Watch Out For New Checking Account Fees
Thanks to new regulations protecting consumers from unfair bank charges, banks are looking for ways to scrape up more cash. The most recent trend is charging consumers for previously free checking account. Many banks are implementing these new fees for the use of their “free” checking accounts in the form of monthly maintenance and usage fees. Since many banks are making these changes to their fee schedules, it is important to consult with your bank about any changes that may affect your account. This will allow you to be aware of charges before they occur.
Small Fees Add Up – Especially When You are on a Budget
These fees range from a few dollars to $25 per month. If consumers are not careful and do not know what to watch out for, they could find themselves paying $300-$400 per year in checking account fees. These new fees are being rolled out in response to the CARD act passed by Congress in 2010 which banned certain types of overdraft and excessive late fees.
Different banks are charging different fees that often depend on what type of checking account you have, and how much money you keep in your account. While some of these charges are unavoidable, some banks do make it possible to avoid this new service charge. This can include maintaining a certain balance and or utilizing direct deposit services. This is a bank’s way of rewarding you for doing business with them.
Look For Ways to Avoid Checking Account Fees
Looking for another way to avoid these extra fees? Many bigger banks are implementing this extra charge, so it can be beneficial to look into switching your banking to a smaller company. Many community banks are still offering free checking accounts, and have many other added benefits. Another option is to consider utilizing an online bank, or look into using a credit union. Both of these options allow the opportunity to enjoy free checking accounts, while enjoying the same benefits of traditional banking.
It is important to consult with your bank about any changes that may occur. You will also want to take a look at your current checking account, and make sure that you have the most appropriate type for your needs. If you have a checking account that requires a certain balance to be held, you may start seeing these new checking account fees. You may be able to switch to a different checking account that requires a smaller balance to be maintained. It is important to understand all regulations and terms of your checking account so that you avoid unwanted charges. If you stay educated, you can keep as much money as possible in your account.
Contact Advantage CCS For Help With Your Budget
If you are on a budget and in debt, checking account fees are a luxury you can’t afford. If you are looking for help with debt management, budget advice, or credit counseling, check out Advantage CCS. You will find an assortment of articles and other educational resources throughout this website or by contacting us online or via phone. Advantage CCS helps consumers take control of their debt and regain their financial freedom.