Frugal Banking

Tips for avoiding unnecessary bank fees

• Use a free account. Most banks offer free checking accounts, meaning accounts with no maintenance fee. A free account is definitely frugal banking, but be sure you know the rules associated with the account. For instance, some banks charge a fee for "dormant" accounts - accounts that don't have activity for a certain period of time. If the rules of the account won't work with your banking style or finances, choose a different account that does or check another bank.
• Use only your bank's ATMs. The only exception to this is if your bank specifically states that it will not charge you for using other banks' ATMs and it will refund any charges the other banks make. Just because your bank allows the transactions doesn't meant the other bank won't charge you. And most of the time, you'll pay on both ends with a fee from the ATM's bank and your own.
• Don't overdraw (set up overdraft protection). Monitor your account regularly so you don't accidentally spend more than you have. But just to avoid any mishaps, set up overdraft protection to allow your checking account to transfer funds from your savings account automatically if you dip below your checking account balance. There may be a charge associated with the emergency transfer, but it will be cheaper than the overdraft fees, which will come both from your bank and the vendor holding your bounced check.
• Read your bank's list of fees carefully. There may be fees you would never anticipate, such as a fee for talking to someone on the phone about a problem, rather than emailing or going into a branch. There are often fees associated with paying bills online or other convenience features, and you don't want to find out about those after you've already helped yourself to those wonderful conveniences.
• Ask for a fee to be waived. If you get hit with a fee you weren't expecting, talk to the bank's customer service. If it's the first time you've incurred the fee, and you explain that you didn't know about it, they may waive the fee in the name of good customer relations. But don't abuse this tactic. They're going to notice if you're calling every month about the same fees.

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