The Return of Checking Fees and How to Avoid Them
New government laws and regulations are causing financial institutions to lose income. To make up for this loss income, banks are issuing new fees on their current checking accounts and increasing current fees. Sometimes these fees can range from $3 to $9 monthly! Gone are the days of “free checking”, making this the perfect time for consumers to re-evaluate their checking account.
The first question consumers should ask is, “Does my checking account fit my current financial needs?” Students are probably more interested in perks like free checks and ATM refunds, while older adults may want an account that earns interest. If your checking isn’t matching up to your lifestyle, then the answer to the question is “no”.
Next consumers need to look at the structure of their checking account. Does it come with monthly fees or service charges? Is there a minimum balance required every month and how much is it? Can I customize it to better suit me? Does it offer perks, overdraft protection or earn interest? If it does earn interest, am I getting the best rate out there? Can I access my account via telephone, internet and mobile banking? Does it feature online bill payment? Is my financial institution rated high in stability and soundness? Is my account getting the maximum deposit insurance?
It’s important to also read the fine print. Some financial institutions promise no fees IF you meet certain requirements. However this is not always easy, as oftentimes it requires consumers to either maintain a high balance in their account, set up a monthly minimum direct deposit or link it to another product. The best way to avoid fees is to choose a financial institution that offers a checking account with little to no fees and requirements. Sound impossible to find? If so, then you’re not looking at credit unions. Most credit unions still offer checking accounts with no fees and no minimum balance requirement. Unlike some of the big banks, there’s no fine print involved either to get a fee-free checking account.
And while we’re at, let’s go ahead and debunk the myth that switching checking accounts is hard. In most cases, all that is needed is a routing transit number to move direct deposits and set up automatic payments as well as the commitment to make the switch. Many consumers are angry over the new checking fees and they have every right to be. However it’s up to them to do something about it!
