Best Ways to Avoid Checking Account Fees

If you’ve recently received a letter from your bank stating that checking account fees are doing to go up, or you’re shopping for a new account and reviewing fees, make sure you understand the full scope of services and fees your account is subject to. Many banks do offer extended services that their competitors don’t, which is why you might find some have higher checking account fees than others.

However, it’s also important to note that some backs do waive fees for customers who maintain a high, steady balance in their checking account. If you don’t want to change banks just because of checking account fees, find out if you are eligible for this perk.

Here are some tips for avoiding checking account fees:

1. Read all mail from your bank. Only some people actually read the mail received from their bank. Your bank is required to inform you of any fee changes with a written letter, so make sure you are reading any letters that arrive in your mailbox. It’s easy to miss these when you get into the habit of just tossing your statements or letters from the bank, but they could be important!

2. Ask about alternative accounts. Some larger banks do offer several similar products with different requirements. Some of these accounts may not be subject to checking account fees, so don’t be afraid to set up an appointment with a personal banker and ask about alternative accounts that could be a better match for you. Sometimes switching to a different type of checking account is all it takes to avoid checking account fees.

3. Shop around. Take a look at competitor banks’ products and go online to see what services are available to you from other financial institutions. Remember that some banks charge a per-transaction fee after you write a number of checks, while others offer free services regardless of how many transactions you initiate. Take some time to shop around and find out if you can open up a checking account with fewer fees.

4. Set up overdraft protection. You could end up paying a high price for bouncing a check, so protect yourself from fees and charges by setting up overdraft protection. Even if you’re very good about balancing your checkbook, writing a bad check can happen to anyone. Setting up overdraft protection ensures that you will always have funds available for checks you write, even when there is no money left in your checking account. You will be linking your checking account to a savings account, and the bank has permission to transfer the necessary funds when you don’t have enough in your checking account.

5. Switch to a high-yield checking account. Ask your banker if you can open a high-yield checking account. These accounts look like savings accounts because they have higher interest rates on balances, but they operate just like a checking account. With these accounts, you can still issue a number of checks each month without any fees, and may even be able to link a debit card to the account. If you maintain a steady balance in your checking account, this type of account may be your best bet.