Finance

6 Common Banking Fees And Can We Avoid Them [Updated 2021]

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If you have noticed your bank deducts a few amounts as fees for the services you have activated. And not only your bank but every bank deducts a few amounts from the account for the service and there are some common banking fees on which they deduct amounts. Do you think due to the unnecessary fees you are paying a lot of money yearly for the services then dont worry you can avoid such fees? Somehow you can minizine your fees.

You can deactivate unnecessary services that you have activated on the bank to avoid a lot of fees. There are few services that are not necessary for you or you can compromise and use alternative services and deactivate other services. So if you are interested to avoid unnecessary fees from the bank then there are few common baning fees from which you can deactivate services to avoid fees.

Dont worry if you dont know which services you should deactivate to avoid unnecessary fees from banks because today in this article we will mention  6 common banking fees that every bank deduct from your account and how to avoid those fees. So, stay with us and read the full article mentioned below.

Can we Avoid Banking Fees?

Yes, we can avoid banking fees. When we open a bank account we fill the form and activate all the services that the bank offers us, but we dont notice that they will deduct a few charges for the services as fees. And bank promote their service to us to activate and we activate it, but all the services are not necessary for us.

If we just activate the necessary services and deactivate other services then we can deduct the charge we pay as fees.

So, today in this article we have mentioned 6 common banking fees and how to avoid unnecessary services.

6 Common Banking Fees

Below are the 6 common banking fees that you will see in all the banks. All the services are common and we think it’s useful for us but actually, just a single service can work as 2-3 services so you should be careful while choosing and activating the services.

You should know how does the services work and what is the work of the service, if you find it somehow similar to other services then dont activate it.

So let’s move to the 6 common fees that all banks take as fees and which service you can deactivate to detect the fees.

Checking account and Maintenance Fees

Almost all of the banks charge fees for maintenance fees and checking accounts. Once you open an account in the bank, the bank charges some fee for the account maintenance monthly or yearly. And for checking your account also bank deducts some amount as a fee for account checking. Your bank can deduct up to $5 to $20 dollar per month for the service and it depends upon your account type.

To avoid checking account and maintenance fees you can still find some banks that provide this service for free, So, if you can find those banks then use a fee checking and savings account to avoid such fees.

Minimum Balance Fee

While opening an account you open an account with some amount that is a minimum amount that you should keep in your account otherwise some banks charge you a fee if you withdrawal or do not maintain a minimum balance on your account. And the minimum balance on your account can be from $100 to $500 and if you keep a balance less than your minimum balance you will have to pay a fee.

To avoid a minimum balance fee never keep your balance low than the minimum balance and if you want you can also talk with the bank and ask them not to charge for the service because it’s uncommon for a bank to deduct some amount from your account for not maintaining you minimum balance otherwise you have to pay a lot of fees whenever you go below minimum balance on your account and that’s not fair.

Overdraft Charge

Depending on the banks and your account type you can get a bank overdraft, which means if you want to purchase something but your account doesn’t have a sufficient amount then you can take a bank overdraft to purchase something you want but you can only overdraft limited amount account to your bank status and the bank will deduct some extra amount for the service.

To avoid bank overdraft charges make sure that you dont take bank overdrafts. Always make sure your account has a sufficient amount for the product you are going to purchase. And you can keep a low balance alert to stay alert from bank overdraft.

ATM Fees

When you open an account on the bank, the bank provides some of the services for free but if you want some extra services then you can activate them later as well. Similarly, if you want to take an ATM card for your bank to make a transaction then for the ATM service you have to pay certain fees monthly or year it depends upon your bank. And there are different type of ATM that bank provides you, you can also use ATM when you dont have sufficient amount on your bank but you cant withdrawal account but you can make the purchase and you will be charged high fees for the services.

To avoid ATM fees make sure that you dont take an advance ATM card which you can use even you dont have a sufficient amount on your account. And if you can manage with a check then you can just use a check for the transaction, it free. And if you want ATM then you can just activate the normal ATM card which has a low fee.

Wire Transaction or Foreign Transaction Charge

Local banks don’t support foreign transactions but if you have a master card that allows you to make a foreign transaction then for the service you have to pay certain fees according to the transaction you made and according to the country policy.

And if you want to make a wire transaction from one bank to another bank then you bank charge less fee compared to a foreign transaction fee.

To avoid wire transactions you can send the money to the same bank account or you can check in their name or withdrawal the money by yourself and give it to them. And to avoid foreign transaction fees you can use alternative ways or someone you know, take help of them.

Lost Card Fee

If you lost any of the master cards or ATM cards provided by the bank then you have to pay the lost card fee to make your new card. Even when you get it for the first time it’s not free, you have paid some extra amount for the service and even when you lost it you have to pay some fee to renew or get new.

To avoid lost card fees make sure you have the case for ATM or ATM wallet where you can secure all of your cards and never misplace or lost it. You have to be alert if you dont want to pay an extra fee for a lost card.

How to Avoid Banking Fees?

To avoid banking fees you have to be careful and you should do banking research on with bank you should open an account and which bank is good for you on future and has low fees for the services, this is the best way to avoid banking fees.

If you have already opened a bank account and want to improve and avoid banking fees then to avoid banking fees

  • Find free Maintainance cost and checking account bank.
  • Never withdraw all of the money from your account and maintain a minimum balance on your account.
  • Dont take bank overdraft.
  • Dont request an advance ATM card, use a normal ATM card.
  • While making online transactions make sure you make transactions within the same bank account.
  • Protect your ATM and other cards, dont lost them.

In Conclusion

Lastly, if you are going to open a new account at any bank then you should be careful and you shouldn’t activate all the services that the bank has to provides and suggest you, just think and activate the services which are necessary for you. And special while activating notification(Notify) services you should be careful and activate just one on which you can be alert and you use the most, dont activate all the notify services. And if you want to know how to avoid bank fees then this article is for you.

In the above article, you can see 6 common banking fees and how you can avoid the fees of the bank. If you want to deduct the banking fees then dont forget to read the full article.

And if you have any queries or suggestions regarding this article then you can leave us a comment in the comment section below.

Besdies you can also check the Finance category for more helpful guidance on banking and finance from our official website Online Help Guide.

Thank You.

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