Banking fees are the cost of a service that a bank provides. Fees are a fact of banking, but with some planning, you can save yourself extra money from overpaying on fees.
Here are five banking fees and how to avoid them.
Paper Statement Fees
Paper statement fees are charged to your account when you receive monthly account statements in the mail. You can save money by switching to digital monthly statements.
With Bank Midwest’s online account statements, you can access 18 months of previous statements online from anywhere and view them as soon as they’re ready. Convenience and savings bundled together.
If a transaction clears your account and falls to a negative balance, the bank may cover the money you didn’t have in your account for that purchase. Typically, there’s a fee charged for “over-drafting” your account.
To keep tabs on the amount of money in your account, you can set up account alerts through digital banking from your desktop or mobile phone. Once the balance in your account falls below a certain amount you determine, the system will email or send you a text message to keep you informed of your balance. You can curtail spending until your next deposit or transfer money into the account to ensure you have enough money and avoid overdraft fees.
You can also set up an overdraft sweep on your account. This means money will automatically transfer from another account, like savings, to your account when it dips below a certain amount. To set up an automatic account sweep, you’ll need to visit your local branch to make this request.
Minimum Balance Fees
There are a lot of benefits of using a checking account for your spending. But you should determine the best account for your life habits based on how you make purchases and monitor your accounts. If you primarily use your checking account and debit card, you should look for an account that doesn’t have a minimum balance fee unless you’re prepared to keep a cushion above that amount and monitor your balance.
Minimum balance fees are fees you pay if your account balance falls below a certain amount set by your bank.
One checking account offered by Bank Midwest that doesn’t require a minimum balance is a Great Rewards Checking Account. While there is no minimum balance, the account is best suited for frequent debit card users or those who can keep a higher balance. The monthly account fee reduces or disappears by using a debit card or by maintaining that minimum balance. By taking these steps, the checking account earns interest. In addition, debit cardholders are reimbursed on fees at non-network ATMs. A nice perk for those who travel extensively.
If you take out cash at a non-network ATM, meaning it’s an ATM that is not owned by or partnered with your bank, you will pay a small fee on top of your withdrawal.
You can save on transactions by using an ATM on your card’s network. Bank Midwest’s debit cards are part of the MoneyPass network. This means there would be no transaction fee if you use your debit card to withdraw cash at any MoneyPass ATM in the country.
Card Replacement Fee
If you lose your card or it gets compromised, you need to get it replaced. Banks typically attach a fee to replace it.
No one like paying fees for anything. But, as you can see, there are several ways to manage your money and avoid paying unnecessary bank fees. The savings can really add up.
Want more finance tips? Listen to Dream, Plan, Live: the Bank Midwest podcast to learn more about how you can plan ahead and save more.