Mega Banks collect billions of dollars each year in checking account fees. Avoiding financial fees can be difficult for anyone. There are a number of different ways that banks like to charge fees.
It’s important to be aware of your bank’s fees and how they work. Here are five bank fees to watch out for before you open a new checking account.
Paper Statement Fee
It was once a common practice for banks to mail out a monthly bank statement at no charge. Not anymore! Most banks now charge a small fee if you want a hard copy of your bank statement.
Don’t get me wrong I think saving paper is a good thing, but penalizing consumers because they don’t have internet and/or a printer at home is not.
Incoming Wire Fee
If you send money to someone at another bank with a wire transfer it’s safe to say there will be a fee to pay. Also know that some banks will charge you a fee for receiving a wire transfer.
That’s right. Next time someone wants to wire you money it could cost you. Not even money being deposited into your checking account is safe from this fee.
Card Replacement Fee
Losing your wallet is not a fun experience, and having it stolen is even worse. Some banks will kick you when you’re down by charging a fee between $5 and $10 dollars to order a new debit card. If this is a common fee at your bank it’s time to find a replacement bank.
This fee occurs when you deposit a check that is later returned back to the issuer. When the check you deposit comes from an account that doesn’t have enough money in it the bank will reverse the amount and then charge you a fee. This is also known as a Return Deposit fee.
One of the most costly and most hated fees by consumers is the overdraft fee. According to nerdwallet the average mega bank overdraft fee now costs about $35.
It occurs when you spend money that you don’t have, which causes your account balance to be negative. An overdraft fee makes your account balance even more negative, and can potentially cost hundreds if more transactions occur.
The good news is there are a growing number of digital banks like Axos and nbkc that charge far fewer fees.