I hate to pay fees. Little fees, big fees, they all irritate me.
In the old days of checking accounts where local companies all accepted checks, banks used to charge $15 to $25 on bounced checks. In my area of Montana they made enough in Bad Check fees to pay all of their full time tellers. A friend who was a banker told me this.
Fees are a huge revenue source for banks.
I try to avoid most bank fees. My checking account is does not have a monthly fee. My savings account does not have a yearly fee.
In the old days of checking accounts where local companies all accepted checks, banks used to charge $15 to $25 on bounced checks. In my area of Montana they made enough in Bad Check fees to pay all of their full time tellers. A friend who was a banker told me this.
Fees are a huge revenue source for banks.
I try to avoid most bank fees. My checking account is does not have a monthly fee. My savings account does not have a yearly fee.
I do have an annual fee on my lines of credit, HELOCs, but I have not been able to talk my banker out of those fees.
Debit Cards Fees will grow quickly if you don't pay attention.
Debit card fees can vary depending on the bank or financial institution you use, as well as the type of account and the transaction type. Here are some common fees associated with debit card usage:
ATM withdrawal fees: When you use an ATM that is not owned by your bank or financial institution, you may be charged a fee by both the ATM owner and your bank. This fee typically ranges from $2 to $5 per transaction.
Foreign transaction fees: If you use your debit or credit card to make purchases or withdraw money in a foreign country, you may be charged an additional fee by your bank or financial institution. This fee is typically a percentage of the transaction amount, ranging from 1% to 3%.
Replacement card fees: If you lose your debit card or it gets stolen, you may be charged a fee to replace it. This fee can range from $5 to $25 depending on your bank or financial institution.
Overdraft fees: If you spend more money than you have in your account, you may be charged an overdraft fee. This fee can be as high as $35 per transaction. Ouch.
Balance Check Fee: Some ATMs will charge you a balance lookup fee if the ATM is not in the Bank's ATM network. Yes you will be charged just to check your balance.
Choose a bank or financial institution that offers free ATM withdrawals.
Look for a checking account that offers no fees. You might have to carry a certain balance but this can save you a lot of money over the years. Many Credit Unions have no fee checking.
Keep track of your account balance and only spend what you have available in your account.
Consider using a credit card for foreign transactions instead of a debit card, as most "travel" credit cards don't charge foreign transaction fees.
Annual fee - this is a fee charged by some credit cards once a year just for having the card. Many of these cards have travel benefits or business benefits that outweigh the yearly fee.
Interest rate - this is the percentage charged on the balance of the credit card that is not paid off in full each month.
Late payment fee - this is a fee charged when a credit card payment is not made on time.
Over limit bank fee - this is a fee charged when a credit card balance exceeds the credit limit.
Balance transfer fee - this is a fee charged when transferring a balance from one credit card to another.
Cash advance fee - this is a fee charged when taking a cash advance from a credit card. This is usually expensive.
Foreign Transaction Fee - this is a fee charged when making purchases in a foreign country or from a foreign merchant. Most credit card companies have a "Travel Card" which does not charge foreign transaction fee.
Debit Cards Fees will grow quickly if you don't pay attention.
Debit card fees can vary depending on the bank or financial institution you use, as well as the type of account and the transaction type. Here are some common fees associated with debit card usage:
ATM withdrawal fees: When you use an ATM that is not owned by your bank or financial institution, you may be charged a fee by both the ATM owner and your bank. This fee typically ranges from $2 to $5 per transaction.
Foreign transaction fees: If you use your debit or credit card to make purchases or withdraw money in a foreign country, you may be charged an additional fee by your bank or financial institution. This fee is typically a percentage of the transaction amount, ranging from 1% to 3%.
Replacement card fees: If you lose your debit card or it gets stolen, you may be charged a fee to replace it. This fee can range from $5 to $25 depending on your bank or financial institution.
Overdraft fees: If you spend more money than you have in your account, you may be charged an overdraft fee. This fee can be as high as $35 per transaction. Ouch.
Balance Check Fee: Some ATMs will charge you a balance lookup fee if the ATM is not in the Bank's ATM network. Yes you will be charged just to check your balance.
Avoiding Bank Fees
Choose a bank or financial institution that offers free ATM withdrawals.
Look for a checking account that offers no fees. You might have to carry a certain balance but this can save you a lot of money over the years. Many Credit Unions have no fee checking.
Keep track of your account balance and only spend what you have available in your account.
Consider using a credit card for foreign transactions instead of a debit card, as most "travel" credit cards don't charge foreign transaction fees.
My Friend and His Debit Card
I have a friend I play pool with regularly. Nearly every time we walk into the bar to play pool at he will hit the ATM. I asked him how much the ATM charge was and he said I think it is $3. He wasn't sure. He is paying $3 to get $20 or$40. That is crazy to me.
Find your Bank Card Network ATMs
Most Debit cards will have a Network of ATMs that do not charge you to use your card. I would only use a Debit card at an "In Network ATM." Check this out if you use a debit card to find "In Network ATMs".
Debit Card Over Limit Fee
A friend I worked with forgot he made a big purchase on his debit card and there was no money left in the account. He used his card for everything. He did not check his balance and over the weekend he made eight purchases. They were all over draws. He got a $20 fee on each of his purchases. He spent $85 and had $160 in fees. The Bank deleted half the fees so he only payed $80 on $85 in purchases. Plus the regular ATM fees.
Credit Card Fees
Annual fee - this is a fee charged by some credit cards once a year just for having the card. Many of these cards have travel benefits or business benefits that outweigh the yearly fee.
Interest rate - this is the percentage charged on the balance of the credit card that is not paid off in full each month.
Late payment fee - this is a fee charged when a credit card payment is not made on time.
Over limit bank fee - this is a fee charged when a credit card balance exceeds the credit limit.
Balance transfer fee - this is a fee charged when transferring a balance from one credit card to another.
Cash advance fee - this is a fee charged when taking a cash advance from a credit card. This is usually expensive.
Foreign Transaction Fee - this is a fee charged when making purchases in a foreign country or from a foreign merchant. Most credit card companies have a "Travel Card" which does not charge foreign transaction fee.
My Credit Card Usage
I pay attention so that I don't get many Credit Card Fees. I do have one card with an annual fee, I hate to pay it but the benefits of that card make it worth it to me.
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