How to avoid monthly fees from your bank

Sep

3

How to avoid monthly fees from your bank

These days every dollar you make counts, so it’s important to look closely at where your money is going. Paying monthly expenses like the electric bill and groceries is essential. Paying a monthly fee to simply have a bank account is not.

Last year the top five mega banks in the U.S. charged over 1 billion in monthly service fees alone according to mybanktracker.

There are certain monthly costs that are hard to avoid as an adult. Paying for a bank account does not have to be one of them. Mega sized financial institutions have slowly been increasing the cost of monthly service fees for years now.

Between monthly fees, overdraft fees, and ATM fees banking with the wrong financial institution can easily cost you hundreds a year.

As mega banks continue to nickel and dime their customers. There are a growing number of digital banks that pride themselves on doing the complete opposite.

Which banks have the lowest fees?

If you are sick of paying monthly service fees neobanks like Chime, and Aspiration are worth checking out. They take a very different approach to charging fees.

In general over 70% of online banks don’t charge a monthly fee to customers. Online accounts also offer consumers a big break when it comes to overdraft fees.

MoneyRates found that online banks charge $5 less per overdraft fee compared to traditional branch-based banks. There are even some that charge nothing at all.

Which banks are most costly?

Generally speaking the larger the bank is, the higher its services cost. Mega banks have a lot of expenses, employees, and branches to pay for.

Not only are fees higher at larger banks, but they are also harder to avoid. Only 28% of big banks, those with over 15 billion in deposits, offer accounts without monthly fees.

If you happen to overdraw your account at a big bank, be aware of whether or not there is a cap for the number of fees they charge on any given day.

If you want less stress when it comes to your bank account, look past the mega banks. Chances are you can get the same benefits without ridiculous fees somewhere else.   


Another useful read from GoBankingRates

How To Open a Checking Account – all the documents you need