Banking can sometimes feel like a maze of fees that eat into your hard-earned money. The good news is you don’t have to fall into this trap. If you’ve ever wondered how to avoid monthly maintenance fees, you’re in the right place. Scroll down to go through some key tips to help you save money by avoiding unnecessary bank charges.
Table of Contents
Understand the Fine Print: Know What Triggers Fees
When opening a bank account, it’s easy to skip reading the terms and conditions. But that small print often has information about what could trigger a monthly maintenance fee. Usually, these fees can kick in if you don’t meet certain conditions like a minimum balance or regular deposits. Spend some time reading through the guidelines. Knowing what the bank expects can help you plan your finances in a way that dodges these fees. So, the next time you open an account or get an update from your bank, don’t just toss that document aside. Read it and save money.
Keep a Minimum Balance: Easier Than You Think
One of the most common ways to avoid monthly fees is by keeping a minimum balance in your account. Banks often waive fees for customers who maintain a certain amount of money in their accounts. It might sound complex, but it’s pretty doable. Simply set a reminder to check your balance regularly. Make sure to keep a small cushion above the minimum required amount. That way, you’re not just avoiding fees, but you’re also building a small emergency fund. It’s a win-win situation.
Use Direct Deposits: A Simple Automatic Solution
Many banks drop their monthly maintenance fees if you set up a direct deposit with them. This usually involves having your paycheck or another regular payment directly sent to your account. It’s a win for the bank because it knows money is consistently coming in, and it’s a win for you because you avoid fees. Plus, it saves you a trip to the bank to deposit a check. If you have a job or receive regular payments, setting up a direct deposit can be a smart move. You save both time and money.
Stay In-Network: Avoid ATM Fees Too
While this article mainly focuses on avoiding monthly maintenance fees, do not forget ATM fees. You can rack up charges quickly by using ATMs that aren’t part of your bank’s network. Fees can add up without you even realizing it. Always try to use your bank’s ATMs for withdrawals. If your bank has a mobile app, you can usually find a map that shows in-network ATMs near you. Making this small change can help you save quite a bit over time, in addition to helping you avoid monthly charges.
Regularly Review Your Account: Be Your Watchdog
Banks sometimes change their policies, and this could mean new fees. By regularly checking your account statements, you can catch any new charges and investigate why they were applied. Maybe there’s been a change in policy, or maybe it’s an error. Either way, keeping an eye on your account can help you act quickly to avoid future fees. Take five minutes each month to go through your statement. It’s a small step that can make a big difference.
Chime states, “Some banks make it possible to waive monthly maintenance fees, and they’re required to disclose any fees upfront.”
Banking doesn’t have to be an endless cycle of charges. By understanding your account’s terms, keeping a minimum balance, setting up direct deposits, using in-network ATMs, and regularly reviewing your account, you can avoid most, if not all fees. It requires attention and planning, but the rewards are well worth it. You get to keep more of your money, which everyone can appreciate. So take control of your financial life today with these easy-to-follow tips. Your wallet will thank you.