Beware the bank that nickels and dimes its customers. Such is the world we live in today with banks like Bank of America, Citi, and Wells Fargo announcing new fees for debit cards and even checking accounts.
It used to be that we gave our money to a bank to earn more money, not to spend it.
So what’s a saver to do?
1.) Switch banks. Many consumers are switching over to community credit unions for their absence of fees. In fact, many offer better savings rates on savings accounts and CDs and often offer lower interest rates on loans.
2.) Go Online. Online banks like INGDirect.com offer fee-less banking and higher interest rates on your savings. While you lose the convenience of ATMs and local branches, you gain in money saved. Then again, maybe banks will start to charge you fees just for visiting a branch!
3.) Use the 2 Cs – Cash and Credit Cards. Cash is still free to withdraw from your own bank at least and costs nothing extra to use. Credit cards offer you rewards for using them and have no fees, but you MUST be extremely disciplined in paying your credit card off each month. If you’re late on even one payment, it defeats the purpose.
4.) Negotiate – Banks are people too. Go in to your local branch and speak with a representative. Leverage your history and relationship with the bank and ask that they remove the monthly fee for you. You can’t get something you don’t ask for.
What other strategies do you plan to use to avoid the new bank fees?