How paying for fees now effects your savings later



How paying for fees now effects your savings later

Some of the largest and most used banks in the United States continue to use confusing terms, lengthy disclosures, and even fraud to collect fees. Recent tactics like those of Wells Fargo opening accounts without their customer’s consent adds fuel to the fire that burns for the hatred of fees.

A recent study from NerdWallet found just how much consumers underestimate the cost of fees they pay every year for common financial products.

The key takeaway from the study is more than half of Americans (53%) are not sure what they’ll pay in fees to manage their bank and investing accounts over their lifetime. In an age of instant information thanks to search engines like Google how is it that the cost of financial fees is a mystery.

Checking Accounts are used by millions of Americans everyday to manage their money.  A lack of transparency gives consumers the idea that all financial institutions charge the same for their services, which is not always the case.

Common bank fees can vary based on the size and type of financial institution you choose according to a recent Kasasa article. The largest banks have the highest average cost for fees related to overdraft services.

Knowing information like the cost of fees can help consumers choose a financial institution that fits their needs. It will also benefit those institutions that don’t nickel and dime their customers with unnecessary fees.

It’s safe to say that not all fees are legitimate, and many can be avoided. If you’ve gotten hit with a fee that wasn’t justified it’s up to you to take action. It never hurts to ask why it was applied to your account and whether it can be reversed.

Finding the right financial institution is the first step to increasing your chances of saving more money in the future.