We all are living in the world where finance carries a great weight age on human worth. Either we all want to be very smart in consuming our funds placed in the locked drawer inside your home or you have opened a bank account with sophisticated Bank nearby your home/workplace. Consumptions of each single penny matters, as collectively it can be a sum that may have other impact, if was not been incurred.
Yes, we are going to talk about these smallest amounts often deducted by Bank from our deposits as Bank fees.
Bob Sullivan, financial writer, is author of Gotcha Capitalism and a great consumer advocate. We are going to share few of his thoughts regarding contemptible Fees deducted by Banks from our account each year. Not only banks profiting from use of your money every day, have they made loans against your deposits.
There are many names of these fees like, Account deposit fee, ATM Withdrawal Fee, Bank overdraft fee etc.
Maintenance Fees/ Account Deposit Fees. Money does not need maintenance like a car or furnace without a doubt. In fact, a bank is charging you for not keeping enough money on deposit.
“These fees are tricky because the rules can change. The minimum balance can be raised from $1,500 to $2,000, for example, with little notice. Because of this I feel hesitant to give advice to account holders: always leave a buffer of at least $500 in your account, and preferably, $1,000.As bank rates on savings so low, the cash won’t give you good return anyway, so just put $2,500 in that $1,500 minimum balance account and pretend it’s not there.”
Overdraft Fees . When you take out more money than you have on deposit, this could trigger an array of fees. Bank calls “overdraft protection,” but still fees is charged for this protection, so is it a cost or a cover, we cannot debate. The Consumer Financial Protection Bureau found that a consumer who overdraws an account pays an average of $225 in fees annually. That will negatively compensate the nominal interest you might have earned on your deposits. So apparently, bank is adding something on your deposits, but in reality, It has developed a mechanism to rip it off. If you getting overdraft service, quickly repay the borrowed amount of overdraft. Along with the Bank overdraft fee if you make delay to repay the borrowed amount, additional interest charges will be levied.
And this happens with most of us that we do not keep a watch on changing amounts of our account balances at each withdrawal, but at the year end if we carefully analyze we must have been deducted for the bank service you never utilized. Few cases were levied a fee even though plenty of money was present in their account. Bank has to credit it back when complaint made.
The reason of this fee is result of rising competition among banks and credit unions
ATM Fees. The Justification of ATM charges is that you are being notched to withdraw your own cash. It seems funny. If you stay within your bank’s “network,” of course, this is not a problem.
ATM fees suddenly rise every year, and can now hit $6 or more when both the foreign bank and your bank grab their money as you withdraw. The average fee is a little more than $4. Do that twice a month and you will fork over almost $100 every year to the banking industry.
The moral of the story, you do not have to pay any of these obnoxious fees if you are a careful financial consumer. Shop around free of charge accounts.