How to Avoid $5 Debit Card Fees Without Changing Your Bank
When Bank of America announced they would be charging $5 per month to use their debit card, many people started looking into changing banks. However, not everyone wants to change banks. If your bank is charging a debit card fee, here are some ways you can avoid that fee.
Credit Cards - This is only a good idea if you have the discipline to pay the balance each month. If not, the interest you pay on the balance may be more than the debit card fee. This can work out well for people who get points or cash back on their purchases. One way to ensure the amount is always paid is to schedule the payment to automatically come out of your account through an auto-payment or your bank's bill payment service.
PayPal - PayPal isn't just for online shopping. If you have a PayPal account for at least 60 days you're eligible for a PayPal Debit Card. The best way to use this card as a replacement for your bank debit card is to apply for backup funding. Backup funding on your PayPal debit card allows you to make purchases and PayPal transfers the money from your bank account as soon as the transaction. This will allow you to use the card without having to transfer the funds beforehand; just remember to keep track of what you spend.
Prepaid Debit Cards - This does require some research on your part since some of these prepaid debit cards have fees. One that doesn't is the American Express Prepaid Card. You can transfer money to the card from your bank account which takes about 3-5 business days, so to use this you'd need to have enough time for the deposit to clear before you need to use the funds. Note that for online purchases prepaid cards are not accepted by all vendors.
Increase Your Balance - Some banks are waiving debit card fees for accounts that maintain a certain minimum balance. This balance can be a combination of all of your accounts including savings, checking, investment accounts and mortgage and credit card debts. Check with your bank to see if they offer this service so that you can circumvent the debit fee.
Published by Shoshana Jackson
Shoshana Jackson is a life coach, business coach and freelance writer. View profile
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