How to Prevent Excessive Bank Charges

Preventing bank charges is easier than one may think. You might ask how could it be so easy? Well, there are numerous ways to prevent excessive bank charges like avoiding overdraft fees, monthly services charges, maintaining the proper balance, withdrawing from their ATM and more.

Overdraft fees

Overdraft fees can be killer especially if it because of small purchases. There have been multiple occasions where you might forget to make a transfer and make three separate purchases, but incur massive fees. The banks usually charge an overdraft fee of $35 per transaction. When you do the math that is $105 in overdraft fees for three purchases.

Monthly service charges

Monthly service charges are usually another culprit for people who do not monitor their account properly. Monthly service charges usually vary from bank to bank. You have to remember to change your bank plan when you finances change otherwise you will incur unnecessary fees. It is important to always lookout for the latest packages especially when the economy is bad. If you don’t call and ask around chances are you will incur fees which could have been avoided.

Maintaining the proper balance

Often times people misconstrue the average balance with ending balance. When you have an ending balance of the perceived required amount you may still incur charges. The average balance is different from the ending balance because the average is the 30 day balance as opposed to the money you put in your account at the end of the month. Maintaining the proper balance is easy if you have financial discipline.

Withdrawing from their ATM

Everyone has been a culprit of using ATM’s other than their banks. Now if you are a frequent ATM user you will incur withdrawal fees which add up. There are banks which add on their fees as well as the ATM you withdrew from. ATM fees are as common overdraft fees if you don’t monitor you account you will lose out on gas money for the week.

There are many ways to make sure you do not incur excessive bank charges as mentioned above. There is no need to be lazy otherwise you will put yourself in a financial bind. If you need an account to hold your money without charging monthly charges you should open a PayPal account, its free. When all else fails talk to your personal banker and see if they offer incentives for good customers. Good luck!