Checking Account Cost Avoidance

What does a checking account cost?

How to avoid the cost

1. Monthly service fee

- covers the bank’s administrative costs

1. Monthly service fee

Many banking institutions don’t have this

fee. If there is a fee, keep enough money in

the account to meet the minimum or

average balance requirement. (You can

usually combine the money in your

checking and savings accounts to calculate

the minimum balance.)

2. Check writing

- a fee for each check you write over a

preset amount of free checks

2. Check writing

If there’s a fee for this, you can avoid

writing more checks than the limit of free

checks...or you can use your debit card for

purchases…or make cash withdrawals using your ATM card rather than writing a check for cash.

3. Customer service calls

- a fee for each call over a pre-set limit

3. Customer service calls

 If there’s a fee for this, try to keep your

calls within the free limit or ask the bank to waive it.

4. Check printing

- the fee for providing you with personal

checks (with your name and address)

4. Check printing

This fee may be waived, even for reprint

orders.

5. Bounced checks

- a fee for writing a check without enough

money in your account

5. Bounced checks

These fees are high. Keep track of how

much money you have and avoid writing

checks when you don’t have enough

money in your account to cover them.

6. Cancelled checks with statement

 - a fee for returning the paid checks to you

with your statement

6. Cancelled checks with statement

Banks are moving to electronic images of checks to avoid the cost of transporting paper checks. If you get into a dispute where you need the original as proof of payment, you can ask for a copy of the check.

7. Duplicate statement

- a fee for sending you another copy of

your statement

7. Duplicate statement

Keep your statements in a safe, organized

place so that you don’t lose them.

8. Use of an ATM not owned by your

bank

- a fee charged by the owner of the ATM

for its use; your bank may also charge a

fee for that use

8. Use of other ATMs

Select a service with ATMs that are close

to your work and home so that you don’t

have to use ATMs from other banks. Many

stores will also let you make a cash

withdrawal in addition to your purchase

when you use your ATM/debit card—

usually without a fee for getting the extra

cash.