The shopping season is in full swing and great “deals” can be found pretty easily. Consumers are expected to spend 5% more in retail shopping than they did last year according to Forbes.
Spending money comes easy to most Americans, but when it comes to saving it many are struggling. A recent survey by CFSI called the Financial Health Pulse found that 45% of Americans don’t have enough money saved to cover 3 months of expenses.
It’s no secret that some consumers need to improve their spending habits to save more money. There is another factor that is slowly bleeding many bank accounts. Fees!
People have a difficult time figuring out how much they are paying in financial fees. Nerdwallet recently found 34% of Americans with bank accounts don’t know how to locate the fees they are being charged.
Consumers pay for checking account fees every year that add up to billions of dollars. Two factors can be attributed to why so many people fall victim to unwanted fees.
Lack of Transparency from Banks
In recent years there has been improvements to bank disclosures given to consumers upon account opening. Unfortunately fees can be hard to access before account opening occurs, which is crucial for those looking for a new financial institution.
That’s because not all banks post their fee schedules online. Sometimes a phone call or email to the bank is required to figure out how much checking fees cost. This process can be time consuming and discourage people from switching to a new account provider.
Lack of Motivation from Consumers
It’s not all the bank’s fault if you’re paying for fees. After all there are a number of low-cost checking accounts being offered by Chime, Aspiration, and BankMobile to name a few. Fees can be avoided completely by switching to a new institution.
If you’re paying a monthly fee or having to maintain a high balance and not getting anything in return it’s time to put those shopping skills to better use.