How to Avoid Hidden Checking Account Fees

Take a good look at your bank statement. Is it full of excessive fees each month? Most checking account fees can be avoided. With just a few changes in your banking habits, you could be putting the money from those checking account fees back into your own pocket.

Difficulty: Moderately Easy

Instructions

1. Understand that banks tend to charge fees based on the minimum balance in your checking account or on the number of checks you write.

2. Call several banks in your area to see if any of the banks do not require a minimum balance to get free checking.

3. Open a checking account online. Some banks offer free checking or low balance requirements if you agree to use their Web site and bank exclusively online.

4. Ask your employer to directly deposit your paycheck into your bank account. Many banks waive their fees when you have a direct deposit with them.

5. If you have more than one account, find out if your bank will link your accounts together to meet balance requirements.

6. Buy checks online. Checks can be purchased online for a price much lower than most banks offer. Take the time to shop for the best deal.

7. Avoid ATM fees. Fees for using ATMs that do not belong to your banking system can cost you several dollars per transaction. Locate the ATMs near your home and work that belong to your banking system.

8. Compare your account to your monthly statements to identify any errors. The only way errors in your account are found is if you look for them. Most banks have time limits for reporting banking errors, even if it is their error.

Tips & Warnings

• If your bank charges minimum balance fees, understand how these fees are computed. Some banks require a daily minimum balance whereby a fee is assessed if your account balance falls below a minimum threshold on any day in the month. Other banks use average daily balancing, which is computed by summing up your daily balances and dividing them by the number of billing cycle days to arrive at an average balance. As long as your average balance is higher than the minimum balance, you won’t be charged a fee.
• Credit unions and small community banks tend to offer better account options and lower fees than large national banks.
• Call and ask questions before wasting your time driving to different banks.
• Set up a time every month to look over and balance your accounts.