How to avoid bank fees that are on the rise, according to survey

Bankrate pointed out that the coronavirus pandemic affected the way of occupying bank accounts.

Banks offer different financial products for the various needs of their customers. And although apparently they do not obtain resources other than from current accounts, savings, investments and others, the reality is that the rates and interest obtained on their loans and lines of credit are what maintain their administrative apparatus. On this occasion we will delve into the various amounts they handle and that have recently been increasing.

Bankrate‘s recent survey found that various banking-related charges have reached record levels this year. According to the study, holders of interest-paying checking accounts are paying a higher monthly service fee than ever before ($15.50 on average) if their account falls below a certain level, a threshold that, in itself, average, reaches an all-time high: $7,550 dollars.

Among other results, overdraft fees have also hit a new record. Spend more than you have and you’ll be looking at an average rate of $33.47.

But it wasn’t all bad news, with many banks offering temporary fee waivers related to the Covid-19 pandemic, the average fee for out-of-network ATMs fell this year for the first time in a decade and a half to $4.64. dollars, an average decrease of 8 cents.

But the vast majority of these fees can be avoided. Here are some tips so you don’t pay them.

Keep your account balance

The vast majority of bank checking accounts require their customers to maintain an available balance each month to avoid maintenance fees. You can also redeem them if you have a specific number of eligible deposits during the 30 or 31 days before the next cash cut.

Avoid ATMs

Perhaps the number of ATMs at your bank is not as extensive as you thought and it might be annoying to search for an option nearby, but if you want to avoid paying extra money for cash withdrawn at ATMs outside the network, then the search is worth it.. Limit yourself to withdrawing at ATMs of other banks only for extraordinary cases or emergencies.

Don’t spend more than you have

To avoid overdraft fees, use your bank’s app to keep track of your account, focusing on your available account balance, rather than the total funds in your account. “The check you deposited yesterday may not be available for withdrawal today,” advises Greg McBride, chief financial analyst at Bankrate.

There are also banks that allow you to set up automated protection, either through text messages or emails that notify you when you are passing certain balance thresholds. There are other companies that allow you to link your bank accounts to offset the expense with your own money or even have an overdraft care block.

Find another checking account

Currently and thanks to the internet, there are options in the competition of online banks that avoid many of the charges that a physical company generates, because they do not have branches that must maintain your money.

According to Bankrate, 47% of interest-free accounts are free and 41% would waive monthly fees if you sign up for direct deposit using the account. So finding an option that doesn’t or doesn’t charge you much isn’t going to be as difficult as you think.