How to avoid the rising cost of traditional Checking

Mar

31

How to avoid the rising cost of traditional Checking

There are few things more annoying than paying a monthly fee just to have a checking account. Unfortunately in 2019 monthly fees have increased yet again, which is continuing an upward trend according to MoneyRates latest survey.

All types of checking account fees should try to be dodged, but monthly service fees are crucial to avoid. They are charged on a routine basis and can really add up fast.

MoneyRates found the average monthly fee for a traditional account is now $13.58, which costs about $163 a year. To make matters worse the number of accounts without a monthly fee is shrinking. Only 30% of checking accounts still offer free checking, down from about 32% last year.

Go digital for lowest monthly fees

A great option if you don’t want to pay monthly account fees are online accounts like those offered by Aspiration. Over 60% of the online checking accounts surveyed by MoneyRates have no monthly fees. On the flip side only 25% of traditional checking accounts come with no monthly fees.

Keep in mind most traditional banks do offer a way for you to waive monthly fees, which usually involves keeping a minimum balance or setting up a direct deposit.

Other fees to keep in mind

Monthly Checking fees aren’t the only ones that can ruin your money saving plans. Overdraft fees can be just as devastating at some financial institutions.

On average mega banks charge about $35 for an overdraft fee, which is higher than any other type of checking account provider. The lowest overdraft fees can be found with digital institutions that offer online checking accounts.

When it comes to ATM fees the online banks tend to charge less too. MoneyRates found that online banks charge an average of just $0.11 per ATM transaction. They also give their customers a large network of ATM’s to use, and some even reimburse you the fees charged by other machines.

If you find that too much of your hard earned money is being erased by checking fees, an online bank can help you avoid the rising cost of a traditional Checking account.