When it comes to saving money, you probably focus on things that you can directly cut out of your budget. Whether discretionary expenses, eating out, or other expenses, you typically can clearly cut these from your monthly spending. But what you may not realize is the impact that small bank fees can have on your budget. A dollar here, a few dollars there, and before you know it you’re spending a decent amount of money each month on unnecessary bank fees.
Save Money on Your Checking Account
- Look for a free checking account. Most banks offer some sort of basic checking account with no minimum balance and no fees. If you qualify, this is a great way to start cutting back on bank fees.
- Shop around and consider both banks and credit unions. If you can join a local credit union and it’s convenient for you, they may have banking options that can reduce some of your fees.
- Buy your checks somewhere other than the bank. Sure, it’s easy to just reorder through your bank, but you’re probably paying dearly. You can usually buy your checks from a warehouse club or even at one of the online outlets for a fraction of the cost.
- This might go without saying, but don’t overdraw your account and stay within your account limits. Over the limit and bounced check fees can really hurt and cost upwards of $40.
Save Money on ATM Fees
- Local and community banks can be great, but if you do a lot of traveling and rely on using an ATM for cash can become costly. Smaller banks usually have limited ATM networks, meaning you could be paying $2-$5 each time you withdraw money from a non-network ATM. Think about how you use ATMs and see if you might be able to save by switching to a bank with a better network.
- Plan your cash withdrawals carefully. Don’t go to the ATM every few days just to withdraw $40. If you plan ahead and know what you’ll be spending you can take less-frequent and larger withdrawals to cut back on fees.
- If you have a debit card, consider purchasing something with a debit and request cash back. This generally does not cost any additional fee, so you can usually get cash in your pocket without making a trip to the ATM or paying any sort of service charge.
