What are the Bank Fee Sources Paid by a User Annually?
You may enjoy the benefits of your bank interest and other services offered by the bank. But paying a fee for your savings or current account can feel like a burden. It makes you feel like you are paying money to access your own funds.
Bank offers many services such as ATM, interest on your savings etc. In case of emergency, if you have to take out money from the ATM, there will still be a fee charged by the bank on your transaction.
Or maybe you forgot to update your balance in your account, and you are being charged a minimum balance fee on your insufficient funds.
The bank account fees
You are not alone if you are frustrated by the never-ending bank fees deduction from your bank account. According to a federal report, an average bank account holder pays around £250 per year as a fee. The fees go in part payments. Hence, the payer does not realize the amount.
It is not possible to avoid particular bank fees, but you can be careful and avoid paying extra fees. Banks provide many services for which it charges fees.
One of the services is the loan service. The banks provide loans and charge different fees to them. On the contrary, many lenders do not charge much on cash loans in Dublin, there are many lenders that follow the same norms on these loans.
Ways to avoid various bank fees
If you are too paying the fees without even knowing it, check the given points to gain knowledge about the same.
Surprisingly, avoiding ATM fees is the easiest one. There are many ATMs that do not charge you fees. You have to identify the ATMs that are within your network and nearby your area.
Many banks offer ATM locators from your mobile that make it easy for you to find the nearest cash machine for you.
Always ask your bank for cash back when you use your ATM for smaller amounts. This is to be redeemed only in the case of an emergency.
Many stores do not charge a cashback fee, making it free for you to access your money. Instead of using your money on ATM fees, you can use that money to buy more stuff for yourself.
Many banks have set certain guidelines for their customers to fulfil. Upon meeting these guidelines, the banks offer to waive the maintenance fee to be charged to the customers. Some of the guidelines are:
- Having the minimum balance in your account
- Creating up a recurring direct deposit
- Making minimum use of debit card
Knowing the minimum requirements for a monthly fee waiver can easily avoid some fees and save a significant amount of money. Also, by following the requirements on a regular basis, you can ask for a fee waiver.
Alternatively, you can have an account that has no monthly fees attached to it. Although finding such accounts is difficult, you can still find some. Such accounts are often offered to young adults and students.
Most banks charge overdraft fees, but since 2010, the banks cannot charge overdraft fees without the customer’s consent. While accessing your account, the banks give you an option for overdraft services.
If you refuse the option of overdraft fees, your ATM will not work, and your debit card will be declined for any transaction. Even if you do not opt for overdraft service, you will still be charged an overdraft fee.
This happens when any of your payments or some huge recurring bills make your account overdrawn. For example, if you have opted for a loan facility from the bank and the interest is deducted from your account with a low balance, it can cause a problem for you.
So you have to be aware of all your deductions from your account to avoid any unnecessary fees. Alternatively, if you are looking for loans, you can consider the option of direct lenders as they offer many benefits while offering a loan to you.
Check the overdraft fees
You can get your savings to an account linked to the same bank if you want to avoid overdraft fees. If sometimes you overdraw your account limit, some banks may allow you to set up an automated overdraft service.
Although the automatic setup does not include any fee, it may sometimes include a minimal fee.
The best way to avoid overdraft fees from your bank is to monitor your balance regularly and not let it get into the overdrawn limit.
You can set up SMS or opt for bank alerts for your account balance to stay updated. You can set up these alerts to inform you of your balance going beyond a certain limit.
This is important as it will help you make informed decisions and will stop you from making purchases that your balance cannot afford.
Additionally, you can link your savings account to your checking account. Since account transfers within the bank happen instantly, if in case your balance goes down at some point in time, you can transfer some balance to that account to avoid any overdraft.
Paper Statement Fee
Paper statement fees can usually be avoided by going digital. Many banks now follow a paperless approach, and upon your insistence, they provide you with the paper statement and other details.
The banks incur more costs in generating paper statements and receipts. Sign up for paperless banking and avoid this fee.
But to get the paper statement, you have to pay this fee. So make a wise decision, and avoid paper statements to avoid paper statement fees.
The bank fees have been there since its inception. The fees will always be there. It is your decision to avoid the fees and manage your accounts accordingly.
You should implement good banking habits to save money on your fees. Keep a regular check on your balance and be aware of all the services and the fees incurred on these services.
Avoid any fee-triggering mistakes and have a happy banking experience.