Right now, most people are on a tight budget and there is no room for paying extra bank fees. Additional bank fees have a way of accumulating into huge prices. As such, the best way to save your money is to avoid them.
Here are some of the fees;
Currency exchange charges
Due to the democratization of most jobs and services, a lot of cross-border payments now take place. Most times, bank accounts are used for this. As such, banks not only charge upfront the exchange fees but sometimes charge hidden costs which the customers don’t know about.
Normally, banks sell currencies to one another at subsidized rates while they exchange currencies for higher rates for their clients. To avoid currency exchange fees, you can use some online platforms such as Transferwise, now known as Wise, to make or receive cross-border payments or use the services of currency exchangers. However, you should read what other people in Finland are saying about the online platform on Suomiarvostelut before you patronize them.
Naturally, you won’t be charged any fee if you use an ATM card affiliated with your bank except you withdraw beyond the number of times free services are offered. However, if you use an ATM card that belongs to another back, ensure you withdraw a large amount of money so that you won’t have to withdraw multiple times or take enough cash with you. You can also have an account with financial institutions that have broad ATm coverage or use a debit card.
Overdraft fees are charged when you can’t fulfill the financial commitments you make; this means that you spend more than what is in your account. To avoid overdraft fees, you should closely monitor your transactions and checkbook. When you keep your records up-to-date, then you can avoid incurring debts. Besides, there are different tech tools you can use to keep track of your expenses now. For instance, you can have a budgeting app on your phone or ask your bank to send you alerts when your balance reaches a certain level.
Minimum balance charge
If you have a savings account, you have to double-check if the bank requires you to have a minimum balance. As such, your balance will be monitored to check if it meets the required average at the end of the month or any time during the month.
To avoid minimum balance charges, choose a bank account that has the minimum balance requirement that aligns with your budget. Also, register for direct deposits. As such, your paycheck or benefits check will be deposited automatically to avoid forgetting to deposit them in time.
Foreign transaction fees
When you travel abroad, the chances are high that banks will charge you more when you try to withdraw from the ATM. You can instead avoid foreign transaction fees and save your money for more food and adventures. For instance, you can bank with a financial institution in the global network of ATM, banks which came together and waived ATM withdrawal charges, or you can choose a bank that charges little ATM fees or carry as much cash as you need with you.