Solidifying A Better Future For My Kids
3 Tips To Help You Avoid Fees On Your Free Checking Account
Jackie Watts
The primary reason many people choose to take advantage of free checking accounts is that these accounts offer all the benefits of a checking account but without the need to pay a monthly fee. Unfortunately, far too many people still end up spending a considerable amount of money on fees each month. The good news is, these fees can easily be avoided in order to ensure you are enjoying a free checking account that is really free. The three tips below can help you to accomplish this goal.
Tip #1: Avoid Using An Out-Of-Network ATM
It is quite common for people to rely on the use of an ATM in order to take cash out of their checking accounts. After all, an ATM offers a level of convenience that cannot be achieved by using a teller to complete your withdrawals. The problem is that if you use an ATM that is not owned by your bank, you will pay two additional fees. The first of these fees is charged by the ATM owner and the second is charged by your bank. This can make getting access to the cash you need quite expensive over the long term. Avoiding the use of out-of-network ATMs whenever possible will allow you to minimize or even avoid these fees altogether.
Tip #2: Connect A Line Of Credit Or Savings Account To Avoid Overdrafts
One of the most expensive fees that you can incur on your free checking account is an overdraft fee. This type of fee is assessed when you spend more money than is available in your checking account. In many cases, this situation can occur as the result of automatic payments that may post to your account before a deposit can be made. Connecting a personal line of credit or a savings account to your free checking account can help to ensure you never get stuck paying overdraft fees. This is because in the event you do exceed the funds available in your checking account, the required funds will be automatically transferred from your connected account in order to prevent your account balance from going negative.
Tip #3: Avoid Transfer Fees
If you routinely transfer money between your free checking account and your savings account, you could find yourself spending a considerable amount of money on transfer fees. This is because many checking accounts will offer a limited number of transfers before fees are charged for this service. The most effective way to avoid these fees is to transfer funds either at the teller counter or through an ATM that is in your bank's network. Using these options for routine transfers will allow you to save your free transfer services for emergencies.
Contact a bank or credit union that offers free checking accounts to learn more.
Share
One day a few years ago, I was forced to take a good, hard look at my finances. I realized that my husband and I were living outside of our means, and I knew that we needed to make some changes and fast. I started looking for ways to spend less money, and I was able to completely eliminate some of our largest expenses. It was a lot of work, but it really helped us to feel more free financially. This blog is here to help other people to spend a little smarter and to avoid the hassles that come along with spending more than you have.