Banking fees can take a sizeable chunk out of tight budgets. Save more of your money by eliminating some of these fees.
The most obvious fees that you want to eliminate are those incurred for insufficient funds on account. Many banks charge $30.00 or more for every item that is returned. Most times overdraft charges are the result of mathematical errors, other times they come with careless spending. To save these fees be sure to record every transaction, including debit cards, in your check register immediately. If for some reason you are not able to do this immediately keep your receipts and make the appropriate entries at the end of each day.
A few tips…
Use a calculator to help you
Round to the nearest dollar for easier calculations and to give yourself a little cushion. For example, if you spend $15.13 at the grocery store, record the amount as $16.00 in your check register.
Take advantage of online banking options, which allow you to see transactions as they occur. This service makes it tremendously easier to monitor your checking account activity.
Foreign ATM fees are another very easy expense to eliminate.
A few tips…
• Allowance isn’t just for children. Give yourself the cash you will need for the week and refrain from making additional withdrawals. Not only will this practice help you stay on budget but it will also help you avoid foreign ATM fees incurred with unplanned withdrawals.
• Many retailers now accept debit cards. Use your debit card for purchases or to get cash back.
Monthly fees
There was a time when you could only avoid monthly fees by carrying a minimum balance. That is no longer the case. Many banks now offer free checking accounts when you choose to have your paycheck deposited directly into your account. Avoiding monthly banking fees can save you an average of $120.00 annually.
Other fees such as teller fees and fees for excessive inquiries or checks can also be avoided or minimized with planning. For example, if you know that your savings account only allows three withdrawals each month plan your withdrawals accordingly to avoid extra fees. Similarly, some economy checking accounts only allow a small number of checks to be written each month. If you notice that you consistently write more than that number it may be time to switch to a different account. Although the account may be more expensive you will save more by eliminating fees for writing more than the allotted number of checks.
Skip the fancy checks and save. You can cut back on related banking fees by ordering basic checks, which are offer significant savings over affinity and character series checks. You may be able to save even more by ordering your checks from a service outside of the bank.
Review your monthly statement carefully with an eye toward savings. For example, you may opt not to get copies of your cancelled checks, especially because you can now see them online, to save money on monthly banking fees. There are a number of ways to save. Look at each fee and then look for a way to keep more of your money on account.