How to Avoid Bank Fees

Times are tight and banks are ratcheting up all kinds of fees to shake money out of their customers. Don't let sneaky bank fees take money out of your pocket. Good oversight of accounts and financial planning goes a long way. Read on to learn how to avoid bank fees.

Instructions

1. Open an account with a decent balance. The higher the balance, the less you will have to deal with account fees and restrictions. Several hundred dollars is a good start, but still not enough to get above the threshold of most banks' fee structures.

2. Go over the details of your account when it is opened. Talk to the person who opens your account. Do ATM fees apply? Do monthly charges apply below a certain balance? Document the conversation in case you have to deal with the branch later.

3. Find the best way to monitor your account, whether it is online or by mailed statements. It is critical to look over your account every month in case the bank's computer system "messes up" and assigns you a fee you don't have to pay.

4. Keep the necessary balance in your account. If it dips below the line, even slightly, your bank's computer system may immediately hammer you with a fee.

5. Don't run dry. A zero balance or a purchase with insufficient funds can trigger an overdraft. The overdraft is the bane of a bank customer. Reports show that overdraft fees can be as high as $45 and bounced check fees can be almost as much. The irony is that if you don't have money in your account, how will you pay the overdraft fee? A $200 buffer kept in your account at all times should protect you from this mess.

6. Remember, you are the bank's customer. Request the waiving of unfair fees at the branch. Politely remind banking staff that you chose to deposit your assets with them. Many times, staff will take care of you to keep your business.

Tips & Warnings

• Beware the 'courtesy overdraft'. Banks have begun to pay overdrafts themselves and pass the debt on to the customer. Sometimes the account holder does not recognize that purchases are going through only because the bank is fronting the money. This may seem like a courtesy, but to many, it's not. A denial for the transaction better serves cash-strapped account holders. See if your bank will accommodate your preferred method of dealing with this financial emergency.