3 Ways to Avoid Bank Fees

How much do you pay to bank? Over the course of a year, adding up ATM, overdraft, account maintenance and check processing fees (to name a few), how much are you actually paying to save?

The math, as we know, is getting uglier, as bank fees soar. Fed up? Here's how to stay in control of your money and avoid bank fees:

Switch to Fee-Free Checking…It Does Exist.

While fee increases are beyond our control, we don't have to stand for them. It will take time and effort, but we can always switch to a different bank with fee-free checking. According to Bankrate.com, 45% of banks still offer this type of account. Begin by searching at credit unions and community banks.

Qualify For Fewer or No Fees

If you're resistant to switching banks, at least find out how to minimize your exposure to fees. At some banks, as long as account holders do one or a combination of things, they may be exempt from certain fees. For example, at Wells Fargo, Value Checking account customers face a $5 monthly fee unless they sign up for direct deposit or maintain an average daily balance of $1,500. At Sovereign Bank, Classic Checking account customers can also avoid a $5 monthly fee by maintaining a $500 average daily balance.

Opt Out of Overdraft Protection

The average overdraft protection fee rose to $30.83 this year – a new record. This optional protection kicks in when we try to make a purchase with  "insufficient funds" in our checking account.  Banks save us the embarrassment of being rejected at the cash register and will take money from one of our other linked accounts and toss it into checking to cover the transaction. Convenient? I guess, though hardly a smart way to save.

Photo courtesy: Unlisted Sighting on Flickr