One thing that irks many people is being charged service fees by their bank. What are some of the ways to reduce your service charges at the bank? Can you avoid them altogether?
Keep the Minimum Balance in Your Account
At many banks, they are no service charges if you keep the minimum balance in your account. This minimum balance is often as little as $1,000 which will save you $5 to $20 a month or more in service charges depending on how many transactions you make in a month.
Subscribe to the Monthly Service Package
If you can't keep the minimum balance in your account, then subscribing to the monthly service package may be the right way for you to save money on your banking service charges. Rather than pay $0.50 for each transaction, you could save money by paying $8.00 per month as a flat rate for your service charges. A simple calculation can help you determine if this is the right approach you. How much were your service charges on average over the past 6 months using your current transaction-based approach? If this amount is more than the monthly service package fee then go for the package.
Minimize Your Transactions
Another way to reduce your service charges is to cut down on the number of transactions. Make one bank machine withdrawal a week, instead of one a day and you will save about 24 transactions a month!
Only Use Your Own Banks ATM Machines
Many banks will charge you an extra $2.00 fee if you make a withdrawal from their machines if you are not one of their clients. You can save this fee by only using your own banks ATM machines.
Opt for the Electronic Statement Rather Than the Paper Statement
Many banks will charge an extra service fee for you to receive a paper statement rather than an electronic statement. Save money and the environment by opting out of the paper statement.
