(KDKZ-TV) You probably think of banking fees as a small and inconvenience and necessary evil. But as it turns out, they’re neither. To reduce or eliminate the fees you pay to bank, follow this advice from money expert Stacy Johnson.
When you think of obnoxious fees, you probably think of this: the airport. But while fees to check a bag, pick a seat or print a ticket are outrageous, at least they’re infrequent.
Banking fees are worse, for three reasons: they’re continuous, you often don’t notice them and they’re hard to get around.
According to a recent survey by MoneyRates.com, the average bank customer now pays $13.25/month, or $159/year, for a checking account. Seems like a lot to access your own money.
Mistakes are also pricey. Overdraft fees are now averaging $32.22.
And the average fee banks charge their own customers to use an out-of-network ATM is now $4.57. So what’s a customer to do?
While not easy, the answer is simple: don’t use the banks with the highest fees. Who are they? According to MoneyRates, the biggest banks – the ones who advertise the most – also charge the most.
Way less are online banks. They’re less likely to charge checking account fees and those that do charge less.
Need in-person banking? Credit unions are also more likely to offer free or discounted checking.
And if you think $150 a year is no big deal, think of it this way: $150, compounded at 8 percent for 30 years, is 18 thousand dollars. That’s money that’s either going to go in your pocket, or your banker’s pocket.
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