10 Common Banking Fees Every Parent Should Know About and How to Avoid Them
a quick rundown of typical fees that banks charge to help you save some money
Managing your family's finances is no easy feat, especially with the multitude of banking fees that can sneak up on you.
But fear not, because we're here to guide you through the world of banking fees and show you how to steer clear of them.
Let's dive into the top 10 common banking fees and some nifty tricks to avoid them, helping you keep more of your hard-earned money where it belongs – in your pocket!
Monthly Maintenance/Service Fee:
What is it? A recurring fee that banks charge for maintaining your account.
How to avoid it: Look for accounts with no monthly fees or meet the bank's requirements for fee waivers, such as maintaining a minimum balance or setting up direct deposits.
Out-of-Network ATM Fee:
What is it? A fee imposed when you use an ATM that doesn't belong to your bank's network.
How to avoid it: Opt for banks with a wide ATM network or use cash-back options at participating stores to avoid these fees. Plan your withdrawals to avoid frequent trips to out-of-network ATMs.
Excessive Transactions Fee:
What is it? A fee charged when you exceed the allowed number of transactions from your savings account.
How to avoid it: Keep an eye on your transaction limits and consider consolidating transactions when possible. A checking account may be better suited for frequent transactions.
Overdraft Fee:
What is it? A fee incurred when you spend more money than you have in your account.
How to avoid it: Set up account alerts to notify you of low balances and consider linking your checking account to a savings account for automatic overdraft protection.
Insufficient Fund Fee:
What is it? A fee charged when you attempt a transaction with insufficient funds in your account.
How to avoid it: Monitor your account balance regularly and enroll in overdraft protection. Consider using budgeting tools or apps to keep track of your spending.
Wire Transfer Fee:
What is it? A fee for transferring money between accounts, often used for international or large transfers.
How to avoid it: Explore alternative methods like peer-to-peer payment apps or online money transfer services that offer lower fees or even free transfers.
Early Account Closing Fee:
What is it? A fee for closing your account shortly after opening it.
How to avoid it: Make sure to understand the bank's account closure policy before opening an account. Keep the account open for the specified duration to avoid this fee.
Paper Statement Fee:
What is it? A fee charged for receiving paper statements instead of electronic ones.
How to avoid it: Opt for electronic statements to reduce paper clutter and avoid this unnecessary fee.
Inactivity Fee:
What is it? A fee for not using your account for a certain period.
How to avoid it: Regularly use your account for transactions or consider closing it if it's no longer needed to sidestep this fee.
Foreign Transaction Fee:
What is it? A fee applied when you make transactions in a foreign currency.
How to avoid it: Choose a credit card or bank account that offers no foreign transaction fees when traveling abroad. Consider prepaid travel cards for convenient and fee-free spending overseas.
Final Thoughts…
Navigating the world of banking fees can be tricky, but armed with this knowledge, you're well-prepared to outsmart those sneaky charges.
Remember, the key is to stay informed, plan ahead, and choose the right banking options to keep your family's finances on track. Happy banking, and may your pockets remain fuller than ever!
