How to Avoid Common Bank Fees?

People always pay fees for all kinds of things. It is no big deal, really, and it is such a part of everyone’s life and routine. Fees are something that people accept as a general part of life, if you want to have something – either product or service – you need to pay a fee for it.

Fees are relatively acceptable, because just like many things in life, they are inescapable and inevitable. People have already found them to be quite acceptable. But even so, that does not mean people are happy and willing to pay every fee that they come up against. With all the types of fees that need to be paid, there are bound to be those that are considered to be too annoying. This doesn’t mean that there aren’t those that people are not going to pay willingly, but the annoying ones definitely stand out in everyone’s minds.

For anyone looking for solid examples of such fees, bank fees come to mind very easily. So that people could be able to handle it better – and before they do so – they need to have a basic understanding of it first.

Bank Fees

As should be expected, the term bank fee does not simply cover one area or aspect of charges that banks have for their services. It is almost all encompassing term that describes the nominal fees that are meant for different bank services. It could be a fee for making simple requests such as for a deposit slip and other, more complicated transactions.

An important fact about bank fees is that it makes up a considerable part of the bank’s revenues. This is especially true for local and regional bank branches. One important characteristic of bank fees is that it is not deductible. The exception would be for IRA accounts – banks charge for annual custodial fees.

Bank fees seem to be regular fixtures of banks and the processes within it. But do the bank’s customers actually know the kind of bank fees that they are asked to pay? That’s important because people need to have an understanding about things that they are charged with. Bank customers need to realize that they are also charged for things or transactions that they might have otherwise believed to be free. Examples are bank fees that are for paper statements and for transactions that are done outside the country.

It has been said that the reason why banks actually have those bank fees, is that additional services are being provided to them, necessitating the added fees. Since those added services are sure to cost money, hence the additional fees. The more services there, the more bank fees would be charged. People would undoubtedly want to avoid any additional bank fees, regardless of the reason for its existence. Because there are many different types of bank fees, there are those that can be considered as minimal, and therefore should be avoided as much as possible.

The following are some of the ways on how it could be avoided :

Fee for Early Account Closure

It is a common practice for banks to have as a requirement for their customers to have their accounts open for a specific period of time before they could close it. Not doing so would mean having to pay a fee. It is a way of discouraging people to close their accounts immediately. Examples of this are the following – HSBC and US Bank charge $25 to their customers who close their accounts within 180 days. On the other hand, Citibank charges a similar fee of $25 for accounts that are closed before 90 days have been reached.

Banks are obviously just trying to look after themselves, since it costs money to open and close an account, and they would like to recover their expenditures through the fees. In order to avoid the bank’s early closure fee, a customer simply needs to make sure that the account is open beyond what is considered the bank’s minimum period.

Minimum Balance Fee

The minimum balance fee is another annoying bank free that can be avoided. For some customers, this can be really annoying because who would want to be charged with a fee when their bank account balance is already quite low? But it is a reality; there are banks that charge because some customers cannot meet a minimum amount.

Since the banking situation calls for low interest rates, a thing such as a minimum balance fee exists. With the banks earning less than adequate money from the accounts due to low interest rates – particularly those that have low balances – the fees are there. A bank actually has to spend about $300 annually for something like checking account services, which further explains and even justifies the minimum balance fee.

Foreign Transaction Fees

Then there is also something that is known as foreign transaction fee. This is charged when the bank customer happens to purchase something from a foreign country with the use of a US credit card. The bank would then charge the customer with what’s called a conversion fee. This type of bank fee is done so that the customer can be protected by the bank, what with the increased chance for fraud that’s present in foreign transactions. In order to avoid this, simply use cards that do not have this kind of foreign transaction charge – examples are the Venture and Platinum Prestige cards from Capital One and the Sapphire Preferred card from Chase.

Paper Statement Fee

The paper statement fee from banks could also be a little annoying. Since online banking is now available, more and more people have gone for it and those who do not want to find themselves being burdened with unnecessary fees like the paper statement fee. It is really more of a practical concern than anything, since postage costs continue to rise and a paper statement is going to cost banks around $1 to send to their customers. The more often they do that, the more money it costs. And that in turn demands customers to go for online banking more.

Maintenance Fee (annual or monthly)

The maintenance fee that is regularly charged by many banks (it could be annual or monthly) is one of the most common of bank fees. There are banks that charge a maintenance fee of about $12 per month for a regular checking account. The fee has the option of being waived though, if the customer is able to meet certain requirements from the bank. For a customer to avoid this kind of fee, he needs to look at the policy of the bank and see if it could actually be avoided directly or if he has to fulfil certain requirements.

