Before a rainy day, it is wise to check on if the status of your checking account. A small cash drip from your account is something you need not to take for granted. It’s time to stop those leakages otherwise it maycost you a huge financial burden.
The director of the banking analytics firm, Rob Rubin said, “Even the immaterial amount deducted on an account of fee [can] burn your interest earnings.”
With the use of your checking account, you might now become aware of the fees banks tend to collect from you. With these 5 ask yourself questions, it’s time to analyze whether you have the right account for you.
1. Did I pay this years account maintenance fee?
Even if you are not doing financial transactions from your checking account, it may be costing you monthly on an account of the maintenance fee. To stop this, ask your bank if there is a way to get this monthly burden waived. Setting up direct deposits or keeping a minimum balance are two options which your bank may offer you. And if it doesn’t offer you anyway, then shop around for the other that takes much care of your balance.
2. Do I have a convenient ATM network?
Estimate how frequent you need to withdraw money from your ATM and each time you get charged for that. You can avoid this deduction by using debit or credit cards everywhere. Or you can choose to open an account with the bank which offers a shared ATM network or have thousands of ATMs nationwide such as All point.
David Albertazzi, the Aite Group consulting firm, senior analysts added, “Small banks can be consumers best choice, if they started refunding clients ATM surcharges.
3. Is the overdraft fee unbalancing my budget?
According to CFPB, a single overdraft fee is enough to spoil your monthly budget.
It is advisable to set an overdraft protection transfer service option. This automatically transfers amount from your savings account to avoid overdraft fees on your debit card purchases.
4. What bank services are available to me?
Take note of your past activities by looking at your monthly bank statements. If money orders, wire transfers, ACH transfers or cashier’s checks are your most frequent activities then you need to look at banks which deduct lowest fees for these services.
5. Am I missing out on something?
Check what service your bank is offering you. Explore your bank’s website to know more about online banking, text alerts when your balance is below a minimum required amount, etc. Make a note what it doesn’t offer you.
If you’re planning to change your bank, check for the opportunities, promotions for opening new bank accounts.
Mark Schwanhausser, Javelin Strategy & Research director, said, “Maintaining bank account is about feeling confident, whether my money is going on the right track.”