Simple steps to minimize bank account and prepaid card fees

Prepaid cards generally charge high fees than the regular checking accounts that are offered by the five major banks in the United States. This is according to the Consumers Union, which is a non-profit but it has offered some tips on how one can minimize these fees by following a few simple steps.

There are some banks that have started charging new fees. However, Consumers Union has revealed that consumers will not only save money but will also enjoy better protections with a checking account when compared to the prepaid cards. But they will need to take a few simple steps to bring down the fees. There are some prepaid card issuers who do a shoddy job of disclosing the fees and this could be shocking for consumers who witness a rapid hike in the fees.

Suzanne Martindale from Consumers Union has stated that although some banks may adjust their fees and consumers may have to shell out new fees to maintain their checking accounts, it is still wise to maintain a checking account rather than a prepaid account because of the better protection it offers.

–          Firstly, if you have to bring down the checking account fees, avoid using the non-network ATMs and ensure that you take adequate steps to waive off the monthly fee. Customers should ideally avoid using the non-network ATMs even in case of prepaid cards. Ensure that you reload the cards by only using a direct deposit. This will help minimize fees.

–          Prepaid cards that are offered by Western Union, Wal-Mart, and H&R Block are all cheaper than some of the checking accounts from Chase or Citi. This is a useful tip for those that did not take steps to avoid the fees.

–          Most often the checking account customers are much better off despite paying the monthly fee, when compared to some of the prepaid card customers.

–          The Alliant Credit Union consumers can avoid the fees if they stay away from the out-of-network fees. The consumers at Golden 1 Credit Union end up paying $16.95 over a period of one year if they take adequate measures to avoid out-of-network ATM fees. This is actually slightly cheaper when compared to the H&R Block cards or Western Union.

Out of the five banks that were examined by the Consumers Union, US Bank is the only bank that charges no monthly fee at the moment, on its basic checking accounts.

Leave a Reply

*

1 YEAR
CERTIFICATE OF DEPOSIT

Account Type:

Select Amount:

Select term:

ONLINE SAVINGS ACCOUNT

  • No minimum balance
  • Competitive rates, No risk

MONEY MARKET ACCOUNT

  • High rates, Access to money
  • FDIC Insured