Overdraft Charges Exposed

Your bank is cheating you. I know you have used them for many years and you have never had one before, but trust me, banks are changing the ground right under your feet by quietly instituting fees for everything from changing your address to wanting to use your debit card. Avoid bank fees by choosing a new bank that will not steal from you. They should be paying you to use your money.

Fees aren’t fair, especially new fees. I understand banks are going through a hard time. After they ruined their economy with their gambling addiction, after they came crawling back to the taxpayers to prop them up, the addiction has crept back, but they cannot gamble with the taxpayer money. So, they have started stealing, as many addicts do, to satisfy their need. Who better to steal from than the people whose money is already in they bank. To learn so much more important info about full details, visit their website.

You aren’t alone. In fact, banks make billions of dollars per year in overdraft fees in the United States alone. Bank fees have become big business. And, as government regulations reign banks in on their often reckless (and some say abusive) practices around credit card issuance, banks are going to be looking even harder than ever for ways to recoup those lost profits by charging-you guessed it-more bank fees.

More Overdraft Charges….

The overdraft fee crisis in its present form is a relatively recent banking phenomenon, going back only 5 to 10 years. There are two main causes of the current overdraft fee situation: overdraft protection programs and the invention of the debit card. These two banking instruments actually work hand-in-hand to squeeze more money out of bank customers each year by way of overdraft fees. To learn more important details about overdraft charges, look at this article; http://unicron.blog.com/?p=74.

Banks have instituted fees for everything from having an account to not using the account you paid a fee to have. Mid-west regional bank TCF once charged me a fee for ‘inactivity’ because I did not use my debit card enough. $25 dollars later, I closed my account and took my business elsewhere.

U.S. Bank is charging if you change your address and forget to say to the bank. Five dollars for every returned piece of mail. I bet they’re praying you move. SunTrust bank charges for moving your money through online transfers. PNC Bank charges a whopping $25 for a replacement debit card. Many banks are increasing their ATM fees as well. Bank of America and Wells Fargo charge $3, while M& I bank recently charged me $5 to withdraw $50, a 10% fee. Good thing my bank reimburses me for other banks’ outrageous ATM fees.

The best defense against these fees is a good offense. Find out if your bank has fees you’re likely to incur. Ask your banker if you are able to avoid these fees by altering the status of your account. Tell them bluntly that you’ll avoid fees even if that means finding a new bank. Most fees have loopholes. Your banker should tell you how to prevent them. One easy way to avoid overdraft charges is to set up overdraft protection by allowing overdrafts to be met by an automatic transfer from a savings account. This is better than a course of credit because it saves you from possible future interest charges. Be careful that our overdraft protection is not cause for a fee itself. Some banks automatically sign up their customers for this ‘service,’ and then charge them huge fees if they ever use it. Real overdraft protection should be free.

A disconcerting fact that banks collected almost $30 Billion in overdraft fees in 2011 is staggering. Programs to protect accounts from overdraft fees cost money as well. People are confused as to the best way to protect themselves from these extra charges. Banks can indicate that they have lost money in overdraft charges from years of age at the past, (in 2009 the fees reached an all-time high of just over $37 billion), but they found their way around that by charging for protection.

Even if you incur a fee, do not give up. Ask if you can get the fee forgiven. If they refuse, start in the search for a new bank.

Some banks, such as online bank USAA, have very few fees. While they do not have bricks and mortar branches, they have an awesome online banking system. Besides, would you really miss going to the bank? To get money, use any ATM and USAA pays the fee. To deposit, take a photo of the check with your phone-it’s instant. Most importantly, USAA is not in the search for a way to steal from you with fees.

There are other honest banks. Most credit unions have better fee schedules than big banks, and with a growing network of coop credit unions, you may order to use your ATM card coast to coast. Be suspicious of large national banks. Many of them have the attitude that you need them more than they need you. Also be wary of banks that cater to students and other financially insecure clients. These banks thrive on fees. They lure clients in with big offers, set them up with accounts, but then they punish them with fees when they make a mistake.

One final tip: when you find a bank worthy of your business. It may be worth consolidating your finances into that one bank. Many banks reward accounts that have higher deposits. Plus, the bigger a customer you are, the less likely they’re to scare you off with unfair fees.

Once you zero in on a bank, find out the total cost the bank will be charging you. Remember that you can have an account without the monthly fees and surcharges. One option to avail this benefit is getting your paycheck directly deposited into the account for payment of bills, expenses, etc. This will ensure that a certain level will always remain in your account. This makes the bank believe that you’re interested in becoming a long-term customer. Even if you opt for keeping a minimum balance or having a certificate of deposit, the bank may waive off the charges. Another method to avail this benefit includes, opening of savings account using the same bank. There are many banks who not only waive off the fees but also the entire cost. This may save you a degree of money. Hence, ensure that you get an account from the right bank.

Banks charge various fees, with a view to make profit and for covering their operational cost. Some banks may charge fees for online banking, debit card fees, overdraft fees, monthly maintenance fees, etc. If you’re a student or a person with a low-income, you’re entitled to choose a no-frills account. This means that no fees will be imposed for your personal checks and allied services. Some banks also qualify senior citizens and low-income applicants for waiving off the service and ATM fees on a monthly basis. Also, find a bank that will offer free check printing and won’t charge you on a per-check transaction basis. Research for a checking account with a bank that will offer more percentage of interest and charge lesser amount of fees.

In order to select the right account, call the customer service of banks and clear your doubts. Remember that using only your checking account will affect your credit score badly as you’ll not make any provision for revolving credit. Ensure that you’ll also put some expenses on your credit account. Also, as banks don’t want to lose out on their money, they’ll run a credit check on you to help ensure that you haven’t applied to some other bank regarding a similar account. You can also check out the online reviews of the auditors of the banks to know about the services they offer. Remember, do not just settle for the very first bank that you come across; look around to get the advantage of best deals and features in checking accounts.

Sometimes people close their accounts only to discover that they magically reopen and accrue more fees. If this has happened to you, there are two possibilities.

It is possible that you’ve an agreement with a 3rd party vendor-the power company or Amazon-that has the authority to deduct or deposit money into that account. You have to go back to that third party and change account information with them. Your bank can legally (incredibly) reopen your account and charge you a fee.

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