy it is to get a lower rate.
3. Going into Overdraft
There is really no need to go into overdraft if you are paying attention to what`s going on in your bank account. If you know you may be over one month, ask your bank if you can link another account to your checking account. If you have funds in your linked account, rather than going into overdraft, the money would automatically come out of your linked account free of charge.
4. Paying a Monthly Account Fee
Most banks charge a monthly fee just to have an account with them, or they ask that you keep a minimum balance. This requires a lot of monitoring to ensure that you stay within the limited number of transactions that are allowed in your monthly plan, or keeping a minimum balance in your account at all times. Review your plan to ensure you need it. You may also want to consider banking with either PC Financial or ING Direct which both offer unlimited free transactions on their checking accounts.
5. Statement Fees
Some banks charge up to $2 per month every time they send you a hard copy of your statement. Avoid this fee and check your statement online where it`s free. Besides how many times do you actually open your statement when you get it in the mail, especially if you normally check it online or at the ATM?
6. Insufficient Funds
This can cost you over $40 for an NSF charge. This can easily be avoided by monitoring your account. Most often checks are returned for NSF not only because the funds may not be in the account, but the funds may just be on hold. Often times when a deposit is made at a bank machine, a hold is placed on the funds to ensure it clears. If a check is being cashed while the funds are on hold and there is not overdraft on the account, the bank will return the check and charge you an NSF fee.
What are some unnecessary fees that you have paid or are currently paying to your bank?
Photo by Jim Corwin