Today, Pay Less on Bank Check Fees

 Today, Pay Less on Bank Check Fees


What was once a minor nuisance for bank customers is now a significant source of revenue for financial institutions. National banks can lose millions of dollars due to fees of various kinds, but especially overdraft costs. I wrote this post to help you better understand bank check fees so you can make an informed decision about your banking.


There is a plethora of options when it comes to selecting a bank and the specific type of checking account you choose. If you take the time to compare the costs levied by each bank you're contemplating opening an account with, you can end up saving a ton of money on bank checks.

Among the numerous things to think about before creating your account are the following:

1. Figure out what kind of checking account will work best for you and your finances. Free accounts that don't charge you anything and don't demand a minimum balance are easy to come by. Even with this account type, there will be expenses associated with becoming overdrawn; however, we will discuss overdraft fees in greater depth later on.

While some of these free accounts may suit your needs, an interest-bearing checking account can be a great way to earn money on your deposits if you have more money to deposit and are willing to maintain a minimum amount.

A money market account similarly serves as a checking account, but opening and keeping one requires a somewhat bigger sum of money. There will be a monthly cap on the amount of checks you can write as well. Before you open the account, make sure you remember these items.

2. Look into the charge structures of both online banks and your local institutions. While it's true that online banks often provide better deals, overdraft fees are still something to consider even if you're not creating an interest-bearing account.

You should gather as much information as possible regarding the minimum balance requirement and the amount required to start the account.

3. You can end yourself spending a pretty penny on overdraft fees. Many of us who are already struggling to make ends meet are now in a precarious financial position. The most beneficial thing you can do for your financial situation is to make an effort to create a workable budget and adhere to it.

If you can help it, try not to let overdraft fees eat into your funds. That way, you can keep more of your hard-earned cash. You can set up automatic transfers between your checking account and a small savings account at some banks in the event that your checking account balance drops below a certain threshold.

In most cases, this is the optimal setup, as many "overdraft protection" choices don't actually provide much security. While it's great that these services will avoid charging you in the event of an overdraft, the reality is that they often simply pay the person to whom you sent the payment.

Instead of paying $35 or more for a bounced check, it's better to have your account linked to a savings account that may transfer the necessary cash immediately for free or for a minimum of $3 or $5 as a "convenience" fee.

While fees may be profitable for banks, they accomplish little to improve your financial situation, which is what matters most: maximizing the value of your own money. Follow these recommendations to the letter if you want to avoid paying fees when you deposit a bank check. 

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