Home Finance 5 Common Banking Fees You Should Know About

5 Common Banking Fees You Should Know About

Have you ever been hit with a hefty overdraft fee because you withdrew money before your paycheck was cleared? Did you have to pay ATM charges because you withdrew cash from an out-of-network ATM?

If you see fees deducted from your checking and savings account regularly, you’re not alone. Here, we tell you the 4 common types of fees charged by banks and how you can avoid paying them.

ATM Fees

If it feels like you are paying a lot for the convenience of using an ATM that’s outside the network, you are absolutely right – banks have been increasing their ATM charges. Fortunately, ATM charges are one of the easiest to avoid. What you should do is start identifying the network ATMs in your area so you know where to go if you need cash. Many banks have ATM locators on their websites, so you can check where the nearest ATM is.

Maintenance Fees

Maintenance fees can be a real drain on your monthly income. They can go up to $15 per month, which means you’ll have to shell out $180 every year to just keep your account open. That said, there are ways you can avoid this fee. Many banks will waive off this charge if you maintain a minimum balance in your account.

Overdraft Fees

Overdrawing your account is an easy mistake to make. For instance, you may make a purchase for $100, forgetting that you only have $90 in your account. Banks will usually let the payment go through rather than decline it, but you’ll need to pay an overdraft fee. If you want to avoid paying overdraft fees, consider opting out of this service.

Paper Statement Fees

Receiving your bank statements by mail used to be the only way to view your transactions for the previous month. However, now that online banking has revolutionized the banking system, you can get your statements mailed to you. Avoid paying a paper statement fee by signing up for paperless banking.

Inactivity Fees

If your account has been inactive for six months, banks may start charging you inactivity fees. Avoid paying this fee by making small payments using your account or setting up a recurring deposit.

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