Losing your money to fees always stings a bit. You might also find that these fees rack up quite a bit making a dent in your bank account. Did you know that you don’t always have to pay these fees? You just need to be a little clever about it! Most people end up paying avoidable banking fees because they can’t be bothered to find out how to not pay it, but if you’re money smart, you’re in the right place. Here is how to never lose your money again.
1. Direct Deposit
If your workplace offers to pay you via a direct deposit, jump at the chance. This means that you do not have to queue at the bank waiting to deposit your cheque. Many banks will also waive any monthly fees if you set up a direct deposit.
2. Use the ATMs
If you have an account at a bank that owns an ATM, you will be better off using one of these when you need to withdraw cash. You will often be charged an extra fee using an ATM not owned by your bank. This is on top of the fee you may have to pay for withdrawing the cash.
If you are someone who withdraws cash often, these fees can really add up. Some banks reimburse ATM fees which will prevent you from losing money unnecessarily.
Your banking app should be able to help you locate an ATM that is fee-free and in your bank’s network. If you don’t have the time to locate another ATM, take out a large amount so the fee is only a one-time thing.
3. Minimum Balance
Try and maintain the required minimum balance. Many banks charge a monthly fee to maintain your checking accounts, however, these can be avoided if you maintain a minimum balance in the account. Do your research, and move some money around to be able to maintain this balance. Even if the fee is small, it can very easily add up.
4. Go Paperless
Opt for paperless bank statements as these are better for the environment and your bank account. Paper statements can also be a bit of a hassle to organize and keep, whereas paperless ones are much more convenient. You often access them on your bank’s website or app, and it gives you a quick, and easy way to check your spending at a moment’s notice. If you do need a hard copy, you can easily download and print them.
5. Set Up An Alert
It can be easy to lose sight of your account as not everyone has the habit of checking it regularly or knows when money is going in or out. This is how fees can sneak up on you, so combat this set up alerts and notifications via your banking app to be alerted in whichever way you prefer. You can sometimes customize these notifications like you might want to know when there is a certain amount left in your account.
The better of an eye you have on your bank account, the easier it will be for you to avoid unnecessary fees. You may easily encounter overdraft fees, however, having an alert set up when you get close to this can easily prevent it from happening.
Some banks also provide overdraft coverage. This means that instead of your card declining when trying to buy something once you have reached your overdraft, the bank covers you by taking money from a linked account. This could be your savings or a second checking account.
6. Avoid Wire Transfer
Wire transfers appear to be a quick way to transfer money, however, they can cost a pretty penny. It is best to avoid doing this or doing it occasionally. There are other ways to transfer money that don’t cost a fee such as using your bank’s mobile app or online.
Use these 6 tips to help you avoid fees as much as you can. Of course, some are unavoidable, however, oftentimes it is only due to negligence or not paying enough attention to your money that you are hit with these fees. You might find that at first you are stuck in a loop of hitting overdraft and being hit with fees repetitively. This is why you should also attempt to save as well as avoid fees, and spend your money wisely.
Invest some time in getting clued up about money and you will soon find that budgeting and saving is a lot easier than you might think. Use all those saved fees towards a more stable financial future.