How to Pay Less in Bank Fees

Here are some suggestions to reduce the bank fees you pay:

• Banks want to encourage customers to do most of their banking with them, so if you have more than one account at the bank, you may qualify for no-fee or low-fee offers. If you have money in both checking and savings accounts, ask whether the balances could be combined for purposes of meeting the bank's minimum balance requirements.
  
  
• If you do not care about receiving your canceled checks back each month, you might qualify for a special deal on your checking account.

• Ask your banker about ways to reduce or eliminate charges that you pay. For example, if you write very few checks each month, consider a "basic" banking account (see Types of Accounts). Remember always to read the fine print and think through the costs of switching any accounts.
  
  
• Your bank might give you a special deal on your checking account if you arrange for "direct deposit" of your paycheck (having your employer deposit your pay directly in your bank). Having funds automatically deposited into your account also can help avoid bounced checks.
  
  
• Look into special deals if you keep a certain amount in your bank account, arrange for "direct deposit", or do a lot of your banking electronically (ATMs, banking at home by computer).
  
  
• Some banks offer "clubs" with special offers or savings for certain groups, such as senior citizens. Check these out.
  
  
• Limit or avoid "surcharges" (access fees) at the automated teller machine by using your own bank's ATMs or those owned by institutions that do not charge fees to non-customers. If you do pay a fee, consider withdrawing larger sums each time so you will cut down on the number of transactions.
  
  
• If you are a good customer with a clean record, your bank might be willing to refund an occasional service charge for a late credit card or loan payment, a bounced check or some similar offense. You might also be able to get a lower interest rate on a credit card or other loan.
  
  
• Avoid bounced checks by balancing your checkbook.
  
  
• With "overdraft" protection, the bank will automatically honor a check you write even if you do not have enough funds in the bank account.
  
  
• Instead of ordering checks through the bank, consider buying them from less expensive sources, such as mail-order companies. If you write a lot of checks each month, the cost-savings could be significant.
  
  
• Every few years, compare your bank's costs to those of a few competitive banks. You may find a great bargain elsewhere or discover a better deal at your current bank. When comparison-shopping, concentrate on the bank accounts and services you actually use. Be aware that a low interest rate offered on a credit card or another loan may just be an introductory rate that could go up substantially after a few months.