Learn how to beat banking fees.
In this economy, banks are finding more ways to institute fees on their customers. Many of these fees are for banking services that were once free. However, the banking industry insists that in this current economy and the continued demand for these services, those fees must be charged. You as the banking customer can however opt out of these various services and therefore keep you bank fees low. One bank fee that is very common to the industry is overdraft coverage. This is a fee that the bank charges to give you the customer a line of credit that allows you to make a purchase that may exceed your checking or debit account. Many banking customers look to overdraft coverage as a protection for making sure that their bills are paid. If you want to avoid paying the high bank fee for overdraft coverage, try these tips:
Avoid the Bank Fees by Opting Out
The bank fee for overdraft coverage is one of the highest many banks charge their customers. Many of the major banks will charge not only an overdraft coverage fee for the purchases, but they will add a daily fee for accounts that stay overcharged for more than one day. To avoid those fees, do not sign up with overdraft coverage with your bank.
Be Prepared with a Backup Plan to Avoid Bank Fees
One way to avoid overcharging your banking account is to have a backup plan. This can include having additional banking cards and some cash in your wallet. Having the additional cards will prevent the banking customer from having no choice than to overdraft their account. It also gives the banking customer another option in case there is a fraud related situation with their primary account.
Know Your Balances to Avoid Bank Fees
A little due diligence can help you to avoid the overdraft coverage fee. Make sure you are balancing your checkbook often and check your balances online. Most banks will notify you if you are overdrawn with a cash withdrawal at an ATM, however many debit overage withdrawals are not set to notify the customer. You could therefore be hit with an overdraft coverage fee.
Setup Alert Notices to Avoid Bank Fees
Many banks offer alert notices to their customers when their accounts have overages. They will notify their customers by email or a phone message alert that their accounts are close to overages. Make use of these alerts so that you can avoid paying any overdraft coverage fees on your accounts.
Other Options to Avoid Bank Fees
Consider linking your checking account to your savings account or a credit card. That way if your primary account has an overage, one of the other accounts can be accessed to cover the overdraft. Doing this will help you to avoid opting for the overdraft coverage and keep your banking fees low.