Many banks charge additional fees for maintaining your savings accounts. The fees can be on a monthly or annual basis. We have to be careful about the charges that banks apply for various reasons. We are often unaware of these charges and come to know of them only when the amount gets debited from the bank statement. It’s quite a common fact that everyone may have faced in a while. People open an account thinking that it is a no fee checking account but after a few months, when they check their bank statement, they see the charge.. Here are simple tips on how to avoid them.
What is no fee checking account?
Before going into a detailed discussion over what we should verify carefully during opening a bank account, let’s understand what no fee checking accountactually means. It is nothing but a checking account with no additional fees. Free checking accounts usually do not charge any fees for maintaining a bank account. However, banks apply other charges like credit or debit card annual fees, SMS charges for transaction confirmation, and many more.
Common bank fees and how to avoid
Look at some common bank fees that they often do not communicate clearly but we have to be well aware about it if we want to avoid them.
Maintenance fee
Banks charge a fee in checking accounts to maintain your fund on a monthly, quarterly, or annual basis. Usually, it is between $5 to $25 per month. However, you can avoid this charge if you maintain a minimum balance to meet the requirement and receive a waiver. However, in the case of checking accounts that have no fee, you can enjoy your account for free. Platforms like SoFi have no minimum balance or hidden monthly fees.
Transaction fee
The additional fees are applicable on no fee checking account as well for many P2P fund transfers, wire transfers or any related platforms. You could get charged for sending or receiving money to any other accounts but in a few cases you can easily avoid this too.
Overdraft fee
This happens if you spend more money than you have in your checking accounts. Spending more money than you have in your checking account raises unnecessary additional fees. Set alerts on balance or regularly monitor balance through online banking to avoid such extra costs.
Card and check fees
Usually the bank charges ATM fees on any checking account. Try to get an ATM card that gives a waiver on the annual fee. A check book comes free of cost when you open an account but you may need to pay charges after that. In that case, reorder well in advance to avoid extra fast delivery charges.
It’s a common experience to encounter “hidden charges” buried in the terms and conditions pages of banks. Therefore, it’s crucial to specifically inquire about all applicable charges when opening an account. Otherwise, you might be unaware of these deductions, and the bank will levy them without technically violating any rules.
Frequently Asked Questions
Are there any hidden charges on no fee checking account?
There are no specific hidden charges on checking accounts. Banks mention it in the terms and conditions page of the account opening application form. You must go into detail with that portion to avoid unnecessary deduction.
What are the common fees applicable on a bank account?
The common fees applicable on bank accounts are maintenance fee, debit or credit card fee, ATM fee, and transaction charges.
How can I come to know the hidden charges of a bank?
You have to go through the application form properly before opening an account and visit the website for details of the service offering.
