Money Saving Experiment: Banking and Credit

One area that is often overlooked when trying to cut expenses is banking fees. These small fees may not seem like a lot, but they really add up. I decided to take a look at how I could reduce my monthly bank charges, and I found out that there are lots of great options available.

You’d be surprised to see how the fees and charges can add up each month for your banking. The bank may advertise a small fee when you sign up, but it’s likely that in the fine print you will find many other charges that are applicable to you. Make sure that when you are choosing a bank account, you sit down and speak with a financial advisor about the best option for you. Some accounts charge no fees if you maintain a certain monthly balance, and if you know that you will be maintaining this balance this is a great option. Some banks have special accounts with special rates for students or seniors.  Do your research and you can save yourself a lot of money.

You’ve probably noticed that ATM’s charge a small fee every time you use them. These small fees can add up very quickly, especially since most people don’t pay attention to how many times they withdraw cash. It is always best to use your own bank’s ATM’s, and all this requires is a little planning in advance. If you think you might need cash then take some out while your at the bank anyways. Many people don’t realize that their bank account probably has a limit of how many debit transactions they may make every month, and if you go over this limit you are charges for every time you make a transaction. Some bank accounts offer unlimited transactions for a higher monthly fee, so if you know that you are going to use your debit card a lot this is a good option.

It’s a good idea to shop around for the bank the most fits your needs. There are lots of banks, and they all have different advantages and disadvantages. You can of course save money on gas by choosing a bank that has a location close to your home or work. If you want to spend as little money as possible on your banking you can choose to use a self serve bank. These banks don’t have tellers or financial advisors, but they charge no monthly fees whatsoever, and sometimes provide you with free cheques or other perks. These banks often have better interest rates as well.

Taking the time to research your banking options can save you a lot of money in the long term. A twenty five dollar a month fee may not seem huge, but over a year or a lifetime it can equal thousands or even tens of thousands of dollars. Do you really want all of your hard earned money going to your bank?