Banks are some of the most profitable businesses in the world, primarily because they charge fees to use your money. Banks don’t like competition, so they tend to keep their fees high and offer a poor customer experience, and that’s why you need to take matters into your own hands.
This article shows you five simple ways to lower your bank fees and save money:
Switch to a different account
If you’re not satisfied with your checking account, it’s time to switch. There are plenty of banks out there that offer free checking, but if you don’t like the sound of that or want something even better, there are some other options. Some banks don’t charge ATM fees, and other bank accounts with no overdraft fees.
Check out these best-of lists:
- Best Banks for Checking Accounts
- The Best Bank Account Offers for 2018
Stop using your debit card to withdraw cash from another bank
If you use your debit card to withdraw cash from another bank, that bank will charge you a fee for the transaction. Using your checking account at a local branch or ATM is better than using another bank’s.
Negotiate with your bank
You’re not alone! Many people are frustrated with bank fees. Most banks will waive or reduce a fee if you ask nicely. You can start by writing a letter to the bank explaining why the fee is unfair and requesting that they waive it.
A sample letter might look like this:
- Dear Bank Name,*
- I am writing to request an adjustment on my checking account balance.*
- The reason I am requesting this adjustment is because of X.*
- Y would benefit both of us at this point in time and in the future.*
Get rid of low-balance fees with an automatic savings plan
- If you have a low-balance account and are paying a monthly fee because of it, one way to avoid this is to set up an automatic savings plan.
- This small amount of money is automatically deducted from your account every month. You can choose the frequency (weekly, bi-weekly or monthly), and the amount is taken out. The best part about automatic savings plans is that they work even if you don’t feel like saving money at the time! In other words, if you’re too busy to save or need extra cash for emergencies, an automatic savings plan will help build up your funds without any effort on your part. Also, SoFi says, “There are no fees and no interest charges for using this feature.”
Change your relationship with credit cards
Credit cards can be useful, but they should be used wisely. They can be dangerous if you need to learn how to handle credit cards. Here are some ways to use them properly:
- Build credit: If you have no financial history or want to build up your score, a credit card helps with both of these things. In addition, it’s easier than ever before to get approved for a new card; there are plenty of starter cards available with no annual fee and low-interest rates that will only cost a little money in interest payments if used correctly.
- Online shopping and services: If you buy everything online these days, this is an easy way for banks to earn extra revenue from their customers—and it’s not always clear how much money people pay in fees on every purchase either!
Hopefully, these tips have helped you to start saving some money! If you enjoyed this article and found it helpful, please share it with your friends.