Banks are a necessary tool to
navigate our daily financial lives. Unfortunately, there are aggravating
practices at many banks that drive us crazy or cost us money. Here are five
tips to get more out of your bank and pay less.
Tip #1: Remove cash from
the right place. Never use an
ATM machine that is not in your bank's network. In-network cash withdrawals
cost nothing at most banks, but withdrawals from someone else's machine may
come with a $3 to $5 fee.
Action: Turn
over your ATM or debit card and note the networks on the back of the card; or
ask your bank about their network coverage. Only use ATMs within the network.
Test a transaction to ensure no fee is included on your statement.
Tip #2: Notify your
credit card issuer when traveling. Most
credit card-issuing banks now automatically freeze your cards when a suspicious
transaction occurs out of state. This freeze often includes foreign website
transactions.
Action: Call
your credit card issuer when you are going to be traveling. Also notify them if
you wish to order an item from a foreign website. This can alleviate numerous
headaches. While some banks may not block out-of-state transactions, you do not
want to have a transaction rejected while purchasing something on a trip.
Tip #3: Know your bank's
overdraft rules. Non-sufficient funds
(NSF) checks are not only embarrassing, they are expensive. Banks make millions
on their overdraft fees and automatic loan features when you overdraw your
account. Understand your bank's fees and how they apply to your accounts.
Action: Look
for a bank that will allow you to link another account to your checking account
without charging a fee. For instance, as a courtesy many credit unions allow
you to link a savings account to your core checking account. This link comes
into play should you inadvertently overdraw your checking account.
Tip #4: Always negotiate fees. If you are a long-standing customer with your bank or credit card
company, call them to reduce or waive fees. Good examples of this are
over-the-limit credit card fees or late payment fees. If you have multiple
checking overdraft fees, negotiate to eliminate as many as possible.
Action: If you are late in
paying your credit card or have an overdraft, fix the problem as soon as possible.
Only after fixing the problem should you call to negotiate the fees. The bank
customer service representative will see your quick action and will be more
likely to help reduce the fees.
Tip #5: Be willing to shop. Banks understand the power of inertia. They know it's a pain to
change banks. But if you are willing to do so, you might be surprised to find
better alternatives for less.
Call us at (219) 769-3616 with your
questions, or email them to gward@swartz-retson.com.
