Money Mishaps: Frequent Fees
Hi there, Money Masters!
Does it seem to you that everywhere you look there are extra costs and hidden fees? Isn’t anything simple anymore? These questions bring me to this week’s Money Mishap…frequent fees. Our money is precious to us and we want to stretch it as far as possible! It is frustrating when we are loaded down with extra fees as well.
These extraneous charges are found in many industries including finance, retail, and travel, just to name a few. I want to focus on the industry that affects us in our everyday lives: FINANCE.
More and more banks are charging customers a monthly fee for maintaining a checking account. According to a Moneyrates.com report, the average maintenance fee at a large bank is $14.93, $11.06 at medium-sized banks and $11.09 at small banks.
What to do: Do some research and compare fees of smaller banks, online banks, community banks or credit unions. Also, check to see if there are less or no charges for getting a paperless bill.
OVERDRAFT FEES & ATMS
An overdraft fee is a fee charged when a withdrawal from your bank account is more than your balance.
Your account has $214.36 in available funds. If you make a purchase or have an automatic bill that is $220.00, you do not have enough to cover that amount. So, you get hit with a fee. A typical overdraft fee is about $30 or more!
What to do: It is a good idea to keep a little extra cushion in your account to cover any overdraft fees. However, keeping a very close eye on your spending will ensure you don’t incur such costs to begin with. 😉
As far as ATM fees go, banks charge “out-of-network” fees for those machines that are not affiliated with the bank you use and can really add up!
What to do: Keep cash on hand if you know you will not be near an in-network ATM or take out cash at the grocery store when you use your debit card.
Keeping track of your money and knowing where to keep it are two things that are entirely in your control. It is possible to avoid or limit the extra fees that plague our pockets!