Bank Fees Are At A Record High
STILLWATER, Okla. – While many consumers are enjoying the lower cost of gasoline, there is another area where costs continue to rise – bank fees.
Fees are major revenue for banks, said Sissy Osteen, Oklahoma Cooperative Extension Service resource management specialist. It is no surprise that when the spread between what banks pay to borrow money and what they earn for loaning money decreases, they will look for other alternatives to increase income.
“In light of today’s economy, financial institutions have to find ways to ensure a steady income,” Osteen said. “Bank fees have hit an all-time high this year. For example, according to the Bankrate report, consumers using an out-of-network ATM pay on average a $1.97 surcharge. That’s about 11 percent higher than just a year ago.”
Another fee that is rising is the insufficient funds or bounced check fees. The national average for persons who bounce a check is $28.95. There may be an additional fee charged by the business that the check is written to. Failing to know your bank balance is a costly mistake. In addition, minimum balance requirements for free or online checking have increased.
In order to avoid some of these fees, Osteen suggests using only in-network ATMs.
“Simply for convenience, many consumers use out-of-network ATM because that’s what may be near their workplace or inside their favorite store,” she said. “One solution is to find a bank that better suits your needs and offers ATMs in locations that are convenient for you.”
When customers use their bank cards, after swiping the card they are given the choice of “debit” or “credit.” If you choose debit you are likely paying at least one fee such as a withdrawal fee for doing so.
Something else to keep in mind is to avoid overdrawing on your account. Overdraft fees can be costly. Check to see if your bank offers “overdraft protection.”
“Many people don’t know their account balances. If your bank offers online banking, keeping track of those balances is much easier,” Osteen said. “When it’s time to run checks at the bank, many of them run larger checks first. If you have several smaller checks out, they may bounce if, for instance, the big rent check or mortgage payment has already cleared. It’s important to know your balance so you don’t end up overdrawing your account for something inexpensive such as a quick lunch. With overdraft fees on the rise, that inexpensive lunch isn’t such a bargain.”