Reviewing bank statements is not an enjoyable task for most people. Observing how much was spent on takeout, useless magazine or television channel subscriptions, and expensive gym membership contracts can be frustrating and discouraging. Even worse is seeing your bank charge you with checking account fees for unclear reasons. Just to store your money in a safe place, you can be paying up to $100.00 per year. There are actually many ways to avoid these monthly fees. Here’s what you need to know so you’re not losing your hard-earned money.
Maintain Your Minimum Balance
Each financial institution has its own fees and rules, but most customers at banks and credit unions can avoid monthly charges by maintaining their balance above a certain amount. If you can’t meet the mark of the figure required by our bank, you can make wise changes to boost your balance. Putting aside just $25.00 a week can help you save within your means until you meet your goal, and then maintain that balance. This way, you won’t have the worry of fees taking away from your earnings.
Enroll in Payroll Direct Deposit
Setting up a direct deposit service through which your paycheck or money from another bank is paid into your account automatically can help you skirt fees. You can set up your direct deposit so that all of your income goes straight into your checking account, and then transfer what you need to save each month or biweekly. This allows you to maintain that balance within your checking account so your bank cannot charge you.
Open a Savings Account
Some banks and credit union will waive fees for customers who have multiple accounts with their institution. There are many types of savings accounts, but even a basic account can help you avoid extra charges. You can also link your savings account to your checking account to make transfers easier and protect yourself from overdraft fees.
Debit Card Transactions and Debit Card Processing Fees
Sometimes spending your money is a good thing! Some banks will waive monthly service fees for users who frequently use their debit cards to complete transactions, rather than cash.
Part of managing your bank account is avoiding overdraft. Overdraft is when a withdrawal is attempted on your checking account but you do not have sufficient funds. When this happens, you can be charged by your bank for overdraft. If the money is not made available soon or if the withdrawal attempts are stopped, you can continue to receive overdraft fees. Always monitor your account balance to avoid this.
Sign Up for Online Statements and Alerts
Online alerts and statements bring your information to your e-mail instead of sending you a letter in the mail. Paper statements are often charged to your account, but many banks provide free online statements to save you money and provide an incentive for customers who wish to preserve the environment. Having alerts sent to your e-mail can help you keep track of when your account balance drops below a certain limit so you will know to add more cash to your account.
Let LUSO Federal Credit Union Help You Manage Your Accounts
If you need help managing your financial accounts or want to learn how to implement some of these money-saving tips, LUSO Federal Credit Union can help you. We are a not-for-profit, member-owned financial cooperative dedicated to providing members with quality financial services and products. We at LUSO pride ourselves on serving the financial needs of our members and helping them manage their finances, such as credit card debt, or lowering bank service fees. Our services and rates are available in Wilbraham, and Ludlow, Massachusetts. Contact us at our Ludlow branch at 1(844) 587-6328 or our Wilbraham branch at 1-(800) 808-5876 to learn more.