Save on Bank Fees

Do you pay your bank too much? The chances are that you do. Most banks charge extra fees for everything from processing your check to stop-payments and overdraft protection, not to mention overdraft charges themselves.

Since banks make money on your money, there's no reason to pay them for the privilege of you using it. Here's how to minimize those bank fees.

Don't write checks when you don't have to. Keep cash (and a tight fist) for as many purchases as you can, except for bills that would be less expensive to pay through the mail. This means you may have to work on your self-discipline so that you won't spend cash for things you hadn't intended to.

Many banks pay interest on checking as well as savings accounts, but they require that you keep a minimum balance of several hundred dollars. If you can possibly qualify, look for an interest bearing account. It sure won't make you rich, but it will at least help offset the other costs of banking.

Never buy checks through your banking establishment. They tack an extra charge to cover their expense (and then some) of ordering and handling. Do it yourself for free; there are several trustworthy companies that print checks for up to 75% less, and if you want to hop around, you can take advantage of "first time" deals for quite some time before running out of companies! You don't have to do that to save substantially over what your bank is charging, though.

As a general rule, smaller banks have lower (and fewer) fees. Check out any banks in your area that are owned locally. Be aware that they usually pay lower interest rates for savings, too. There's no law that says you have to have a savings account at the same bank where you have a checking account. Savings and loan associations are on the lower end when it comes to fees and charges, too.

Bank savings accounts are poor investment places. Almost anything will give you better interest rates. They are convenient because it's fast and easy to deposit and withdraw money from most accounts, unless you have a few thousand dollars they want to keep. Higher interest accounts usually take more time to withdraw money from, as well as requiring higher balances.

If you're a senior citizen, make sure you get all you're entitled to. Ask about senior discounts like checking accounts with no fees.

Bank by phone or internet whenever you can, instead of going to the bank - and save gas, wear and tear on your vehicle as well as time. Have your check electronically deposited if possible. You can keep an eye on your account online for most banks and keep your checkbook balance up to date, which can minimize the chances of overdraw checks or other mistakes.

Credit Unions usually have lower overall rates and higher interest on savings, so if you qualify for one, join up.

Shop for these services the same way you'd shop for anything else - take your time, comparison shop and read the fine print. Ask questions and expect satisfactory answers. If you don't get them, ask again, or go to the next bank. You have a right to make the decision. It's your money, remember?