By Joanna Murphy
Are you tired of paying service charges at your bank? Are fees eating away at your limited income? Maybe it's time to start "shopping" for a new bank. Here are a few things that you might want to think about when comparing banks.
� Look at what is being offered from each competitor. Comparison-shop so you don't have to pay more than you have to. Does your current bank offer free checking accounts but charge for a debit card? What does the competitor offer for free?
� Can you avoid a minimum balance fee if you have direct deposit or electronic statements? Many banks do not charge if most of your transactions are electronic. Having your check direct deposited into your account is a great example of that kind of transaction. Getting your statements electronically sometimes eliminates monthly or annual fees.
� Many banks charge minimum balance fees to help cover expenses, so perhaps you should consider a "no frills" checking account. This type of account is a basic account that may limit the number of checks your write each month or perhaps limit the number of ATM/debit card transactions each month. For someone who does not use his/her account very much, this might be a great option to simplify your account and save you some money.
� Are you in an account that pays you interest but you always seem to be charged a monthly fee because you can't maintain the minimum balance? With the low interest rates being paid out on accounts these days, it might be better to choose a free account that pays no interest or even a smaller interest account that does not have fees connected with it. Similarly, it may be better to leave the minimum amount in one account to avoid a monthly fee than to transfer it into an account that is paying a minimal interest rate.
� Understand what you can lose if you do not meet all the terms and conditions of the account. Read all of the information about the account you are considering, including the fine print, and ask questions if you are unclear. Taking an extra few minutes will hopefully save you from being surprised late by fees or account limitations you could have avoided.
� Ask how the bank calculates the account balance for purposes of meeting a required minimum. Each bank is different. While some will charge if you go below the minimum at any point during the month, others will charge only if your average daily balance falls below the minimum balance.
� Pay attention to the communications you get from your bank. This will help you avoid possible unexpected costs to your accounts. It doesn't matter if you check your balance online or use paper statements. Balancing your checkbook on a regular basis will help avoid overdraft fees from mistakes of not writing things in your checkbook or transposing numbers by accident. Also, it will alert you to fees that your bank might start charging that you may have forgotten about or didn't notice in the mailings from your bank.
� If overdrafts are a common occurrence with your account, look for a bank that offers alternatives such as drafting from a savings account to avoid the large overdraft fees or maybe an overdraft line of credit, which is a loan that is automatically triggered if there is a shortfall in your checking account. If things are really tight at the moment and you are facing a short-term cash crunch, perhaps talking with your bank about a small loan to cover those expenses might be an option. Some banks also offer free financial counseling to help you assess your spending habits and determine why you have consistent overdrafts. They may be able to provide guidance that will help you avoid overdrafts by getting your financial life straightened out.
� Does the bank charge ATM fees? How often do you use the ATM? Can you do a debit transaction instead of getting cash from an ATM? There are many ways to avoid ATM fees, and it's best to know your options.
Shopping for a new bank is not hard but it is time-consuming so get yourself organized before you start. Know which banking features are the most important to you and then do a cost comparison between a couple of banks and/or credit unions. When shopping for a new bank, take into consideration its location and ease of getting there during business hours. Also consider its other features that might make your life easier. And finally, what sort of atmosphere do you want from your banking experience? Do you like the "feel" of a smaller local bank or credit union where the employees know your name and are on a more personal level? Or, do you prefer a large bank that has more locations and less interaction with the employees because you do everything electronically? Not every bank is the right bank for you so take a little time and choose wisely. Your decision could save you money in the long run.
Joanna Murphy is Certified in Bankruptcy and is a Certified Financial Counselor by the Credit Union National Association. Her company, New England Credit Consultants is the ONLY licensed and bonded credit repair agency in the State of Maine. For more information about NECC and to read other articles about Financial Fitness, please visit http://www.necreditconsultants.com.
