Unless you’re very financially savvy, there’s a high chance that you are being charged with hidden fees, and these small, often overlooked charges are adding up to something significant. If you want to avoid them, here are some fees you need to pay extra attention to.
Overdraft Charges
Undoubtedly, having an overdraft can be useful, but interest rates are hefty, especially if you exceed your allowance. While they are decreasing, it’s still important to read the small print and understand your interest rates. If they’re significant, it might be time to find an alternative overdraft provider.
Credit Card Annual Fees
A lot of credit cards come with annual fees that might be justified by rewards or benefits, but if you’re not utilizing these perks, you’re wasting your money. It’s wise to assess whether the benefits outweigh the costs annually, and if they don’t, consider switching to a no-fee credit card.
Late Payments
Missing a payment deadline for bills, subscriptions, or other regular expenditures can lead to some significant late fees. That’s why setting up automatic payments, such as direct debits or standing orders, is smart. If you can’t afford these payments, it’s time to reassess your monthly spending.
Currency Conversion
Paying in foreign currency while traveling can incur currency conversion fees, which can be pretty huge, with The Conversation claiming that the average is 7.6%. Nowadays, international payment cards are available to avoid these forex fees, so if you travel a lot, it’s crazy not to get one.
ATM Charges
When you use an ATM that isn’t provided by your bank, you might be hit with fees from both the ATM operator and your bank, which can quickly accumulate. To avoid them, consider using ATMs affiliated with your bank, or using special payment cards which bank fees generally don’t apply.
Account Maintenance
Some banks charge a monthly fee just for having an account with them, especially if your balance falls below a certain threshold. That doesn’t seem fair, so you should regularly review your bank statements to identify them. Then, make sure you’re maintaining the minimum required balance to avoid them completely.
Paper Statement Fees
These days, many companies charge a fee just to send you a paper bill, which is a waste of money, considering these documents are available digitally. Not only does making the switch save you money, but it will also reduce paper clutter and help the environment, so think about it.
Returned Mail Fees
Many people move to a different location without informing their bank, and when their bank sends them mail to their previous address, they charge a return fee. This problem is easy to solve; keep your bank informed about any address changes, and you’ll never experience such charges.
Check Fees
While payment checks aren’t so common anymore, if you still use them, you could be paying check fees through the nose. If you only use them occasionally, that’s no big deal, but if you’re regularly sending checks, it might be time to make the switch to digital payments.
Unused Subscriptions
It’s becoming increasingly easy to lose track of monthly subscriptions; streaming services, paid apps, and meal subscriptions are just a few examples. With so many, it’s easy to accidentally pay for services you no longer use, so spend some time assessing your monthly outcomes and make cancellations where necessary.
Account Closure
When you close a bank account soon after opening it, you will be charged a closure fee. This is why it’s important to understand the terms and conditions before you open it, considering whether you really need the bank account and whether you’ll be using it in the long term.
Inactivity Charges
Banks make a profit from leveraging your cash flow, so if you leave your account inactive for a substantial period, some will charge fees for this. However, there’s a simple trick to avoid ever receiving these charges: make the occasional small transactions, and your account will never be flagged as inactive.
Excess Transaction Fees
Some bank accounts limit the number of monthly transactions you can make, and if you exceed this, excess transaction fees will be applied to your account. Once again, the solution here is simple: familiarize yourself with your bank’s terms and conditions and compare your transaction volume to its excess threshold.
Reimbursement Costs
Insurance providers and other services and businesses will sometimes charge you fees when reimbursing you for ATM usage or other expenses. Frustratingly, these fees can sometimes negate the benefit of the reimbursement itself. So, check the fine print on such offers, ensuring your reimbursements aren’t being drained by hidden charges.
Balance Transfer Fees
When you transfer a balance from one credit card to another, the bank may charge you a fee, often to take advantage of a lower interest rate. So, compare the long-term savings of the lower interest rate against the immediate cost of the transfer fee, protecting yourself from a loss.
Cash Advances
Credit cards have their uses, but requesting cash advances from them can be a slippery slope for your wallet. They come with massive fees and interest rates, so avoid using them unless absolutely necessary, considering alternatives like personal loans or lines of credit first.
Redemption Charges
When you choose to cash out or liquidate your digital assets within a certain time frame, some investment brokers will charge you redemption fees. Understanding these fees and their associated timeframes is very important, helping you to better plan your liquidity and avoid unexpected charges.
Reconnection Fees
If you miss utility payments and your services are disconnected, paying to have them reconnected often incurs a fee. The easiest way to avoid this is to keep up with your bills, and while that’s easier said than done, setting reminders can help keep you on track.
Notary Fees
Certain documents require notarization, which can cost you every time a signature is needed. Thankfully, many banks offer free notary services for customers, so check with your bank before paying elsewhere. This can be a simple way to avoid these fees while still accessing the necessary services.