Reduce Your Bank Check Fees Today

 Reduce Your Bank Check Fees Today

What was once a minor nuisance for bank customers is now a significant source of revenue for financial institutions. Financial institutions around the nation can see a significant increase of millions of dollars in their bottom line due to various fees, including overdraft fees. I wrote this post to help you better understand bank check fees so you can make an informed decision about your banking.



There is a plethora of options when it comes to selecting a bank and the specific type of checking account you choose. You can save a ton of money on bank check fees in the long run if you take the time to compare and contrast the specific costs levied by the banks you are contemplating opening an account with.



Among the numerous things to think about before creating your account are the following:



1. Figure out what kind of checking account will work best for you and your finances. In most cases, you should be able to locate a free account that neither requires nor charges any kind of minimum balance maintenance. Getting overdrawn will still incur fees, regardless of the account type; however, we will discuss overdraft fees in greater depth later on.



There are a lot of great free accounts out there, but if you are looking to earn some extra cash and do not mind keeping a minimum level, an interest-bearing account is a great way to put your money to work.



Another option is a money market account, which allows you to access the funds for checking but requires a substantially bigger initial deposit and a minimum deposit level to be maintained. There will be a monthly cap on the amount of checks you can write as well. These considerations should be made prior to opening the account.



2. Be open to comparing the fee structures of online banks with those of your local banks. Online banks typically provide better deals, but overdraft fees are still a concern even if you do not have an interest-bearing account.



Determine in advance how much money is required to start the account and whether there is a minimum balance requirement.



3. The fees associated with overdrafts can add up quickly. Many of us who are already struggling to make ends meet are now in a precarious financial position. For your financial well-being, it is highly recommended that you make an effort to create a functional budget and adhere to it.



You can save money instead of providing it to the bank in the form of overdraft fees if you can. You can set up automatic transfers between your checking account and a small savings account at some banks in the event that your checking account balance drops below a certain threshold.



In most cases, this is the optimal setup, as many "overdraft protection" choices do not actually provide much security. While it is great that these services will avoid charging you in the event of an overdraft, the reality is that they often simply pay the person to whom you sent the payment.



If you want to avoid fees like $35 or more because your check bounced, it is best to link your account to a savings account that can move the money automatically for free or to pay a small "convenience" fee of $3 or $5.



While fees may be profitable for banks, they accomplish little to improve your financial situation, which is what matters most: maximizing the value of your own money. Therefore, make every effort to prevent bank check fees by according to these guidelines.

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