How to Avoid Checking Account Fees
Checking account holders are always vulnerable to fees that paying fines has almost been an inevitable task but fortunately, there are some ways on how to avoid these kinds of penalties.
- Evaluate your needs
First thing to keep in mind is to assess the services you need before opening a checking account. If you only require simple transactions then it is suitable to search for a free checking account. Transactions included in this account are simple checking, bill payment and ATM or debit card transactions. This account is beneficial to those who cannot afford to retain maintaining balances. - Refer to the internet for bank comparison
The web is always an easy access for information and this includes surfing options for checking accounts. There are several available banks in the web for you to explore and see differences in terms of checking accounts. It is important to know that it requires $68.32 as a minimum deposit to open a free account and as much as $473.12 for accounts with fees.
This fact makes you weigh the options and benefits before opening an account or just get a free account. The internet offers a wide array of choices for you to have the best account that will best fit your needs. - Assessing your financial capability
When you are unsure whether you can maintain a high-yield account then it is better to think twice before opening a high-yield checking account. You must evaluate first if you can maintain your account because if not you will end up paying fines and service fees any month that you were not able to maintain the balance required.
It is good though that there are some high-yield checking accounts that only requires a very low maintain balance plus it also comes with the benefit of using a debit card for 10 or 15 transactions per month, having a monthly direct deposit or automatic bill payment and allowing electronic statements. Also, the benefit of having this account is that you can get a high interest from the bank. If you are sure on your deposit and you have the capacity to maintain a high deposit account then a high-yield checking account is the rightful choice. - Keep track of your account
Bouncing checks is a common cause of massive service fees and fines but there are strategies on how to avoid bouncing checks. It is always good to keep track of your account and know how much exactly is in your account. If there is more than just one person using one account then this may be problematic but with proper and regular cooperation of account holders then it is easy to review your account balance.
For individuals who have several debits throughout the day, it is an essential to check your account balance on a daily basis. Also, for individuals who are regularly using checks, debit cards and scheduling automatic bill payments, a paper register that has all the record regarding your transactions per day is an effective method to keep track of your account balance. - Be safe from overdrafting
To some people, overdrafting is inevitable which is why there is an overdraft protection may be established with banks to avoid high NSF fees. Although this additional service from the bank requires fee, it is far cheaper than it will cost you for overdrafting. This service requires a savings account, credit card or home equity line of credit and this will be connected to your checking account so that when you overdraft, it will be automatically deducted from your other accounts. An application is needed for this service but this ensures to save you from a bigger trouble. - Make transactions with your bank’s ATM
There are individuals that have a distance problem with their bank’s ATMs but there are still ways on how to avoid penalties resulting from using ATMs that doesn’t belong to your bank. One is to have an assessment on your week’s financial needs and have an advanced withdrawal whenever you have access with your bank’s ATM. It is also helpful to have emergency money kept in your wallet in cases of emergency needs or last minute plans.
