Ways to Dodge Checking Account Fees

Dealing with banking fees may be one of the most frustrating things a consumer deals with.  We all face fees and charges from bank credit cards, utility bills, education loans, mortgages.  The list of fees we pay seems endless.  In order to pay our bills and keep our finances in order, we need a checking account.  The checking account allows you to write checks, pay bills online, or tap the ATM for some cash.  Unfortunately, many banks have eliminated their free checking accounts.  Now, you will face many fees you didn’t see before, including monthly fees and minimum balance fees.

In the wake of the government’s CARD Act (Credit Card Accountability, Responsibility and Disclosure), consumers were newly protected against certain fees and rate hikes.  The repercussions of these regulations emerged as new fees charged by the banks.  The result is that financially struggling customers and irresponsible customers gain a small reprieve, while dependable customers suffer new charges.  Unfortunately, there is little to do in complaint about these fees because banks have the right to change their rules.  They can raise their fees, begin new charges, or change policies as long as they make their customers aware of the changes.

You may be asking yourself how to avoid these annoying and often heavy fees.  There are many ways to do so, in fact.  Of course, one way to avoid fees is to shop around for a new bank.  Smaller community banks may offer lower fees or waive fees altogether.  In order to compete with larger banks they operate by presenting competitive rates and promotions on their accounts.  Another option for you may be a credit union, if you are eligible.  Their goals are to build community services and their boards are smaller and community driven and so they often have great deals on accounts.  However, eligibility may be difficult at some credit unions.

Many of the new terms instituted by banks have loopholes that allow a savvy customer to take advantage and save some money on their checking account.  The best way to do this is to examine the terms and conditions of your account in detail.  There are ways in which fees can be reduced or waived.  For example, an easy fee to avoid is the minimum balance fee.  By simply keeping your account full, you can save some money.  Your employer may allow you to deposit your paycheck directly into your accounts, which some banks look kindly on.  ATM fees are the biggest culprit for many bankers’ woes.  Be aware if your bank charges for ATM transactions, or ATM transactions at other institutions.

Generally, the best way to avoid fees is investigating the terms and conditions of your bank.  Keep up with any changes and defect to another bank if need be.