Article Source: http://EzineArticles.com/?expert=Joanna_Murphy
http://EzineArticles.com/?How-to-Choose-a-Bank-and-Avoid-Fees&id=7258277
Are you tired of paying service charges at your bank? Are fees eating away at your limited income? Maybe it's time to start "shopping" for a new bank. Here are a few things that you might want to think about when comparing banks.
� Look at what is being offered from each competitor. Comparison-shop so you don't have to pay more than you have to. Does your current bank offer free checking accounts but charge for a debit card? What does the competitor offer for free?
� Can you avoid a minimum balance fee if you have direct deposit or electronic statements? Many banks do not charge if most of your transactions are electronic. Having your check direct deposited into your account is a great example of that kind of transaction. Getting your statements electronically sometimes eliminates monthly or annual fees.
� Many banks charge minimum balance fees to help cover expenses, so perhaps you should consider a "no frills" checking account. This type of account is a basic account that may limit the number of checks your write each month or perhaps limit the number of ATM/debit card transactions each month. For someone who does not use his/her account very much, this might be a great option to simplify your account and save you some money.
� Are you in an account that pays you interest but you always seem to be charged a monthly fee because you can't maintain the minimum balance? With the low interest rates being paid out on accounts these days, it might be better to choose a free account that pays no interest or even a smaller interest account that does not have fees connected with it. Similarly, it may be better to leave the minimum amount in one account to avoid a monthly fee than to transfer it into an account that is paying a minimal interest rate.
� Understand what you can lose if you do not meet all the terms and conditions of the account. Read all of the information about the account you are considering, including the fine print, and ask questions if you are unclear. Taking an extra few minutes will hopefully save you from being surprised late by fees or account limitations you could have avoided.
� Ask how the bank calculates the account balance for purposes of meeting a required minimum. Each bank is different. While some will charge if you go below the minimum at any point during the month, others will charge only if your average daily balance falls below the minimum balance.
� Pay attention to the communications you get from your bank. This will help you avoid possible unexpected costs to your accounts. It doesn't matter if you check your balance online or use paper statements. Balancing your checkbook on a regular basis will help avoid overdraft fees from mistakes of not writing things in your checkbook or transposing numbers by accident. Also, it will alert you to fees that your bank might start charging that you may have forgotten about or didn't notice in the mailings from your bank.
� If overdrafts are a common occurrence with your account, look for a bank that offers alternatives such as drafting from a savings account to avoid the large overdraft fees or maybe an overdraft line of credit, which is a loan that is automatically triggered if there is a shortfall in your checking account. If things are really tight at the moment and you are facing a short-term cash crunch, perhaps talking with your bank about a small loan to cover those expenses might be an option. Some banks also offer free financial counseling to help you assess your spending habits and determine why you have consistent overdrafts. They may be able to provide guidance that will help you avoid overdrafts by getting your financial life straightened out.
� Does the bank charge ATM fees? How often do you use the ATM? Can you do a debit transaction instead of getting cash from an ATM? There are many ways to avoid ATM fees, and it's best to know your options.
Shopping for a new bank is not hard but it is time-consuming so get yourself organized before you start. Know which banking features are the most important to you and then do a cost comparison between a couple of banks and/or credit unions. When shopping for a new bank, take into consideration its location and ease of getting there during business hours. Also consider its other features that might make your life easier. And finally, what sort of atmosphere do you want from your banking experience? Do you like the "feel" of a smaller local bank or credit union where the employees know your name and are on a more personal level? Or, do you prefer a large bank that has more locations and less interaction with the employees because you do everything electronically? Not every bank is the right bank for you so take a little time and choose wisely. Your decision could save you money in the long run.
Joanna Murphy is Certified in Bankruptcy and is a Certified Financial Counselor by the Credit Union National Association. Her company, New England Credit Consultants is the ONLY licensed and bonded credit repair agency in the State of Maine. For more information about NECC and to read other articles about Financial Fitness, please visit http://www.necreditconsultants.com.
Article Source: http://EzineArticles.com/?expert=Joanna_Murphy
http://EzineArticles.com/?How-to-Choose-a-Bank-and-Avoid-Fees&id=7258277
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