Survey finds high bank fees: How you can avoid them
ATM fees and monthly maintenance charges on checking accounts are at record levels, according to a survey released on Monday, but you can avoid getting hit with them if you follow some simple steps.
The MoneyRates.com Bank Fees Survey, conducted since 2009, found that monthly checking account maintenance charges hit an average of $12.87, up 18 cents in the past six months. And the average minimum balance to avoid those fees rose to $5,709, up $269 in in six months.
On top of that, the survey found, only about a quarter of all checking accounts do not charge a maintenance fee and are actually free. That's the lowest level recorded in the survey.
"Free checking used to be commonplace," Richard Barrington, senior financial analyst for MoneyRates.com, said in a statement. "Now, free checking isn't quite extinct, but let's just say it's on the endangered species list."
ATM fees rose 9 cents to an average of $1.61 for those being charged by their own banks. Those being charged as non-customers saw the average rise 14 cents to $2.65.
Here are some tips for avoiding getting hit by big banking fees:
Avoid the largest banks. MoneyRates.com said the biggest banks also had the biggest fees.
Shop around. Before signing up for a checking account, be clear what you could get charged for and what would trigger those charges. Some banks, for instance, will waive all maintenance fees if you use direct deposit.
Consider an online bank. Online banks typically have far fewer fees than do their brick and mortar counterparts, MoneyRates.com said. And, they noted, consumers tend to have fewer and fewer in-person interactions at banks, reducing a key concern about using online banks.
Consider a credit union. Credit unions tend to be more consumer friendly than the larger banks, typically levying fewer fees and lower ones when they do.
Know the ATM rules. Be clear when you'll be charged for using an ATM and when you won't. Most banks won't charge you if you use machines run by the bank or those on certain networks. However, when you stray you can be made to pay dearly. It's not unusual to have a bank charge $2-$3 for using a non-network ATM plus a surcharge to use the machine itself of $2-$4. Should you pay $7 to get $20?
