Understanding Bank Fees
Today’s payment landscape has changed considerably. Debit cards, automatic deductions and electronic bill payment are rapidly replacing paper cheques as the preferred payment method. And banks are offering a whole new crop of services — and related fees and penalties — you should know about.
Here are a few tips for traversing the bill-payment landscape, according to an online report by practicalmoneyskills.com.
Balance your accounts. Tracking your account’s incoming and outgoing money is more important than ever. Cheques used to take several days to clear. Now, many transactions post immediately. Make sure you’ve got enough money in your account to cover a purchase or payment or it could cost you.
Get in the habit of checking your account balance everyday on your bank’s website or toll-free number. It only takes a moment and can tell you when a deposit or automatic deduction has posted. It’s also a great way to spot a cheque or debit payment you forgot to enter in your register — and to notice any fraudulent activity on your account.
ATM surcharges: Many banks charge a fee if you use another bank’s ATM; and, they usually charge non-account holders to use their ATMs. A few suggestions: Choose a bank with the ATMs convenient to where you live and work; join a credit union that waives fees for affiliated institutions’ ATMs; or use your debit card to get cash back on shopping transactions. Just be sure to faithfully enter all transactions in your register.
Be aware of overdrafts. Overdraft protection is where your bank covers your cheque or transaction so it doesn’t bounce. Some banks will cover overdrawn cheques and then charge you an overdraft fee.
Sign up for alerts. Ask if your bank provides free phone or email notices that alert you when your balance dips below a certain level, when a cheque or deposit clears, or when a payment is due. These alerts can help reduce what you pay in fees.
Culled from Punch
