Tue. May 28th, 2024

Top 5 Ways Banks Take Your Money

If you haven’t noticed, bank fees are going up every year. Just like any other service, you need to compare prices between your current bank and others out there.

Here are 5 ways that your bank may have its hand in your wallet today.

1. Overdraft Fees: The national average for an overdraft is now $28.35. Consider the fact that your bank may present that check several times before you realize that has bounced and this can quickly add up to a lot of money.

2. Credit cards:. Late fees and over-limit charges are already steep but could go higher. Legislation is being proposed that could limit these charges, but the feeling is that the banks will find another way around that. The point here is to pay your bill on time and not go over your limit.

3. Annual Fees: Many years ago it was quite common to pay an annual fee to use a credit card. During the credit boom, competition drove most of those away, but indications are that they may be coming back. Banks are allowed to start charging you an annual fee on a card that you already own as long as they notify you in writing, so make sure you read anything from your bank carefully.

4. ATM Fees: Fees to use an ATM continue to rise and if you use an ATM that is not owned by your bank, you may get charged by both your bank and by the other bank. If you have to use an ATM, take out enough cash to last awhile. Taking out $500 and getting charged $3 is not as painful as taking out $20 and getting charged $3.

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5. Free Checking: Your Free Checking account may not be all that free anymore. If your bank doesn’t have zero monthly fees, no minimum balance, and no limit on the number of transactions you can have, it may be time to shop for a new bank.

While none of these fees seem to be all that significant on their own, they can add up to some real money over the course of a month or a year. Make sure you are always tracking these expenses and always remember that you always have options in finding a new bank if you don’t like the way you are being treated at your current bank.

By Miracle