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Copyright © 2000 - 2008
AR Home

By Su Moran

From The Asian Reporter, V18, #28 (July 15, 2008), page 7.

By Su Moran

Wells Fargo

Not one red cent. Nada. Zero. Nothing.

That’s how much 43 percent of consumers pay each month for banking services, according to a July 2006 survey by the American Bankers Association. The survey also revealed 14 percent of consumers pay only three dollars or less.

Financial-services companies offer a wide variety of accounts designed to meet their customers’ needs and financial circumstances, save them time, and create convenience. Consumers who select their accounts carefully can receive an array of valuable financial services for pennies a day or, better yet, completely free, including free checks, free cashier’s checks, free direct deposit, free ATM and debit cards, and free 24-hour telephone customer service.

Following are 11 tips on how to minimize fees for best financial services:

1. Look for a financial services provider that will combine the balances of all accounts (checking, savings, and possibly brokerage) to reduce or completely eliminate monthly service fees.

2. Study which account best fits individual needs. There is no sense paying a fee for an account with features that are unused. For instance, many financial-services companies provide low-fee accounts for customers who write few checks. People who write a lot of them, however, will not benefit from this type of account.

3. Some financial-services companies offer interest-bearing checking accounts for a monthly fee. This type of account is good for consumers who maintain a large balance, but in some cases it may be more economical to choose an account that does not pay interest but has a lower monthly fee.

4. Decide how often access to savings-account funds might be necessary. If few withdrawals are foreseen, look for an account that offers a lower fee in return for fewer withdrawals.

5. Review accounts every year to make sure they’re still a good fit. Are features available for a fee still being used? If not, inquire about changing to a different account — one with lower fees.

6. Ask about overdraft protection. Considering the cost of a returned check and the damage it causes to a credit rating, the small fee charged for overdraft protection may be worth it. Some financial-service providers waive annual fees for credit cards linked to checking accounts for overdraft protection.

7. Balance checking accounts on a regular basis to avoid writing checks when funds are not available to support them. Remember to include debit card transactions.

8. Don’t wait for monthly account statements to arrive in the mail. Sign up for online banking and check account balances often to avoid overdrafts. Many financial-services providers offer free online banking.

9. Some providers also offer free bill paying. Account holders simply instruct the company to send checks to pay their bills and the amounts paid are withdrawn from personal accounts.

10. If there is a student or child in the family, ask whether special accounts or discounts are available for them.

11. Look at ATM usage. If fees are paid to use another company’s ATMs, switch accounts to that financial-services provider and use their ATMs for free.

With almost 9,000 companies in the U.S. insured by the Federal Deposit Insurance Corp., the financial-services industry is one of the most competitive in the country. This competition helps consumers get the lowest prices and highest value possible.

By asking a few basic questions about banking needs, taking the time to shop around, and talking with a local banker, consumers can choose the most suitable financial-services company and avoid paying fees for services they do not use.