Bank charges can be so overwhelming. It can cost you a lot of money and result in financial stress. However, bank charges can be avoided, or at the very least minimized. Knowing how to get around bank charges can make you save a lot of cash, and paying more than you’re supposed to pay. Here are some tips in avoiding excessive bank charges.
1.) Know the details at the beginning. Whether you’re opening a new savings account or applying for a loan, you have to know the details of what you’re getting into. Banks are notoriously known for not disclosing the service details that result in higher than expected fees and charges to their clients. As a client, it is your right to know everything that the bank may charge you. Bank officials aren’t that mean either, hence as long as you ask, they’d be providing you information, and even tips on how to minimize or avoid excessive bank charges.
2.) Read and follow the terms and conditions. A majority of people don’t read, or never finish reading the terms and conditions that are being stated and given by banks. It could lead to financial woes such as excessive charges and fees. Though the fonts are too small, and the contents might be too long, take some time to read and understand it. This will do more help, and in fact no harm on your part. Bank officials and tellers might not be able to provide all the necessary information to you, but you can find it in the terms and conditions. Should you find it confusing, you can ask the bank for clarifications.
3.) For savings accounts, never go below the maintaining amount. Savings accounts, even time deposits or any other kind of deposits for that matter, require a maintaining balance for it not to be charged. Normally bank tellers inform you about the minimum amount of cash that you must have in your account for it to keep the bank from charging. As much as possible, keep that amount, and never go lower than that. Some banks charge a fixed amount regardless of how much is left in the account while some charge through the percentage of what’s left in the account. If its unavoidable, it’s better to withdraw everything in order to avoid charges and put it back once you already have an amount that at least maintains balance.
4.) Settle payments promptly. If you have loans, make it a point to pay it promptly, and as much as possible, way before its due date. It can increase your credit rating, and at the same time, keep you from experiencing financial strains. Loans normally have interest rates that grow in a compounding way if unsettled promptly. Develop a habit of paying anything before due dates. Should any complications arise, at least you still have time to settle it without incurring any possible charges and fees in the form of interest rates.