Returned Mail Fee

If the mail sent out to you by your bank gets sent back to them for any reason, a fee is usually charged which is known as the returned mail fee. The banks usually have “return service requested” printed on their envelopes, so that it gets sent back to them whenever it can’t get delivered to their customers. In order to avoid having to pay this fee – which could easily increase – you should update your new address whenever you move.

These are some tips on how to avoid common bank fees.

Tips For Saving Money Among Post Graduate Students

Post graduate education can provide you the career advancement youíll need but it comes at a steep cost. Law and Medical schools can be quite expensive. Most student loans would cover the tuition but some will probably exclude miscellaneous fees.

Even if post graduate education can be demanding, there are ways and means in which you can save money for other expenses and personal savings. It requires discipline and determination to achieve this. Part time jobs are encouraged but they can also be a distraction when it is not balanced properly.

Minimize Coffee Take Outs

A simple brewed coffee from starbucks can already cost a lot when it is accumulated within a month of daily coffee take outs. Opt for investing in a good coffeemaker or percolator and you can cut the cost of buying your brewed coffee in coffee shops in half. Bringing your own coffee is highly economical. 1 bag of coffee grounds can serve you 20-30 cups when you have coffee twice a day.

Make Homecooked Meals

Dining in fast foods and restaurants will cause your expenses to skyrocket, making it a hassle for you to buy your post graduate books and learning materials. Make homecooked meals and put them in a brown bag. It allows customization of your diet, which can provide you not just a tightened budget on meals but also a healthy lifestyle as well.

Say No To Clubbing

Frequent night outs in clubs will cause you to shell out a minimum of $200.00 per night. Not to mention the clubís entrance fees and other services youíll avail. If you want to have a cheaper night out with your friends, try to buy a few cases of beer and host your own house party instead.

Get A Part Time Job

There are part time jobs offered on campus for post graduate students who want to make ends meet. Medical school may be difficult to balance since it involves a rigid and mentally demanding study schedule. You can opt for temp jobs instead during long breaks. There are some law schools which provide a fast track program for those working during the day.

Invest In A Good Printer

A good printer is a best investment for study notes and creating your mini business for your fellow classmates who want to get their notes and homework printed. A printer can also help you cut the cost of paying in computer shops and other establishments.

Get Coupons that Have Great Deals

There are gift coupons which are found in social media sites and in the newspapers on how you can get items in bulk for a cheaper price. These coupons can help you cut your expenses in groceries and other items, saving the extra money to where it is actually needed. There are also food coupons offered by restaurants which can help you avail a huge discount.

Avail Of Free Condoms

Condoms can be expensive when purchased at a drugstore, especially when they come packaged in boxes. Brands such as magnum and Trojan cost more. Avail of free condom samples given at school clinics and hospitals. They provide a set of condoms which can be used in one week.

Small Payday Loans with No Credit Check Are Favorites

One of the most common requirements of lending companies for borrowers to comply with is at least a year of credit history. Lenders use it as the basis in evaluating the prospective borrower’s performance on how he manages his account. If you are just starting to get credit, it is difficult to get and pass this criterium. However, there are now payday loan lenders who offer small payday loans. This is a great relief for individuals who want to establish their credit for the first time especially students who are fresh from college and starting their first jobs.

The Importance of Credit

Most of our needs today are obtained through credit. We use credit cards to buy personal things. Even during cash emergencies, credit cards are ready sources of funds. However, there are urgencies that even credit cards can’t provide if you do not qualify. So we use other funds like small payday loans. These cash loans are short term that could be negotiated in $100 to $1,500 amounts. You can pay them after 14 days or at most 30 days. There are however some lenders who allow their borrowers to pay in installments. This arrangement gives the borrower the opportunity to settle the loan earlier and save some money on interest.

Small but Costlier

Payday loans are known to be small. Do you know that this is one of the reasons why they are costlier in terms of interest? Yes, they are charged higher rates because they are insignificant. Lenders contend that it would be impractical to charge the regular 7% in an APR to a loan of say $100. This earns only $7 in a year or $0.60 per month. Since payday loans are due in two weeks, who would invest in such a venture in order to make $0.30 in half a month per every $100 loan? It is really not feasible and practical. Lenders try to compensate sky high rates (36% to 780% in APR) by fast deposit of the loan and no credit check or no faxing requirements. Even those individuals who have bad credit histories can borrow as long as they can show proof of steady sources of income including their salaries.

Bad Credit Scores

Small payday loans with no credit check are now fast becoming the favorites of people who are not necessarily responsible borrowers as shown by their low credit scores. Lenders have finally come to realize that there are people who are really creditworthy without their fault or of their own making. There are borrowers who were victims of erroneous credit scores or something beyond their control happened so that their previous payments were affected. Likewise, it is a fact that even good customers suffer from financial difficulties once in a while. Besides, short term payday loans normally do not reflect a real credit score. What is also entered in the credit reports are payment histories of the customers on their long term transactions.