Any business has the main goal to maximize its revenue, and the bank is not an exception. By charging monthly fees, it ensures an important source of money from its clients.
They explore their options and in the end, you pay a fee for almost everything you do (that is linked with your bank).
This way you can end up paying for packaged bank accounts or many other mis-sold bank services without even knowing!
As many different types of bank fees on your monthly statement can be very annoying to you, it’s important to know what those fees actually are and why you’re paying for them.
Also, there are ways to avoid them, so you should have all the facts before making an informed decision for yourself!
Monthly maintenance fees are charged just to hold your account with the bank. To be more precise, the bank charges you to cover maintaining costs and services.
Depending on the services you took and the bank, these fees can vary from cheap to very expensive.
For example, services that might be included in the maintenance fee are ATM charges or overdraft coverage program.
In the end, you can have trouble with just keeping the amount on your account above zero.
Just by doing simple math, you can come to a conclusion whether these extra services make sense or not and whether you benefit from them.
Whatever the case is, you always have the option to avoid paying the maintenance fee.
You can either open an account that doesn’t come with maintenance fees, or you can turn to free online banking!
Minimum balance fees
It may sound contradictory, but banks often determine a minimum amount you should have on your account in order to avoid paying the fee.
In other words, if you don’t have ‘’enough’’ money, you have to pay the fee as well.
This way they try to encourage their clients to have as much as possible on their savings or checking accounts, which gives the bank more capital to grow the business.
It’s good to know that if you keep your account balance above the specific amount, you could be exempt from fee payment!
It very likely you’ve found yourself at least once in a situation you can’t find the ATM from your bank, so you’re forced to go to some other ATM.
After you saw the fee, your decision was probably to never do that same mistake again.
In fact, there are two types of fees – the first one is from the organization/bank which ATM you used and the second one is from your bank to send a message ‘’Use our ATM only!’’
Last but not least – overdraft fees. These ones you can’t avoid. By spending the money you don’t have, the bank is basically giving you a loan. Plan your expenses and bills!
Some are monthly and some are not, but whatever the case is, it’s good to know what fees exist and how you can avoid them.
Make sure you’re always keeping up with bank procedures so you don’t end up in a position you can’t get out of!