How to Avoid the 3 Most Common Types of Bank Penalties

Deals The List
Posted: 8:28 PM, Oct 16, 2017

If you've got money, you've got a bank. And if you've got a bank, you've got fees which are going up. That's a trend that's not going to change anytime soon. Bankrate's Greg McBride is sharing tips with Jimmy Rhodes to avoid the three most common kinds of penalties.

1.  Out of Network ATM Fees

You're going to pay the ATM owner and then oftentimes you're going to pay your own bank a fee for going outside the network. Together, these fees can easily be $5 or more per transaction. Remember that community banks, credit unions and online banks are vying for your business. They may even reimburse you for ATM fees that you incur, which basically gives you latitude to go to any ATM.

2.  Overdraft Fees

The most common overdraft fee $35 so sign up for text alerts when your balance goes below, say a $100 and link your checking and savings accounts. That way, if you do slip up, it's your money, not the bank's money, that covers that shortfall.

3.  Checking Fees

The vast majority of non-interest checking accounts are either free or can become free simply by signing up for direct deposit. For a lot of people, that's a pretty low hurdle to clear in order to get that free checking account.

Which bank are you with and are you happy with them? Join the conversation!